NP-Y004OS200400H

Tokyo Head Office MUSEUM TOWER KYOBASHI, 14th floor, 1-7-2 Kyobashi, Chuo-ku, Tokyo, Japan Tel: ＋81(0)3-6433-0711

Osaka Head Office 2-1-2, Oyodo Kita, Kita-ku, Osaka, Japan Tel: ＋81(0)6-6458-1111

https://www.nipponpaint-holdings.com/en/

From a pioneer in Japan

to a presence across the globe

The Nippon Paint Holdings Group aspires to attain new growth.

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Chairman, President & CEO

The Nippon Paint Holdings Group was founded in 1881 as Komyosha,

the first manufacturer of Western paint in Japan. For more than 130

years since, we have served as a leader in the Japanese paint industry,

contributing to the growth of the Japanese economy as it developed

into a driver of the world economy.

As our customers expanded their sphere of business, we too enhanced

our product lineup and branched out into overseas markets centering

on Asia. Today we offer solutions in two fields, the Paint Business and

the Fine Chemicals Business, and have bases in Asia, North America,

Europe, South America, and Oceania.

In October 2014, we reorganized Nippon Paint into a holding company

toward reaching a new stage of growth and further expanding our

global network.

From a leading company in the Japanese paint industry to a leading

company in the global paint industry—we are working to spread the

name Nippon Paint across the world.

First and foremost, I appreciate your continued support and sponsorship to Nippon Paint Holdings Group.

Paint adds color, comfort and security to the lives of people in various arenas around the globe, including automobiles, buildings and detached housing, bridges and other large-scale structures, “Shinkansen” bullet-trains and other rolling stock, large machinery and marine vessels. As a global leading company in paint and coatings, the Nippon Paint Holdings Group plays a key role in the chemical industry and has continued to supply paint products that conform to changes in society and the environment. This year will mark the 139th anniversary of our founding as a comprehensive paint and coating manufacturer, making us the oldest paint company in Japan.This is thanks to everyoneʼs warm assistance and support, for which I would like to express my gratitude.

Nippon Paint switched to a holding company structure in October 2014. In December of the same year, we deepened our alliance with the Wuthelam Group, which had been our business partner for 50 years. We substantially expanded the scale of our business by incorporating a large portion of a joint venture being deployed in Asia into the scope of consolidation. Consequently, in countries in Asia, including China, where paint demand is expected to continue to grow, we have a strong business foundation, mainly in architectural paint. Moreover, in 2017 we acquired Dunn-Edwards in California (US). In 2019, we acquired the DuluxGroup, a major paint company in Australia, and Betek Boya, a leading paint company in Turkey. Accordingly, the Nippon Paint Holdings Group has more than 25,000 employees globally and 70%-plus of its total sales are overseas.

In light of this, to enhance governance of overall global business operations, we are planning to transition from a company with an Audit & Supervisory Board to a company with Three Committees (Nomination, Audit and Remuneration) structure. This is scheduled to be put up for vote at the General Meeting of Shareholders in March 2020. We aim to establish a system that separates supervisory duties from execution responsibilities. This would facilitate quick management decisions by an executive department, which is essential to global management. In addition, we will establish a supervisory system within the executive department that is operated by the Board of Directors that is both autonomous and objective.

FY2020 is the final year of the Medium-term Management Plan “N-20.” In addition to committing all our energies to achieving this plan, we will also move forward with considerations on the establishment of a new medium-term management plan, which will commence in 2021. Moreover, we aim to apply the corporate philosophy we developed in 2018 to our management infrastructure as well as exert our competitiveness as a global company in accordance with the management policy for maximizing shareholder value.

In closing, I would like to ask everyone for your continued guidance and support in our future endeavors. Thank you very much.

Core Technologies / Business Fields

From paints and coatings to surface treatments—We contribute to various �elds of society, drawing on our depth　 　 and breadth of expertise.

We not only create paints tailored to our

customers’ needs but also offer high-quality

coating systems for effective paint application,

and surface treatments for adding functions to

the base material in the pre-coating process.

The Nippon Paint Holdings Group delivers a

broad range of technologies and services as the

only paint maker in Japan that provides paint

and surface treatment solutions in one stop.

