Kansai Paint : Presentation Material of Financial Results for First Quarter of FY2023

Financial Results for the First Quarter of FY2023

Aug.8th 2023

Agenda

1. Summary of Financial Results for 1Q of	P3－9
FY2023
2. Financial Summary by Region	P10‐14
3. Shareholder Return	P15

• 2

Key Points for Financial Results of 1Q of FY2023

Achieved an increase in sales and a significant increase in profit YoY

• Driven by the automotive sector, sales increased due to volume growth and the effect of price revisions, and net sales reached a record high for the quarter
• Operating income increased significantly (Decrease in raw material prices and price revisions absorbed increase in fixed costs)
• Significant improvement in India due to strong performance in automotive and industrial sectors
• Progress in the sale of cross share holding (approximately 34.1 billion yen sold, bringing the ratio to net assets from approx.13.9% to approx. 4.8%)
• Treasury stock retirement was completed and Treasury stock ratio reduced from approx. 15% to approx. 5% on a consolidated basis
• Sold land in India and recorded a gain on sales of fixed assets of approximately 11.2 billion yen

Improvements in profitability and capital efficiency are progressing as planned

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Consolidated results of 1Q FY2023

JPY billion

	1Q	1Q	YOY	YOY(%)
	FY2022	FY2023
Net sales	120.4	136.4	16.0	13.3%
Operating income	8.5	12.1	3.6	42.6%
Segment Income	10.0	13.6	3.6	36.4%
Ordinary income	13.2	17.0	3.8	28.6%
EBITDA	14.6	18.9	4.3	29.3%
EBITDA margin	12.1%	13.8%	1.7pt	-
Net income	6.5	37.6	31.2	483.1%

• Steady progress in price revisions in all regions and increased revenues
• Operating income and segment income increased significantly due to price revisions and lower raw material costs
• Net income increased significantly due to gain on sale of cross share holding and gain on sale of land in India

• 4

Consolidated Financial Results (Progress against announced figures)

										JPY billion
				FY2023				FY2023		Progress
				Guidance					against
							1Q Result		FY 2023
				as of May.
										guidance
Net sales	550	136	24.8%
Operating income	42	12	28.8%
Segment Income	46	14	29.9%
Ordinary income	45	17	37.7%
EBITDA​	67	19	28.2%
EBITDA margin (％)			12.2%			13.8%		1.6pt
Net income	55	38	68.4%

• The company made a good start against the full-year plan Improvements in segment profit and EBITDA were particularly pronounced

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