Nippon Paint : Integrated Report 2022

2022 Report Integrated Holdings Paint Nippon

Integrated Report 2022

Year Ended December 31, 2021

C O N T E N T S

MSV Story

01Chapter

02Chapter

03Chapter

04Chapter

05Chapter

Introduction

001 MSV Story

009 Value Creation Model for Achieving MSV

011 Development of Our Business Model and Evolution of Our Growth Strategy

Message from Management

1. Letter to Investors about the Integrated Report 2022

1. Message from Co-President Wakatsuki

1. Message from Co-President Wee

1. Maximization of Shareholder Value (MSV)

1. Asset Management Report

1. Speedy Corporate Actions

Our Business Model

035 Our Business Model: Asset Assembler

1. Strengths Underpinning Our Business Model

1. Assets Essential for Our Business Model

1. Materiality Supporting Our Business Model

Our Medium- and Long-Term Management Strategy

047 Q&A with Co-President Wakatsuki on Our Medium- and Long-Term Management Strategy

051 Progress of the Medium-Term Plan (FY2021-2023)

055 Value Creation Achievements (Financial and Non-Financial Highlights)

059 Analysis of Regional and Market Environment

061 [Feature Article] Medium- and Long-Term Business Strategy That Reflects Regional Characteristics and Structural Changes in Markets

061 Growth Strategy for Rapidly Growing Repainting Market in China

065 Growth Strategy Deployment in High-Growth Countries (Indonesia and Türkiye)

067 Strategy for Mature Markets (Australia, New Zealand, PNG and Europe)

071 Q&A with Co-President Wee about Actions for Improving the Profitability of the Japanese Businesses

074 Strategy for Next-Generation Technologies in the Transforming Automotive Industry

077 Sustainability Strategy

079 Environment & Safety

087 People & Community

091 Innovation & Product Stewardship

Corporate Governance

1. Corporate Governance Structure and Initiatives

1. Governance Discussions by Independent Directors

1. Discussions by the Board of Directors

1. Risk Management

1. Directors and Executive Officers

Financial and Corporate Information

1. Major Financial and Non-financial Data over 11 Years

1. 11-yearData by Segment

1. Corporate, Stock and Ratings Information

PurposeNippon Paint Group

Our Shared Identity

Nippon Paint Group positions Purpose as a guiding philosophy that denes

the shared identity of the Group, while respecting the autonomy of our partner companies* based on their own Missions, Visions, and Values. Based on our shared values, diverse people at our partner companies around the world will form strong bonds and collaborate to achieve Maximization of Shareholder Value (MSV).

Prosper Together

We prosper with absolute integrity and fairness by fulfilling our obligations and maximizing our commitments to all stakeholders (consumers, customers, communities, employees, suppliers, governments).

Why
Enriching our living
Why do we exist?	world through
	the power of Science
	+ Imagination
Science +			Powerful
Imagination			Partnerships
The unlimited power of Science + Imagination,			Our unique approach between
leading to ground-breaking technology			our partner companies is based on respect,
and useful innovation that preserve,			trust, empowerment, and accountability.
enhance and enrich the world.			These partnerships form a powerful

For the editorial policy, production process, information disclosure framework and other particulars about the Nippon Paint Holdings Integrated Report 2022, see page 130.

The key management terminologies unique to Nippon Paint Holdings and their definitions are as follows. Nippon Paint Holdings: NPHD

Nippon Paint Corporate Solutions: NPCS

Maximization of Shareholder Value (MSV): The sole mission of NPHD

Partner company: The term that refers to consolidated subsidiaries of NPHD

Asset Assembler: A business model adopted by NPHD

Autonomous and decentralized management:

The management structure adopted by Nippon Paint Group

For more information about terminologies related to Nippon Paint Group's businesses, see the Glossary on our IR website at the following link.

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

catalyst for innovation and growth.

*Consolidated subsidiaries of Nippon Paint Holdings

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MSV Story

What

What do we aim to achieve?

Revenue

Expenses	Fulfillment of obligations
	to stakeholders

		Maximization of
Net income
Shareholder Value
		(MSV)

Our sole mission

MSV Maximization

of Shareholder

Value

Nippon Paint Group is a unique Japan-based global company with MSV

as its sole mission. Based on Asset Assembler model, we seek to create wealth by maximizing the residual shareholder value that remains after fullling our obligations to customers, suppliers, employees, society, and other stakeholders.

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MSV Story

How

How are we going to achieve MSV?

Partner Earnings Brands Talent companies

Autonomous and decentralized management based on strong Trust in partner

companies

Using Asset Assembler model based on Trust in our partner companies around the world, we will implement autonomous and decentralized management that combines the delegation of authority and accountability and build up assets (earnings, brands, talent, etc.) by expanding our existing businesses and aggressively engaging in M&A.

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MSV Story

Where

Where are we going?

+

Paint

+

Going beyond paint and into ++adjacencies

Paint

Expanding into adjacencies without limiting our operations to the paint and coatings area (Paint++) --We are pursuing a strategy of pushing out the frontiers of our business areas over the medium to long term. rough aggressive M&A, we will build up assets not only in existing business areas but also in areas beyond paint, to achieve MSV.

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