MarketLineIC AsiaPacificPaintsCoatings 060920 PDF

MarketLine Industry Profile
Paints & Coatings in Asia-Pacific

August 2020
Reference Code: 0200-0749
Publication Date: August 2020
WWW.MARKETLINE.COM
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Industry Profiles
1. Executive Summary
1.1. Market value

The Asia-Pacific paints & coatings market grew by 5.7% in 2019 to reach a value of $91.9 billion.
1.2. Market value forecast

In 2024, the Asia-Pacific paints & coatings market is forecast to have a value of $110.8 billion, an increase of 20.6%
since 2019.
1.3. Market volume

The Asia-Pacific paints & coatings market grew by 4.1% in 2019 to reach a volume of 27,837.1 thousand tonnes.
1.4. Market volume forecast

In 2024, the Asia-Pacific paints & coatings market is forecast to have a volume of 33,948.3 thousand tonnes, an
increase of 22% since 2019.
1.5. Category segmentation

Industrial paints & coatings is the largest segment of the paints & coatings market in Asia-Pacific, accounting for 46.5%
of the market's total value.
1.6. Geography segmentation

Asia-Pacific accounts for 56.7% of the Asia-Pacific paints & coatings market value.
1.7. Market rivalry

Rivalry in this market is strengthened by the presence of several large players such as Nippon Paint and Akzo Nobel,
which exist alongside smaller brands such as paint shops and building material superstores that market private label
products.
1.8. Competitive Landscape

Industry Profiles
The Asia-Pacific paints and coatings market has seen both healthy value and volume growth in recent years. A
noticeable change that has taken place in the paints and coatings industry over the last 30 to 40 years has been the
adoption of new coating technologies. These new coating technologies include waterborne (thermosetting emulsion,
colloidal dispersion, water-soluble) coatings, high-solids coatings, two-component systems, powder coatings, and
radiation-curable coatings. Increased regulation has also impacted players in the market, and more concerns are being
raised about air pollution, with consumer preference being for fewer chemicals in products.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................. 2
1.2. Market value forecast ...................................................................................................................2
1.3. Market volume .............................................................................................................................. 2
1.4. Market volume forecast ................................................................................................................2
1.5. Category segmentation ................................................................................................................2
1.6. Geography segmentation .............................................................................................................2
1.7. Market rivalry ................................................................................................................................ 2
1.8. Competitive Landscape ................................................................................................................2
2. Market Overview 8
2.1. Market definition ........................................................................................................................... 8
2.2. Market analysis ............................................................................................................................ 9
3. Market Data 10
3.1. Market value ............................................................................................................................... 10
3.2. Market volume ............................................................................................................................ 11
4. Market Segmentation 12
4.1. Category segmentation ..............................................................................................................12
4.2. Geography segmentation ...........................................................................................................13
5. Market Outlook 14
5.1. Market value forecast .................................................................................................................14
5.2. Market volume forecast ..............................................................................................................15
6. Five Forces Analysis 16
6.1. Summary .................................................................................................................................... 16
6.2. Buyer power ............................................................................................................................... 18
6.3. Supplier power ........................................................................................................................... 20
6.4. New entrants .............................................................................................................................. 21

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6.5. Threat of substitutes ...................................................................................................................23
6.6. Degree of rivalry ......................................................................................................................... 24
7. Competitive Landscape 26
7.1. Who are the leading players?.....................................................................................................26
7.2. What strategies do the leading players follow? ..........................................................................26
7.3. How has the regulatory environment affected the market? ........................................................27
7.4. What has been the recent M&A activity? ...................................................................................28
8. Company Profiles 29
8.1. Akzo Nobel N.V. ......................................................................................................................... 29
8.2. Nippon Paint Holdings Co Ltd ....................................................................................................33
8.3. Kansai Paint Co Ltd....................................................................................................................37
8.4. PPG Industries, Inc. ...................................................................................................................40
About MarketLine .................................................................................................................................... 47

Industry Profiles
LIST OF TABLES
Table 1: Asia-Pacific paints & coatings market value: $ billion, 2015–19 10
Table 2: Asia–Pacific paints & coatings market volume: thousand tonnes, 2015–19 11
Table 3: Asia–Pacific paints & coatings market category segmentation: $ billion, 2019 12
Table 4: Asia–Pacific paints & coatings market geography segmentation: $ billion, 2019 13
Table 5: Asia-Pacific paints & coatings market value forecast: $ billion, 2019–24 14
Table 6: Asia–Pacific paints & coatings market volume forecast: thousand tonnes, 2019–24 15
Table 7: Akzo Nobel N.V.: key facts 29
Table 8: Akzo Nobel N.V.: Annual Financial Ratios 31
Table 9: Akzo Nobel N.V.: Key Employees 32
Table 10: Nippon Paint Holdings Co Ltd: key facts 33
Table 11: Nippon Paint Holdings Co Ltd: Annual Financial Ratios 34
Table 12: Nippon Paint Holdings Co Ltd: Key Employees 35
Table 13: Nippon Paint Holdings Co Ltd: Key Employees Continued 36
Table 14: Kansai Paint Co Ltd: key facts 37
Table 15: Kansai Paint Co Ltd: Annual Financial Ratios 38
Table 16: Kansai Paint Co Ltd: Key Employees 39
Table 17: PPG Industries, Inc.: key facts 40
Table 18: PPG Industries, Inc.: Annual Financial Ratios 42
Table 19: PPG Industries, Inc.: Key Employees 43
Table 20: PPG Industries, Inc.: Key Employees Continued 44

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LIST OF FIGURES
Figure 1: Asia-Pacific paints & coatings market value: $ billion, 2015–19 10
Figure 2: Asia–Pacific paints & coatings market volume: thousand tonnes, 2015–19 11
Figure 3: Asia–Pacific paints & coatings market category segmentation: % share, by value, 2019 12
Figure 4: Asia–Pacific paints & coatings market geography segmentation: % share, by value, 2019 13
Figure 5: Asia-Pacific paints & coatings market value forecast: $ billion, 2019–24 14
Figure 6: Asia–Pacific paints & coatings market volume forecast: thousand tonnes, 2019–24 15
Figure 7: Forces driving competition in the paints & coatings market in Asia-Pacific, 2019 16
Figure 8: Drivers of buyer power in the paints & coatings market in Asia-Pacific, 2019 18
Figure 9: Drivers of supplier power in the paints & coatings market in Asia-Pacific, 2019 20
Figure 10: Factors influencing the likelihood of new entrants in the paints & coatings market in Asia-Pacific,
2019 21
Figure 11: Factors influencing the threat of substitutes in the paints & coatings market in Asia-Pacific, 201923
Figure 12: Drivers of degree of rivalry in the paints & coatings market in Asia-Pacific, 2019 24

Industry Profiles
2. Market Overview
2.1. Market definition

The paints & coatings market consists of liquid and powder based paints, varnishes and related products used for
protective and decorative, industrial and automotive and specialty purposes.
The market excludes inks, thinners and raw materials, such as pigments and solvents.
The architectural & decorative segment consists of products used in homes and buildings, such as interior and exterior
paints, primers, sealers, and varnishes.
The industrial segment comprises products that are factory-applied to manufactured goods as part of the production
process.
The specialty segment consists of aerosol paints, marine paints, high-performance maintenance coatings, and
automotive refinish paints.
The market value is calculated according to factory prices.
Figures presented in this report are calculated applying the "middle path" scenario - this is based on the current
situation in countries where the epidemic burst first, like China as a model countries and the announcements made by
governments, stating that the abnormal situation may last up to six months.
The assumption has been made that after this time the economy will gradually go back to the levels recorded before
the pandemics by the end of the year. It is also assumed that there is no widespread economic crisis as seen back in
2008 due to announced pay-outs across countries.
At the moment of preparation of this report in April 2020 the economic implications of the lock downs of many
economics are still very difficult to predict as there is no indication how long the pandemics could last, the number of
sectors forced to stay closed and the scale of the governmental' aid involved. At the same time the weight of the
pandemic seriousness is applied on the individual countries in this report based on death to population ratio recorded
in countries.
Majority of the industries will see the decline in volume of the goods and services offered by companies. Usually the
lower demand would cause the decrease the prices level. However, amid many governments’ ordered for many
industries to lock down and so the supply chain is distorted that in great pictures mitigate the results of lower
demand.
Applied scenarios differ depending on the individual sector, however generally sectors which involves intensive
manual labor and face to face interaction seem to be hit the most by present situation. On the other hand the internet
based businesses as well as the producers of the vital, subsisted products and services seems to take advantages of
the current events.
Any currency conversions used in the creation of this report have been calculated using constant 2018 annual average
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

