Kansai Paint (4613) Investor presentation summary

Investment and strategic rationale

• Türkiye designated a strategic hub; investment increased in KABS and PKB to strengthen automotive, industrial and decorative businesses.

• PKB acquired the remaining 50% to become wholly owned; transaction completed in October 2026 at an 8.4x EV/EBITDA multiple and ~¥15.0bn.

• KABS stake increased from 51.00% to 74.88% through acquisition of an additional 23.88%; transaction completed in July 2026.

Turkish market and position

• Paint market size grew from ~¥300bn in 2018 to ~¥400bn in 2025, with ~¥600bn forecast for 2033.

• Türkiye paint market forecast to grow at 4.5% CAGR in 2025–33; domestic market supported by an 86.09m population, median age of 34 and vehicle production above 1.3m annually.

• Türkiye ranks as the world’s 18th-largest paint market; access to EMEA markets represents an addressable population of 1bn+.

• Group market share is 15%, ranking No. 2 overall; KABS ranks No. 1 in automotive coatings and PKB No. 2 in decorative coatings.

Growth strategy

• KABS and PKB accounted for 60% and 40% of their combined 2025 sales, respectively; combined sales were ¥59.3bn, excluding hyperinflation accounting.

• KABS targets 50% share with non-Japanese OEMs and 45% in auto parts by 2030, using its global network and Group technologies; industrial share target is double-digit.

• PKB’s decorative coatings business had 15.9% market share and a 21.2% 2025 EBITDA margin; its nationwide network includes 4,500+ dealers.

• PKB strategy focuses on gaining share in major cities, developing customers, improving plant utilization and expanding exports and production-hub functions in neighboring markets.

• PKB’s fully automated plant has capacity of 540,000 tonnes per year and produces ~250 brands; it is Türkiye’s first LEED Gold-certified paint plant.