Nippon Paper Industries Co., Ltd. · TSE:3863

Nippon Paper Industries — Q1 FY2006 Earnings Presentation

14 slides from Nippon Paper Industries's earnings presentation, Jul 31, 2006

  1. Slide 1: FY2006 1st Quarter Financial Review

    FY2006 1st Quarter Financial Review July 31, 2006 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2006 Nippon Paper Group, Inc.

  2. Slide 2: Contents

    Nippon Paper Group Contents FY2006 1Q Review （April 1, 2006～June 30, 2006） (1) Overview (2) Topics (3) Financial results (4) Full year forecast （April 1, 2006～March 31, 2007） All Rights Reserved, Copyright (C) 2006 Nippon Paper Group, Inc. 2

  3. Slide 3: Overview – Business environment: Domestic shipment of paper and paperboard

    (1)Overview – Business environment Domestic shipment of paper and paperboard Paper industry FY2006 1Q (April 2006 － June 2006) % change Shipment(1,000 tons) yoy Newsprint 904 5.2% Uncoated printing paper 628 -2.0% Coated printing paper ※ 1,558 2.8% Business communication paper 400 -0.7% Other papers

  4. Slide 4: Overview – Business environment: Trend in paper and paperboard prices

    (1)Overview – Business environment Trend in paper and paperboard prices Paper industry (April 2004 － June 2006) （¥／ｋｇ） Printing A A2 Coated A3 Coated （¥／ｋｇ） (Woodfree) (Coated woodfree) (Light weight coated woodfree) 150 75 Kraft-liner board 140 70 130 65 120 60 110 55 100 Apr. 2004 Oct. 2004 Apr. 2

  5. Slide 5: Overview – Business environment: Trend in fuel and raw material prices

    (1)Overview – Business environment Paper industry Trend in fuel and raw material prices (April 2004 － June 2006) Dubai NBSK Crude oil Coal Eucalyptus Wastepaper ONP OCC Old magazine Eucalyptus（US$/t） (US$/BL) (US$/t) (AU$/BDT) (¥/kg) NBSK Crude oil Coal 180 18 900 90 160 16 800 80 140 14 700 70 120

  6. Slide 6: Topics of the 1st Quarter

    (2)Topics Topics of the 1stst Quarter Apr. 2006 ： Merger of San-Mic Shoji Co., Ltd. and Komine Nissho Co., Ltd. (Name of the new company : Nippon Paper Trading Co., Ltd.) :Established Agribio Business Promotion Office. -Received an order for the production of Hachisuka Sakura cherry tree in June. ：I

  7. Slide 7: Financial results: Outline

    (3)Financial results ①Outline Consolidated operating results FY2005 FY2006 (¥ billion) 1st Q 1st Q Difference <Net sales> 286.2 288.0 1.8 <Operating income> 15.3 7.8 -7.5 <Ordinary income> 15.8 8.8 -7.0 <Net income> -1.5 4.6 6.1 All Rights Reserved, Copyright (C) 2006 Nippon Paper Group, Inc. 7

  8. Slide 8: Financial results: Sales volume by product

    (3)Financial results ②Sales volume by product （Thousand tons) FY2005 FY2006 % change 1Q 1Q yoy Newsprint 333 333 0.2% Uncoated paper 188 189 0.7% Coated paper 485 506 4.3% Business communication paper 181 179 -0.9% Packaging paper and others 147 138 -5.9% Total domestic sales 1,333 1,345 1.0% Export

  9. Slide 9: Financial results: Segment information

    (3)Financial results ③Segment information （ ¥ billion） Sales Operating income FY2005 FY2006 FY2005 FY2006 Difference Difference Comments 1Q 1Q 1Q 1Q Paper: Heavily affected by raw materials and fuel cost hike. Paperboard: Price recovery contributed to profit. Pulp and Paper Div. 212.1 220.1 7.9 11.6

  10. Slide 10: Financial results: Analysis of profit and loss

    (3)Financial results ④Analysis of profit and loss FY2005 1stst Q vs FY2006 1stst Q Decrease in operating income ¥-7.5billion(¥15.3bn →¥7.8bn） Decrease in ordinary income ¥ -7.0billion(¥15.8bn→¥8.8bn） (¥ billion) 15.3 Decrease in operating income Raw Raw materials materials -7.5 and and prices prices

  11. Slide 11: Financial results: Balance sheet

    (3)Financial results ⑤Balance sheet （ ¥ billion） Balance sheet Mar. 31, Jun. 30, Difference Comments 2006 2006 Cash and time deposits 14.1 14.5 0.4 Notes and accounts receivable 218.4 257.5 39.2 Inventories 139.2 144.4 5.2 Other current assets 41.0 48.3 7.3 Property, plant, equipment, Capital invest

  12. Slide 12: Financial results: Cash flow statement

    (3)Financial results ⑥Cash flow statement （ ¥ billion） Items FY2005/1Q FY2006/1Q Difference Comments Operating activities -25.9 -28.1 -2.2 Income before income taxes 2.9 8.2 5.3 Depreciation,and amortization of difference between cost and underlying net equity in consolidated subsidiaries 17.5 16.4

  13. Slide 13: Full year forecast

    (4)Full year forecast The figures of FY2006 estimation are unchanged from the figures announced on April 28, 2006. FY2006 Interim FY2006 FY2005 (¥ billion) estimation estimation Results <Net sales> 590.0 1,200.0 1,152.2 <Operating income> 19.0 50.0 48.4 <Ordinary income> 19.0 51.0 49.4 <Net income>

  14. Slide 14: Disclaimer Regarding Forward-Looking Statements

    Disclaimer Regarding Forward-Looking Statements Any statements in this presentation document, other than those of historical fact, are forward-looking statements about the future performance of Nippon Paper Group,Inc. and its group companies, which are based on management’s assumptions and beliefs i

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