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Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The Asia-Pacific paints & coatings market saw healthy growth overall during the historic period with an exception in
2017. The market is expected to grow at healthy pace during the forecast period; however, the market will decline
significantly in 2020 due to the COVID-19 outbreak.
The paints & coatings market is positively correlated with vehicle and aircraft manufacturers. These buyers tend to be
very big corporations having big influence in the market. This means, as long as there is a boom in vehicle or aircraft
production, then companies involved in these kind of endeavours would require massive amounts of paint for their
products, buying in bulk from the market players, which would lead growth in the paints & coatings market to
increase greatly.
The Asia-Pacific paints & coatings market had total revenues of $91,873.5m in 2019, representing a compound annual
growth rate (CAGR) of 5.4% between 2015 and 2019. In comparison, the Japanese and European markets grew with
CAGRs of 4.1% and 2.9% respectively, over the same period, to reach respective values of $6,730.5m and $24,164.2m
in 2019.
The main end-markets for the paints & coatings market are the construction and manufacturing industries. The largest
segment in this market is industrial paints and coatings, which shows that construction in Asia-Pacific is not the key
driver, but manufactured goods are.
However, this was closely followed by architectural and decorative paints and coatings, which has construction as a
major end market. The construction industry across the Asia-Pacific region has been growing strongly, spurring
demand in this market.
Market consumption volume increased with a CAGR of 4.8% between 2015 and 2019, to reach a total of 27,837.1
thousand tonnes in 2019. The market's volume is expected to rise to 33,948.3 thousand tonnes by the end of 2024,
representing a CAGR of 4% for the 2019-2024 period.
Many Asian economies are still developing and growing. A noticeable by-product of this is increased urbanization as
people move to major cities for jobs. This necessitates new housing construction and in countries like China,
Indonesia, and Vietnam, this is a key demand driver for paints and coatings.
Industrial paints & coatings had the highest volume in the Asia-Pacific paints & coatings market in 2019, with a total of
42,676.8 thousand tonnes, equivalent to 46.5% of the market's overall volume. In comparison, architectural &
decorative had a volume of 31,642.9 thousand tonnes in 2019, equating to 34.4% of the market total.
Major buyers in the market are big vehicle and aircraft manufacturers who require massive amounts of paint for their
products and mostly buy in bulk, increasing sales massively for the industrial paints & coatings segment. On the other
hand, the architectural & decorative segment had the highest volume in the global paints & coatings market in 2019,
as the majority of buyers in the market tend to be end-users and the market is positively correlated with the
construction industry. Meaning that an increase in demand for housing and general construction would create a spike
for the demand of paint and coatings.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.8% for the five-year period
2019-2024, which is expected to drive the market to a value of $110,764.1m by the end of 2024. Comparatively, the
Japanese and European markets will grow with CAGRs of 3.7% and 0.2% respectively, over the same period, to reach
respective values of $8,059.6m and $24,413.2m in 2024.
The COVID-19 outbreak will have a big impact on the paints & coatings market in 2020. Store closures alongside social
distancing measures and whole cities going into lockdown will force the market to decline significantly. Paints and
coatings are almost indispensable in construction and industrial manufacturing of cars, ships and planes, meaning that
difficult access to paint and coating will force the market players to seek alternative or substitute products. This is
expected to change from 2021 and onwards when life is expected to return to normal; easing lockdowns and social
distancing measures will have a positive impact on the paints & coatings market.

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3. Market Data
3.1. Market value

The Asia-Pacific paints & coatings market grew by 5.7% in 2019 to reach a value of $91.9 billion.
The compound annual growth rate of the market in the period 2015–19 was 5.4%.
Table 1: Asia-Pacific paints & coatings market value: $ billion, 2015–19
Year $ billion € billion % Growth

2015 74.5 83.5
2016 79.7 89.2 6.9%
2017 82.1 92.0 3.1%
2018 86.9 97.3 5.8%
2019 91.9 102.9 5.7%
CAGR: 2015–19 5.4%
SOURCE: MARKETLINE MARKETLINE
Figure 1: Asia-Pacific paints & coatings market value: $ billion, 2015–19

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3.2. Market volume

The Asia-Pacific paints & coatings market grew by 4.1% in 2019 to reach a volume of 27,837.1 thousand tonnes.
The compound annual growth rate of the market in the period 2015–19 was 4.8%.
Table 2: Asia–Pacific paints & coatings market volume: thousand tonnes, 2015–19
Year thousand tonnes % Growth

2015 23,070.7
2016 24,359.7 5.6%
2017 24,840.7 2.0%
2018 26,751.3 7.7%
2019 27,837.1 4.1%
CAGR: 2015–19 4.8%
Figure 2: Asia–Pacific paints & coatings market volume: thousand tonnes, 2015–19

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4. Market Segmentation
4.1. Category segmentation

Industrial paints & coatings is the largest segment of the paints & coatings market in Asia-Pacific, accounting for 46.5%
of the market's total value.
The Architectural & decorative segment accounts for a further 34.4% of the market.
Table 3: Asia–Pacific paints & coatings market category segmentation: $ billion, 2019
Category 2019 %
Industrial Paints & Coatings 42.7 46.5%
Architectural & Decorative 31.6 34.4%
Special-purpose Paints & Coatings 17.6 19.1%
Total 91.9 100%
Figure 3: Asia–Pacific paints & coatings market category segmentation: % share, by value, 2019

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4.2. Geography segmentation

Asia-Pacific accounts for 56.7% of the Asia-Pacific paints & coatings market value.
Asia-pacific accounts for a further 56.7% of the Asia-Pacific market.
Table 4: Asia–Pacific paints & coatings market geography segmentation: $ billion, 2019
Geography 2019 %
Asia-pacific 91.9 56.7
United States 25.6 15.8
Europe 24.2 14.9
Japan 6.7 4.2
Rest Of The World 13.6 8.4
Total 162 100%
Figure 4: Asia–Pacific paints & coatings market geography segmentation: % share, by value, 2019

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5. Market Outlook
5.1. Market value forecast

In 2024, the Asia-Pacific paints & coatings market is forecast to have a value of $110.8 billion, an increase of 20.6%
since 2019.
The compound annual growth rate of the market in the period 2019–24 is predicted to be 3.8%.
Table 5: Asia-Pacific paints & coatings market value forecast: $ billion, 2019–24
Year $ billion € billion % Growth

2019 91.9 102.9 5.7%
2020 85.0 95.2 (7.5%)
2021 91.7 102.7 7.9%
2022 97.4 109.1 6.2%
2023 103.7 116.2 6.5%
2024 110.8 124.1 6.8%
CAGR: 2019–24 3.8%
Figure 5: Asia-Pacific paints & coatings market value forecast: $ billion, 2019–24

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5.2. Market volume forecast

In 2024, the Asia-Pacific paints & coatings market is forecast to have a volume of 33,948.3 thousand tonnes, an
increase of 22% since 2019.
The compound annual growth rate of the market in the period 2019–24 is predicted to be 4%.
Table 6: Asia–Pacific paints & coatings market volume forecast: thousand tonnes, 2019–24
Year thousand tonnes % Growth

2019 27,837.1 4.1%
2020 28,949.2 4.0%
2021 30,200.2 4.3%
2022 31,590.8 4.6%
2023 32,678.3 3.4%
2024 33,948.3 3.9%
CAGR: 2019–24 4.0%
Figure 6: Asia–Pacific paints & coatings market volume forecast: thousand tonnes, 2019–24

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6. Five Forces Analysis

The paints & coatings market will be analyzed taking paint and coatings manufacturers as players. The key buyers will
be taken as industrial and construction companies, and chemical manufacturers as the key suppliers.
6.1. Summary
Figure 7: Forces driving competition in the paints & coatings market in Asia-Pacific, 2019
Rivalry in this market is strengthened by the presence of several large players such as Nippon Paint and Akzo Nobel,
which exist alongside smaller brands such as paint shops and building material superstores that market private label
products.
The buyers within this market include industrial and construction companies, some of which are fairly large in size.
The larger the buyer, the higher the power as such companies are important to market players. Conversely, the loss of
a smaller buyer is unlikely to have much of an impact on the business of a market player. The size of typical buyers of
paints and coatings players varies substantially.
With hundreds of inputs to the manufacturing process, the paints and coatings market is raw-material intensive. Of
these raw materials, around half are petrochemical-based. When international prices of petrochemical products fall,
paint manufacturers benefit and vice-versa. Due to the COVID-19 outbreak in late 2019 and 2020, petrol consumption
fell dramatically as many major cities around the world imposed strict lockdowns forbidding any unnecessary
movement. Besides low petrol consumption, an oil price war between Saudi Arabia and Russia took place during 2020
in regards to oil production levels, which decreased oil prices significantly. The price fluctuations of chemicals such as
titanium dioxide, which makes paint opaque and is an essential ingredient in automobile paint production, and acrylic
acid-based polymers (resins that bind pigments together), can affect the profitability within the market. However,
these are not highly differentiated products, and can be sourced readily from several companies.
Potential newcomers to this market may be discouraged by the relatively high level of regulation in relation to the
manufacture of paints and coatings, as well as regulation concerning the import of various chemicals and raw
materials required. For example, in Japan, if a company wishes to import certain substances which can be used in the
production of paint, it must obtain permission from the Ministry of Economy, Trade and Industry. Additionally, the use
of certain substances for manufacture is prohibited altogether and the import of new chemical substances must be

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approved by the Ministry of Health, Labour and Welfare, the Ministry of Economy, Trade and Industry, and the
Ministry of Environment.
Substitutes in this market include the use of different materials in the design/construction process. As this would
constitute a high switching cost, the threat of substitutes is weak.
Market players will have to continue to pioneer new low VOC coating solutions specifically engineered to improve
environmental performance, and emphasis will be placed on paints designed to reduce potential health risks
associated with harmful emission. Focusing on increasingly environmentally friendly solutions requires investment in
R&D, raising rivalry levels. What’s more, as the market continues to head further in the direction of solvent free
products, competition will be heightened as companies fight for a portion of this new direction for the market.