Technical capabilities

established as a pioneer of

the Japanese paint industry

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Material synthesis anddispersion technologies

Our weal th of knowledge and

and chemical reaction of materials, the process of film formation, etc.

Interface and surface technologies

Our technologies to chemically or physically transform the material surface treatment of dissimilar metals.

Paint and coating technologies

Our plant engineering technologies from surface treatment to coat drying contributes to improved productivity in the painting process.

The Paint Business delivers products for every f ield that requires paint, from automotive coatings, the mainstay of the Nippon Paint Holdings Group, to trade-use paints for large structures and construction maintenance, industrial coatings used in a wide range of industrial products, and DIY paints available at home improvement stores.

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Paint Business

Automotive coatings

Our trade-use paints are used widely from houses to bridges in the architectural and protective coating market. The products are designed to improve on-site productivity.

Trade-use paints

Our industrial-use paints target a broad range of products including construction machinery, farming machinery, exterior building materials, office equipment, and household electrical appliances.

Industrial coatings

Our paints for vessels prevent fouling caused by mar ine organ isms and

are developed to help reduce fuel consumption.

Marine coatings

We offer paints with various functions for a broad range of uses such as auto refinish, road surface markings, and DIY and personal use.

Auto re�nish, DIY, and roads

Our surface treatments give diverse materials added value with functions such as anti-corrosive, film adhesion, and improved durability.

Surface treatments

We are cult ivat ing new markets by applying our technology in paints and surface treatments to different fields such as electronic materials and energy.

Fine products

The Fine Chemicals Business epitomizes the strength of the Nippon Paint Holdings Group: film-forming solutions combining paints with surface treatments that enhance the surface of materials l ike metal and plastic, and add functions such as anti-rust. The fine products b u s i n e s s s e e k s a p p l i c a t i o n s f o r o u r technologies in new markets.

Fine Chemicals

Business

Our automotive coatings combine high function with attractive design. We also develop paints for bumpers and plastic components.

From paints and coatings to surface treatments—We contribute to various �elds of society, drawing on our depth　 　 and breadth of expertise.

Undercoating

Intermediate coating

Base coat

Top coatWeather resistantScratch resistantSmooth and evenLustrous

Surface treatment

Steel sheet

Surface treatment1 µm

Undercoating20μm

Intermediate coating15μm

Finish coating15 µm

Top coat, clear coat35 µm

Powder paint / Brightening agent

(Brightening agent: Aluminum, mica, glass flake, etc.)

Image provided courtesy of East Japan Railway Company

Electrostatic paint gun

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PaintBusiness

Developing high value-added coatingsthat satisfy both automakers and drivers.

Preserving buildings and structuresto ensure public safety and protect the environment.

Trade-use paints

Our trade-use paints are used widely in structures from private homes to buildings and bridges. The Nippon Paint Holdings Group strives for improved convenience by developing high value-added products and facilitating color toning and distribution. In architectural coatings, we develop various environment-conscious products like heat insulating paints that prevent rises in the buildingʼs temperature and reduce power consumed by air-conditioning. Easy-to-apply products based on technology to control paint viscosity help improve on-site productivity. And amid rising awareness about preserving aging infrastructures, eco-fr iendly products with enhanced anti-corrosion are winning praise and trust from our customers.

The automotive industry maintains high growth potential, particularly in emerging economies. We are accelerating development of the automotive coatings business in these expanding overseas markets.We also focus on developing high value-added coatings that help automakers create attractive products. Drivers today have a strong inclination for design. As a specialist in coatings, the Nippon Paint Holdings Group provides automakers with color designs and textures that meet diverse preferences.We always aim to develop and deliver high-quality automotive coatings that enhance attraction to the car as a product and contribute to customer satisfaction.

Supplying an integrated painting system for new automobilesand addressing the need for coating new materials.Our product lineup covers all processes of painting the auto body, from surface treatment to undercoating, intermediate and finish coatings, and top coat. We even offer paints for bumpers and plastic components. The Nippon Paint Holdings Group is an automotive paint maker that supplies an integrated system for new automobiles.In recent years, resin and high-tech materials are being considered for the auto body amid the need for lightweight, fuel-saving vehicles.We address this change as well, conducting R&D day by day to develop paints that require a low-temperature, short-duration bake cycle and create a high-quality exterior for heat-sensitive resin.

