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

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2015
[Japanese GAAP]May 12, 2015
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: Hiroshi Hanaoka, Director of Corporate Administration
Phone: +81-6-6455-9141
Scheduled date of annual general meeting of shareholders: June 26, 2015
Scheduled date of commencing dividend payments: June 29, 2015
Scheduled date of filing the securities report: June 29, 2015
Availability of supplementary briefing material on consolidated 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 Fiscal Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2015
260,5900.0
33,751
1.1
49,271
5.2
181,477 464.4
March 31, 2014
260,578
11.7
33,38729.1
46,83242.1
32,15660.6
Note： Comprehensive income: Fiscal year ended March 31, 2015: ¥193,771 million [279.7%]
Fiscal year ended March 31, 2014: ¥51,028 million [68.9%]
Total assets
Net sales
Net income per
Diluted net
EquityOrdinary income
Operatingshare
income per share Net income ratio
ratio
income ratio
Fiscal year ended
Yen
Yen
%
%
%
53.8
8.7
13.0
March 31, 2015
650.04
March 31, 2014122.47
18.1
15.3
12.8
Reference: Equity in earnings (losses) of affiliates:
Fiscal year ended March 31, 2015: ¥14,103 million
Fiscal year ended March 31, 2014: ¥11,273 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Net assets per
share

Equity ratio

Million yen%

Yen

As of March 31, 2015
810,727
589,923
As of March 31, 2014
324,028
207,715
Reference： Equity: As of March 31, 2015: ¥479,829 million
As of March 31, 2014: ¥194,565 million

59.2
60.0

1,496.16
746.25(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2015
March 31, 2014

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen

34,41926,920(86,966)(7,173)85,298(21,034)

78,702
43,787

2. Dividends
Annual dividends

Total
dividends
paid(Total)Dividend
payoutratio(Consolidated)

Dividend/Net
assets(Consolidated)

1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

Yen

Yen

Yen

Yen

Yen

Million
yen

%

%

-

8.00

-

12.00

20.00

5,214

16.3

3.0

-

10.00

-

12.00

22.00

6,455

3.4

2.0

-

11.0

-

11.00

22.00

Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
(Forecast)

Total

21.4

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 to March
31, 2016)(% indicates changes from the previous corresponding period.)
Profit (loss)
Net income
Net sales
Operating income
Ordinary income
attributable toper shareowners of parent
Million yen

First half
Full year%

266,000 109.0
560,000 114.9

Million yen%

Million yen%

Million yen%

Yen

33,500 113.5
74,000 119.2

35,00076,50053.3
55.3

14,00033,000(10.3)(81.8)

43.65
102.90* Notes:(1) Changes in significant subsidiaries during the period ended March 31, 2015 (changes in specified subsidiaries
resulting in changes in scope of consolidation): Yes
New: 2 companies
Nippon Paint (H.K.) Company Limited
Excluded: None
Nippon Paint China Holdings Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2015: 325,402,443 shares
March 31, 2014: 265,402,443 shares2) Total number of treasury shares at the end of the period:
March 31, 2015: 4,694,319 shares
March 31, 2014: 4,678,873 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2015: 279,177,386 sharesFiscal year ended March 31, 2014: 262,560,345 shares

(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2015
73,561 (43.5)
14,812(9.7)
21,759 (23.5)
18,113 (14.6)
March 31, 2014
130,266
4.0
16,39419.0
28,444
2.9
21,1981.3
Net income per
Diluted net
share
income per share
Fiscal year ended
Yen
Yen
March 31, 2015
64.88
March 31, 2014
80.74
(2) Non-consolidated Financial Position
Net assets per
Total assets
Net assets
Equity ratio
shareMillion yen%

Yen

As of March 31, 2015
296,089
264,074
As of March 31, 2014
211,480
147,481
Reference： Equity: As of March 31, 2015: ¥264,074 million
As of March 31, 2014: ¥147,481 million

Million yen

89.2
69.7

823.41565.66* Presentation regarding the implementation status of the audit procedures
These consolidated financial results are outside the scope of audit procedures under the Financial Instruments andExchange Act, and audit procedures for the consolidated financial statements have not been completed.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available
to the Company and certain assumptions that are judged to be reasonable. Actual results, etc. may differ greatly
from the forecast figures depending on various factors. For the assumptions underlying the forecasts andprecautions when using the forecasts, please refer to “Analysis Regarding Management Results” on page 2 of the
Attachment.

Table of Contents
1. Analysis Regarding Management Results and Financial Position ................................................................... 2(1) Analysis of Operating Results .................................................................................................................... 2(2) Analysis of Financial Position .................................................................................................................... 3(3) Fundamental Policy Regarding Profit Sharing and Dividends for the Fiscal Year Ended March 31,
2015 and Next Fiscal Year ............................................................................................................................ 5
2. Business Combination Status ........................................................................................................................ ...6
3. Management Policy ....................................................................................................................................... ...8
(1) Basic Corporate Management Policy ........................................................................................................... 8(2) Medium-term Corporate Management Strategy........................................................................................... 8
4. Basic Approach to Selection of Accounting Standards ................................................................................. ...95. Consolidated Financial Statements ............................................................................................................... 10(1) Consolidated Balance Sheets ................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ........................................................... 12(3) Consolidated Statements of Changes in Equity ........................................................................................ 14(4) Consolidated Statements of Cash Flows .................................................................................................. 16(5) Notes to Consolidated Financial Statements ............................................................................................ 17(Notes on going concern assumption) ................................................................................................. 17(Basis of presentation of consolidated financial statements)................................................................. 17(Changes in accounting policies)........................................................................................................... 17(Unapplied accounting standards, etc.) ................................................................................................. 18(Changes in methods of presentation) ................................................................................................... 19(Additional information) ....................................................................................................................... 19(Segment information, etc.) ................................................................................................................. 20(Relating to business combinations, etc.) .............................................................................................. 33(Information on per share)..................................................................................................................... 33(Significant subsequent events)............................................................................................................. 33
6. Other ............................................................................................................................................................. 37(1) State of Sales Performance......................................................................................................................... 37

1

1. Analysis Regarding Management Results / Financial Situation(1) Analysis of Operating Results
During the fiscal year ended March 31, 2015, consolidated net sales of NIPPON PAINT HOLDINGS CO.,LTD. (the “Company”) and its group companies (collectively, the “Group”) increased by 0.0% from thecorresponding period of the previous year (the “previous year”), to ¥260,590 million, consolidated operating
income increased by 1.1% from the previous year, to ¥33,751 million as a result of continued actions to lower
raw materials cost prices in the face of rising raw materials costs, and consolidated ordinary income increased
by 5.2% from the previous year, to ¥49,271 million. Consolidated net income was up 464.4% from the previous
year, to ¥181,477 million due to a gain on step acquisitions of ¥148,800 million recorded as extraordinary
income, accompanying the acquisition of equity of joint venture companies in the Asian region (making theminto subsidiaries).
Results by business segment are as follows. Overseas group companies, with the exception of somecompanies, adopt a December fiscal year-end, and a corresponding period for the period ended March 31, 2015
is from January to December 2014.
Japan
In this region, while automobile production declined compared to the previous year, net sales ofautomotive coatings remained at the same level as the previous year. As for industrial coatings, performance of
coatings for construction machinery and other applications was strong, but a decline in sales of coatings forhousing materials and other factors led to lower net sales compared to the previous year. With respect to tradeuse paints, weak performance in the overall market caused net sales to fall compared to the previous year.
As a result of these factors, consolidated net sales for the Japan segment decreased by 0.1% from theprevious year, to ¥187,204 million. Consolidated operating income increased by 26.7% from the previous year,to ¥34,232 million due to the transition to a holding company that occurred on October 1, 2014 leading to therecording of dividend income from overseas group companies (recording ¥7,824 million for the fiscal year
ended March 31, 2015) in segment net sales and profits. Additionally, such amount is eliminated as an internaltransaction under “Inter-segment transaction eliminations and other adjustments.”
Asia
In this region, with regard to the consolidated subsidiary, net sales declined substantially in Thailand
reflecting the impact of the economic slowdown stemming from political instability. Meanwhile in China, net
sales of automotive paints for plastics grew on the back of an increase in sales volume of Japanese automobile
manufacturers.
As a result of these factors, consolidated net sales for the Asia segment decreased by 4.0% from theprevious year, to ¥43,870 million, and consolidated operating income increased by 6.4% from the previous year,to ¥4,530 million.
With regard to share of profit of entities accounted for using equity method, at joint ventures in the Asian
region which was turned into subsidiaries in December 2014, sales of paints for house interior in China
continued to be favorable, and ongoing efforts were being made to reduce costs mainly of raw materials. Owing
to these factors, profitability further improved.
As a result, share of profit of entities accounted for using equity method for the Asia segment increased by
25.8% from the previous year, to ¥14,180 million.
North America
Regarding automotive coatings business operations in this region, net sales on a yen basis increased due tothe impact of foreign exchange rates, despite a decrease in net sales on a local currency basis caused by the cold
weather in January and February 2014 and the sale of a portion of unprofitable businesses at the end of the2