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6.2. Buyer power

Figure 8: Drivers of buyer power in the paints & coatings market in Asia-Pacific, 2019
The buyers within this market include industrial and construction companies, some of which are fairly large in size.
The larger the buyer, the higher the power as such companies are important to market players. Conversely, the loss of
a smaller buyer is unlikely to have much of an impact on the business of a market player. The size of typical buyers of
paints and coatings players varies substantially. Buyers such as Mitsubishi as well as large original equipment
manufacturers (OEMs), for example, enjoy a substantially greater degree of buyer power than smaller local or regional
focused construction companies, due to the difference in purchase quantity and purchasing power. In addition, large
manufacturers, such as Aircraft manufacturers, are likely to skip the retail stage and buy straight from the paint and
coatings producers. It can take almost a week to paint one jetliner and as the paint adds between 600-1,200 lbs (273-
544 kg) of weight to the plane, it is important to be as economical as possible.
Some large companies, such as Akzo Nobel, have branched out to online retail on their websites but paint is one of
the products more resistant to e-commerce products because customers are likely to want to see the color in person.
Large amounts of paint are also very heavy and the amount charged for delivery is likely to deter customers from an
online delivery. Amazon does, however, also offer paint and coatings purchases online and can deliver for free,
essentially undercutting its competition. Customers may be more tempted to buy coatings online, because seeing it in
person is less important and they are typically needed in smaller quantities.
The leading players in this market, such as DowDuPont, have buyers from a range of other markets and industries
such as chemicals. This reduces reliance on the buyers in this market, further lowering buyer power.
Across the paints and coatings market, players try to differentiate their offerings via strong branding. For example,
Akzo Nobel with its Dulux paint brand. As switching costs are rather low (except in the situation when buyers enter
into a contract with market players), buyer power is boosted. Switching costs are generally low as most players will
offer the same colors that most buyers want to purchase. However, some buyers will differentiate between players
based on the quality of the paint being provided, including how long lasting the paint in question is. In the case of
buyers entering into contracts with market players, switching costs include the fee for exiting a contract early. What’s
more, contracts usually specify a target quantity of paint/coating to be purchased by the buyer and sometimes include
the leasing of equipment. For example, Akzo Nobel regularly provides equipment such as mixing machines at the start
of a paint delivery contract.
The relatively large number of potential buyers serves to further weaken buyer power within the market.
Overall, buyer power in the Asia-Pacific market is assessed as moderate.

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6.3. Supplier power

Figure 9: Drivers of supplier power in the paints & coatings market in Asia-Pacific, 2019
With hundreds of inputs to the manufacturing process, the paints and coatings market is raw-material intensive. Of
these raw materials, around half are petrochemical-based.
The raw materials for paints may be classified into five segments: pigments, solvents, binders, additives and white
cement/urea. These account for roughly 50% of total costs. Thus, the market is affected by international price changes
and macroeconomic conditions.
When international prices of petrochemical products fall, paint manufacturers benefit and vice-versa. Due to the
COVID-19 outbreak in late 2019 and 2020, petrol consumption fell dramatically as many major cities around the world
imposed strict lockdowns forbidding any unnecessary movement. Besides low petrol consumption, an oil price war
between Saudi Arabia and Russia took place during 2020 in regards to oil production levels, which decreased oil prices
significantly. The price fluctuations of chemicals such as titanium dioxide, which makes paint opaque and is an
essential ingredient in automobile paint production, and acrylic acid-based polymers (resins that bind pigments
together), can affect the profitability within the market. However, as these are not highly differentiated products, and
can be sourced readily from several companies, supplier power is weakened to an extent.
Although the paints and coatings market remains fragmented, in recent years concentration has increased following a
trend toward globalization and consolidation, driven by the need to reduce costs, and serve a worldwide customer
base. Many smaller companies have lost their independence by the need to meet more restrictive environmental
regulations, along with customer demand for better, more cost-efficient coatings. Pigment and additives producers
supply the paints and coatings market with the necessary raw materials, titanium oxide and resins, and command a
moderate degree of bargaining power.
As rising input costs have squeezed margins, some paints and coatings leaders have integrated backwards. For
example, large players such as Akzo Nobel are active in the manufacture of paints and coatings, as well as the
production of raw materials, such as titanium dioxide. The tendency towards backwards integration weakens supplier
power. However, smaller players may find it more difficult to source their own materials.
Overall, supplier power in the Asia-Pacific market is assessed as moderate.

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6.4. New entrants

Figure 10: Factors influencing the likelihood of new entrants in the paints & coatings market in Asia-Pacific, 2019
The Asia-Pacific paints and coatings market has seen both healthy value and volume growth in recent years. The
largest segment of the paints & coatings market is the industrial paints and coatings segment, which is reliant on end-
markets such as automotive manufacturing and aerospace manufacturing, both of which have been growing at a good
rate across the region. Moreover, the construction industry across the Asia-Pacific region has also been growing
strongly, spurring further demand in this market. Such a situation is likely to attract new entrants.
Potential newcomers may be discouraged by the existence of environmental regulations. For example, in Japan, if a
company wishes to import certain substances which can be used in the production of paint, it must obtain permission
from the Ministry of Economy, Trade and Industry. Additionally, the use of certain substances for manufacture is
prohibited altogether and the import of new chemical substances must be approved by the Ministry of Health, Labour
and Welfare, the Ministry of Economy, Trade and Industry, and the Ministry of Environment. Moreover, in Japan,
changes to the Air Pollution Control Act came into effect in 2006, aimed at limiting the presence of volatile organic
compounds (VOCs) which react with nitrogen oxides present in the atmosphere to erode the ozone layer. Even in
China which traditionally has had lighter regulation on its paints and coatings market, the increasing levels of pollution
in some of the country’s largest cities have pushed the authorities to issue new regulations on VOC levels present in
coatings. VOC levels above 400 g/l are now taxed by 5% in order to encourage manufacturers to reduce levels. Many
of the companies operate through a range of brands; Akzo Nobel, for example, operates through Dulux, Coral and
Pinotex, among others and RPM international also operates through many brands including DAP, Rust-Oleum, and
Pettit. These similar products can therefore be branded differently and pushed towards the next stage to a wide range
of business and individual customers.
The increasing shift of the market towards low VOC products can actually offer an avenue of entry for new companies.
Focusing on only offering low VOC paints and coatings has the potential to be highly profitable, especially since the
market is increasingly heading in this direction. However, it is worth noting that leading companies in this market do
have offerings in this segment of the market. For example, Dulux (Akzo Nobel) offers low VOC products with its Dulux
Ecosure brand. In fact, over 20% of Akzo Nobel’s 2018 revenue derived from its ‘eco-premium’ products. This
increases competition in this segment of the market; however, if a new player enters the market focusing entirely on
more environmentally friendly paints and coatings, this could set such a company apart from its competitors.
High initial fixed costs for the acquisition of specialized production systems for the process of paint formulation tends
to discourage new entrants with insufficient capital. The size of the current market leaders can also act as a deterrent
as companies such as Akzo Nobel generate revenue in the billions. Dominance from players of this size in the Asia-

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Pacific market means there is less revenue available for new entrants. What’s more, in a market that is price sensitive,
the leading players have the economies of scale to price smaller companies out of the market. Price wars between
existing players will serve to dissuade potential new entrants. However, the relative ease of end-user switching,
coupled with good market performance in recent years, may serve to attract new entrants to an extent.
Overall, the likelihood of new entrants is assessed as moderate.

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6.5. Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the paints & coatings market in Asia-Pacific, 2019
Paints and coatings offer benefits such as protection and aesthetic changes. They can protect buildings, automobiles
and manufactured objects from corrosion and other forms of damage. Additionally, they allow construction and
manufacturing companies to make their products more appealing to their own customers, who are often end-
consumers, and therefore in a position to make purchasing decisions on the grounds of personal taste.
However, these benefits can be achieved in other ways. At the product (or building) design stage, materials that do
not require any additional coatings could be used: stainless steel rather than non-stainless; PVC rather than wood, and
so on. However, as the material a product is made from is usually fundamental to its performance, these design
decisions are not trivial, and this can be viewed as a high switching cost.
The threat from substitutes is assessed as weak overall.

