Interim report
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Consolidated Financial Results for the Six Months Ended June 30 , 2026 [ IFRS ] Standards F Financial Acco Accounting FASF MEMBERSHIP August 7 , 2026 Company name : Nippon Paint Holdings Co. , Ltd. Stock exchange listing : Tokyo Stock Exchange Code number : 4612 URL : https://www.nipponpaint-holdings.com/en/ Representative : Yuichiro Wakatsuki , Director , Representative Executive Officer & Co - President Wee Siew Kim , Director , Representative Executive Officer & Co - President Contact : Ryosuke Tanaka , Corporate Officer and General Manager , Investor Relations , Sustainability and Public Relations Phone : + 81-50-3131-7419 Scheduled date of filing the Semiannual Securities Report : August 7 , 2026 Scheduled date of commencing dividend payment : September 11 , 2026 Availability of supplementary briefing material on quarterly financial results : Yes Schedule of consolidated financial results briefing session : Yes ( Amounts of less than one million yen are rounded down ) 1. Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results Revenue Six months ended Million yen 1,023,683 852,428 % 20.1 4.3 Operating profit Million yen 152,315 117,317 ( % indicates changes from the previous corresponding period ) Profit before tax Profit % 29.8 26.9 Million yen 144,254 % 28.6 Million yen 105,796 % 23.4 112,187 24.8 85,742 31.0 June 30 , 2026 June 30 , 2025 Six months ended June 30 , 2026 Profit attributable to Comprehensive owners of parent income Million yen June 30 , 2025 105,150 84,502 % 24.4 29.9 Million yen % 226,141 ( 62,927 ) Basic earnings per share Diluted earnings per share Six months ended Yen June 30 , 2026 Yen 45.30 June 30 , 2025 45.30 35.98 35.98 Note : As the provisional accounting treatment for the business combination was finalized at the end of the fiscal year ended December 31 , 2025 , the relevant amounts for the second quarter of the fiscal year ended December 31 , 2025 reflect the finalization of such provisional accounting treatment . ( 2 ) Consolidated Financial Position As of June 30 , 2026 As of December 31 , 2025 Total assets Million yen 4,289,463 4,017,738 Total equity Million yen 2,019,421 1,823,073 Equity attributable to owners of parent Million yen 2,001,942 1,803,859 Equity attributable to owners of parent to total assets % 46.7 44.9
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2. Dividends Annual dividends 1st quarter- end 2nd quarter-end 3rd quarter-end Year-end Total Fiscal year ended Yen Yen Yen Yen Yen December 31, 2025 － 8.00 － 8.00 16.00 December 31, 2026 － 8.00 December 31, 2026 (forecast) － 9.00 17.00 Note: Revision to the dividends forecast announced most recently: No 3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2026 (January 1, 2026 to December 31, 2026) (%) indicates changes from the previous corresponding period) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 2,000,000 12.7 283,000 10.1 265,000 5.8 189,000 5.1 81.45 Note: Revision to the dividends forecast announced most recently: Yes For details of the revision of the consolidated earnings forecast, please refer to the “Notice Regarding the Revision of Earnings Forecast” announced today.
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* Notes: (1) Changes in significant subsidiaries during the period under review: No Newly consolidated － Excluded － (2) Changes in accounting policies and changes in accounting estimates 1) Changes in accounting policies required by IFRS: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 2,370,512,215 shares December 31, 2025: 2,370,512,215 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 51,051,627 shares December 31, 2025: 42,570,007 shares 3) Average number of shares during the period: Six months ended June 30, 2026: 2,321,221,105 shares Six months ended June 30, 2025: 2,348,762,801 shares *Semiannual financial results reports for the interim period are exempt from review by certified public accountants or audit corporations. *Explanation of the proper use of financial results forecast and other notes (Caution concerning forward-looking statements) The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that are deemed rational and contain risks and uncertainties. Actual results, etc. may differ greatly from the forecast figures depending on various factors.
