Nippon Paint Q2 Report 2023

During the six months ended June 30, 2022, consolidated revenue of the Nippon Paint Group increased by 29.1% from the
corresponding period of the previous year (same hereafter) to ¥622,049 million. This is primarily due to the acquisition on January
20, 2022 of European paint manufacturer Cromology Holding SAS (Cromology) and the acquisition on May 31, 2022 of European
paint manufacturer DB JUB delniška družba pooblaščenka d.d. (JUB) by NPHD, as subsidiaries, and the depreciation of the
Japanese yen, combined with the strong performance underpinned by continuous selling price increases in the decorative paints
business in China, which is a key business of the Nippon Paint Group. Consolidated operating profit decreased by 9.7% to ¥44,202
million due mainly to raw material price increases in every region and recording of an additional provision for potential credit loss
in China. Consolidated profit before tax decreased by 13.2% to ¥41,998 million, and profit attributable to owners of parent
decreased by 14.2% to ¥28,557 million