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6.6. Degree of rivalry

Figure 12: Drivers of degree of rivalry in the paints & coatings market in Asia-Pacific, 2019
Rivalry in this market is strengthened by the presence of several large players such as PPG Industries and Akzo Nobel
who exist alongside smaller brands such as paint shops and building material superstores that market private label
products.
Increased regulatory pressure and rising public awareness of environmental and health issues have created a greater
demand for low-solvent paints in recent years, leading to the development of a new generation of low solvent or
solvent-free decorative paints. For example, in Japan, changes to the Air Pollution Control Act came into effect in
2006, aimed at limiting the presence of volatile organic compounds (VOCs) which react with nitrogen oxides present
in the atmosphere to erode the ozone layer. Similarly, in China, the increasing levels of pollution in some of the
country’s largest cities have pushed the authorities to issue new regulations on VOC levels present in coatings. VOC
levels above 400 g/l are now taxed by 5% in order to encourage manufacturers to reduce levels.
Market players will have to continue to pioneer new low VOC coating solutions specifically engineered to improve
environmental performance, and emphasis will be placed on paints designed to reduce potential health risks
associated with harmful emission. For example, Akzo Nobel offers virtually VOC free products through its Dulux
Ecosure range and solvent free primers under its Interplate Zero brand. Focusing on increasingly environmentally
friendly solutions requires investment in R&D, raising rivalry levels further. What’s more, as the market continues to
head further in the direction of solvent free products, competition will be heightened as companies fight for a portion
of this new direction for the market. The coronavirus pandemic during late 2019 and 2020 has resulted in already
struggling brick-and-mortar stores to close down across the UK, and hardware stores are no exception. Paints and
coatings are almost indispensable in industrial manufacturing of cars, ships and planes, for example. However, for
individuals wanting to undertake personal DIY, products such as these are largely non-essential items for aesthetic
purposes. This means that these products can be foregone in times of economic turmoil. Store closures may have
severe implications for hardware stores who were already struggling before the pandemic. This increases the degree
of rivalry as market players are struggling to obtain a share of the market.
Exit barriers are high: many major tangible assets are highly specific to their market, and thus harder to divest. In this
situation, players are strongly motivated to remain in the market, even when conditions are difficult, which boosts
rivalry.
However, as major market players are highly diversified in terms of what they produce, rivalry in the paints and
coatings market is alleviated to an extent. For example, PPG Industries not only operates in the paints and coatings
market, it also manufactures optical products, specialty materials, glass and fiber glass. What’s more, it has a presence

Industry Profiles
in 70 countries around the world, reducing its reliance on any single regional market. Similarly, Akzo Nobel operates in
a variety of markets, with nearly 70% of its revenue in 2018 coming from paints and coatings. However, within the
paints and coatings market buyers are price sensitive and price wars are common. As such, for smaller companies that
are reliant on this market for the majority of its revenues, competitive pressures will be heightened.
Finally, as the paints and coatings market is cyclical and highly affected by macroeconomic conditions, rivalry tends to
increase in times of economic struggle.
Rivalry is assessed as moderate overall.

Industry Profiles
7. Competitive Landscape
The Asia-Pacific paints and coatings market has seen both healthy value and volume growth in recent years. A
noticeable change that has taken place in the paints and coatings industry over the last 30 to 40 years has been the
adoption of new coating technologies. These new coating technologies include waterborne (thermosetting emulsion,
colloidal dispersion, water-soluble) coatings, high-solids coatings, two-component systems, powder coatings, and
radiation-curable coatings. Increased regulation has also impacted players in the market, and more concerns are being
raised about air pollution, with consumer preference being for fewer chemicals in products.
7.1. Who are the leading players?

Akzo Nobel is a leading global manufacturer of decorative paints and performance coatings. The company is also
engaged in the supply of specialty chemicals. The company operates in over 80 countries worldwide and operates
through three business areas: Performance Coatings; Specialty Chemicals; and Decorative Paints. In 2018 the
company sold its specialty chemical unit to US private equity firm Carlyle Group for $12.5bn. As a result Akzo Nobel
has transformed into a more focused supplier of paints and coatings.
Nippon Paints is one of Asia’s largest coating manufacturers and the seventh largest paint manufacturer globally
based on revenue. In November 2014, with the exception of Nippon Paint Indonesia, the NIPSEA Group officially
became a subsidiary of Nippon Paint Holdings.
Chugoku Marine Paints, Ltd. (CMP) is a leading paint manufacturer that carries out the research and development,
production and commercialization of marine paints, container paints and industrial paints. CMP is one of the top
marine paint manufacturers in the world with service network spanning 30 countries and 80 locations.
PPG Industries, Inc. is a global supplier of paints, coatings, and specialty materials. In 2017, PPG finally dropped its
attempt to buy Dutch rival Akzo Nobel in a €26.3bn ($29.5bn) deal, following repeated rejections from the company
and legal defeats.
Kansai Paint Co., Ltd is a leading chemical company whose main products are automotive, industrial and decorative
coatings. The company has manufacturing sites in over 43 countries across the world. The company developed water-
based coatings such as topcoats and primers for domestic and international markets. It concentrates on the
Waterborne 3-Wet Coating System.
7.2. What strategies do the leading players follow?

Players within this market use a number of strategies to generate growth and hold their position. For example, Akzo
Nobel has made a number of acquisitions in recent years. In 2016, BASF completed the sale of its industrial coatings
businesses to Akzo Nobel for €475m ($527m). The transaction included technologies, patents and trademarks, as well
as the transfer of dedicated production sites in Deeside, the UK, and Vanderbijlpark, South Africa. As a result of this,
Akzo Nobel now operates the global coil, furniture foil and panel coatings, wind coatings and general industry
businesses acquired from BASF. The company continues to invest in growth and in 2018 made multiple bolt-on
acquisitions, including Fabryo in Romania, Xylazel in Spain, Colourland Paints in Malaysia and the Akzo Nobel Swire
Paints joint venture in China. These deals have helped accelerate the company’s momentum and further strengthened
its position in the market as a leading player. The acquisition of Fabryo in Romania in 2018 has allowed the Akzo Nobel
to enter the Romanian market and become the leader in the Romanian decorative paints market. Fabryo generated
revenue of around €45m in 2017 and includes established brands Savana, APLA and InnenWeiss under its wing.
Similarly, the acquisition of Colourland Paints in Malaysia has boosted Akzo Nobel’s presence in Asia. Asia provides a
strong growth opportunity as the market has grown at a strong rate in recent years. In addition to this, the Chinese
paints and coatings market provides lucrative opportunities and the majority of growth in Asia is from China. China is

Industry Profiles
also projected to grow at a strong rate over the next few years. The acquisition of Swire Industrial Limited’s minority
interest in the Akzo Nobel Swire Paints (ANSP) joint venture has given the company a stronger foothold in the Chinese
decorative paints market.
Through the strategy of acquisitions, Nippon Paint Holdings Co. strengthened its position in the Turkish market by
acquiring Turkish paint manufacturer Betek Boya. Betek Boya in a well-known established company in Turkey and is
known for its Filli Boya brand of paint. Betek Group was founded in 1988 and handles External Thermal Insulation
Composite System: insulation materials, in addition to decorative paint and industrial construction coating. This
acquisition allows Nippon to achieve the largest market share in Turkey. According to Nippon ‘‘while GDP growth has
slowed since the second half of 2018, historically Turkey has gone through economic cycles every 6 to 7 years
followed by a rebound within 1 to 2 years, and considering the population pyramid and growth potential of the
Turkish markets, this is the optimal time to invest,”
In 2019, PPG completed its acquisition of global coatings manufacturer Whitford Worldwide. Whitford Worldwide
specializes in low-friction and nonstick coatings for industrial applications and consumer products and the company
holds a strong position in international markets. Whitford employs more than 700 people and operates 10
manufacturing facilities located in Elverson, PA, US; Fostoria, Ohio, USA; Guelph, Ontario, Canada; Runcorn, UK;
Brescia, Italy; Sao Paulo, Brazil; Jiangmen, China; Zhuhai, China; Tuas, Singapore; and Bangalore, India. This acquisition
will allow PPG direct entry into these markets.
CMP has been using innovative products to expands its reach and continue its position as a market leader. In 2018, I-
Tech AB signed a deal for the largest ever Selektope order with Chugoku Marine Paints. Philip Chaabane, CEO of I-Tech
AB, says ‘‘This significant order for Selektope demonstrates how I-Tech’s antifouling technology is meeting market
demand for increased hard fouling prevention performance from marine coatings. In 2019, a new antifouling coating
containing the barnacle-repellent active agent Selektope has been introduced to the market by Chugoku Marine
Paints (CMP). This move demonstrates CMP’s growing commitment to the technology. SEA PREMIER 3000 PLUS is a
self-polishing coating based on silyl polymer technology. It provides slime and algal resistance with the combined
power of Selektope and cuprous oxide for superior hard fouling prevention.
In 2017, Kansai successfully acquired all shares of European coating manufacturer Helios Group for $572 million from
Ring International Holdings. Helios Coatings is based in Austria and Slovenia and is a provider to the automotive
industry of proprietary, environmentally friendly, metallized and premium paint coatings and other finishes for wheels
and other parts. This is a strategic move and the successful acquisition provides Kansai Paint with a foothold for full-
scale expansion into Europe. Helios Group is a coating manufacturer and mainly operates in Central, Eastern and
Western Europe and CIS countries. Therefore, with the acquisition of Helios Group, Kansai Paint accelerates its growth
strategy to become one of the top three paint producers in the world. Before the acquisition of Helios, Kansai already
had a strong presence in Asia, Africa and Middle East, but very limited presence in Europe.
7.3. How has the regulatory environment affected the market?