previous fiscal year.
As a result, consolidated net sales for the North America segment increased by 9.5% from the previous
year, to ¥25,794 million, and consolidated operating income rose by 35.9% from the previous year, to ¥2,685
million.
Other
Consolidated net sales for this geographic segment decreased by 3.2% from the previous year, to ¥3,720
million, and consolidated operating income decreased by 16.1% from the previous year, to ¥69 million.
Moreover, as a result of the acquisition of 39% of shares in a German paint manufacturer in the previous
fiscal year, share of profit or loss of entities accounted for using equity method for this geographic segment tobe recorded from the current fiscal year amounted to a loss of ¥77 million partly due to the expense of
amortization of goodwill.
Outlook for Next Fiscal YearFor next fiscal year (year ending March 31, 2016), our consolidated performance outlook reflects theeffects from the consolidation due to the completion of acquisition of equity of joint ventures in the Asian
region (turning them into subsidiaries) in December 2014. As a result, our outlook is that net sales will be at ascale that exceeds ¥500.0 billion and that the Group's percentage of net sales will grow to around 60%.
Domestically, while foreseeable demand continues to be sluggish, we plan to increase our trade-use paintmarket share in the next fiscal year by moving forward with the introduction of new products to the market thatmatch customer needs, and anticipate increased sales in industrial paint as a result of greater use of residentialuse paint as a result of a recovery in new residential construction as well as greater use of construction andindustrial machine paint as a result of a recovery in capital investment.
Additionally, while price fluctuations in crude oil and naphtha are unpredictable, the three low-pricestrategies the Group has been pursuing (design / supply / manufacturing) will continue to be implemented,
ensuring net sales and profits by working toward the continued reduction of costs.
Overseas, in the trade-use paint businesses in the newly consolidated China, Malaysia, and Singapore
markets, the Group is building firm business bases that will allow it to obtain a top share in the residential
interior paint section and aims to achieve further growth in net sales in the next fiscal year as a result. While thecompetitive environment in our main overseas market of China is growing more difficult as a result of slowing
economic growth, we will attempt to reduce prices by introducing cost-reduction methods used in Japanthrough the Chinese Survival Challenge (Lean for Growth), becoming a competitive force from a cost
perspective while using the Company's powerful brand power to re-awaken demand.
In North America, where business developments focus on the automotive paint business, our outlook is forsteady net sales.
As a result of the above factors, our outlook for next fiscal year’s consolidated business performance is¥560.0 billion in net sales, ¥74.0 billion in operating income, ¥76.5 billion in ordinary income, and ¥33.0
billion in profit (loss) attributable to owners of parent. Also, amortization expenses (¥15.0 billion) of goodwill
and intangible assets resulting from the acquisition of equity of joint ventures in the Asian region (turning theminto subsidiaries) are calculated as selling and administrative expenses.

(2) Analysis of Financial Position
1) Status of Assets, Liabilities, and Net Assets
Total assets increased by ¥486.70 billion from the end of the previous fiscal year to ¥810,727 million. The
increase was mainly attributable to the consolidation of eight joint venture companies between the Company
and Wuthelam Holdings Ltd. and 38 subsidiaries of these companies that were previously accounted for using
the equity method, and goodwill recorded thereof.
Liabilities increased by ¥104.49 billion from the end of the previous fiscal year to ¥220,804 million. The
increase was mainly attributable to the consolidation of joint venture companies.
3

Net assets including minority interests increased by ¥382.21 billion from the end of the previous fiscal
year to ¥589,923 million. This was mainly attributable to an increase in capital stock and capital surplus of¥51.15 billion each due to a capital increase via a third-party allotment of shares conducted on December 5,
2014, in addition to an increase in retained earnings from the recording of net income and an increase inminority interests from the consolidation of joint venture companies.
As a result, equity ratio fell from 60.0% at the end of the previous fiscal year to 59.2%.
2) Status of Cash Flows
Business operations for the fiscal year ended March 31, 2015 resulted in an inflow of ¥34,419 million,
investing activities resulted in an outflow of ¥86,966 million, and financing activities resulted in an inflow of¥85,298 million, resulting in cash and cash equivalents (hereinafter “cash”) of ¥78,702 million, an increase of¥34,920 million compared to the end of the previous consolidated fiscal year.
(Cash flows from operating activities)
Cash flows from operating activities were ¥34,419 million (an increase of ¥7.50 billion compared to theprevious fiscal year). Primary factors include an inflow of ¥47,757 million resulting from depreciation andamortization expenses applied to income before taxes and minority interests and gain on step acquisitions (therevaluation of existing holdings) of ¥148.8 billion and other non-cash income resulting from the acquisition ofequity of joint venture companies in the Asian region (turning them into subsidiaries), and share of profits
accounted for using the equity method and other non-cash income, offset in part by income taxes paid of¥13,338 million.
(Cash flows from investing activities)
Cash flows from investing activities were ¥86,966 million (an increase of ¥79.79 billion compared withprevious fiscal year). Primary factors include an outflow of ¥82,632 million as a result of the acquisition ofshares of subsidiaries due to changes in the scope of consolidation and ¥4,184 million in the purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Cash flows from financing activities were an outflow of ¥85,298 million (outflow of ¥21.03 billion in theprevious year). Primary factors include repayment of loans payable of ¥8,239 million, as well as a ¥7,898
million in cash dividend paid, offset by income of ¥101,837 million as a result of the issuance of new sharesthrough third-party allocation of shares on December 5, 2014.

4

(Reference) Change in cash flow-related indexes
186th Period
Year Ending
March 31, 2012

187th Period
Year Ending
March 31, 2013

188th Period
Year Ending
March 31, 2014

189th Period
Year Ending
March 31, 2015

Equity ratio (%)

49.7

56.0

60.0

59.2

Equity ratio based on market valuation(%)
Interest-bearing debt to cash flow ratio(times)

60.6

86.2

125.8

174.1

1.6

0.7

0.5

0.4

Interest coverage ratio (multiplier)

41.1

80.1

88.8

181.1

*Equity ratio: Ownership equity / Total assets
Equity ratio based on market valuation: Market capitalization / Total assets
Interest-bearing Debt to Cash Flow Ratio: Interest-bearing debt / Cash flow
Interest Coverage Ratio: Cash flow / Interest payment
1. All values are calculated using financial values on a consolidated basis.
2. Market capitalization calculated on a basis of total number of issued shares excluding treasury shares.
3. Cash flow values used are operating cash flow.
4. Interest-bearing debts are all liabilities that pay interest among liabilities calculated on the consolidatedbalance sheet.
(3) Fundamental Policy Regarding Profit Sharing and Dividends for the Fiscal Year Ended March 31, 2015 andNext Fiscal Year
The Group’s policy regarding dividends to shareholders is to allocate profits according to performance.
As a result of acquisition of equity of joint venture companies in the Asian region (turning them into
subsidiaries), a ¥148.8 billion gain on step acquisitions (the revaluation of existing holdings) was recorded as
extraordinary income.
Based on income for the fiscal year ended March 31, 2015 excluding this extraordinary factor, we plan ona year-end dividend of ¥12 per share, making the full-year dividend ¥22 per share.
Additionally, we plan a full-year dividend of ¥22 per share for the next fiscal year.

52. Business Combination Status
The Group consists of the Company, 112 subsidiaries, 8 affiliates, and 4 other related companies, and its
primary business is the manufacturing and sales of paints and fine chemicals.
Additionally, the Company corresponds to a specific listed company, etc., and of the minor criteria forsignificant matters with regard to the insider trading regulation, the numerical standards that are set bycomparison with the size of listed companies, shall be determined based on figures on a consolidated basis.
The positioning and relationship to segments of the business of the Company and the Company's relatedcompanies are as follows.
Consolidated subsidiaries

Entities accounted for using equity method- Japan -- Japan -Nippon Paint Co., Ltd.
Nippon Paint Hanbai Co., Ltd
Nippon Paint Industrial Coating Co., Ltd.
Daiwa Paint Trading Co., Ltd.
Nippon Bee Chemical Co., Ltd.
Nippon Fine Coatings, Inc.
Nippe Trading Co., Ltd.
Nippon Paint Marine Coatings Co., Ltd
And 6 other companies

1 company- Asia Noroo Automotive Coatings Co., Ltd. (South Korea)
Nippon Paint (India) Private LimitedNipsea Management Company Pte. Ltd.
(Singapore)And 4 other companies- Other 1 company- Asia Nipsea Chemical Co., Ltd. (South Korea)
Asia Industries, Ltd. (Taiwan)
Nippon Paint (Thailand) Company Limited
Nippon Paint (H.K.) Company Limited (Hong Kong)
Nippon Paint (China) Company Limited
Guangzhou Nippon Paint Co., Ltd. (China)
Nippon Paint (Chengdu) Co., Ltd. (China)
Nippon Paint (Singapore) Company Private
Limited
Nippon Paint (M) Sdn. Bhd. (Malaysia)
Paint Marketing Co. (M) Sdn. Bhd. (Malaysia)
Nippon Paint Philippines, Inc.
Nipsea Technologies Pte. Ltd. (Singapore)And 60 other companies- North America Nippon Paint (Usa) Inc.
And 7 other companies- Other Nippon Paint (Europe) Ltd. (U.K.)
Nippon Paint Boya Sanayi Ve Ticaret
Limited Sirketi (Turkey)
And 2 other companies(Note) The Company does not have any consolidated subsidiaries available in domestic securities markets.

