Osaka, Japan
www.kansai.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1918
REVENUE: $3.49 billion (2022: $3.63 billion)
MARKETS SERVED
Automotive coatings; Decorative coatings; Industrial coatings; Marine and Protective coatings
KEY EXECUTIVES:
Kunishi Mori, president; board of directors: Hitoshi Nishibayashi, senior managing executive office, board of directors
Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets, including automotive, decorative, industrial and marine coatings. It divides its business into automotive (30.7%), automotive refinish (5.2%) industrial (26.3%), decorative (25.6%), marine and protective (6%) and others (6.2%).
By region, Japan comprises 30% of sales, India 25%, Asia 13.4%, Africa 8.2%, Europe 22% and others 1.4%.
Kansai Paint operates three automotive paint plants from its headquarters in Osaka, Japan and is the leading supplier of automotive coatings to Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide.
Kansai Paint employs 16,844 people and has 91 facilities in 29 countries.
Overview of Financial Results
According to Kansai Paint’s Financial Results for FY2023, the company achieved the upwardly revised plan in February, and reached record highs in sales and all phases of profit.
• Further progress in overall price pass-though and expansion of automotive sales volume led to a double-digit year-on-year increase in company-wide sales.
• In India, competition in the deco sector is intensifying, while sales in the automotive and industrial sectors continue to grow. In addition, efforts to improve productivity continued, and high profit levels were maintained. (Segment profit: +35% YoY)
• The increase in profits in the Japan segment due to higher sales prices and productivity improvements contributed significantly to the improvement in profitability. (Japan segment profit margin: 8.7% 13.0%, +4.3%).
• Improved capital efficiency through continuous improvement of capital efficiency (sale of low-profit assets, significant improvement in CCC) and share buybacks. The dividend payout ratio, excluding one-time gains, will be maintained at 30%, and the annual dividend will be increased by 2 yen (from 38 yen to 40 yen) based on further growth in earnings.
Key Happenings in 2023
Acquisition of Kansai Paint Africa Halted by AkzoNobel
Amid concerns of creating a monopoly, AkzoNobel and Kansai Paint have mutually agreed not to proceed with the company's intended acquisition of Kansai's paints and coatings activities in Africa.
Commenting on the decision, AkzoNobel CEO, Greg Poux-Guillaume, said: “It's disappointing that this intended acquisition cannot move forward, but we remain committed to our strong businesses and leading brands in Africa. As AkzoNobel’s performance rebound gathers pace, we'll remain focused on our key priorities, including the strengthening of our balance sheet, which will be accelerated.”
The two companies have agreed that no break-up fee will be involved.
Kansai Helios Acquires Weilburger Coatings
KANSAI HELIOS, the company's hub in Slovenia, has completed its acquisition of WEILBURGER Coatings, the entire industrial coatings business of GREBE Holding in Weilburg, Germany. WEILBURGER Coatings with its headquarters in Weilburg consists of 100% of WEILBURGER Coatings GmbH in Weilburg, Germany and 100% of WEILBURGER Asia Limited in Hong Kong, China.
The deal was first announced in February 2024. This consolidation represents an important step to further strengthen KANSAI HELIOS' market positions in various industrial coatings segments and expand its geographical footprint internationally.
With the completion of the acquisition, KANSAI HELIOS becomes the new owner of WEILBURGERCoatings which consists of group companies in Germany, Italy, France, Turkey, USA, Brazil, India and China. WEILBURGER Coatings is a well-established company group, that look back on more than 120 years of tradition.
With about 600 employees at seven production sites and several trading offices, the company has achieved global success. The group has grown well-known brands such as GREBLON, senorail and senotherm®. With a turnover of around 150 million Euro, WEILBURGER Coatings is known for its outstanding performance in the field of non-stick coatings, high temperature coatings, railway coatings and specialty coatings.
This consolidation is a decisive step towards strengthening KANSAI HELIOS' market position in a broad range of industrial coatings segments and promoting an expansive international presence. By strategically pooling resources and expertise, the company aims not only to extend its competitive edge, but also to deepen its connections to global markets, promoting sustainable growth and innovation.