Asia is becoming increasingly stringent about environmental standards and a number of regulations and programs are
aimed at providing safer chemicals in this market, including the Australian Ecolabel Program, the Chinese low Volatile
Organic Compounds (VOC) standard (JG/T 481-2015) and other green labelling schemes in Asia.
Regulations limiting VOC emissions in paint and coating products are getting stricter. Legislations are in place to limit
the use of organic chemical compounds that are harmful to human health and contribute significantly to atmospheric
ozone depletion as well as global carbon emissions. The global paints and coatings market is one of the largest sources
of man-made volatile organic compounds globally, prompting strict regulatory frameworks to limit its impact. The
demand for low VOC paints and coatings over the years is being driven by concerns over the effects of global warming
and shifting consumer preferences toward greener alternatives. Regulatory pressure forced paint manufacturers to
shy away from solvent-based to water-based low-VOC formulations and the market has witnessed leading players
offer products with low levels of VOC. For example, Basf’s new premium water-based polymer dispersion product,
Acronal ECO 7653, features extremely low levels of VOCs and odor.
This product is also fully compliant with stringent VOC standards in China, Australia, India and ASEAN countries.
According to CheeSeng Yong, Head of Regional Marketing, Polymer Dispersion for Architectural Coatings Asia Pacific,

Industry Profiles
the acrylic dispersion for low-VOC, low-odor interior paint is developed to address consumer needs for healthier
indoor air.
7.4. What has been the recent M&A activity?

AkzoNobel has acquired 100% of the shares of Fabryo Corporation S.R.L. (Fabryo) owned by the Swedish investment
fund Oresa Ventures. The transaction includes two production facilities and six distribution centers for decorative
paints, adhesives and mortars, including one of the largest decorative paints factories in the region, with capacity for
further expansion. Fabryo’s business generated $53.9m revenue in the year 2017 and includes the key brands Savana,
APLA and InnenWeiss. Fabryo Corporation S.R.L is a producer and supplier of decorative lacquers and paints. This
venture strengthens even further Akzo Nobel's operations and helps the company to mitigate risks associated with
operating in a single market.
PPG Industries has acquired Alpha Coating Technologies, LLC, a manufacturer of powder coatings for light industrial
applications and heat-sensitive substrates. Both companies involved in the transaction are based in the US. Alpha
focuses on the development, manufacture, and sale of powder coatings for light industrial applications; medium
density fiberboard and heat-sensitive substrates; and toll manufactures powder coatings for metal and light industrial
applications. This acquisition enables PPG Industries to serve a broad client base with high quality of products.
Mitsui & Co., Ltd. has entered into agreements, including a shareholder agreement, with Kansai Paint Co., Ltd. to
acquire joint control over Kansai Helios Coatings GmbH of Austria. Helios is a coating manufacturer focusing mainly on
industrial coatings, but is also active in decorative paints and other related products. Mitsui is a trading house with
activities in the sale and distribution of commodities and other products ranging from electronics to chemicals. Kansai
is a chemical company mainly active in the production and sales of decorative paints and other coatings. Following the
transaction, Mitsui and Kansai Paint will hold 20% and 80% equity stake in Kansai Helios Coatings.

Industry Profiles
8. Company Profiles
8.1. Akzo Nobel N.V.
8.1.1. Company Overview
Akzo Nobel N.V. (Akzo Nobel or the company') is a paints and coatings manufacturing company. The company offers
automotive coatings, specialty coatings, marine coatings protective coatings and industrial coatings used in cars, ships,
yachts, aircraft, consumer goods, oil and gas facilities and architectural components. It also provides paints, lacquers,
varnishes, adhesives, mixing machines and color concepts for the renovation and building industry. The company
markets its products under Dulus, Bruguer, Flexa, Marshall, Sadolin, Coral, Inca and Alba brand names. Akzo Nobel has
business presence across Europe, the Middle East and Africa, the Americas and Asia Pacific. The company is
headquartered in Amsterdam, the Netherlands.
The company reported revenues of (Euro) EUR9,276 million for the fiscal year ended December 2019 (FY2019), an
increase of 0.2% over FY2018. In FY2019, the company’s operating margin was 9.1%, compared to an operating
margin of 6.5% in FY2018. In FY2019, the company recorded a net margin of 5.8%, compared to a net margin of 72.1%
in FY2018. The company reported revenues of EUR2,058 million for the first quarter ended March 2020, a decrease of
8.2% over the previous quarter.
8.1.2. Key Facts
Table 7: Akzo Nobel N.V.: key facts
Head office: Christian Neefestraat 2 Amsterdam, The Netherlands

Number of Employees: 33800
Website: www.akzonobel.com
Financial year-end: December
Ticker: AKZA
Stock exchange: Euronext Amsterdam Stock Exchange
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Akzo Nobel N.V. (Akzo Nobel or the company') is manufacturer of decorative paints and performance coatings. The
company offers its products to aerospace, automotive, consumer goods, oil and gas, transportation, buildings and
infrastructure market. It operates in over 150 countries across the Americas, Asia pacific, Europe, the Middle East and
Africa. Akzo Nobel operates through three business segments: Performance Coatings, Decorative Paints and Others.
The Performance Coatings segment operates three businesses: automotive and specialty coatings; marine and
protective coatings; and industrial coatings. The company’s products are used in cars, ships, yachts, aircraft, consumer
goods (appliances, mobile devices, furniture, beverage cans), oil and gas facilities and architectural components
(structural steel, flooring, building products). The segment markets its automotive and specialty coatings products
under Wanda, Sikkens, Lesonal, alumiGRIP and aeroDUR brand names; marine and protective coatings under
AWLGRIP and International brand names; and industrial coatings under Sikkens Wood Coatings, AkzoNobel, Zweihorn
and Chemcraft brand names. Its major customers in the automotive and specialty coatings business include BBG,
Airbus, Boeing, Allianz, Gold Coast Marine, Dell, HP, Leonardo, General Motors, Samsung and Plastic Omnium. The
company’s customers in marine and protective coatings business are ExxonMobil, Brunswick, Hapag Lloyd, Bechtel,

Industry Profiles
Sandvik, Siemens, Shell and Rio Tinto. In the industrial coatings business, Akzo Nobel’s customers include Ardagh,
Schweighoffer, Masco, Armstrong, Bluescope Steel, Tata Steel, Arcelor Mittal, Thyssen Krupp and IKEA. In FY2019, the
Performance Coatings segment reported revenue of EUR5,563 million, which accounted for 59.9% of the company's
total revenue.
The Decorative Paints segment offers paints, lacquers, varnishes and adhesives. It also offers specialty coatings for
wood, metal and other building materials, and a range of mixing machines and color concepts for the renovation and
building industry. The company markets these products under Coral, Marshall, Dulux, Flexa, Hammerite, Sadolin,
Bruguer, Alba, Cetol, Inca, Herbol, Levis and Sikkens brand names. The segment’s major customers include Leroy
Merlin, Bricomarche, OBI and Kingfisher. In FY2019, the Decorative Paints segment reported revenue of EUR3,703
million, which accounted for 39.9% of the company's total revenue.
Geographically, the company classifies its operations into six segments: Other European Countries, Asia, North
America, South America, The Netherlands and Other Regions. In FY2019, Other European Countries accounted for
40.2% of the company's total revenue, followed by Asia (28.7%); North America (12.3%); South America (8.8%); The
Netherlands (3.8%); and Other Regions (6%).