6(Japan)In this region, the Company are involved in the paint business in areas such as automotive paint, trade-use
paint, and industrial paint, as well as the fine chemical business.
Automotive paint is manufactured by Nippon Paint Co., Ltd. and Nippon Bee Chemical Co., Ltd. and soldthrough Daiwa Paint Trading Co., Ltd. and authorized dealers.
Trade-use paint and automotive repair paint are primarily manufactured and procured by Nippon Paint Co.,
Ltd. and As Paint Co., Ltd. and sold through Nippon Paint Hanbai Co., Ltd. Additionally, heavy-duty and concrete
anticorrosive paint is manufactured and sold by Nippon Paint Anti-Corrosive Coatings Co., Ltd.
Industrial paint is manufactured and sold domestically by Nippon Paint Co., Ltd. and is sold by Nippon Paint
Industrial Coating Co., Ltd. and authorized dealers. Also, pre-coating paints for metal plates are manufactured andsold by Nippon Fine Coatings., Inc.
Aside from the above-mentioned companies, there is also Nippon Paint Marine Coatings Co., Ltd., which
manufactures and sells marine paint, Nippe Home Products Co., Ltd., which manufactures and sells home-use
paints, and Nippe Trading Co., Ltd., a trading firm specializing in import and export, along with three paintmanufacturing subsidiary companies affiliated with As Paint Co., Ltd. and Nippon Bee Chemical Co., Ltd.
In the fine chemicals business, surface treatment chemicals and display-related, electronic, and particulatematerials are manufactured and procured by Nippon Paint Co., Ltd. and sold by Daiwa Paint Trading Co., Ltd.,
Nippon Paint Industrial Coating Co., Ltd., and authorized dealers.
As for entities accounted for using equity method, we have one company that designs and constructs roadtraffic safety facilities.
(Asia)In this region, for South Korea, Taiwan, China, Hong Kong, various Southeast Asian nations, and India, theCompany is involved in the paint business in areas such as automotive paint, trade-use paint, and industrial paint,
as well as the fine chemical business.
The Company directly holds eleven consolidated subsidiaries including Nippon Paint (China) Company
Limited, two entities accounted for using equity method including Nipsea Management Company Pte. Ltd., ten
paint manufacturing and sales companies, one fine chemical manufacturing and sales company, two paint sales
companies, one presiding company, and one research and development company.
Ten consolidated subsidiaries, one entity accounted for using equity method, ten manufacturing and sales
companies for plastic paints, and one sales company are affiliated with Nippon Bee Chemical Co., Ltd.
Seven consolidated subsidiaries are affiliated with Nippon Paint Marine Coatings Co., Ltd., and all conduct
the manufacturing and sales of marine paint.
Additionally, there are 43 consolidated subsidiaries and three entities accounted for using equity method
affiliated with consolidated subsidiaries directly held by the Company.
(North America)
In this region, the Company is primarily involved in the automotive paint business.
The company uses the directly-owned consolidated subsidiary Nippon Paint (Usa) Inc., as a presiding
company, under which are six consolidated subsidiaries, two paint manufacturing and sales companies, one plastic
paint manufacturing and sales company, and three plastic paint sales companies affiliated with it.
Additionally, one consolidated subsidiary is affiliated with Nippon Bee Chemical Co., Ltd., a manufacturer
and seller of plastic paints.
(Other)In other regions, the Company is primarily involved in the automotive paint business.
The Company uses the directly-owned consolidated subsidiary Nippon Paint (Europe) Ltd., as a presiding
company in the United Kingdom, and one consolidated subsidiary is affiliated with it that manufactures and sells
paints.
7

Additionally, there are two consolidated subsidiaries, and one entity accounted for using equity method that
manufacture and sell paints.
3. Management Policy(1) Basic Corporate Management Policy
Since its establishment in 1881, the Company’s management principles state that “The Nippon Paint
Group is committed to contributing to the welfare of society as a whole through its business activities, working
together for the mutual prosperity and benefit of everyone,” and upon these principles have put forth thefollowing managerial vision to share its values.
・ We will deliver satisfaction and deep impression to our customers by providing excellent specialty
chemicals products and services, centering coatings technology
・ We will grow globally based on respect for the cultures and values of entire world・ We will pursue corporate culture that accumulates people with challenging sprits and enthusiasm
Based on this fundamental approach, we recognize that the Group’s social responsibility is to create a
relationship of trust with all stakeholders and to contribute to society, and will strive to conduct continued andexpansive corporate activities with it in mind.
(2) Medium-term Corporate Management Strategy
The Group’s performance suffered due to effects of the global financial crisis that took place in 2008, andthus began the “Survival Challenges” (hereinafter “SC”) 1st stage beginning in fiscal 2009 in an attempt toreturn to profitability. Additionally, “SC 2nd Stage,” which ended this fiscal year, was launched in fiscal 2012 in
an attempt to establish firm profitability. As a result of efforts over the past six years, domestic businessprofitability in particular has increased greatly, with consolidated operating income rising from ¥3.0 billion (FY2008 performance) to 33.7 billion (FY 2014 performance), showing definite results.
The company also transitioned to a holding company structure in October 2014, and in December 2014
acquired equity of joint ventures (turning them into subsidiaries) in order to maintain its structure and become agrowing company.
(i) Reorganization of Domestic Business
On October 1, 2014, the Company changed its trade name to Nippon Paint Holdings Co., Ltd., and theGroup transitioned to a holding company structure. Keeping an eye on future growth strategies, in December
2014 the Group made the pre-coating paints for metal plates business Nippon Fine Coatings., Inc. into a wholly
owned subsidiary company, and in March 2015 it sold a portion of its holding in Nippon Liner Co., Ltd. to a
manufacturer of materials relating to highway-attached facilities as a result of reconsidering its highway paintmanufacturing and construction businesses. In April 2015, the Company reorganized its domestic business,
newly reorganizing into various businesses that deal in automotive, trade-use, and industrial paint businesses aswell as the surface treatment chemical business.
Beginning with these business firms, the Group will strengthen its control by managing as one all its
companies in Japan, Asia, North America, and Europe, proposing business strategies, financial strategies, andhuman resources strategies in order to do what is best for the group as a whole.
Newly-started business firms have proposed their own growth measures appropriate to the businessmodels of their business and region and are now attempting to implement them. By accurately understanding
and rapidly responding to consumer and market needs that differ depending on business and region, theCompany is attempting to increase its market share in the domestic economy, which suffers from sluggish
demand, as well as to enter new fields. Additionally, proactive cooperation is being pursued with overseas
Group companies, and a role is being played in order to lay the foundation needed to become a global paintmajor.

8

(ii) Synergies Resulting from Strategic Cooperation
In 1962, the Company began an Asian joint venture together with Wuthelham Holdings Ltd., a Singaporebased company, which has since then has established a firm position as an Asian paint manufacturer that among
other achievements holds the top market share for interior residential paint in China, Malaysia, and Singapore.
In December 2014, moves were made to become the majority owner of this joint venture, and profit
improvement measures were taken with it mostly in its primary Chinese business that were implemented
domestically during SC stages I and II, and by further increasing net sales and profits, we will further stabilize
our business foundation in Asia.
Additionally, in 2013, it acquired 39% of the stock of a German paint manufacturer that has strong
business ties with European automobile manufacturers, and in April 2015, this held amount was increased to51%, further deepening the Company’s relationship with it and attempting to increase the adoption to andsupply of the Group’s paints in Chinese manufacturing locations primarily through European automobile
manufacturers, establishing the medium-term automotive paint business as a cornerstone of global expansion.
In SC 3rd Stage, which begins next fiscal year, the Group will further deepen and strengthen its relations oftrust with its partners, with a special focus on these newly-consolidated overseas Group companies,
accelerating the appearance of synergies.
Using the above measures as a base, the Group has established as its goal to become a global paint majorthat “Has a leading position in the coatings and other related business in each global region, or a top 3 or betternet sales position in each business region.” In order to accomplish this goal, the first goal of SC 3rd Stage has
been set in fiscal 2017 and the Group will work to create a business platform that will act as a foothold tobecoming a global paint major.
4. Basic Approach to Selection of Accounting Standards
In order to increase international comparability of financial statements, increase product quality andefficiency of group management, and strengthen governance, preparations are being made with the goal of
adopting IFRS (International Financial Regulation Standards) by the time of the fiscal year 2018 annual
securities report.

95. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

As of March 31, 2015

43,591
86,714331
17,497
1,668
9,446
4,712
8,702
(492)
172,171

89,007
136,694
43,752
29,6003,476
20,201
7,218
14,962(3,179)341,736

79,253(51,819)
27,43362,914(52,996)
9,917
22,743(19,097)
3,645
18,742
1,634
(621)
1,013
1,048
61,801

105,066(61,496)
43,57093,547(69,968)
23,57826,714(21,939)
4,775
20,288
2,073
(705)
1,368
7,349
100,930

10,984–
3,699
14,684

210,538
54,01753,518318,073

72,025
1,888
183
1,789
(514)
75,371
151,857
324,028

47,284
917
183
1,775
(174)
49,987
468,991
810,727

(Million yen)
As of March 31, 2014
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

11

As of March 31, 2015

45,026
11,824
4,695
7,320
6,442
15,744
91,05282,272
11,456
10,868240
9,931
52,208
166,977

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

2,612
1,198
27,404172
304
16,763
5,370
53,826
220,804

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

78,86278,338314,743(6,432)465,513

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

12,21813
4,307(2,224)
14,316
110,094
589,923
810,727

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Share issuance cost
Restructuring cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss on revision of retirement benefit plan
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

12

For the fiscal year ended
March 31, 2014
260,578
166,938
93,64060,25233,387For the fiscal year ended
March 31, 2015
260,590
168,039
92,55058,79833,751

84
655
11,273
2,032
1,211
15,257

161
876
14,103
2,057
1,074
18,273

276
586
–
–
949
1,811
46,832

173
625
462
528
963
2,754
49,271

63
–
96
160

23
148,800
61
148,885

436
10
467
54
968
46,024
12,657(1,149)11,50834,5162,359
32,156

195
46
–
45
286
197,869
12,165
1,814
13,980183,889
2,412
181,477

Consolidated Statements of Comprehensive Income(Million yen)

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

13

For the fiscal year ended
March 31, 2014
34,516

For the fiscal year ended
March 31, 2015
183,889

2,853
(3)
6,885
–

5,508
25
6,080
1,437

6,776
16,51251,028(3,169)9,882
193,771

47,224
3,803

190,009
3,761

(3) Consolidated Statements of Changes in Equity
For the Fiscal Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Millions of Yen)
Shareholder’s equity
Capitalstock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Net income
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapitalsurplusRetainedearnings

Total
shareholders’equityTreasuryshares27,712

27,187112,318(337)

166,881

27,712

27,187112,318(337)

166,881–(4,203)32,156(4,203)32,156(6,052)(6,052)–––

27,952(6,052)

21,90027,712

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

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Net income
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodDeferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehens
ive income

–

3,950

0

(9,574)3,950

0(9,574)

Minority
interests

Total net
assets(5,623)

10,766

172,024(5,623)

10,766

172,024–(4,203)32,156(6,052)
–
2,876

(1)

12,193(3,661)

11,407

2,382

13,7902,876(1)12,193(3,661)

11,407

2,382

35,690

6,827

(1)

2,618

(3,661)

5,783

13,149207,715

14

For the Fiscal Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Millions of Yen)
Shareholder’s equity
Capitalstock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Net income
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period27,712

CapitalsurplusRetainedearnings

27,187140,270

Total
shareholders’equityTreasuryshares(6,389)(1,268)27,712

27,18751,15051,150139,002(1,268)(6,389)187,513102,300(5,735)
181,477(5,735)
181,4770

188,782

(44)

(44)

1

2

51,15051,150175,741(42)

277,999

78,86278,338314,743(6,432)465,513

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Net income
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period6,827

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehens
ive income

2,618(3,661)

5,783

(1)

Minority
interests

Total net
assets13,149207,715(1,268)

6,827

(1)

2,618

(3,661)

5,783

13,149206,446

102,300(5,735)
181,477
(44)
2
5,391

15

1,688

1,436

8,532

96,945

105,477

5,391

15

1,688

1,436

8,532

96,945

383,476

12,21813

4,307(2,224)

14,316

110,094

589,92315

(4) Consolidated Statements of Cash Flows(Million yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales and retirement of property, plant andequipment
Loss (gain) on sales and valuation of investment securities
Loss (gain) on step acquisitions
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in net defined benefit liability
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from issuance of common shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

16

For the fiscal year ended
March 31, 2014

For the fiscal year ended
March 31, 2015

46,024
6,113
(739)
276

197,869
5,895(1,038)173(11,273)(14,103)

371

172

(37)
–
(1,955)(488)(1,479)860(871)
36,8003,188(303)(12,765)
26,920(54)(148,800)
1,874
1,724
(358)
(1,117)(123)
42,114
5,833(190)(13,338)
34,419(5,527)503(2,224)166–(4,184)
131
(21)
133
(5,772)–(76,860)

–

418

(92)
(7,173)(811)(86,966)(9,420)
20
(133)
(313)
(6,052)(4,203)(931)––(21,034)
2,281
993
42,793(933)
210(7,517)(359)(44)(5,735)(2,162)
101,837
2
85,298
1,818
34,56943,787–346

43,78778,702

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Basis of presentation of consolidated financial statements)
Excluding the following, there are no major changes from the content of the most recent
securities report (submitted June 30, 2014), and so it will be omitted.
(Major changes regarding subsidiaries)
During this consolidated fiscal year, the Company acquired eight joint ventures between the
Company and Wuthelam Holdings Ltd. in China, Malaysia, and Singapore, and as a result, thefollowing eight companies and 38 of their subsidiaries are now included in the scope of
consolidation.
Nippon Paint (H.K.) Company Limited
Nippon Paint (China) Company Limited
Guangzhou Nippon Paint Co., Ltd.
Nippon Paint (Chengdu) Co., Ltd.
Nippon Paint (Singapore) Company Private Limited
Paint Marketing Co. (M) Sdn. Bhd.
Nippon Paint (M) Sdn. Bhd.
Nipsea Technologies Pte. Ltd.
and other companies totaling 38 companies(Changes in accounting policies)
Effective from the fiscal year ended March 31, 2015, the Company adopted the “AccountingStandard for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No.
26, May 17, 2012; hereinafter the “Retirement Benefits Accounting Standard”) and the“Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, March 26,
2015; hereinafter the “Retirement Benefits Guidance”), for the provisions prescribed in the mainclause of Paragraph 35 of the Retirement Benefits Accounting Standard and the main clause of
Paragraph 67 of the Retirement Benefits Guidance. Accordingly, the Company reviewed thecalculation methods of retirement benefit obligations and service costs, and changed the method
for attributing projected retirement benefits to periods from a straight-line basis to a benefit
formula basis. Additionally, the Company changed the method to determine the discount ratefrom a method using a discount rate based on a duration of bonds similar to the averageremaining service period of an employee to a method using a single weighted average discountrate that reflects the projected payment period of retirement benefits and the amount projected
for each payment period.
In adopting the Accounting Standard for Retirement Benefits, etc., as of April 1, 2014, theeffects of changes in calculation methods of retirement benefit obligations and service costs areadded to or deducted from retained earnings, pursuant to transitional treatment stipulated
under Paragraph 37 of the Retirement Benefits Accounting Standard.
As a result, as of April 1, 2014, net defined benefit liability increased by ¥1,973 million,
while retained earnings decreased by ¥1,268 million. In addition, operating income, ordinary
income, and income before income taxes and minority interests for the fiscal year ended March
31, 2015 increased by ¥121 million, respectively.
Additionally, effects on per share information are described where appropriate.
17

(Unapplied accounting standards, etc.)(Business combinations, etc.)
・ “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,
2013)
・ “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22,
September 13, 2013)
・ “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13,
2013)
・ “Accounting Standard for Earnings Per Share” (ASBJ Statement No. 2, September 13, 2013)
・ “Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures” (ASBJ Guidance No. 10, September 13, 2013)
・ “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4,
September 13, 2013)(1) Summary
These accounting standards, etc., have been revised primarily concerning (i) treatment ofchanges in holdings at the parent company toward subsidiaries which continue to becontrolled during the additional acquisition of shares, etc., at a subsidiary, (ii) treatment ofrelated fees, (iii) display of net income and changes to non-controlling shareholders fromminority interests, and (iv) treatment of provisional accounting processes.
(2) Scheduled date of application
These are scheduled to be applied from the fiscal year ending March 31, 2016. Additionally,
concerning the treatment of provisional accounting processes, these are scheduled to be
applied for business combinations that are implemented on or after April 1, 2015.
(3) Effect of application of the aforementioned accounting standards
The amounts of effects are under evaluation during the creation of financial statements forfiscal year ended March 31, 2015.
(Consolidation of foreign subsidiaries)
・ “Practical Solution on Accounting for Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (Practical Issues Task Force (“PITF”)
No. 18, March 26, 2015)(1) Summary
The above accounting standard involves the implementation of responses to United Statesaccounting standards regarding goodwill that were revised in January 2014, implementationof responses to ASBJ Statement No. 22, “Accounting Standard for Consolidated Financial
Statements,” which was revised in September 2013, and clarification of expense accounting
for actuarial differences in accounting for retirement benefits.

