Chugoku Marine Paints (4617) Investor Presentation summary

Company profile and history

• Founded in Hiroshima in 1917, with over 100 years in business and a strong niche in marine coatings, holding about 60% domestic market share and a top global position.

• Operates globally with 25 companies in 20 countries and production bases in 9 countries.

• Main business is production and sales of functional coatings, especially marine coatings, with consolidated net sales of ¥131,152 million and 2,137 employees as of March 2025.

• Expanded internationally since the late 1960s, diversifying into industrial, container, and offshore structure coatings.

Product portfolio and market position

• Marine coatings account for 88% of sales, with industrial and container coatings making up the rest.

• Holds approximately 20% global share in marine coatings, competing in an oligopolistic market.

• Antifouling paints improve ship fuel efficiency and reduce CO2 emissions, supporting compliance with global environmental regulations.

• Industrial coatings focus on UV-curable and heavy anti-corrosion products, with top domestic shares in several segments.

• Container coatings are mainly supplied in China, with a shift to water-based products due to environmental regulations.

Financial performance and targets

• Achieved record-high sales and profits for two consecutive years, with FY2025 net sales target revised to ¥120 billion and operating profit to ¥11 billion.

• ROE target set at at least 10% for FY2025, with a focus on stable and high-profit structure.

• Capital investment plan totals about ¥17 billion over five years, focusing on production base optimization and productivity improvements.