Industry Profiles
Table 8: Akzo Nobel N.V.: Annual Financial Ratios
Key Ratios 2015 2016 2017 2018 2019

Growth Ratios
Sales Growth % 3.94 -36.51 1.89 -3.70 0.22
Operating Income Growth % 59.37 -41.32 -10.62 -26.67 39.01
EBITDA Growth % 46.36 -40.31 -9.79 -26.47 45.24
Net Income Growth % 79.30 -0.92 -14.23 702.16 -91.92
EPS Growth % 21.73 -38.41 -21.35 17.54 29.66
Working Capital Growth % -11.60 51.94 65.51 191.55 -78.04
Equity Ratios
EPS (Earnings per Share) EUR 4.38 2.38 1.95 1.76 2.42
Dividend per Share EUR 1.48 1.58 2.39 1.57 1.62
Dividend Cover Absolute 2.96 1.51 0.82 1.12 1.50
Book Value per Share EUR 29.30 29.23 26.12 51.96 31.81
Profitability Ratios
Gross Margin % 40.88 45.96 44.05 42.43 42.77
Operating Margin % 10.59 9.78 8.58 6.54 9.07
Net Profit Margin % 6.59 10.28 8.66 72.10 5.81
Profit Markup % 69.16 85.05 78.73 73.69 74.72
PBT Margin (Profit Before Tax) % 9.93 9.01 7.95 6.19 8.46
Return on Equity % 15.10 14.80 14.19 56.40 8.49
Return on Capital Employed % 13.84 7.70 8.37 4.01 8.43
Return on Assets % 6.07 6.03 5.14 38.18 3.39
Return on Working Capital % 145.38 56.14 30.32 7.63 48.28
Operating Costs (% of Sales) % 89.41 90.22 91.42 93.46 90.93
Administration Costs (% of Sales) % 28.68 32.22 31.33 33.92 30.67
Liquidity Ratios
Current Ratio Absolute 1.24 1.39 1.43 3.16 1.58
Quick Ratio Absolute 0.91 1.03 1.26 2.85 1.20
Cash Ratio Absolute 0.28 0.34 0.21 2.24 0.46
Leverage Ratios
Debt to Equity Ratio Absolute 0.40 0.42 0.56 0.20 0.34
Net Debt to Equity Absolute 0.29 0.28 0.42 0.13 0.19
Debt to Capital Ratio Absolute 0.29 0.29 0.36 0.16 0.25
Efficiency Ratios
Asset Turnover Absolute 0.92 0.59 0.59 0.53 0.58
Fixed Asset Turnover Absolute 3.79 2.30 3.19 5.17 4.85
Inventory Turnover Absolute 5.76 3.36 4.10 4.77 4.66
Current Asset Turnover Absolute 2.51 1.64 1.29 0.90 1.13
Capital Employed Turnover Absolute 1.31 0.79 0.98 0.61 0.93
Working Capital Turnover Absolute 13.73 5.74 3.53 1.17 5.32
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
Table 9: Akzo Nobel N.V.: Key Employees
Name Job Title Board

Ben Verwaayen Director Non Executive Board
Byron Grote Director Non Executive Board
David Prinselaar Chief Supply Chain Officer Senior Management
Dick Sluimers Director Non Executive Board
Isabelle Deschamps General Counsel Senior Management
Jolanda Poots-Bijl Director Non Executive Board
Maarten de Vries Chief Financial Officer Senior Management
Marten Booisma Chief Human Resources Officer Senior Management
Michiel Jaski Director Non Executive Board
Nils Smedegaard Andersen Chairman Non Executive Board
Pamela Kirby Director Non Executive Board
Patrick Thomas Director Non Executive Board
Ruud Joosten Chief Operating Officer Paints and Coatings Senior Management
Sue Clark Director Non Executive Board
Thierry Vanlancker Chief Executive Officer Senior Management

Industry Profiles
8.2. Nippon Paint Holdings Co Ltd
Nippon Paint Holdings Co Ltd (Nippon Paint) is a chemical company, which produces and sells paints, coatings and
allied chemicals. It offers a broad range of products and services, ranging from high quality and high functionality
paints, including eco-friendly types, to pre-treatment agents for painting, treatment agents that provide functionality
to thin films, and system proposals to improve the efficiency of the painting process. The company offers its products
to automobiles, construction, architectures, steel structures, metals, electrical appliances, ships, machinery roadways
and households. It has operations in China, Japan, Malaysia, South Korea, Turkey, the US, Singapore, Thailand and the
UK. Nippon Paint is headquartered in Osaka, Japan.
The company reported revenues of (Yen) JPY692,009 million for the fiscal year ended December 2019 (FY2019), an
increase of 10.3% over FY2018. In FY2019, the company’s operating margin was 11.3%, compared to an operating
in FY2018. The company reported revenues of JPY162,916 million for the first quarter ended March 2020, a decrease
of 17.3% over the previous quarter.
8.2.2. Key Facts
Table 10: Nippon Paint Holdings Co Ltd: key facts
Head office: 2-1-2 Oyodokita, Kita-ku, Kita-ku, OSAKA-SHI, Osaka, Japan

Telephone: 81664581111
Fax: 81664559260
Website: www.nipponpaint-holdings.com
Ticker: 4612
Stock exchange: Tokyo Stock Exchange
Nippon Paint Holdings Co Ltd (Nippon Paint), a chemical company, produces and sells paints and fine chemicals. Its
paints are used for automotive, general, industrial, and other uses.
The company operates through two lines of businesses, Paint and coating business
and the paint peripheral business.
Nippon Paint had approximately 134 subsidiaries by the end of FY2019. The company has operations in 26 countries
across Asia, North America and other regions.

Industry Profiles
Table 11: Nippon Paint Holdings Co Ltd: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 105.59 13.89 2.87 10.25
Operating Income Growth % -60.95 20.34 1.30 -9.80
EBITDA Growth % -61.48 20.34 1.30 -9.80
Net Income Growth % -83.46 64.26 -8.03 -19.04
EPS Growth % -19.04 33.63 -29.17 -9.47
Working Capital Growth % 6.48 5.47 16.40 -139.81
Equity Ratios
EPS (Earnings per Share) JPY 650.04 93.60 171.78 141.39 114.45
Dividend per Share JPY 22.00 35.00 42.00 45.00 45.00
Book Value per Share JPY 1496.15 1464.18 1594.60 1621.54 1723.75
Gross Margin % 35.52 41.69 40.35 38.58 39.83
Profit Markup % 55.08 71.49 67.64 62.82 66.20
Return on Equity % 37.82 6.39 9.64 8.72 6.64
Return on Assets % 44.77 3.75 5.74 4.82 3.02
Return on Working Capital % 104.03 38.15 43.53 37.88
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute -0.15 -0.19 -0.08 -0.08 0.58
Efficiency Ratios
Working Capital Turnover Absolute 1.49 2.88 3.11 2.75

Industry Profiles
Table 12: Nippon Paint Holdings Co Ltd: Key Employees

Atsushi Nagasaka Director Executive Board
Atsushi Nagasaka Managing Executive Officer Executive Board
Atsushi Nagasaka Vice President Executive Board
Chief Executive Officer Nippon Paint (Europe)
Hiroshi Hanaoka Senior Management
Co Ltd
Hiroshi Hanaoka Executive Officer Senior Management
Hisashi Hara Director Non Executive Board
Hup Jin Goh Director Non Executive Board
Manabu Minami Director Executive Board
Manabu Minami Managing Executive Officer Executive Board
Manabu Minami Vice President Executive Board
Masaaki Tanaka Chairman Executive Board
Masakazu Kato Executive Officer Senior Management
General Manager Global Safety, Environment
Masakazu Kato Senior Management
and Quality Assurance
Masakazu Wada Executive Officer Senior Management
Masayoshi Nakamura Director Non Executive Board
Masuo Kida President Nippon Paint Senior Management
Masuo Kida Senior Executive Officer Senior Management
Satoshi Nishimura Executive Officer Senior Management
Seiichiro Shirahata Director Executive Board
Seiichiro Shirahata Managing Executive Officer Executive Board
Seiichiro Shirahata Vice President Executive Board
Shoichi Mure President Nippon Paint Automotive Coatings Senior Management
Shoichi Mure Senior Executive Officer Senior Management
Takashi Tsutsi Director Non Executive Board
Executive Officer - Corporate Planning &
Takeshi Ohnishi Senior Management
Development
General Manager NN Model Development and
Takeshi Ohnishi Senior Management
Management
Takeshi Ohnishi Vice President China Liaison Senior Management
Takeshi Shiotani Senior Executive Officer Senior Management
Tetsuro Fujita Senior Executive Officer Senior Management
Tetsushi Tado Chief Executive Officer Executive Board

Industry Profiles
Table 13: Nippon Paint Holdings Co Ltd: Key Employees Continued

Tetsushi Tado Director Executive Board
Tetsushi Tado President Executive Board
Toshio Morohoshi Director Non Executive Board
Yasunori Kaneko Director Non Executive Board
Division Director - Corporate Planning &
Yasuyuki Matsumoto Senior Management
Development
Yasuyuki Matsumoto General Manager Corporate Communications Senior Management
Yasuyuki Matsumoto Vice President Senior Management
Yusaku Kobata Executive Officer Senior Management

