December 4, 2023


Consolidated Financial Results [Japanese GAAP]

for the Second Quarter of the Fiscal Year Ending March 31, 2023

(April 1, 2022 September 30, 2022)

November 10, 2022

Company name:

Kansai Paint Co., Ltd.

Stock listing:

Tokyo Stock Exchange

Code number:

4613

URL:

https://www.kansai.co.jp/

Representative:

MORI Kunishi, Representative Director of the Board, President

Contact:

TAKAHARA Shigeki, Representative Director of the Board, Executive Vice President

and Chief of Corporate Planning, Finance, HR & Administration

Telephone:

+81-6-6203-5531

Scheduled date of the filing of Securities Report: November 11, 2022

Scheduled date of dividend payment:

December 2, 2022

Supplemental information:

Yes

Financial results briefing:

Yes

(Amounts are rounded down to the nearest million yen)

1. Consolidated financial results for the Second Quarter Fiscal Year Ending March 31, 2023 (April 1, 2022 September 30, 2022)

(1) Consolidated operating results

(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended September 30, 2022

250,700

23.3

Six months ended September 30, 2021

203,301

25.1

(Note) Comprehensive income:

Six months ended September 30, 2022: Six months ended September 30, 2021:

15,762

(6.4)

21,041

1.3

12,371

7.7

16,833

82.3

20,781

108.9

11,487

168.3

38,971

million yen

46.2%

26,665

million yen

%

Net income per share

Diluted net income

per share

Yen

Yen

Six months ended September 30, 2022 Six months ended September 30, 2021

(2) Consolidated financial positions

49.8148.21

44.7041.58

Total assets

Net assets

Shareholders’ equity

ratio

Millions of yen

Millions of yen

%

As of September 30, 2022

644,117

358,467

46.2

As of March 31, 2022

600,057

375,114

53.3

(Reference) Shareholders’ equity:

As of September 30, 2022:

297,328

million yen

As of March 31, 2022:

320,019

million yen

2. Dividends

Dividends per share

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal Year ended March 31, 2022

15.00

15.00

30.00

Fiscal Year ending March 31, 2023

15.00

Fiscal Year ending March 31, 2023

15.00

30.00

(Forecast)

(Note) Revisions to the latest dividend forecast announced : No

3. Consolidated financial forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 March 31, 2023)

(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Full Year

500,000

19.3

32,000

6.3

39,000

3.7

23,000

(13.3)

(Note) Revisions to the latest consolidated financial forecast announced: Yes

Net income per share

Yen

95.40

*Notes

(1)

Changes in significant subsidiaries during the period

(changes in specified subsidiaries due to changes in scope of consolidation):

None

(2)

Application of accounting treatment specific to preparation of quarterly consolidated financial statements:

Yes

(3)

Changes in accounting policies, changes in accounting estimates, and retrospective restatement

1.

Changes in accounting policies in accordance with revision of accounting standards:

None

2.

Changes in accounting policies other than 1. above:

None

3.

Changes in accounting estimates:

None

4.

Retrospective restatement:

None

  1. Number of shares of common stock issued

1. Number of shares of common stock issued at period-end (including treasury stock):

As of September 30, 2022:

272,623,270

shares

As of March 31, 2022:

272,623,270

shares

2.

Number of shares of treasury stock at period-end:

As of September 30, 2022:

40,033,215

shares

As of March 31, 2022:

15,729,917

shares

3.

Average number of shares during the period:

Six months ended September 30, 2022:

248,362,592

shares

Six months ended September 30, 2021:

256,998,458

shares

*Status of the implementation of audit procedures

These financial statements are not subject to quarterly review procedure of certified public accountant or audit firm.

*Explanation for appropriate use of forecasts and other notes

The forward-looking statements such as operational forecasts contained in this document are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement. Actual results may differ from such forward-looking statements for a variety of reasons.

Overview of financial results

During the fiscal period under review, the world economy was on a gradual recovery trend in general. However, we continued to face significant uncertainties partly on the back of the impact of global inflation in addition to limited supplies and soaring prices for raw materials on the back of emerging geopolitical risks. Under these circumstances, the Chinese economy slowed down due to lockdowns following the spread of COVID-19. In Europe and the United States, the economy continued to pick up gradually despite monetary tightening policy causing downward pressures on the economy. In other regions, the economy was on a recovery trend or showed signs of recovery. The Japanese economy, under the impact of a rise in resource prices, observed a recovery in line with the ongoing control of COVID-19 and economic activities.

The Group’s net sales for the first six months of the consolidated fiscal year under review was 250,700 million yen (up 23.3% year on year). Operating income remained at 15,762 million yen (down 6.4% year on year) despite our efforts to improve profits by passing on to selling prices the selling cost, which rose due to an increase in sales amid continued impact of soaring prices for raw materials. Ordinary income was 21,041 million yen (up 1.3% year on year), reflecting an increase in foreign exchange gains arising from the weaker yen despite the decline of equity in earnings of affiliates and the impact of application of the hyperinflationary accounting standard in Turkey. Net income attributable to owners of the parent for the period under review amounted to 12,371 million yen (up 7.7% year on year) due to an increase in gains on sale of investment securities as a result of reducing cross-shareholdings.

Segment overviews are as follows.