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1 Table of Contents 1. Overview of Operating Results ................................ ................................ ................................ ........ 2 (1) Overview of Operating Results for the Period ................................ ................................ .............. 2 (2) Overview of Financial Position for the Period ................................ ................................ .............. 3 (3) Explanation of Consolidated Financial Result Forecast and Other Forward-Looking Information ... 3 2. Condensed Interim Consolidated Financial Statements and Primary Notes ................................ ....... 4 (1) Condensed Interim Consolidated Statements of Profit or Loss and Comprehensive Income .......... 4 (2) Condensed Interim Consolidated Statement of Financial Position ................................ ................. 6 (3) Condensed Interim Consolidated Statement of Changes in Equity ................................ ................ 8 (4) Condensed Interim Consolidated Statement of Cash Flows ................................ .......................... 9 (5) Notes to Condensed Interim Consolidated Financial Statements ................................ ................. 10 (Business combinations) ................................ ................................ ................................ ....... 10 (Segment information) ................................ ................................ ................................ .......... 12 (Going concern assumption) ................................ ................................ ................................ .. 14 (Significant subsequent events) ................................ ................................ ............................. 14
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2 1. Overview of Operating Results (1) Overview of Operating Results for the Period During the six months ended June 30, 2026, consolidated revenue increased year on year, mainly reflecting the contribution from LSF11 A5 TopCo LLC (AOC), including AOC, LLC, a global specialty formulator, and its affiliated companies, following their acquisition in March 2025, together with higher sales volumes and the positive impact of foreign exchange movements. As a result, consolidated revenue amounted to ¥1,023,683 million, an increase of 20.1% from the same period of the previous fiscal year. Consolidated operating profit increased 29.8% year on year to ¥152,315 million. Profit before tax totaled ¥144,254 million, up 28.6% year on year, while profit attributable to owners of parent increased 24.4% year on year to ¥105,150 million. The operating results by business segment are presented below. Japan Revenue from automotive coatings increased compared with the same period of the previous fiscal year, supported by higher automobile production volumes and the penetration of selling price revisions. Revenue from industrial coatings also increased year on year despite weak market conditions, reflecting the penetration of selling price revisions. Revenue from decorative paints likewise increased compared with the same period of the previous year, driven by demand arising from tight raw material supply and expanded sales of high-durability products for architectural and structural applications. As a result, revenue in the segment amounted to ¥114,063 million, an increase of 13.3％ from the same period of the previous fiscal year, while segment operating profit increased 45.3% year on year to ¥14,399 million. NIPSEA Revenue from automotive coatings in the NIPSEA segment increased compared with the same period of the previous year, as strong sales to Chinese OEMs more than offset lower automobile production in China and Thailand. Revenue from decorative paints also increased year on year, driven by sales volume growth in key markets, including Malaysia, Singapore, Indonesia, and Türkiye. As a result, revenue in the segment increased to ¥504,172 million, an increase of 15.0% year on year from the same period of the previous fiscal year, while segment operating profit increased 25.1% year on year to ¥86,511 million. DuluxGroup Revenue from decorative paints increased compared with the same period of the previous fiscal year, despite largely flat market conditions both in the Pacific and European markets, driven by an improved product mix in the Pacific region and growth in the Central European business. Revenue from the adjacencies business also increased year on year, reflecting contributions from small-scale acquisitions despite continued soft market conditions in the Pacific region and Europe. As a result, revenue in the segment amounted to ¥232,359 million, an increase of 23.2% year on year. Segment operating profit decreased 10.2% year on year to ¥16,489 million, due to an increase in SG&A ratio. *DuluxGroup Limited is an Australian company that holds the rights to the Dulux® trademark exclusively in Australia, New Zealand, Papua New Guinea, Samoa and Fiji. DuluxGroup Limited is not affiliated with, nor connected to, the owners of the Dulux® trademark in other regions and does not sell Dulux® products outside these designated markets. Americas Revenue from automotive coatings increased compared with the previous fiscal year, despite lower automobile production, supported by market share expansion through new account acquisitions. Revenue from decorative paints also increased year on year, as successful pricing initiatives and the positive impact of foreign exchange movements more than offset weaker demand resulting from uncertainty in the U.S. economy and continued softness in the housing market. As a result, revenue in the segment amounted to ¥65,479 million, an increase of 9.1% from the same period of the previous fiscal year, while segment operating profit increased 8.1% year on year to ¥4,224 million. AOC Since March 2025, the operating results of AOC have been included in the Group’s consolidated results. Revenue from the adjacencies business increased, despite continued challenging macroeconomic environment, driven primarily by higher sales volumes and successful pricing initiatives.