18

(2) Scheduled date of application
This is scheduled to be applied from the fiscal year ending March 31, 2016.
(3) Effect of application of the aforementioned accounting standard
The amounts of effects are under evaluation during the creation of financial statements forthe fiscal year ended March 31, 2015.
(Changes in methods of presentation)(Consolidated balance sheets)“Available-for-sale securities,” which were included in “other” of “current assets” during theprevious fiscal year, have exceeded 1/100 of the total amount of total assets, and arepresented separately from the fiscal year ended March 31, 2015. To reflect this change, theconsolidated financial statements for the previous fiscal year have been rearranged.
As a result, “other” of ¥9,033 million which was presented in “current assets” on the
consolidated balance sheets during the previous fiscal year has been rearranged to “availablefor-sale securities” of ¥331 million and “other” of ¥8,702 million.
“Lease assets,” which were separately presented in “intangible assets” during the previous
fiscal year, are no longer significant in value, and are included in “other” from the fiscal year
ended March 31, 2015. Furthermore, the amount of “lease assets” presented in “intangible
assets” during the previous fiscal year was ¥33 million.
“Long-term loans receivable,” which were separately presented in “investments and otherassets” during the previous fiscal year, are no longer significant in value, and are included in“other” from the fiscal year ended March 31, 2015. Furthermore, the amount of “long-termloans receivable” presented in “investments and other assets” during the previous fiscal year
was ¥104 million.
“Lease obligations,” which were separately presented in “current liabilities” during theprevious fiscal year, are no longer significant in value, and are included in “other” from thefiscal year ended March 31, 2015. Furthermore, the amount of “lease obligations” presented
in “current liabilities” during the previous fiscal year was ¥281 million.
(Consolidated statements of income)“Gain on sales of investment securities,” which were separately presented in “extraordinary
income” during the previous fiscal year, are no longer significant in value, and are included in“other” from the fiscal year ended March 31, 2015. Furthermore, the amount of “gain on salesof investment securities” presented in “extraordinary income” during the previous fiscal year
was ¥95 million.
“Impairment loss,” which were included in “other” of “extraordinary losses” during theprevious fiscal year, has exceeded 10/100 of the total amount of extraordinary losses, and ispresented separately from the fiscal year ended March 31, 2015. To reflect this change, theconsolidated financial statements for the previous fiscal year have been rearranged.
As a result, “other” of ¥64 million which was presented in “extraordinary losses” on the
consolidated balance sheets during the previous fiscal year has been rearranged to“impairment loss” of ¥10 million and “other” of ¥54 million.
(Additional information)(Revision to the amount of deferred tax assets and deferred tax liabilities due to changes in theincome tax rate)
19

In line with the promulgation of the “Partial Amendment of the Income Tax Act, etc.” (ActNo. 9 of 2015) and “Act to Amend the Local Taxation Act” (Act No. 2 of 2015) on March 31,
2015, the statutory tax rate used in the calculation of deferred tax assets and deferred tax
liabilities for the fiscal year ended March 31, 2015 (limited to those that are resolved on orafter April 1, 2015) has been changed from the 35.6% in the previous fiscal year to 33.0% for
those that will be paid or collected during the period between April 1, 2015 and March 31,
2016, and to 32.2% for those that will be paid or collected on or after April 1, 2016. As a resultof this change, the amount of deferred tax assets (amount after deferred tax liabilities are
eliminated) decreased by ¥138 million, and income taxes – deferred (debit), valuationdifference on available-for-sale securities (credit), deferred gains or losses on hedges (debit),and remeasurements of defined benefit plans (debit) have increased by ¥574 million, ¥542
million, ¥0 million, and ¥106 million, respectively.
(Segment information, etc.)
1. Summary of reportable segments
In the Group’s reportable segments, separate financial information can be obtained based on
individual units that comprise the Group, and in order to determine distribution ofmanagement resources and evaluate business performance, such information is periodicallyevaluated by the Board of Directors.
The Group’s primary business is the manufacture and sale of paint for automotive, general,
industrial, and other uses, and fine chemicals. The Company and separate companies are
responsible for domestic activities, and overseas, separate companies are responsible for theAsia, North America, and other regions.
Each company is an individual management unit, and concerning which items to carry,comprehensive strategic proposals are made for each region to foster business growth.
As a result, the Group consists of segments divided by region with manufacture and sales asa base, and the three reportable segments are “Japan,” “Asia,” and “North America.”
2. Calculation methods for net sales, profit and loss, assets, liabilities, and other items byreportable segment
Accounting treatment methods for reportable segments are nearly the same with thosedescribed in “Basis of Presentation of Consolidated Financial Statements.”
Profits for reportable segments are figures based on operating profit. Inter-segment net
sales or transfers are based on actual market prices.
As stated in “Changes in Accounting Policies,” from the fiscal year ended March 31, 2015,
calculation methods for retirement benefit obligations and service costs have changed, andcalculation methods for retirement benefit obligations and service costs of reportablesegments have changed in the same manner.
Due to this change, compared to the previous method, segment income for the “Japan”
segment during the fiscal year ended March 31, 2015 has increased by ¥121 million.

20

3. Information on net sales, income (loss), assets, liabilities, and other figures by reportablesegment
Previous fiscal year (April 1, 2013－March 31, 2014)(Million yen)
Reportable segment
Other
Total
North
(Note)Japan
Asia
Subtotal
America
Net sales
Net sales to outside customers
187,477
45,70723,552
256,737
3,841
260,578
Inter-segment net sales or
3,139
172
15,989965
16,955
12,677transfers
Total
200,155
48,84623,724
272,7274,806
277,534
Segment income
27,016
4,257
1,975
33,24982
33,332
Share of profit (loss) of entities(1)
11,274–
11,273–
11,273
accounted for using equity
methodSegment assets
214,765
43,62921,612280,006
5,781
285,788
Other items
Depreciation
4,071
1,062
941
6,075
38
6,113
Increase in property, plant,
3,375
1,620
912
5,908
71
5,980
and equipment andintangible assets
Note: “Other” represents business segments that are not included in the reportable segments, andcontains business activities by overseas subsidiaries in Europe, etc.
Fiscal year ended March 31, 2015 (April 1, 2014－March 31, 2015)(Million yen)Japan

Reportable segment
North
Asia
America

Subtotal

Other(Note)Total

Net sales
Net sales to outside customers
187,204
43,87025,794
256,8693,720
260,590
Inter-segment net sales or
3,928
140
25,3301,064
26,394
21,261transfers
Total
208,466
47,79825,934282,200
4,784
286,984
Segment income
34,2324,530
2,685
41,44869
41,517
Share of profit (loss) of entities–
14,180–14,180(77)
14,103
accounted for using equity
methodSegment assets
524,437
551,340
26,491 1,102,269
5,756 1,108,025
Other items
Depreciation
3,792
1,122
938
5,854
41
5,895
Increase in property, plant,
3,247
344,986
747
348,98161
349,042and equipment andintangible assets
Notes: 1. “Other” represents business segments that are not included in the reportable segments,
and contains business activities by overseas subsidiaries in Europe, etc.
2. Increases in “Segment assets” in the “Japan” segment and the “Asia” segment, as well as
in “Increase in property, plant and equipment and intangible assets” in the “Asia”
segment are primarily the result of consolidating joint venture companies between the
Company and Wuthelam Holdings Ltd.