In the automotive coatings sector, sales increased year on year due to a year-on-year increase in car production. The industrial coatings sector recorded a year-on-year increase in sales due to efforts to improve selling prices despite the sluggish market conditions. In the decorative coatings, automotive coatings (for refinishing) and protective coatings sectors, sales increased year on year thanks to efforts to improve selling prices, although the market failed to achieve a full-fledged recovery. The marine sector saw higher sales than in the previous year due to a recovery of the market. Profits increased year on year due to foreign exchange gains despite the impact of higher prices for raw materials.

As a result of those factors, net sales and ordinary income in the segment were 73,537 million yen (up 7.1% year on year) and 8,859 million yen (up 33.6% year on year), respectively.

In the automotive coatings sector, both sales and profits increased year on year due to a year-on-year increase in car production, together with the decorative coatings sector, following a one-time decline due to the effect of lockdowns to prevent the spread of COVID-19, and thanks to our efforts to improve selling prices.

As a result of those factors, net sales and ordinary income in the segment were 68,156 million yen (up 49.8% year on year) and 6,268 million yen (up 58.8% year on year), respectively.

In Turkey, net sales increased year on year, due to our efforts to improve selling prices in the automotive coatings sector and the industrial coatings sector. In other European countries, there was also a year-on-year increase in sales due to strong demand, mainly in the industrial coatings and the decorative coatings sectors, resulting in year-on-year growth in net sales in Europe as a whole. On the other hand, profits fell from the previous year due to soaring prices for raw materials and energy costs, in addition

to the impact of the application of the hyperinflationary accounting standard in Turkey.

As a result of those factors, net sales and ordinary income in the segment were 54,467 million yen (up 31.6% year on year) and 1,286 million yen (down 67.6% year on year), respectively.

In China, sales in the automotive coatings sector decreased year on year, reflecting a year-on-year decline in car production. In the industrial coatings sector, sales of paints for industrial machinery recorded a year-on-year decrease due to weaker demand from major customers. As a result, net sales decreased year on year in China as a whole. In Indonesia, Thailand and Malaysia, net sales recorded a year-on-year increase on the back of a recovery in car production. Meanwhile, profits decreased year on year due to the impact of higher prices for raw materials, a decrease in equity in earnings of affiliates and other factors.

As a result of those factors, net sales and ordinary income in the segment were 32,168 million yen (up 11.3% year on year) and 3,263 million yen (down 30.7% year on year), respectively.

Amid sluggish demand in South Africa and neighboring countries due to a delay in economic recovery, sales in the South African region increased on the back of efforts to improve selling prices. In the East African region, sales grew in the decorative coatings sector by absorbing strong demand, resulting in year-on-year sales growth in Africa as a whole. Profits increased year on year due to reduced fixed costs through efforts to liquidate unprofitable businesses, which have been continuing from previous years, and the receipt of COVID-related insurance.

As a result of those factors, net sales and ordinary income in the segment were 19,098 million yen (up 18.9% year on year) and 883 million yen (up 71.8% year on year), respectively.

In North America, sales increased year on year as car production exceeded the previous year’s level. On the other hand, profits fell from the previous year due to the impact of the soaring prices for raw materials and a decrease in equity in earnings of affiliates.

As a result of those factors, net sales and ordinary income in the segment were 3,271 million yen (up 16.5% year on year) and 480 million yen (down 52.5% year on year), respectively.

Consolidated financial statements

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2022

As of September 30, 2022

Assets

Current assets

Cash and deposits

64,677

54,716

Trade notes and accounts receivable, and contract assets

110,085

131,405

Securities

3,414

2,282

Finished goods

46,317

55,608

Work-in-process

7,318

8,795

Raw materials and supplies

35,583

46,531

Other

12,960

13,803

Allowance for doubtful receivables

(3,706)

(4,715)

Total current assets

276,650

308,428

Non-current assets

Property, plant and equipment

Buildings and structures, net

61,484

66,203

Other, net

71,949

80,493

Total property, plant and equipment

133,434

146,697

Intangible assets

Goodwill

27,573

28,738

Other

21,374

23,331

Total intangible assets

48,948

52,070

Investments and other assets

Investment securities

94,192

85,841

Other

51,468

56,051

Allowance for doubtful receivables

(4,636)

(4,971)

Total investments and other assets

141,024

136,921

Total non-current assets

323,407

335,688

Total assets

600,057

644,117

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Disclaimer

Kansai Paint Co. Ltd. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 08:16:05 UTC.

Publicnow 2022

All news about KANSAI PAINT CO., LTD.

Sales 2023 495 B
3 554 M
3 554 M
Net income 2023 22 562 M
162 M
162 M
Net Debt 2023 14 834 M
107 M
107 M
P/E ratio 2023 20,1x
Yield 2023 1,63%
Capitalization 427 B
3 068 M
3 068 M
EV / Sales 2023 0,89x
EV / Sales 2024 0,90x
Nbr of Employees 15 670
Free-Float 80,9%

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Kansai Paint Co., Ltd. Technical Analysis Chart | MarketScreener

Technical analysis trends KANSAI PAINT CO., LTD.

Short Term Mid-Term Long Term
Trends Bearish Neutral Neutral

Income Statement Evolution

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 6
Last Close Price 1 837,00 JPY
Average target price 2 325,00 JPY
Spread / Average Target 26,6%


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