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3 As a result, revenue in the segment amounted to ¥107,608 million, an increase of 66.2% from the same period of the previous fiscal year, while segment operating profit increased 77.8% year on year to ¥34,072 million. (2) Overview of Financial Position for the Period As of June 30, 2026, total assets increased by ¥271,724 million from the end of the previous fiscal year to ¥4,289,463 million. Current assets increased by ¥187,099 million, primarily due to an increase in trade and other receivables. Non-current assets also increased by ¥84,624 million, mainly reflecting an increase in goodwill. Total liabilities increased by ¥ 75,376 million from the end of the previous fiscal year to ¥ 2,270,042 million, primarily attributable to an increase in trade and other payables. Total equity increased by ¥196,347 million from the end of the previous fiscal year to ¥2,019,421 million, mainly reflecting an increase in foreign currency translation adjustment. As a result, the ratio of equity attributable to owners of the parent to total assets increased from 44.9% at the end of the previous fiscal year to 46.7%. (3) Explanation of Consolidated Financial Result Forecast and Other Forward-Looking Information The consolidated earnings forecast for the fiscal year ending December 31, 2026, originally announced on February 13, 2026, has been revised. For details of the revision, please refer to the “Notice Regarding Revision of the Consolidated Earnings Forecast” released today. Revision of the Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2026 (January 1, 2026 to December 31, 2026) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share Million yen Million yen Million yen Million yen yen Previous forecast (A) 1,920,000 283,000 274,000 198,000 85.34 Revised forecast (B) 2,000,000 283,000 265,000 189,000 81.45 Amount of change (B-A) 80,000 － (9,000) (9,000) Percentage change (%) 4.2 － (3.3) (4.5)
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４ 2. Condensed Interim Consolidated Financial Statements and Primary Notes (1) Condensed Interim Consolidated Statements of Profit or Loss and Comprehensive Income Condensed Interim Consolidated Statement of Profit or Loss (Million yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Revenue 852,428 1,023,683 Cost of sales (495,643) (580,492) Gross profit 356,785 443,191 Selling, general and administrative expenses (243,227) (288,675) Other income 6,365 4,896 Other expenses (2,605) (7,096) Operating profit 117,317 152,315 Finance income 8,010 8,336 Finance costs (14,173) (17,865) Share of profit (loss) of investments accounted for using equity method 1,033 1,467 Profit before tax 112,187 144,254 Income taxes (26,445) (38,457) Profit 85,742 105,796 Profit attributable to Owners of parent 84,502 105,150 Non-controlling interests 1,240 646 Profit 85,742 105,796 Earnings per share Basic earnings per share (yen) 35.98 45.30 Diluted earnings per share (yen) 35.98 45.30
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5 Condensed Interim Consolidated Statement of Comprehensive Income (Million yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Profit 85,742 105,796 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 1,114 (702) Remeasurements of defined benefit plans (80) 152 Share of other comprehensive income of investments accounted for using the equity method 0 (0) Total of items that will not be reclassified to profit or loss 1,034 (550) Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (139,379) 120,538 Cash flow hedges (10,623) (1) Share of other comprehensive income of investments accounted for using the equity method 297 356 Total of items that may be reclassified to profit or loss (149,705) 120,894 Total other comprehensive income (148,670) 120,344 Comprehensive income (62,927) 226,141 Comprehensive income attributable to Owners of parent (63,487) 224,718 Non-controlling interests 559 1,422 Comprehensive income (62,927) 226,141
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6 (2) Condensed Interim Consolidated Statement of Financial Position (Million yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and cash equivalents 424,337 477,268 Inventories 225,146 262,672 Trade and other receivables 409,007 509,683 Other financial assets 179,460 181,759 Other current assets 39,437 34,402 Subtotal 1,277,389 1,465,786 Assets held for sale 1,492 195 Total current assets 1,278,882 1,465,981 Non-current assets Property, plant and equipment 562,598 581,455 Goodwill 1,468,989 1,517,974 Other intangible assets 614,148 631,187 Investments accounted for using equity method 30,056 31,463 Other financial assets 29,377 24,382 Other non-current assets 24,555 25,952 Deferred tax assets 9,130 11,064 Total non-current assets 2,738,856 2,823,481 Total assets 4,017,738 4,289,463
