Good afternoon. I'm Wakatsuki, Co President of NPHD. Thank you very much for your attendance despite your very busy schedule. From now, I would like to provide the overview of FY 2021 Q1 financial results. Once again, this is going to be live streaming online, and this is going to be a conference of simultaneous interpretation between Japanese and English.
As I'm going to touch upon this later on, for the financial results announcement, even after the organizational change, I will continue to be the presenter. Please move on to Page 3 of the material. This is the summary of the Q1. As you can see, in both Tangshin and non GAAP basis, we achieved significant increase in both revenue and profit. There are 3 main points as for the gap between Tangshin and non GAAP basis.
The first one is new consolidation impact of Indonesia and India. This is included in TianXin but not in non GAAP basis. The second point is the foreign exchange impact. Overall, compared with the initial forecast, yen is depreciating, so this is plus. As for Turkey, lir is now depreciating, so this is a negative impact.
As the third point, with Asia 100 percent completion of M and A, on TianXin basis, this is negative, but this is the case for the M and A expenses. For the other regions, starting from China, in the peak month of March with the biggest demand, there was serious impact from COVID-nineteen pandemic. So increase in revenue was somewhat expected. Yet in both DIY and project, share increased and it was very favorable. Japan continues to have impact from COVID-nineteen.
Compared with air bases, it's still flat. In other regions, other than Japan and China, they are relatively good. At any rate, this year, if you compare with the previous year, last year was extraordinary year due to COVID-nineteen. There is a need for having caution over that. For newly consolidated Indonesia, last year's result is for reference, but for Indonesia, increase in both revenue and profit was achieved, especially high profit margin.
Generally, raw material prices are on the rise. In terms of revenue and demand of paint, we just continue to have steady situation. But in terms of cost, after the Q2, we cannot be too optimistic. Overall, price hike and through cost reduction, we should achieve initial target, but we are now being careful of how we can achieve the upside. As soon as we see more settled situation for the raw material prices, we are hoping to provide update after the expense is an expense is an unallocated expense occurring in HLD, and this is the same kind of image as the headquarter expense announced at the midterm business plan.
Moving to Page 4. As we informed you, on April 28, we announced change of representative executive officer and co presidency structure. The reason for resignation of former President and CEO, Tanaka, as mentioned at the press conference, it is not necessarily appropriate for me to comment. But what I would like to clarify is that knowing that it was an extraordinary timing, he faced a physical capacity issue, and it was a judgment ultimately considering sustainable development of the company. Myself and Rui Shu Kim will not only steadily implement growth strategy in the midterm business plan, but we are committed to overachieve the target.
As the successor, we would like to overcome the pressure and to deliver results. We would like to ask for your support. As for co presidency, we do recognize that it is uncommon for listed company. Nomination committee made a judgment of best positioning for the development of the company in the future. For me personally, Nippon Page Group itself is originally unique yet powerful group.
And this unique structure of a co presidency is between us with Ri Shu Kim and myself, it can function well. I'm confident about that. Although there are pressures, I would like to prove and demonstrate by delivering the results. As I mentioned at the outset, there was an explanation by the Chairman of the nominating committee at the press conference, but dialogue with capital market is my advantage where I can use my experience. So I would like to continue under the core presidency structure.
We will not establish new CFO position, but I will continue with the operation. And together with Ri Shu Kim, I will have the joint responsibility for the overall management. Rishu Kim has the track record of leading Nipsey CEO over 12 years, well versed in the paint practice and responsible for operation. And for management as a whole, he will have a joint executive responsibility with me. As for Chairman Goh, same from the past, he will continue to provide advice.
But from the perspective of representative of the Controller, Chairman of the Board will be served by Masayoshi Nakamura, Lead Independent Director. That was a brief summary of the new structure, and we would like to ask for your cooperation. Please turn to Page 5. From here on, there would be explanation of the market status of each region. China's DIY and project have already been explained.
It is doing very well. However, in Asia outside of China, there has been significant recovery from last year's COVID impact. Page 6, Oceania Deluxe Group. In the Q1 of last fiscal year in the Q1, there was bushfire and floods in January February. And from March, there was a stay home demand in home centers and sales rose in home centers.