21

4. Difference between total amount and the amount recorded in the consolidated financial
statements, and major details of such difference (matters related to adjustments of differences)(Million yen)
For the fiscal year ended For the fiscal year ended
Net sales
March 31, 2014
March 31, 2015
Total reportable segment sales

272,727

282,200

4,806

4,784

Net sales from “Other”

Inter-segment transaction eliminations and(16,955)(26,394)
other adjustments
Net sales recorded in the consolidated financial
260,578
260,590
statements
Note: “Inter-segment transaction eliminations and other adjustments” for the consolidated fiscal
year ended March 31, 2015 includes inter-segment dividend income.
(Million yen)
For the fiscal year ended For the fiscal year ended
IncomeMarch 31, 2014
March 31, 2015
Total reportable segment income
Segment income from “Other”

33,24941,44882

69Inter-segment transaction eliminations and55(7,765)other adjustments
Operating income recorded in the consolidated
33,38733,751
financial statements
Note: “Inter-segment transaction eliminations and other adjustments” for the consolidated fiscal
year ended March 31, 2015 includes inter-segment dividend income.
(Million yen)
Net assets

As of March 31, 2014

Total reportable segment assets

As of March 31, 2015

280,006

1,102,269

5,781

5,756

Inter-segment transaction eliminations andother adjustments(17,513)(354,868)

Total company assets (Note)

55,752

57,571

Net assets from “Other”

Net assets recorded in the consolidated
324,028
810,727
financial statements
Note: Total company assets consist of surplus operating funds (cash and deposits), long-term
investment funds (investment securities), and deferred tax assets.
(Million yen)
Total of reported
segments
Other items

Other, net

Consolidated financial
statements
total

Adjustment

Current
Previous
Current
Previous
Current
Previous
Current
Previous
consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year

Depreciation

6,075

5,854

38

41

－

－

6,113

5,895

Increase in property, plantand equipment andintangible assets

5,908

348,981

71

61

－

－

5,980

349,04222

(Omissions)Regarding notes on lease transactions, transactions with related parties, tax effect accounting, financial
instruments, available-for-sale securities, derivative transactions, retirement benefits, stock options, etc., rental andother real estate, and notes to consolidated financial statements, these have been omitted as they are not considered
to have a high necessity for disclosure.
(Business combinations, etc.)(Company split associated with transformation into a holding company structure)
In accordance with a split plan approved at the Annual General Meeting of Shareholders
held on June 27, 2014, the Company established “Nippon Paint Co., Ltd.” as a newly establishedsucceeding company (wholly-owned subsidiary) on October 1, 2014 to transfer the Company’s
overall paint business and non-paint business (including the surface treatment chemicals
business), and changed the corporate name of Nippon Paint Co., Ltd. to “Nippon Paint Holdings
Co., Ltd.,” transforming into a holding company structure.
1. Objectives of company split
In the medium-term management plan for fiscal 2015 and beyond, “Survival Challenge
Program: 3rd Stage,” the Company has set its objective “to catch up with the world’s leading
coatings manufacturers.” Based on the actual results it achieved up to the 2nd Stage, theCompany decided to change its management structure and aim at “portfolio management” whichenables speedy and dynamic business operations and decision making according to the growthmodels of businesses or regions in order to grow substantially as a truly global player.
To implement the “portfolio management,” we believe that adequate management
infrastructure and specific growth measures both have to function as two wheels.
By transforming into a holding company structure, a holding company can focus on groupmanagement, while it can substantially delegate its operational authority to business companies.
As a result, we can expect optimized group management and enhanced independent business
operations. The flexibility of the holding company structure should also make great
contributions in executing M&A deals smoothly, which are dominant options as a growthmeasure.
2. Overview of company split(1) Schedule
Incorporation-Type Company Split Planapproved by the Board of Directors:
Incorporation-Type Company Split Planapproved at the Annual General Meeting of
Shareholders:Date of split (effective date):

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

(2) Method
The incorporation-type company split whereby the Company, as a split company, newly
established “Nippon Paint Co., Ltd.,” as a succeeding company.
(3) Details of allotment of shares related to the company split
The newly established company issued 2,000 common shares in the incorporation-typecompany split and allotted all of the shares to the Company.
(4) Handling of subscription rights to shares and bonds with subscription rights to sharesfollowing the company split

23

Not applicable as the Company does not issue either of them.
(5) Changes in capital stock resulting from the company split
There is no change in the Company’s capital stock resulting from the incorporation-typecompany split.
(6) Rights and obligations transferred to the succeeding company
As set forth in the “Incorporation-Type Company Split Plan” dated May 22, 2014, thesucceeding company took over assets, liabilities and other rights and obligations that theCompany held in relation to the transferred businesses as of the effective date of theincorporation-type company split.
The Company has assumed cumulative taking of obligations transferred to thesucceeding company.
(7) Capability for fulfillment of obligations
The Company and the succeeding company have sufficient assets to secure thefulfillment of obligations to be fulfilled on and after the effective date of the incorporationtype company split. Therefore, any obligation borne by the Company and the succeedingcompany should be duly fulfilled.

24

3. Outlines of companies involved in Split
Split company(As of September 30, 2014)

1) Trade name2) Location
3)

Name and title ofrepresentative

4) Business description

Nippon Paint Co., Ltd.
(Changed trade name to “Nippon
Paint Holdings Co., Ltd.” as of
October 1, 2014)
2-1-2 Oyodo Kita, Kita-ku, Osaka
City, Osaka
Kenji Sakai, Representative
Director and President
Manufacturing and sales of all
types of paints (for automobiles,
constructions, structures, vessels,
metal materials, electricalequipment, industrial machinery,roadways, households, etc.); andmanufacturing and sales of
surface treatment chemicals,
electronic component materials
and chemical products

Newly established (succeeding)company(Established on October 1, 2014)
Nippon Paint Co., Ltd.

Same as left
Same as left
Manufacturing and sales of all
types of paints (for automobiles,
constructions, structures, vessels,
metal materials, electricalequipment, industrial machinery,roadways, households, etc.); andmanufacturing and sales of surface
treatment chemicals, electronic
component materials and chemical
products

5) Capital¥27,712 million¥100 million

6) Foundation date

March 14, 1881

October 1, 20147) Shares outstanding

265,402,443 shares

2,000 shares

8) Account closing date

March 31

March 31

Major shareholders
9) and shareholding
ratiosNipsea International
Limited24.42%Natixis4.73%

Nippon Paint Holdings Co.,
Ltd.

100%

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

4. Outlines of transferred business divisions(1) Description of businesses of transferred divisions
Manufacturing and sales of all types of paints (for automobiles, constructions, structures,
vessels, metal materials, electrical equipment, industrial machinery, roadways, households,etc.); and manufacturing and sales of surface treatment chemicals, electronic component
materials and chemical products(2) Operating results of transferred divisions (fiscal year ended march 31, 2014)(Million yen)
Operating results ofOperating results ofRatio (a/b)
transferred businesssplit company (b)divisions (a)Net sales

130,26625

130,266100%

(3) Items and amounts of transferred assets and liabilities (As of September 30, 2014)(Million yen)
AssetsItem

Liabilities
Book value

Item

Book value

Current assets

7,089 Current liabilities

39

Non-current
assets21,405 Non-current liabilities

1,659

Total

28,494 Total

1,699

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

Name and title ofrepresentative

Nippon Paint Holdings Co., Ltd.
2-1-2 Oyodo Kita, Kita-ku, Osaka
City, Osaka
Kenji Sakai, Representative
Director and President

Newly established (succeeding)company
Nippon Paint Co., Ltd.
Same as left
Same as left

Business
4)
description

Group strategies planning andgroup companies governance andmanagement

Manufacturing and sales of all
types of paints (for automobiles,
constructions, structures, vessels,
metal materials, electricalequipment, industrial machinery,roadways, households, etc.); andmanufacturing and sales of
surface treatment chemicals,
electronic component materials
and chemical products5) Capital¥27,712 million¥100 million

March 31

March 316)

Account closingdate

6. Implemented accounting treatments
Treated as a transaction under common control in accordance with the “AccountingStandards for Business Combinations” (ASBJ Statement No. 21, December 26, 2008) and the“Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures” (ASBJ Guidance No. 10, December 26, 2008).
(Companies made into subsidiaries through acquisition)
Following the Company's meeting of the Board of Directors on February 3, 2014, the Company
implemented on December 2, 2014 actions to become the majority owner through acquisition of eight jointventure companies between the Company and Wuthelam Holdings Ltd. (hereinafter WUTHELAM) in
China, Malaysia, and Singapore, and made a third-party allotment of shares to WUTHELAM’s whollyowned subsidiary Nipsea International Limited on December 5, 2014. Additionally, as of December 5, 2014,
WUTHELAM’s representative Goh Hup Jin was appointed as a Board Director of the Company.
Through this strengthened relationship, a framework where the Company's paint technology and
WUTHELAM Group’s (WUTHELAM, its representative Goh Hup Jin, WUTHELAM’s subsidiaries, and26

entities that are substantively controlled by WUTHELAM (hereinafter “WUTHELAM Group” as a whole))knowledge of and sales network in Asia can be more mutually utilized by both companies will bemaintained, and efforts will be made to further increase the corporate value of joint venture companies in
the Asia region operated with WUTHELAM Group, deepen ties of cooperation with WUTHELAM Group,
and increase corporate value of the Company as a result.
(1) Outline of Business Combination
1) Trade names and businesses of acquired firms
a. China Groupi..Nippon Paint (H.K.) Company Limited
Trade nameBusiness
description