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7 (Million yen) As of December 31, 2025 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 289,380 347,160 Bonds and borrowings 124,188 138,821 Other financial liabilities 39,473 45,002 Income taxes payable 21,045 20,338 Provisions 5,196 7,091 Other current liabilities 113,392 123,297 Total current liabilities 592,677 681,711 Non-current liabilities Bonds and borrowings 1,297,704 1,282,065 Other financial liabilities 123,950 117,288 Retirement benefit liability 18,660 19,055 Provisions 2,027 5,787 Other non-current liabilities 6,289 6,284 Deferred tax liabilities 153,355 157,848 Total non-current liabilities 1,601,988 1,588,330 Total liabilities 2,194,665 2,270,042 Equity Share capital 671,432 671,432 Capital surplus － 1,066 Treasury shares (26,885) (35,958) Retained earnings 577,798 665,132 Other components of equity 581,514 700,268 Total equity attributable to owners of parent 1,803,859 2,001,942 Non-controlling interests 19,213 17,479 Total equity 1,823,073 2,019,421 Total liabilities and equity 4,017,738 4,289,463 －
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8 (3) Condensed Interim Consolidated Quarterly Statement of Changes in Equity For the Six Months Ended June 30, 2025 (From January 1, 2025 to June 30, 2025) (Million yen) Equity attributable to owners of parent Non- controlling interests Total equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total Balance as of January 1, 2025 671,432 － (6,015) 434,223 489,880 1,589,520 17,910 1,607,431 Profit － － － 84,502 － 84,502 1,240 85,742 Other comprehensive income － － － － (147,989) (147,989) (680) (148,670) Comprehensive income － － － 84,502 (147,989) (63,487) 559 (62,927) Purchase of treasury shares － － (0) － － (0) － (0) Disposal of treasury shares － 39 15 － (9) 44 － 44 Dividends － － － (18,790) － (18,790) (34) (18,824) Change in ownership interest in subsidiaries － (72) － － － (72) (134) (206) Transfer from retained earnings to capital surplus － 2,049 － (2,049) － － － － Change in scope of consolidation － － － － － － 123 123 Transfer from other components of equity to retained earnings － － － 3,340 (3,340) － － － Transfer from other components of equity to non-financial assets － － － － 1,781 1,781 － 1,781 Change in non -controlling interest put option liabilities － (2,015) － － － (2,015) － (2,015) Other － － － － － － (0) (0) Total transactions with owners － － 14 (17,498) (1,568) (19,052) (44) (19,096) Balance as of June 30, 2025 671,432 － (6,000) 501,226 340,322 1,506,980 18,426 1,525,406 For the Six Months Ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (Million yen) Equity attributable to owners of parent Non- controlling interests Total equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total Balance as of January 1, 2026 671,432 － (26,885) 577,798 581,514 1,803,859 19,213 1,823,073 Profit － － － 105,150 － 105,150 646 105,796 Other comprehensive income － － － － 119,568 119,568 776 120,344 Comprehensive income － － － 105,150 119,568 224,718 1,422 226,141 Purchase of treasury shares － (25) (9,093) － － (9,119) － (9,119) Disposal of treasury shares － 8 20 － (6) 22 － 22 Dividends － － － (18,623) － (18,623) (289) (18,912) Change in ownership interest in subsidiaries － (6,815) － － － (6,815) (2,867 (9,683) Transfer from other components of equity to retained earnings － － － 807 (807) － － － Change in non -controlling interest put option liabilities － 7,899 － － － 7,899 － 7,899 Other － － － － － － (0) (0) Total transactions with owners － 1,066 (9,072) (17,816) (814) (26,636) (3,156) (29,793) Balance as of June 30, 2026 671,432 1,066 (35,958) 665,132 700,268 2,001,942 17,479 2,019,421
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9 (4) Condensed Interim Consolidated Statement of Cash Flows (Million yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from operating activities Profit before tax 112,187 144,254 Depreciation and amortization 32,839 40,723 Interest and dividend income (5,960) (7,425) Interest expenses 9,530 14,851 Share of loss (profit) of investments accounted for using equity method (1,033) (1,467) Decrease (increase) in inventories 416 (28,885) Decrease (increase) in trade and other receivables (93,012) (62,203) Increase (decrease) in trade and other payables 15,927 35,141 Increase (decrease) in provisions 91 5,079 Increase (decrease) in other current liabilities (16,732) 5,398 Other 1,350 9,033 Subtotal 55,604 154,501 