Our Perfect series of touch-up paint for houses meets a broad range of needs. While forming a strong film to protect the building from ultraviolet rays, it realizes beautiful color and streamlines the painting process.

Perfect seriesOur revolutionary Toughguard Q-R system prevents flaking in aging concrete structures. The step-saving coating method is used in numerous infrastructure maintenance projects.

Anti-flaking concrete coating system

Innovation Technology

Automotive coatings

Using the strengths of an integrated paint maker to deliver high-function coatings for various products.

Industrial coatings

The Nippon Paint Holdings Group has a wealth of knowledge and expertise in specialty fields from chemicals to machinery and materials. We use this know-how to deliver coatings for an array of products including construction and farming machinery, exterior building materials, office equipment, and household electrical appliances. At times we create materials from scratch and develop optimal coatings to meet the diverse needs of our customers and markets. In Japan, we hold the top share in eco-friendly powder paints that require no solvent. Our next goal is to support the future of energy with functional coatings for solar and wind power generators and insulating material for rechargeable batteries.

Powder paints are a group forte. Our proprietary technology creates an even metall ic finish t radi t ional ly bel ieved to be d i f f icu l t . The brightening agent realizes both attractive design and eco-friendliness.

Bonded metallic powder paintUrethane is a widely used material in finish coatings. In the West, the standard is eco-friendly waterborne urethane. We have also developed waterborne technology scheduled for market release.

Waterborne urethane

Innovation Technology

Our 3-wet coating system reduces the number of bake cycles to once for the intermediate and finish coatings combined. This contributes to step and energy savings for automakers.

3-wet coating systemWe develop coatings for the auto bodyʼs steel sheet that prevent r ises in the vehicleʼs temperature. This improves the effectiveness of air-conditioning and helps control energy consumption.

Heat insulating paint for the auto body

Innovation Technology

Heat insulating pigment

Solar heat reflecting paint

Near infrared raysNear infrared rays

Water-trapping layer

Paint film

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Swiftly conforming to environmental regulations and meeting global customer needs in shipbuilding and marine transport.

Marine coatings

Environmental regulations for shipbuilding and marine transport are tightening the world over. We support our customers’ business with a fortified product development structure that addresses these regulations. Our ultra fuel-saving antifouling paint released in 2007, as a series, is used in more than 1,000 vessels. With bases in Asia as well as the Middle East, Europe, North and South America, and Africa, we swiftly meet the needs of our customers in the globally expanding shipbuilding and marine transport network. We hope to cont inue launching innovat ive coat ings that real ize both eco-friendliness and cost savings, and contribute to the growth of the worldʼs shipbuilding and marine transport industries.

A-LF-Sea combines technology that mimics the sk in of tuna wi th our know-how gained in automotive coatings to deliver further friction resistance. It contributes to significant reductions in the vesselʼs fuel consumption.

A-LF-Sea*ultra fuel-saving antifouling paint

Auto refinish

NOA employs advanced technology that enables workers to assess film thickness by sight. This eliminates the need for thickness gauges, saving energy and standardizing the shipbuilding workflow. The paint can be applied to various areas from ballast water tank to ship bottom.

NOA coating system enabling visual assessment of film thickness

Innovation Technology

Offering surface treatments with an af�nity to paintsonly possible by a paint maker.

Surface treatments

Surface treatments add functions to the base material in the pre-coating process, such as anti-rust and improved film adhesion and durability. The Nippon Paint Holdings Group is the only paint maker in Japan that provides one-stop solutions from surface treatment to finish coating. Our extensive knowledge makes it possible to offer a wide range of customers high-quality surface treatments with an affinity to paint. In recent years, the border between the two products is fading, and demand is rising for functional thin-film paints that feature the properties of both. We address this new need, fusing our advanced technologies in the two areas.

Our hydrophilic surface treatment agent is used widely in aluminum parts in the heat exchanger of air conditioners. It controls the formation of water droplets, and prevents splashing and heat exchanger malfunctions.