There was a lot of fluctuation, so it is difficult to purely compare with last fiscal year. After Q2 on in the last fiscal year in Australia, there was a lingering impact of stay home. So we don't necessarily believe that the same level of revenue year on year is possible. However, 0% to 5% increase in revenue year on year on a local currency basis is something that we would be able to sufficiently achieve. In terms of Australia in terms of Europe, BTK on a local currency basis is doing well, but there has been ForEx impact.
So there was not so much growth on Panxin basis. As for automotive, there was an impact from a shortage of semiconductor chips. The sales demand, especially on a year on year basis, it is quite robust. But what would be important for us is the number of production. The growth varies by region depending on the production volume.
Last but not least is adjustments. Out of the JPY 5,500,000,000 at this term, out of that JPY 2,600,000,000 are the provisional M and A expenses inclusive of stamp tax and others. So on a non GAAP basis, the total of consolidated adjustment is at JPY 33,300,000,000 plus JPY 1,300,000,000 in increase of expenses. On Page 7, I would like to explain about raw material market. It is basically as written on this slide.
But there is deterioration in supply and demand balance. And but there has been original difference in the PL and L impact. There has been impact from the cold wave in some of the regions. So there is an original difference in the P and L impact. So in the Q1, there were some carried over inventory from the previous year an impact was felt in part of regions like China.
But from Q2 on, the cost situation will be more severe. Countermeasures include price increase as well as cost reduction. We would like to capitalize on our global procurement capability and we would be able to optimally allocate raw materials and that would be a strength against our competitors. So in terms of the price increase, the situation varies region by region. Positioning, competitive environment, those will be comprehensively considered and conduct the best decision and make the best choices.
From Page 8 on, you see some main topics. I will be skipping the details, but on Page 8, you see that we received high rating for our integrated report, which we worked very hard last year. Our team and our company overall feels very happy about it. We would like to continue to receive investors' feedback for further improvement and conduct proactive investor engagement measures. Page 9.
Our diversity promotion initiatives have been recognized. Globally, the ratio of women as well as the senior managers, number of the women in senior management and also the utilizing women for executive officers, Those initiatives have been highly rated. Page 10, you see the activities that we have been conducting in China regarding green activities as well as brand recognition. On Page 11, you see our strength in projects in China. The projects also have to consider brands.
We need to be highly evaluated by customers and that would lead to the expansion of our business. Please turn to Page 12. This is what we have announced in March. This is to report to you on the closing of Malaysia's Vital Technical acquisition. At the end of March, we have seen the completion of this acquisition and Vital Technical is already contributing.
This has been mentioned in midterm business plan, but we want to practically expand into paint related businesses. If synergy can be envisioned. So in this case, what we expect is enhanced sales channel in Asia and synergy with Celis of Deluxe Group. So that's why we have conducted the acquisition of Vital Technical. On Page 13, the Dulux brand is very strong.
So we reconfirm the strength of this brand in Australia through this award. That is all for the explanation of the overview of the performance. And from Page 20 on, you see the regional analysis. And on the right, you see comparison of 4th quarter and the first quarter in a form of a graph. As you know, the paint business has strong seasonality.
So quarter and quarter comparison is not so meaningful, but there was a lot of requests to show quarter on quarter comparison, so that's why we have brought it to you on the slide. We explain about heat map every time, but this is very straightforward. So we would like to wait for the Q and A if there is any question we would like to answer. And on Page 35, you see the balance sheet upon the completion of acquisition of Asia Joint Venture and Indonesia. As I have already explained several times, for Asia Joint Venture that has already been consolidated.
So even after the 100% acquisition, the balance sheet did not grow bigger. On the other hand, the capital increased because of the 3rd party allotment. Non controlling interest decreased. So capital surplus and retained earnings had seen decrease. So the amount of the acquisition of Indonesia would work to increase the balance sheet.
And so there has been an increase from JPY 700,000,000,000 to JPY 900,000,000,000. And we were able to see the improvement in the rating. So that would be a brief presentation from my side. Thank you very much for your kind attention.