Interest received 5,343 8,826 Dividends received 920 1,158 Interest paid (10,630) (14,591) Income taxes paid (32,562) (44,064) Net cash provided by (used in) operating activities 18,674 105,830 Cash flows from investing activities Net decrease (increase) in time deposits (12,469) 24,223 Net decrease (increase) in short-term investment securities 31,814 (36,189) Proceeds from sale of investment securities 7,804 1,449 Purchase of property, plant and equipment (18,539) (21,867) Purchase of shares of subsidiaries (300,244) － Other 1,285 2,105 Net cash provided by (used in) investing activities (290,348) (30,279) Cash flows from financing activities Net increase (decrease) in short-term borrowings 669,766 (273) Proceeds from long-term borrowings 105,000 94,759 Repayments of long-term borrowings (387,763) (95,859) Redemption of bonds (40,114) － Repayments of lease obligations (9,008) (10,663) Purchase of treasury shares (0) (5,030) Dividends paid (18,790) (18,622) Other (205) (2,614) Net cash provided by (used in) financing activities 318,882 (38,304) Effect of exchange rate changes on cash and cash equivalents (12,323) 14,333 Adjustments for hyperinflation (510) 1,350 Net increase (decrease) in cash and cash equivalents 34,375 52,930 Cash and cash equivalents at beginning of period 288,301 424,337 Cash and cash equivalents at end of period 322,676 477,268
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10 (5) Notes to the Condensed Interim Consolidated Financial Statements (Business combinations) For the six months ended June 30, 2025 (from January 1, 2025 to June 30, 2025) (Acquisition of equity interests in LSF11 A5 TopCo LLC) Main reasons for business combination Nippon Paint Group pursues Maximization of Shareholder Value (MSV) as our sole mission by leveraging our Asset Assembler model. We will achieve this goal by compounding EPS (earnings per share) through both organic growth, driven by the expansion of existing businesses, and inorganic growth, achieved via good and low-risk mergers and acquisitions without limitations on regions, business areas, and scales. Additionally, we aim to maximize PER (price-to-earnings ratio) by enhancing capital market understanding and evaluations. Backed by its broad customer base, including areas with significant growth potential, advanced technological capabilities that allow for high-level product customization tailored to customer needs, and flexible logistics network, LSF11 A5 TopCo LLC has secured a leading position in the US and European markets as a specialty formulator for CASE, colorants, and composite solutions. Additionally, LSF11 A5 TopCo LLC features excellent cash generation capabilities, driven by excellent profitability and low capital expenditure requirements. By joining the Group, the company is expected to contribute to our sustainable compounding of EPS (earnings per share) and aid in the growth of existing businesses through collaboration with our group companies. (1) Overview of business combination (i) Name and business activities of the acquired company Name: LSF11 A5 TopCo LLC Business activities: Formulation development, manufacturing and distribution of unsaturated polyester, vinyl ester, etc. for composites and related products (ii) Date of acquisition: March 3, 2025 (iii) Percentage of equity interests with voting rights acquired: 100％ (iv) Method of acquisition of control: By acquisition of equity interests for cash consideration (2) Fair value of assets acquired and liabilities assumed at the date of business combination (Million yen) Fair value Cash and cash equivalents 32,427 Property, plant and equipment 61,387 Intangible assets (Note 2) 143,065 Other assets 62,856 Fair value of liabilities assumed (426,033) Fair value of assets acquired and liabilities assumed, net (126,296) Trade and other receivables (Million yen) Contractual amount due Fair value Trade and other receivables 27,727 27,348 Accounts receivable-other 314 309 Total 28,041 27,658 Best estimate of contractual cash flows not expected to be collected (383) － Net total 27,658 27,658