Voting rights

Nippon Paint (H.K.) Company Limited
Sales of paint, presiding over activities in the China region
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

40.0%
11.0%
51.0%

ii. Nippon Paint (China) Company Limited
Trade nameBusiness
description

Voting rights

Nippon Paint (China) Company Limited
Manufacture and sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

40.0%
11.0%
51.0%

iii. Guangzhou Nippon Paint Co., Ltd.
Trade nameBusiness
description

Voting rights

Guangzhou Nippon Paint Co., Ltd.
Manufacture and sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

40.0%
11.0%
51.0%

iv. Nippon Paint (Chengdu) Co., Ltd.
Trade nameBusiness
description

Voting rights

Nippon Paint (Chengdu) Co., Ltd.
Manufacture and sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

27

40.0%
11.0%
51.0%

b. Malaysia Group
i. Nippon Paint (M) Sdn. Bhd.
Trade nameBusiness
description

Voting rights

Nippon Paint (M) Sdn. Bhd.
Manufacturing and sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

25.0%
26.0%
51.0%

ii. Paint Marketing Co. (M) Sdn. Bhd.
Trade nameBusiness
description

Voting rights

Paint Marketing Co. (M) Sdn. Bhd.
Sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

25.0%
26.0%
51.0%

c. Singapore Group
i. Nippon Paint (Singapore) Company Private Limited
Trade nameBusiness
description

Voting rights

Nippon Paint (Singapore) Company Private Limited
Manufacturing and sales of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

40.0%
11.0%
51.0%

ii. Nipsea Technologies Pte. Ltd.
Trade nameBusiness
description

Voting rights

Nipsea Technologies Pte. Ltd.
Research and development of paint
Voting rights proportion held immediately prior tobusiness combination
Additional voting rights proportion acquired on the dayof business combination
Voting rights proportion after acquisition

50.0%
1.0%
51.0%

2) Primary reason for business combination
In order to further increase the corporate value of joint venture companies in the Asia region
operated by the Company and WUTHELAM Group, deepen ties of cooperation with WUTHELAM
Group, and increase corporate value of the Company as a result, the Company will attempt to
expand and implement strategies meant to expand its business, optimize its operations, and develop
new markets as it uses its paint technology together with WUTHELAM Group's knowledge andsales network in Asia with the goal of becoming a top global manufacturer in the paint industry.
3) Date of business combination
December 2, 2014
4) Legal form of business combination
Acquisition of interest5) Corporate trade name after business combination28

No changes.
6) Voting rights proportion acquired
Please refer to the above “1) Trade names and businesses of acquired firms.”
7) Primary basis for deciding upon corporate acquisition
The Company acquired an interest in exchange for cash.
(2) Period of acquired corporation's performance included in consolidated financial statement
As the date of acquisition was considered to be December 31, 2014, the consolidated statement ofincome related to this consolidated fiscal year does not include the performance of related acquired
corporations.
(3) Acquisition cost and itemization of acquired corporation
Compensation paid for acquisition
Market value of shares of acquired corporation held on the day of businesscombination immediately prior to business combination
Market value of additional shares acquired on the day of business combination of
acquired corporation on date of business combination
Costs directly required for acquisition¥192,052 million¥103,300 million¥1,188 million

Acquisition cost

¥296,540 million

a. China Group
Compensation paid for acquisition

Acquired corporation

Nippon Paint (H.K.) Company
Limited
Nippon Paint (China) Company
Limited
Guangzhou Nippon Paint Co., Ltd.

Market value ofshares ofacquired
corporation
held on the dayof businesscombination
immediately
prior tobusiness
combination(millions ofyen)Market value ofadditional
shares acquiredon the day ofbusiness
combination of
acquired
corporation on
the day ofbusiness
combination(millions ofyen)

Advisory andother costs(millions ofyen)

152,628

77,000885

230,514

7,354

3,700

42

11,096

8,800

4,400

50

13,251

Nippon Paint (Chengdu) Co., Ltd.
Total

Costs directly
required for
acquisition
Acquisition
cost ofacquired
corporation(millions of
yen)

4,701

2,400

27

7,129

173,485

87,5001,006

261,99229

b. Malaysia Group
Compensation paid for acquisition

Acquired corporation

Nippon Paint (M) Sdn. Bhd.

Market value ofshares ofacquired
corporation
held on the dayof businesscombination
immediately
prior tobusiness
combination(millions of
yen)
8,559

Market value ofadditional
shares acquiredon the day ofbusiness
combination of
acquired
corporation on
the day ofbusiness
combination(millions ofyen)
10,200Costs directly
required for
acquisition

Advisory andother costs(millions of
yen)

117

Acquisition
cost ofacquired
corporation(millions ofyen)

18,877

Paint Marketing Co. (M) Sdn. Bhd.

2,531

3,000

34

5,566

Total

11,091

13,200151

24,443Compensation paid for acquisition

Costs directly
required for
acquisitionc. Singapore GroupAcquired corporation

Market value ofshares ofacquired
corporation
held on the dayof businesscombination
immediately
prior tobusiness
combination(millions ofyen)Market value ofadditional
shares acquiredon the day ofbusiness
combination of
acquired
corporation on
the day ofbusiness
combination(millions ofyen)

Advisory andother costs(millions of
yen)

6,842

2,586

29

Nippon Paint (Singapore) Company Private
LimitedNipsea Technologies Pte. Ltd.
Total

Acquisition
cost ofacquired
corporation(millions of
yen)

9,458

632

14

0

646

7,474

2,600

29

10,104(4) Difference between acquisition cost of acquired company and total amount of the costs of thetransactions leading to the acquisition:

261,992

Total amount of the costsof the transactions leading
to the acquisition(millions of yen)
123,780

Malaysia Group

24,443

17,842

6,600

Singapore Group

10,104

6,116

3,988

Total

296,540

147,739

148,800

Acquisition cost of
acquired corporation(millions of yen)
China Group30

Difference (gains as aresult of step acquisitions)(millions of yen)
138,211

(5) Amount of goodwill that occurred, cause for occurrence, amortization method, and amortization period
1) Amount of goodwill that occurred¥190,442 million
Amount of goodwill that occurred(millions of yen)
China Group
171,369
Malaysia Group
13,912Singapore Group
5,160
Total
190,4422) Cause for occurrencePrimarily due to excess earning power expected as a result of future business developments.
3) Amortization method and amortization period
Straight-line basis over 20 years(6) Amounts of assets and liabilities received on the day of business combination and itemization of major
items
Current assets¥173,121 million

Non-current assets¥339,118 million

Total assets¥512,239 million

Current liabilities¥86,004 million

Non-current liabilities¥27,055 million

Total liabilities¥113,059 million(7) Amount of money distributed to non-goodwill intangible assets and major items by category as well as
total and weighted average by major category amortization period
Weighted average
Amortization period

Category

AmountTrademark right¥54,017 million

20 years

Customer relationship¥25,363 million

20 yearsTechnology¥11,091 million

10 years

Land-use rights¥5,982 million

35 years

Total¥96,453 million

18 years(8) Approximate amount and method of calculation of effect on current fiscal year’s consolidated statementof income assuming that business combination was completed on the first day of the current fiscal year.
Net sales¥236,526 million

Operating income¥23,188 million

Ordinary income¥26,372 million

Income before taxes andminority interests¥25,351 million

Net income¥22,047 million

Net income per share¥78.9731

(Method of calculation of approximation)
The approximate amount of the effects are equal to the difference between net sales as well as profit
and loss information calculated assuming that the business combination was completed on the first dayof the fiscal year and net sales as well as profit and loss information in the consolidated statement ofincome of the acquired corporation.
Also, amortization expenses of goodwill and intangible assets (¥15.0 billion) are calculated as selling
and administrative expenses
Additionally, the applicable notes have not been certified by an audit.
(Additional subsidiary stock acquired)(1) Outline of Business Combination
1) Trade names and businesses of acquired firms
Trade name
Nippon Fine Coatings., Inc.
Business
Manufacturing, sales, and research and development of paints
description
for metal plates
Voting rights proportion held immediately prior
60.0%
to business combination
Additional voting rights proportion acquired on
Voting rights
40.0%
day of business combination
Voting rights proportion after acquisition
100.0%
2) Primary reason for business combination
Regarding the future image of Nippon Fine Coatings., Inc., which deals in paints for metal
plates, the Company and the jointly-founding financier DIC Corporation reached the conclusion
after repeated sincere discussions and searching for the best course of action that the best option
for Nippon Fine Coatings., Inc. was to become a wholly owned subsidiary company of theCompany in order to continuously expand the acquired corporation’s business.
3) Date of business combination
December 26, 2014
4) Legal form of business combination
Acquisition of interest5) Corporate trade name after business combination
No changes.
6) Voting rights proportion acquired
Please refer to the above “1) Trade names and businesses of acquired firms.”
7) Primary basis for deciding upon corporate acquisition
The Company acquired an interest in exchange for cash.
(2) Outline of accounting process implemented
Of common control transactions, transactions with minority shareholders are processed based on“Accounting Standard for Business Combinations” (Accounting Standards Board of Japan Statement
No. 21, December 26, 2008) and “Revised Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestures” (Accounting Standards Board ofJapan Guidance No. 10, December 26, 2008).
(3) Acquisition cost and itemization of acquired corporation
Compensation paid for acquisition
Costs directly required for acquisition
Acquisition cost
32

