Chugoku Marine Paints : Company overview

Company overview

May, 2024

Chugoku Marine Paints, Ltd.

TSE Code #4617

Company mascot, "Pentaro"

Outline

1. Company outline
2. Description of products and businesses
3. Medium-TermManagement Plan
4. ESG information

Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

Page

3～10

11～25

26～42

43～45

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1-1

１．Company outline

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3

What is Chugoku Marine Paints?

• Long-establishedpaint manufacturer

• Founded in Hiroshima in 1917

*Located in Chugoku area in Japan

• High niche market share
• • Approx. 60% of the domestic market share for marine coatings. We also have a top-classoverseas market share.
• Global warming solutions

→Antifouling coatings,

Coatings for offshore wind power generation facilities

Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

4

	参Company考	outline
	Name	Chugoku Marine Paints, Ltd.
	Establishment	May 1917 (in business for 107 years)
	Main business	Production and sales of functional coatings centered on marine coatings
	Capital	11,626 million yen
	Headquarter	Tokyo: 2-6, Kasumigaseki 3-chome,Chiyoda-ku, Tokyo
	Hiroshima: 1-7,Meiji-Shinkai,Otake-Shi, Hiroshima (registered headquarters address)
	Representative	Kenshi Date, President
	Stock exchange	Prime Market of the Tokyo Stock Exchange (Code: 4617)
	Net sales	116,184 million yen (consolidated, as of March 31, 2024)
	Employees	2,104 (consolidated, as of March 31, 2024)
	Major shareholders	THE MASTER TRUST BANK OF JAPAN, LTD. (ACCOUNT IN TRUST)/11.5%, CHUGOKU
	and ownership ratios	MARINE PAINTS, LTD./9.9%, THE HIROSHIMA BANK, LTD./4.4%, CUSTODY BANK OF JAPAN,
	(as of Mar.31, 2024)	Ltd. (ACCOUNT IN TRUST)/4.2%, MEIJI YASUDA LIFE INSURANCE COMPANY./3.6%,
			5
Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

CMP History (1)

From our founding to the top domestic market share

1917	Establishment of Chugoku Chemical Industry
Limited Partnership, with capital of 50,000 yen

Founded in Hiroshima by Iwao Suzukawa with the goal of transitioning to domestic production of antifouling ship bottom coatings. At the time, Japan relied on imported products because no antifouling coatings with excellent performance were produced in Japan.

1923	Reorganization as Chugoku Marine Paints, Ltd.,
with capital of 250,000 yen

Hiroshima HQ in 1924

1945 Dropping of atomic bomb on Hiroshima

The Hiroshima factory and divisions throughout Hiroshima city suffered catastrophic damage. At this time, we began producing daily necessities such as soaps and toothpastes at our alternate factory in Itsukaichi.

Hiroshima HQ after the disasters from A-bomb

1946	Resuming production of coatings at
Hiroshima factory
1949	Listing on the Hiroshima Stock
		Exchange
		The 1950s
		Transitioned from an antifouling ship
		bottom paint manufacturer into a
		comprehensive manufacturer of
		marine coatings; further branched out
		into the field of woodwork coatings

1961	Completion of Shiga Factory
Listing on 2nd section of the Tokyo Stock
		Exchange (TSE)
		The 1960s
		Achieved the top domestic market share for
		marine coatings in step with the Japanese
		shipbuilding industry, which had become the
		largest in the world in terms of new ships
		constructed

Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

6

CMP History (2)

From overseas expansion to participation in new lines of business

1968 Establishmentoffice of London representative

We began our active overseas expansion with the establishment of a business office in London. Our overseas network continues to expand today.