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11 Note 1: The purchase consideration has been allocated to the acquired assets and assumed liabilities based on their respective fair values as of the acquisition date. During the previous fiscal year, the purchase price allocation was finalized, resulting in adjustments to the amounts initially recorded on a provisional basis. Accordingly, retrospective adjustments were made to the condensed consolidated financial statements for the six months ended June 30, 2025: Property, plant and equipment: Increased by ¥27,119 million Intangible assets: Increased by ¥143,051 million Other assets: Increased by ¥2,469 million Fair value of assumed liabilities: Increased by ¥40,535 million Goodwill: Decreased by ¥132,104 million Note 2: Intangible assets primarily comprise trademarks of ¥64,749 million, customer-related intangible assets of ¥73,784 million, and technology assets of ¥4,517 million. In the purchase price allocation, the fair value of trademarks was determined using the relief-from-royalty method, while the fair value of customer-related intangible assets was determined using the multi-period excess earning method, and the fair value of technology assets was determined using the relief-from-royalty method. (3) Consideration transferred and goodwill (Million yen） Amount Consideration transferred (cash and other assets) A 330,236 Basis adjustments B 1,781 Fair value of assets acquired and liabilities assumed, net C (126,296) Goodwill (Note) A＋B-C 458,314 Note: Goodwill primarily reflects the ability to generate excess earnings in the future. No amount of the above goodwill is expected to be tax deductible. (4) Acquisition-related expenses Account item: Selling, general and administrative expenses Amount: ¥2,136 million (5) Effects on the condensed interim consolidated quarterly statement of profit or loss Financial results of the acquired company on and after the date of acquisition recognized in the condensed interim consolidated quarterly statement of profit or loss (Million yen) Amount Revenue 64,753 Profit 14,080 (6) Effects of business combination on the consolidated interim consolidated statement of profit or loss assuming that the business combination was carried out at the beginning of the period (Million yen) Amount Revenue 96,591 Profit 24,429 The pro forma information (unaudited) has not undergone a quarterly review.
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12 (7) Effects of business combination on cash flows (Million yen) Amount Consideration paid for acquisition 332,017 Cash and cash equivalents (32,427) Acquisition of equity interests of subsidiaries 299,590 For the six months ended June 30, 2026 (from January 1, 2026 to June 30, 2026) There are no applicable items. (Segment information) (1) Summary of reportable segments The Nippon Paint Group’s operations are divided into business segments for which separate financial information is available. Segments are subject to periodic evaluations by the Board of Directors, which is the highest decision-making body, in order to make decisions regarding business resource allocations and performance assessments. The Nippon Paint Group’s primary businesses are the paint and coating business, which manufactures and sells automotive coatings, decorative paints, industria l coatings, fine chemicals, and other paints, and the adjacencies business which manufactures and sells paint -related products, CASE, and colorants. An independent company and companies overseen by this company are responsible for business activities in Japan. Independent companies, led by key partner companies including NIPSEA, DuluxGroup, and AOC, are responsible for business activities in Asia, Oceania, the Americas, and other regions. Each company operates as an independent management unit, formulating comprehensive strategies for each management unit or region regarding the products they handle and carrying out business activities based on these strategies. As a result, the Nippon Paint Group consists of five reportable segments divided by management units or regions based on manufacturing and sales infrastructures: Japan, NIPSEA, DuluxGroup, the Americas, and AOC. The Japan segment includes the overseas marine coatings business. *CASE: Coatings, Adhesives, Sealants and Elastomers (2) Information on reportable segments For the Six Months Ended June 30, 2025 (From January 1, 2025 to June 30, 2025) (Million yen) Reportable segment Adjustments (Note 1) Amounts in consolidated financial statements Japan NIPSEA DuluxGroup Americas AOC Total Revenue Revenue from external customers 100,644 438,379 188,610 60,041 64,753 852,428 － 852,428 Intersegment revenue 10,025 7,320 292 49 － 17,687 (17,687) － Total 110,669 445,700 188,902 60,090 64,753 870,116 (17,687) 852,428 Segment profit (loss) 9,912 69,133 18,359 3,905 19,162 120,473 (3,156) 117,317 Finance income 8,010 Finance costs (14,173) Share of profit of investments accounted for using equity method 1,033 Profit before tax 112,187 Note: Adjustments for segment profit are headquarters expenses that do not belong to any reportable segment and intersegment eliminations.