¥5,772 million¥2 million¥5,774 million

(4) Amount of goodwill that occurred, cause for occurrence, amortization method, and amortization period
1) Amount of goodwill incurred¥4,164 million
2) Cause for occurrencePrimarily due to excess earning power expected as a result of future business developments.
3) Amortization method and amortization period
Straight-line basis over ten years(Information on per share)

Net assets per share

Previous consolidated
fiscal year
(From April 1, 2013
To March 31, 2014)¥746.25

Current consolidated
fiscal year
(From April 1, 2014
To March 31, 2015)¥1,496.16

Net income per share¥122.47¥650.04(Notes) 1: Diluted net income per share is not listed as latent shares such as bonds with subscription rights toshares do not exist.
2: The basis of calculations of earnings per share are as below.
Previous consolidated
Current consolidated
fiscal year
fiscal year
(From April 1, 2013
(From April 1, 2014
To March 31, 2014)
To March 31, 2015)
Net income per share
Net income (million yen)
32,156
181,477
Profit (loss) attributable to common
32,156
181,477
stock (millions of yen)
Average number of shares during the262,560
279,177
period (thousands of shares)
3: As stated in “Changes in Accounting Policies,” the Accounting Standards for Retirement Benefits
was adopted, and the transitional approach as established in Paragraph 37 of the Accounting Standards
for Retirement Benefits.
As a result, net assets per share during this fiscal year decreased by ¥4.05, while income per share
increased by ¥0.27.
(Significant subsequent events)(Relating to business combinations, etc.)
At the Company's meeting of the Board of Directors on December 19, 2014, a reorganization was resolved,
and a reorganization was implemented as of April 1, 2015.
1. Goals of this reorganization
The Company made as a goal to be counted among the world’s top paint manufacturers, andconducted an incorporation-type company split effective October 1, 2014, transitioning to a holding
company structure that makes possible optimal group management and independent business operations.
A reorganization was implemented in order to use this this management infrastructure and acceleratebusiness operations suited for growth models that differ depending on region and business.

33

2. Trade names of reorganized corporations, details of their businesses, legal form of reorganization, trade
names of corporations after reorganization, andoutline of transactions including goal of transactions
1) Reorganization of automotive paint business(1) Trade names and details of businesses of involved firms
Involved firms

Nippon Paint Co., Ltd. (Automotive coatingsbusiness)

Daiwa Paint Trading Co., Ltd.

Nippon Bee Chemical Co., Ltd.

Business description
Manufacturing and sales of all types of paints(for automobiles, constructions, structures,
vessels, metal materials, electrical equipment,
industrial machinery, roadways, households,etc.); and manufacturing and sales of surface
treatment chemicals, electronic component
materials and chemical products
Sales of automotive coatings, coating
equipment and devices, metal surface
treatment chemicals, metal surface treatment
equipment, etc.
Manufacturing and sales of paints forplastics; manufacturing and sales of chemical
products; and all operations contingent to or
related to these(2) Legal form of business combination
Through an absorption-type split, Nippon Paint Co., Ltd.’s (hereinafter "NPC") automotive paintbusiness (Including shares of Daiwa Paint Trading Co., Ltd. (hereinafter "Daiwa)), was succeededby Nippon Bee Chemical Co., Ltd (hereinafter NBC).
Additionally, Daiwa's business not related to the equipment business was continued by NBC
through an absorption-type split.
Also, Daiwa will change its trade name to "NPA Engineering and Maintenance Co., Ltd." andcontinue its equipment business.
(3) Corporate trade name after business combination
Nippon Paint Automotive Coatings Co., Ltd.
(4) Outline of transactions including goal of transactions
In order to achieve needed further global advances in the automotive paint market, the Company
aims to gain strength through structure maintenance while increasing efficiency and competitive
power through consolidated management.
2) Reorganization of Surface Business(1) Trade names and details of businesses of involved firms
Involved firms

Business description
Manufacturing and sales of all types of paints(for automobiles, constructions, structures,
vessels, metal materials, electrical equipment,
Nippon Paint Co., Ltd. (Surface treatment
industrial machinery, roadways, households,
business)etc.); and manufacturing and sales of surface
treatment chemicals, electronic component
materials and chemical products
Sales of industrial paint, undertaking of paintNippon Paint Industrial Coating Co., Ltd.
equipment
installation,anddesignsupervision(*) The industrial paint and surface businesses of Nippon Paint Industrial Coating Co., Ltd.
(hereinafter “NPIC”) were separately integrated.

34

(2) Legal form of business combination
NPC and NPIC were succeeded by the newly formed Nippon Paint Surf Chemicals Co., Ltd.,
formed by a joint incorporation-type split of their surface businesses.
Additionally, upon this joint incorporation-type split, Nippon Paint Surf Chemicals Co., Ltd.
issued ordinary shares allotted and issued to NPC and NPIC on April 1, the effective date of the joint
incorporation-type split. Also, on the same day, NPC and NPIC delivered these shares to theCompany as a dividend.
(3) Corporate trade name after business combination
Nippon Paint Surf Chemicals Co., Ltd.
(4) Outline of transactions including goal of transactions
In order to achieve needed further global advances in the surface treatment chemicals market, theCompany aims to gain strength through structure maintenance while increasing efficiency andcompetitive power through consolidated management.
3) Reorganization of industrial paint business(1) Trade names and details of businesses of involved firms
Involved firms

Business description
Manufacturing and sales of all types of paints(for automobiles, constructions, structures,
metal materials, electrical equipment,
Nippon Paint Co., Ltd. (Industrial coatings vessels,
industrial
machinery, roadways, households,
business)etc.); and manufacturing and sales of surface
treatment chemicals, electronic component
materials and chemical products
Manufacturing, sales, and research andNippon Fine Coatings, Inc.
development of paints for metal plates
Sales of industrial-use coatings; contract,
Nippon Paint Industrial Coating Co., Ltd.
design and supervision of coating equipment
construction works(*) The industrial paint and surface businesses of Nippon Paint Industrial Coating Co., Ltd.
(hereinafter “NPIC”) were separately integrated.
(2) Legal form of business combination
NPC's industrial paint business was succeeded by NPIC through an absorption-type split.
Also, NPIC and Nippon Fine Coatings (hereinafter NFC) were integrated by way of absorptiontype merger.
Additionally, the name of the remaining company after the merger was changed to Nippon Paint
Industrial Coatings Co., Ltd.
(3) Corporate trade name after business combination
Nippon Paint Industrial Coatings Co., Ltd.
(4) Outline of transactions including goal of transactions
In order to achieve needed further global advances in the industrial paint market, the Company
aims to gain strength through structure maintenance while increasing efficiency and competitive
power through consolidated management.

354) Reorganization of trade-use paint business(1) Trade names and details of businesses of involved firms
Involved firms

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

Nippon Paint Co., Ltd. (Trade-use paints
business)

Nippon Paint Hanbai Co., Ltd.

(2) Legal form of business combination
Nippon Paint Hanbai Co., Ltd. and NPC were integrated by way of absorption-type merger.
Additionally, the name of the remaining company after the merger was changed to Nippon Paint Co.,Ltd.
(3) Corporate trade name after business combination
Nippon Paint Co., Ltd.
(4) Outline of transactions including goal of transactions
In order to achieve needed further global advances in the trade-use paint market, the Company
aims to gain strength through structure maintenance while increasing efficiency and competitive
power through consolidated management.
3. Implemented accounting treatments
Treated as a transaction under common control in accordance with the “AccountingStandards for Business Combinations” (ASBJ Statement No. 21, December 26, 2008) and the“Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures” (ASBJ Guidance No. 10, December 26, 2008).

36

6. Other(1) State of Sales Performance(Unit: Million yen)

Paint business
Automotive paintTrade-use paintIndustrial paint
Other paintFine chemical business
Total

Previous consolidated
fiscal year
(From April 1, 2013
To March 31, 2014)
245,942
92,51250,05847,56255,81014,636
260,578

Current consolidated
fiscal year
(From April 1, 2014
To March 31, 2015)
245,093
93,35445,78746,44659,504
15,496
260,590(Note) Amounts do not include consumption tax, etc.

37

Compared with previous
fiscal year
(%)
(0.3)
0.9
(8.5)
(2.3)
6.6
5.9
0.0