Hydrophilic surface treatment agentWe have developed a surface treatment agent that employs no phosphorus or heavy metals for improved eco-friendliness with the same level of anti-rust. It is used widely in automotive and industrial products.

Eco-friendly surface treatment agent

Innovation Technology

Identifying needs ahead of the timesand cultivating new markets.

Fine products

In the fine products business, we interview our customers, further collect information on the latest materials and trends in companies and consumers that use their final products, and identify needs ahead of the times. Product development is always based on hypotheses with an eye to the future. In materials and energy, for instance, increasing populations and the growth of emerging economies have given rise to the challenge of using the Earthʼs limited resources efficiently. Assuming a materials revolution is a potential solution, we have developed a functional interlayer coating (FIC), which adheres and bonds dissimilar materials, in e ffor ts to suppor t the creat ion of advanced composi te components.

Our funct ional inter layer coat ing exhibi ts excel lent adhesion and bonding between dissimilar materials such as metals, plating, and glass. Amid the demand for lightweight materials, i t mee ts t he need t o des ign compos i t e components.

Functional interlayer coating (FIC)We have developed a coating material capable of adding various functions to control the surface property of films. Functions for displays such as fingerprint resistance are winning high praise from our customers.

Coating for display films

Innovation Technology

Protecting structures from private homes to infrastructures, lifestyles, and the environment.

Auto re�nish, DIY, and roads

We draw on our expertise of in new automobiles paints and also develop original technologies best for auto refinish. Our lineup comprises paints that reduce the environmental burden and streamline refinish work, centering on the e3 (e-cube) series of auto refinish painting systems.

Paints for DIYTo meet growing interest in DIY in Japan, we offer a broad lineup of products that meet every need at home, from exterior walls to roofs, bathrooms, interior walls, gardening, and hobbies and crafts. Our high-function paints aim for harmony between comfortable lifestyles and environmental preservation.

Paints for roadsOur lineup of paints for road surface markings (center lines, side lines, etc.) and heat insulating paints for roads contribute to road traffic safety and driver comfort. We are also focusing on developing products dedicated to road traffic safety facilities and devices.

Fine ChemicalsBusiness

*Awarded the Technical Innovation Award at Seatrade Asia Awards 2014

Production System / Quality Control

Safety, quality, and productivity—We constantly strive for improvement in pursuit of customer satisfaction.

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Improve safety, quality, and productivity,

and aim for products with true value.

●High value-added products

●Optimized quality, cost, and delivery (QCD)

●Stable product supply

Safety

Quality Productivity

Safety

Risks lurk in R&D and manufacturing sites that handle various chemical substances. One mistake could lead to a serious accident. Under the policy "safety comes before all else," the Nippon Paint Holdings Group works to enhance awareness and action through daily training programs such as on-site safety education and first-hand safety workshops designed to hone our employees’ sensitivity to safety. We also perform risk assessment activities and top management patrols in efforts to correct problems quickly and prevent accidents.

Putting safety before all elseand preventing accidents.

Our 200-page-long Workplace Safety Handbook i s t rans la ted fo r use a t overseas bases.

On occasion, we invite customers like paint retailers to join our first-hand safety workshops.

Quality

We strive to improve the quality of all work processes related to paint production, from raw material procurement and paint solution design to production and inspection lines. Our production lines conduct improvement activities on a daily basis and have succeeded in improving paint quality. Workers adhere to strict rules on attire to prevent contamination, and use our proprietary paint analysis technologies to inspect raw materials for flaws before they go on the production line.

Working to improve quality in all work processes, from raw material procurement to �nal inspection.

We strive to prevent contamination from any source, whether raw mater ials, production lines, or workers.

We organize annual global quality control meetings, inviting workers from overseas production bases.

Productivity

Product variation and streamlined production must be realized simultaneously to maintain competitiveness in cost and delivery and manufacture diverse product groups. Our production lines are divided into large standardized sections for improving productivity and small specialty sections for focusing on individual products. These sections are combined as needed to meet QCD requirements. In efforts to improve productivity, workers also cooperate with product design divisions from the planning stage.

Realizing both product variation and streamlined productionin cooperation with product design divisions

The standardization we promote at all production bases in Japan has proven useful in our business continuity plan.