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13 For the Six Months Ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (Million yen) Reportable segment Adjustments (Note 1) Amounts in consolidated financial statements Japan NIPSEA DuluxGroup Americas AOC Total Revenue Revenue from external customers 114,063 504,172 232,359 65,479 107,608 1,023,683 － 1,023,683 Intersegment revenue 10,366 6,634 265 22 － 17,288 (17,288) － Total 124,429 510,807 232,624 65,502 107,608 1,040,972 (17,288) 1,023,683 Segment profit (loss) 14,399 86,511 16,489 4,224 34,072 155,697 (3,381) 152,315 Finance income 8,336 Finance costs (17,865) Share of profit of investments accounted for using equity method 1,467 Profit before tax 144,254 Note: Adjustments for segment profit are headquarters expenses that do not belong to any reportable segment and intersegment eliminations. (3) Information on products and services For the Six Months Ended June 30, 2025 (From January 1, 2025 to June 30, 2025) (Million yen) Japan NIPSEA DuluxGroup Americas AOC Total Paint and coatings business Automotive coatings 19,695 55,283 － 22,524 － 97,502 Decorative paints 23,132 319,923 122,008 36,416 － 501,481 Industrial coatings 18,921 24,964 4,996 － － 48,882 Fine chemicals 4,152 5,040 － 1,100 － 10,292 Other paints 34,741 16,087 － － － 50,828 100,644 421,297 127,005 60,041 － 708,988 Adjacencies business － 17,081 61,605 － 64,753 143,440 Total 100,644 438,379 188,610 60,041 64,753 852,428 For the Six Months Ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (Million yen) Japan NIPSEA DuluxGroup Americas AOC Total Paint and coatings business Automotive coatings 20,161 68,661 － 25,176 － 113,999 Decorative paints 27,767 360,044 148,699 39,016 － 575,527 Industrial coatings 22,185 30,160 6,760 － － 59,105 Fine chemicals 4,262 4,749 － 1,285 － 10,297 Other paints 39,687 17,908 － － － 57,595 114,063 481,524 155,459 65,479 － 816,526 Adjacencies business － 22,648 76,900 － 107,608 207,156 Total 114,063 504,172 232,359 65,479 107,608 1,023,683
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14 (Notes on going concern assumption) There are no applicable items. (Notes on significant subsequent events) (Acquisition of Shares of European Automotive Coatings Business as Subsidiaries) The Company, at its Board of Directors meeting held on August 7, 2026, approved a resolution regarding the buyback of the shares of the European automotive coatings business which was transferred to the Wuthelam Group*, and entered into a Share Purchase Agreement (the “Share Transfer Agreement”) involving the Acquisition on the same day. * Collectively refers to Nipsea International Limited, the Company’s majority shareholder, Mr. Goh Hup Jin, entities effectivel y controlled by any of the foregoing, and their subsidiaries, excluding the Company and its subsidiaries. (1) Reasons for the acquisition of shares The Company pursues Maximization of Shareholder V alue (MSV) as its sole mission, and strives for sustainable growth through the Asset Assembler model to achieve this goal. As stated in the August 10, 2021 announcement, the Company determined that fundamental restructuring of its strategically important businesses in India and Europe was essential for enhancing corporate value over the medium to long term. Accordingly, the Company transferred the shares of its India business and European automotive coatings business to the Wuthelam Group. This transaction enabled the Company to mitigate risks by having the Wuthelam Group bear additional investments and expenses required for the restructuring plan of these companies in the short term and the uncertainty of the restructuring plan. Following the share transfer, the Company continued to provide ongoing administrative and other management support services through the Nippon Paint Group (the “Group”) without changing names of these companies. The Group seconded management teams to these companies and monitored business operations by keeping track of financial position and other operating status. In August 2023, the Company reached an agreement with the Wuthelam Group regarding the buyback of the India business, and the transaction was completed in November 2024. The European automotive coatings business has also achieved a meaningful recovery in performance since the share transfer as a result of restructuring initiatives, including reorganization undertaken under the Wuthelam Group, and is now positioned for sustained profit growth. Furthermore, from the perspective of MSV, the Company has determined that repurchasing the business at this time is the optimal decision to accelerate the Group’s global initiatives in the automotive coatings business. To ensure fairness in determining the acquisition price of the target companies’ shares, we engaged in independent third-party valuation firm, unaffiliated with the Company, the Wuthelam Group, or the target companies, to assess their equity value. The acquisition price was set based on the results of this valuation. (2) Timing of share acquisition October 2026 (scheduled) (3) Acquisition price Acquisition price (scheduled): Approximately 47 million euro (approximately 8.5 billion yen; EUR 1 = JPY 181.4)