Industry Profiles
8.3. Kansai Paint Co Ltd
Kansai Paint Co Ltd (Kansai) manufactures and sells paints and coating equipment. Its portfolio includes automotive
coatings, automotive refinish coatings, industrial coatings, decorative coatings, protective coatings, and marine
coatings. It also offers auto refinish paints, application systems, and color tools. The company markets its products
under brand name, Alesco. Kansai also manufactures and sells an array of products in biotechnology and electronic
fields. The company caters to diverse clientele including homeowners, automobile manufacturers, construction
companies and others. It markets its products through a network of distributors across Asia, Europe, Africa and
others. Kansai is headquartered in Chuo-ku, Osaka, Japan.
The company reported revenues of (Yen) JPY406,886 million for the fiscal year ended March 2019 (FY2020), a
decrease of 4.8% over FY2019. In FY2020, the company’s operating margin was 7.4%, compared to an operating
in FY2019.
8.3.2. Key Facts
Table 14: Kansai Paint Co Ltd: key facts
Head office: 6-14 Imabashi 2-chome, Chuo-ku, Osaka, Japan

Website: www.kansai.co.jp
Financial year-end: March
Ticker: 4613
Stock exchange: Tokyo Stock Exchange
Kansai Paint Co Ltd (Kansai) is a manufactures and sells paints, automotive refinish coatings, decorative coatings,
protective coatings, and marine coatings. The company also designs and sells various kinds of coating equipment. It
caters to diverse clientele including homeowners, automobile manufacturers, construction companies and others.
Kansai operates its business through four product categories, namely, Automotive Coatings, Decorative Coatings,
Industrial Coatings, and Marine and Protective Coatings.

Industry Profiles
Table 15: Kansai Paint Co Ltd: Annual Financial Ratios
Key Ratios 2015 2016 2017 2018 2019

Growth Ratios
Sales Growth % -6.07 0.65 21.72 6.33
Operating Income Growth % 9.01 3.51 1.50 -20.46
EBITDA Growth % 6.94 4.51 5.96 -16.40
Net Income Growth % 38.88 -14.73 -26.76 -1.67
EPS Growth % 5.09 0.02 -18.37 11.80
Working Capital Growth % -3.84 9.14 -5.65 -14.59
Equity Ratios
EPS (Earnings per Share) JPY 76.61 106.41 83.46 59.29 58.28
Dividend per Share JPY 15.00 19.00 22.00 27.00 28.00
Book Value per Share JPY 995.77 958.26 984.50 1074.09 1050.07
Gross Margin % 30.70 32.96 33.81 32.85 31.18
Profit Markup % 44.31 49.16 51.08 48.91 45.30
Return on Equity % 7.69 11.10 9.54 6.41 6.45
Return on Assets % 9.11 6.45 4.97 3.10 2.94
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute -0.16 -0.18 0.26 0.25 0.18
Efficiency Ratios

Industry Profiles
Table 16: Kansai Paint Co Ltd: Key Employees

H. M. Bharuka Director Non Executive Board
Hidenori Furukawa Director Non Executive Board
Hiroshi Ishino Chief Executive Officer Executive Board
Hiroshi Ishino Director Executive Board
Hiroshi Ishino President Executive Board
Jun Senoo Director Non Executive Board
Keiji Yoshikawa Director Non Executive Board
Koji Kamikado Director Non Executive Board
Kunishi Mouri Director Non Executive Board
Masaru Tanaka Director Non Executive Board
Shinji Asatsuma Director Non Executive Board
Yoko Miyazaki Director Non Executive Board

Industry Profiles
8.4. PPG Industries, Inc.
PPG Industries, Inc. (PPG or 'the company') is chemical manufacturer that produces and sells coatings, paints, specialty
materials and optical products. The company markets its products under PPG brand and through other well-known
brands such as GLIDDEN, DULUX, OLYMPIC, RENNER, SIGMA, LIQUID NAILS, BRISTOL, HOMAX, PROMINENT PAINTS,
GORI, BONDEX and DANKE!, among others. These products are widely used in commercial transport, military, regional
jet and general aviation aircrafts, manufacturers of ships, bridges and rail cars, maintenance of residential and
commercial building structures, consumers for decoration, automotive parts and accessories, transportation vehicles,
e-passports, drivers’ licenses and identification cards and optical lenses and color changing products. It has business
presence across North America, Asia Pacific, Latin America and Europe, the Middle East, and Africa (EMEA) regions.
The company is headquartered in Pittsburgh, Pennsylvania, the US.
The company reported revenues of (US Dollars) US$15,146 million for the fiscal year ended December 2019 (FY2019),
a decrease of 1.5% over FY2018. In FY2019, the company’s operating margin was 11.2%, compared to an operating
in FY2018. The company reported revenues of US$3,377 million for the first quarter ended March 2020, a decrease of
8% over the previous quarter.
8.4.2. Key Facts
Table 17: PPG Industries, Inc.: key facts
Head office: One PPG Place , Pittsburg, Pennsylvania, United States

Website: corporate.ppg.com
Ticker: PPG
Stock exchange: New York Stock Exchange
PPG Industries, Inc. (‘PPG or ‘the company') is chemical manufacturing company that produces and sells coatings,
paints, specialty materials and optical products. As of February 2019, the company managed 128 production facilities
in 39 countries across the globe.
The company classifies its business operations into two reportable segments: Industrial Coatings and Performance
Coatings.
The Performance Coatings segment offers a variety of protective and decorative coatings, sealants, finishes, paint
strippers, stains and related chemicals, transparencies and transparent armor. The segment consists of aerospace
coatings, architectural coatings – Americas and Asia-Pacific, refinish coatings, architectural coatings Europe, Middle
East and Africa (EMEA), and protective and marine coatings business units. The aerospace coatings business unit
offers transparencies, coatings, transparent armor, sealants, packaging, adhesives, and chemical management
services under the PPG brand name to the aerospace industry. The automotive refinish coatings unit supplies solvents,
coatings, adhesives, sundries, and software under the PPG and SEM brand name to light industrial coatings market,
automotive and commercial transport, and specialty coatings markets. The architectural coatings Americas and Asia
Pacific; and architectural coatings EMEA units offers wood stains, paints and purchased sundries for the painting and
maintenance contractors and consumers for decoration and maintenance of commercial and residential building

Industry Profiles
structures. The architectural coatings units sells its products under various brand names, including Flood, PPG,Bondex,
Homax, Sigma, Olympic, Prominent Paints, Sico, Histor, and among others. The protective and marine coatings
provides finishes and coatings for the protection of structures and metals under the PPG brand for heavy duty
maintenance contractors, metal fabricators market and manufacturers of bridges, ships and rail cars. The segment
operates its major manufacturing and distribution centers in the Netherlands, the UK, Hungary, Australia, Korea, the
US, Italy, France, Canada, Poland, Denmark, and Mexico. In FY2018, the Performance Coatings segment reported
revenue of US$9,087 million, which accounted for 59.1% of the company’s revenue.
The Industrial Coatings segment consist of industrial coatings, automotive OEM coatings, specialty coatings and
materials, and packaging coatings business units. The industrial coatings and automotive OEM coatings business unit
provides adhesives, coatings, metal pretreatments and sealants for the consumer electronics, OEM, agricultural,
appliances, construction equipment, building products, and transportation vehicles. The packaging coatings unit offers
specifically formulated coatings for the protection, decoration and performance of closures, metal cans, industrial
packaging, plastic tubes, and promotional and specialty packaging. The specialty coatings and materials units offers
optical lens materials, amorphous precipitated silicas, photochromic dyes and Organic Light Emitting Diode (OLED)
materials for battery separator, optical lenses and color-change products, tire and other end-use markets. The
segment operates its manufacturing and distribution centers in the US, South Korea, Poland, Italy, Mexico, Brazil and
China. In FY2018, Industrial Coatings segment reported revenue of US$6,287 million, which accounted for 40.9% of
the company’s revenue.
Geographically, the company classifies its operations in to four regions: the US and Canada, Europe, Middle East and
Africa (EMEA), Asia Pacific and Latin America. In FY2018, the US and Canada accounted for 42.2% of the company’s
revenue, followed by EMEA (30.4%), Asia Pacific (17%) and Latin America (10.4%).