R&D, sales, and production divisions work together on product planning in efforts to improve productivity.

Research & Development

A diverse R&D structurethat continues to rewrite the history of paint.

Diversity in our customers’ products and materials means

diversity in the functions required of paints and coatings

beyond attractiveness and protection. The Nippon Paint

Holdings Group not only develops eco-friendly products

and technologies toward cost optimization and global

sales, but also conducts R&D with the aim of creating

added value to suit our customers’ needs. From a

medium- to long-term perspective, we also undertake

technology development to create new demand of the

future, addressing both apparent market needs and

potential customer needs.

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Meeting both apparent needs

and potential needs.A diverse R&D structure involving all business divisions

for product upgrades friendly to users

and technical research looking to the future.

With the globalization of economies and our customers branching out overseas, paint too requires an R&D structure that takes into account different countries’ environmental regulations and local market needs. At the Nippon Paint Holdings Group, the technical divisions of overseas group companies collaborate in sharing technologies, surveying paint needs by country, and undertaking joint R&D. In North America, where we offer automotive coatings, we launch products tailored to local needs such as eco-friendliness, attractive exterior, and scratch resistance.

Color and texture are important elements of product design in fields like automobiles, architecture, and industrial products. The Nippon Paint Holdings Group has a special section staffed by color designers with a wealth of specialized knowledge, who propose coloring plans that are attractive in both design and function.

Promoting global R&Din collaboration with overseas group companies.

Developing color designto create further added value.

To date, the Nippon Paint Holdings Group has conducted R&D and commercialized various paints with minimal environmental burden. In automotive coatings and trade-use paints, we offer new step-saving products that reduce CO2 emissions. And in marine coatings, we developed a fuel-saving paint for ship bottoms that mimics the skin of tuna, which is used in numerous vessels. We hope to continue incorporating various perspectives into our R&D efforts and sending revolutionary eco-friendly products into the market.

Incorporating various perspectivesto create revolutionary eco-friendly products.

Technology development

Basic research

Automotive

Trade-use

Industrial

Marine

Auto refinish, DIY, and roads

Surface treatments

Fine products

Americas Europe

Japan

Expanding business �elds in the high and sustainable growth market of Americas.

Expanding business �elds in the competitive paint market of Europe.

We will enhance our leading position on Oceania

Taking the advanced technologies and high quality established in Japan, and expanding it globally.

Global Network

Nippon Paint’s increasingcompetitiveness,from a pioneer in Japanto a presence across the globe.

We established a joint venture in Singapore in 1962, which would form the

basis of our business in Asia today. In the half-century since, we continued

to promote our business overseas and expanded our network to Americas,

Europe, and Oceania. Today we are working to strengthen our

competitiveness and presence in the world.

In Oceania, where steady economic growth is expected, we will enhance our leading posit ion in the growing market of construction paints and even aim to increase our market share.

AsiaEstablishing top-brand statusin the growing market of Asia.

The Nippon Paint Holdings Group recognizes Asia—the substantialsize and growth potential of the market—as the key to our globalstrategy. We have a strong presence in the huge market of China,where we boast the top share in the fields of architectural and DIYpaints. With the recent boom in industrial products such asautomobiles, we established development centers in China andSingapore as well as bases in developing countries includingBangladesh with an eye to further expanding our market share.

The Nippon Paint Holdings Group operates a head office in Osaka and production bases, branches, and offices throughout Japan, where customers demand high quality and function, meticulous service, and a stable supply. The technologies and services established here promise to be a strength in overseas markets.

The Nippon Paint Holdings Group expanded into North America in the late 1980s, when Japanese automakers increased their presence in the market. We established Nippon Paint (USA) Inc. in 1990, and have bases in Canada and Mexico. In 2017 we acquired DUNN-EDWARDS CORPORATION, and work to expand architectural paint in the Americas, which was previously focused on automotive coatings.

Europe is as big a market as North America, and a competitivemarket where major Western paint makers spare no effort to wina larger share. The Nippon Paint Holdings Group establishedNippon Paint (Europe) Ltd. in the UK in 1989. Today, with basesalso in Germany and Turkey, we are expanding our field ofbusiness in Europe centering on automotive coatings.

Oceania