Excerpts of Sustainability from the Medium-Term Strategy Briefing Presentation Summary

Good afternoon, everyone. I’m Yuichiro Wakatsuki, Co-President of Nippon Paint Holdings.

I want to express my sincere appreciation for your time today, as we share our Medium-Term Strategy and outline our roadmap as Asset Assembler.

Today, we are joined by investors, analysts, and members of the press. Thank you all for being here.

Beginning with page 24, I will outline our strategy for sustainability.

Our sole mission of MSV is premised on the fulfillment of our obligations to stakeholders, encompassing legal, social, and ethical duties. We view sustainability initiatives as integral to MSV, rather than viewing sustainability as an end in itself.

Following this philosophy, the heads of our five sustainability teams have been selected from among the leaders of our partner companies. Utilizing our position as Asset Assembler, we aim to achieve MSV by engaging in cross-organizational efforts that not only develop technologies and nurture talent but also address our environmental and human rights obligations.

Highlighting our strategy for technological innovation, we are pushing forward with the advancement of EV coating technology and broadening the application of bio-based resins. This is achieved through collaborative efforts in technology development and knowledge sharing across regions. Our goal is to embark on initiatives that not only address societal challenges but also boost our earnings.

I will also present an example of our strategy for human resource management.

Following the spin-off of our Japan segment, which had a revenue of approximately 200 billion yen in 2015, a process we refer to as “bunshaka,” each of the five partner companies has embraced autonomy. This shift has led to enhanced accountability within each business unit. Conversely, this approach has led to challenges, including inflexibility in human resource allocation and the emergence of silos within organizations. Instead of incurring additional costs to reintegrate these partner companies, our strategy involves appointing leaders to concurrent positions to facilitate overall optimization. Within the Japan Group, for example, we have already appointed a CTO to oversee technology teams. Beyond this, we are gradually integrating operations across sales, resin development, and production.