Years in which major foreign subsidiaries	Note: Years in parentheses indicate
were established	when factory construction was
1973	Hong Kong	completed or when production
began
1980	Singapore(1986)
1983	UK, Taiwan
1984	Greece
1988	Netherland(1988)
	Indonesia(1989), Korea(2002)
1989	Thailand(1994)
1990	Malaysia(1992), USA(1990)
1993	Shanghai(1994)
1997	Guangdong (1999), Germany
2012	Italy
2019	Myanmar (2020)

New factory in Netherland (2017)

1975 Completion of Kyushu factory

After the 1970s

Alongside our active overseas expansion, we aimed to enter a variety of new areas, including resin caulking materials for railway tracks, container coatings, heavy anti-corrosion coatings, and UV-curable coatings for woodwork.

1984	Moving to the first section of the TSE
1994	Completion of Otake research center in
	Hiroshima
	After 2000s
	Received orders associated with large-scale
	properties overseas and accelerated development
	of environmentally friendly antifouling coatings;
	We will respond to the opportunities offered by
	expanding businesses primarily by developing
	multifunctional products with the same spirit of
	superior product production that we have nurtured
	since our founding.

Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

7

参Bases考 and Group companies

Our business encompasses approximately 60 locations

belonging to 24 companies located in 20 countries around the world.

Norway

UK

Germany

Holland

Japan

Italy

South Korea

Tokyo (headquarters)

Greece

Turkey

Shiga

Cyprus

UAE

Shanghai

Hyogo

Guangdong

USA

India

Myanmar

Taiwan

Hiroshima (headquarters)

Thailand

Hong Kong

Saga

Malaysia				Singapore	(Sales offices in 12 other locations)
					Indonesia

• Major group companies

	OHTAKE MEISHIN CHEMICAL,	Japan	CHUGOKU SAMHWA PAINTS, Ltd.	South Korea	CHUGOKU PAINTS B.V.	Holland
	LTD.	(Hiroshima)
	KOBE PAINTS, LTD.	Japan	CHUGOKU MARINE PAINTS	Singapore	CHUGOKU PAINTS (UK) Ltd.	UK
	(Hyogo)	(Singapore) Pte. Ltd.
	CHUGOKU MARINE PAINTS	China	CHUGOKU PAINTS (Malaysia)	Malaysia	CHUGOKU PAINTS (Germany)	Germany
	(Shanghai), Ltd.	(Shanghai)	Sdn. Bhd.	G.M.B.H.
	CHUGOKU MARINE PAINTS	China	TOA-CHUGOKU PAINTS Co., Ltd.	Thailand	CHUGOKU-BOAT ITALY S.P.A.	Italy
	(Guangdong), Ltd.	(Guangdong)
	CHUGOKU MARINE PAINTS	Hong Kong	P.T. CHUGOKU PAINTS	Indonesia	CHUGOKU MARINE PAINTS	Greece
	(Hong Kong), Ltd.	INDONESIA	(Hellas), S.A.
	CHUGOKU MARINE PAINTS	Taiwan	CHUGOKU PAINTS (India) Pvt. Ltd	India	CMP COATINGS, Inc.	USA
	(Taiwan), Ltd.
Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.			8

Sales by product and region

Container coatings	Other 0.3%
Industrial coatings	1.6%
10.9%	Marine coatings

By product

(FY03/24)

Europe and

the US

Japan

23.0% 34.9%

Southeast	By region
Asia	14.7%

87.2%

10.2%	17.2%

Korea

China

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9

Operating results

Fluctuations in profit are large due to shifts in raw material and ship prices, but we have achieved three V-shapedrecoveries over the past 20 years

Consolidated Performance over the Past 20 Years

1,240

1,140

1,040

940

840

(Unit: 100 million yen)

Sales			Operating profit
		1,047
		1,036
881	868

							1,200
		1,150				1,161	170
		1,067
965	935					994		150
	901	884	877
		842	121	120
	836
	823	829	824	130

740	678			99	99				110
		88
		81	84
640							90
			74
		72
							65
540
				54	54				70
440
			47
340	36			40	37		34	38	50
240									30
140								6
						-6			10
40

-60	03/06	03/07 03/08 03/09	03/10 03/11 03/12	03/13 03/14 03/15 03/16	03/17 03/18	03/19	03/20 03/21 03/22	03/23
(FY)

Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

03/24	03/25	10

Forecast

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