Industry Profiles
Table 18: PPG Industries, Inc.: Annual Financial Ratios
Key Ratios 2015 2016 2017 2018 2019

Growth Ratios
Sales Growth % -3.72 0.20 3.35 4.24 -1.48
Operating Income Growth % 34.45 -48.70 115.72 -13.57 -2.25
EBITDA Growth % 25.60 -39.34 79.99 -8.60 -1.07
Net Income Growth % -33.11 -37.62 81.76 -15.87 -7.31
EPS Growth % 34.72 2.39 8.21 -6.59 3.17
Working Capital Growth % 2.18 15.07 11.29 -38.52 13.04
Equity Ratios
EPS (Earnings per Share) USD 4.79 2.05 5.83 5.34 5.22
Dividend per Share USD 1.42 1.56 1.70 1.86 1.98
Book Value per Share USD 18.67 18.75 22.13 19.63 22.42
Gross Margin % 45.33 46.09 44.35 41.45 43.09
Profit Markup % 82.91 85.49 79.70 70.80 75.73
Return on Equity % 28.22 18.17 28.68 28.96 23.52
Return on Assets % 8.11 5.34 9.87 8.24 7.37
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute 0.60 0.54 0.49 0.89 0.73
Efficiency Ratios

Industry Profiles
Table 19: PPG Industries, Inc.: Key Employees

General Manager Protective and Marine
Adriana Macouzet Senior Management
Coatings, Latin America
Adriana Macouzet Vice President PPG Latin America Senior Management
Amy R. Ericson Senior Vice President Packaging Coatings Senior Management
Anne M. Foulkes General Counsel Senior Management
Anne M. Foulkes Secretary Senior Management
Anne M. Foulkes Vice President Senior Management
Vice President Specialty Coatings and
Anup Jain Senior Management
Materials
Vice President Corporate and Government
Bryan N. Iams Senior Management
Affairs
Chancey E. Hagerty Vice President Global Industrial Coatings Senior Management
Vice President Business Transformation and
Christopher M. Wetzel Consumer Brands, Architectural Coatings, Senior Management
United States and Canada
Christopher R. Caruso Vice President Information Technology Senior Management
Daniel Bencun Global Vice President-Aerospace Senior Management
Daniel G. Korte Global Vice President-Aerospace Senior Management
Vice President Architectural Coatings, United
David J. Cole Senior Management
States and Canada
David S. Bem Chief Technology Officer Senior Management
David S. Bem Vice President Science and Technology Senior Management
Devashish Saxena Chief Digital Officer Senior Management
Devashish Saxena Vice President Senior Management
Vice President Automotive Coatings,
Diane M. Kappas Senior Management
Americas
Vice President Architectural Coatings, Trade,
Donna J. Broome Senior Management
United States and Canada
Emily Elizer Director Government Affairs Senior Management
Senior Vice President Law, Compliance and
G. E. Bost II Senior Management
Special Projects
Gary R. Danowski Vice President Global Automotive Refinish Senior Management
Gary R. Heminger Director Non Executive Board
Gregory B. Benckart Vice President, Automotive Refinish, Americas Senior Management
Herve Tiberghien Vice President Human Resources Senior Management
Hugh Grant Director Non Executive Board
James G. Berges Director Non Executive Board
Vice President Global Technical Architectural
Jane N. Valenta Senior Management
Coatings
Jeffrey C. Davies Vice President Corporate Development Senior Management

Industry Profiles
Table 20: PPG Industries, Inc.: Key Employees Continued

Jeffrey J. Oravitz President MetoKote Senior Management
Jeffrey J. Oravitz Vice President PPG Coatings Services Senior Management
Vice President Automotive Refinish, Europe,
Jerome Zamblera Senior Management
Middle East and Africa (EMEA)
John A. Jankowski Treasurer Senior Management
John A. Jankowski Vice President Senior Management
John Bruno Director Investor Relations Senior Management
John V. Faraci Director Non Executive Board
Vice President Protective and Marine
Juan J. Ardid Senior Management
Coatings, United States and Canada
Vice President PPG Architectural Coatings,
Karl H. Bergstrom Senior Management
Latin America, President PPG Comex
Kathleen A. Ligocki Director Non Executive Board
Kevin D. Braun Vice President Industrial Coatings, Americas Senior Management
Kevin R. Walling Chief Human Resources Officer Senior Management
Kumar Nandan Vice President Tax Senior Management
Director PPG Foundation and Corporate
Malesia Dunn Executive Board
Global Social Responsibility
Vice President Environment, Health and
Mark Cancilla Senior Management
Safety
Martin H. Richenhagen Director Non Executive Board
Vice President Automotive Coatings,
Matthew C. Marek Senior Management
Americas
Melanie L. Healey Director Non Executive Board
Michael H. McGarry Chairman Executive Board
Michael H. McGarry Chief Executive Officer Executive Board
Michael W. Lamach Director Non Executive Board
Michele J. Hooper Director Non Executive Board
Pauline Yuen Vice President Refinish Coatings, Asia/Pacific Senior Management
Radhika Batra Vice President Global Supply Management Senior Management
Vice President Strategic Manufacturing,
Rajesh Lall Senior Management
Industrial Coatings
Senior Vice President Protective and Marine
Ram Vadlamannati Senior Management
Coatings
Senior Vice President Protective and Marine
Ramaparasad Vadlamannati Senior Management
Coatings
Ranju Arya Senior business director-mobility Senior Management
Rebecca Liebert Executive Vice President Senior Management
Vice President Automotive Coatings, Europe,
Roald Johannsen Senior Management
Middle East and Africa (EMEA)

Industry Profiles

Stephen F. Angel Director Non Executive Board
Vice President Architectural Coatings Europe,
Steve Pocock Middle East and Africa (EMEA) North and Senior Management
East
Timothy M. Knavish Executive Vice President Senior Management
General Manager Architectural Coatings,
Timothy Welsh Senior Management
Australia and New Zealand
Timothy Welsh Vice President Australia and New Zealand Senior Management
Tom Maziarz Vice President Automotive Refinish, Americas Senior Management
Victoria F. Haynes Director Non Executive Board
Vincent J. Morales Chief Financial Officer Senior Management
Vincent J. Morales Senior Vice President Senior Management
Vincent Robin President PPG Asia/Pacific Senior Management
Vice President Automotive Coatings, Asia
Vincent Robin Senior Management
Pacific
William E. Schaupp corporate controller Senior Management
William E. Schaupp Vice President Senior Management

Industry Profiles

Industry Profiles
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MarketLine Industry Profile

Paints & Coatings in Asia-Pacific

Reference Code: 0200-0749

Publication Date: August 2020

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Market volume

1.4. Market volume forecast

1.5. Category segmentation

1.6. Geography segmentation

1.7. Market rivalry

1.8. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

1.1. Market value ................................................................................................................................. 2

1.2. Market value forecast ...................................................................................................................2

1.3. Market volume .............................................................................................................................. 2

1.4. Market volume forecast ................................................................................................................2

1.5. Category segmentation ................................................................................................................2

1.6. Geography segmentation .............................................................................................................2

1.7. Market rivalry ................................................................................................................................ 2

1.8. Competitive Landscape ................................................................................................................2

2.1. Market definition ........................................................................................................................... 8

2.2. Market analysis ............................................................................................................................ 9

3.1. Market value ............................................................................................................................... 10

3.2. Market volume ............................................................................................................................ 11

4.1. Category segmentation ..............................................................................................................12

4.2. Geography segmentation ...........................................................................................................13

5.1. Market value forecast .................................................................................................................14

5.2. Market volume forecast ..............................................................................................................15

6. Five Forces Analysis 16

6.1. Summary .................................................................................................................................... 16

6.2. Buyer power ............................................................................................................................... 18

6.3. Supplier power ........................................................................................................................... 20

6.4. New entrants .............................................................................................................................. 21

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

6.5. Threat of substitutes ...................................................................................................................23

6.6. Degree of rivalry ......................................................................................................................... 24

7.1. Who are the leading players?.....................................................................................................26

7.2. What strategies do the leading players follow? ..........................................................................26

7.4. What has been the recent M&A activity? ...................................................................................28

8.1. Akzo Nobel N.V. ......................................................................................................................... 29

8.2. Nippon Paint Holdings Co Ltd ....................................................................................................33

8.3. Kansai Paint Co Ltd....................................................................................................................37

8.4. PPG Industries, Inc. ...................................................................................................................40

About MarketLine .................................................................................................................................... 47

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Table 7: Akzo Nobel N.V.: key facts 29

Table 8: Akzo Nobel N.V.: Annual Financial Ratios 31

Table 9: Akzo Nobel N.V.: Key Employees 32

Table 10: Nippon Paint Holdings Co Ltd: key facts 33

Table 11: Nippon Paint Holdings Co Ltd: Annual Financial Ratios 34

Table 12: Nippon Paint Holdings Co Ltd: Key Employees 35

Table 13: Nippon Paint Holdings Co Ltd: Key Employees Continued 36

Table 14: Kansai Paint Co Ltd: key facts 37

Table 15: Kansai Paint Co Ltd: Annual Financial Ratios 38

Table 16: Kansai Paint Co Ltd: Key Employees 39

Table 17: PPG Industries, Inc.: key facts 40

Table 18: PPG Industries, Inc.: Annual Financial Ratios 42

Table 19: PPG Industries, Inc.: Key Employees 43

Table 20: PPG Industries, Inc.: Key Employees Continued 44

Table 21: PPG Industries, Inc.: Key Employees Continued 45