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

Nippon Paper Industries — H1 FY2006 Earnings Presentation

21 slides from Nippon Paper Industries's earnings presentation, Oct 31, 2006

  1. Slide 1: FY2006 Interim Financial Review

    FY2006 Interim Financial Review October 31, 2006 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2006 Nippon Paper Group, Inc.

  2. Slide 2: Contents

    Nippon Paper Group Contents I. FY2006 Interim Review (April 1, 2006 – September 30, 2006) (1) Overview (2) Operating results (3) Analysis of profit and loss (4) Extraordinary items (5) Balance sheet (6) Cash flow statement II. FY2006 Full Year Forecast (April 1, 2006 – March 31, 2007) (1) Overview (

  3. Slide 3: Overview: Business environment, domestic paper shipments

    Ｉ．Interim Review (1)Overview①Business environment Domestic shipment of paper and paperboard Paper industry FY2006 Interim (April 2006 － September 2006) % change Shipment(1,000 tons) yoy Newsprint 1,795 3.1% Uncoated printing paper 1,270 -1.3% Coated printing paper ※ 3,182 2.1% Business communication

  4. Slide 4: Trend in paper and paperboard prices

    Ｉ．Interim Review (1)Overview①Business environment Trend in paper and paperboard prices Paper industry (April 2004 － September 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 50 Apr

  5. Slide 5: Trend in fuels and raw materials prices

    Ｉ．Interim Review (1)Overview①Business environment Paper industry Trend in fuels and raw materials prices (April 2004 － September 2006) Dubai Eucalyptus Wastepaper NBSK Crude oil Coal (AU$/BDT) (¥/kg) ONP OCC Old magazine Eucalyptus （US$/t） (US$/BL) (US$/t) NBSK Crude oil Coal 180 18 900 90 160 16 80

  6. Slide 6: Topics of the 1st half

    Ｉ．Interim Review (1)Overview②Topics Topics of the 1stst half Apr. 2006 ：Merger of San-Mic Shoji Co., Ltd. and Komine Nissho Co., Ltd. (Name of the new company : Nippon Paper Trading Co., Ltd.) :Announced a new boiler to be installed.(NPI’s Shiraoi) May. :Launched Second Medium-Term Business Plan. :A

  7. Slide 7: Consolidated operating results outline

    Ｉ．Interim Review (2)Operating results①Outline Consolidated operating results FY2005 FY2006 (¥ billion) Difference Interim Interim <Net sales> 578.2 581.1 2.9 <Operating income> 30.6 19.7 -10.9 <Ordinary income> 31.2 20.2 -11.0 <Interim net income> 3.5 6.9 3.4 All Rights Reserved, Copyright (C) 2006

  8. Slide 8: Sales volume by product

    Ｉ．Interim Review （２）Operating results ②Sales volume by product （Thousand tons) FY2005 FY2006 % change Interim Interim yoy （Average domestic paper price：\/ｋｇ） ※ (105.5) (103.9) (-1.5%) Newsprint 673 662 -1.5% Uncoated paper 380 384 1.1% Coated paper 989 1,024 3.5% Business communication paper 356 352

  9. Slide 9: Segment information

    Ｉ．Interim Review (2)Operating results ③Segment information （¥billion） Sales Operating income FY2005 FY2006 FY2005 FY2006 Difference Difference Comments Interim Interim Interim Interim Pulp and Paper Div. 424.6 438.3 13.7 22.3 12.8 ▲ 9.5 Profit decreased due to raw materials and Paper etc. 349.7 356.

  10. Slide 10: Analysis of profit and loss

    Ｉ．Interim Review (3)Analysis of profit and loss FY2005 Interim vs FY2006 Interim Decrease in operating income ¥-10.9billion（¥30.6 bn → ¥19.7 bn） Decrease in ordinary income ¥ -11.0 billion （¥31.2 bn → ¥20.2 bn） （¥ billion） 30.6 Decrease in operating income -10.9 Materials Materials price price -18.4

  11. Slide 11: Extraordinary items

    Ｉ．Interim Review (4)Extraordinary items FY2005 FY2006 Interim Interim Ordinary income 31.2 20.2 （¥billion） Extraordinary gains 1.7 1.0 Gain on sale of property, plant and equipment 0.8 0.7 Gain on sale of securities, etc. 0.5 0.0 Others 0.4 0.2 Extraordinary losses 19.5 8.0 Loss on disposal of prope

  12. Slide 12: Balance sheet

    Ｉ．Interim Review (5)Balance sheet （¥billion） Balance sheet Mar. 31, Jun. 30, Difference Comments 2006 2006 Cash and time deposits 14.1 17.2 3.1 Notes and accounts receivable 218.4 245.5 27.2 Inventories 139.2 148.4 9.2 Other current assets 41.0 39.9 -1.1 Property, plant, equipment, Capital investmen

  13. Slide 13: Cash flow statement

    Ｉ．Interim Review (6)Cash flow statement （¥billion） FY2005 FY2006 Items Difference Comments Interim Interim Operating activities 55.3 30.6 -24.7 Income before income taxes 13.4 13.1 -0.2 Depreciation,and amortization of difference between cost and underlying net equity in consolidated subsidiaries 34

  14. Slide 14: Topics of the 2nd half

    ＩＩ．FY2006 Forecast (1)Overview :Topics Topics of the 2nd half Oct. 2006 ：Started operation of Ishinomaki mill’s biomass boiler. :Announced the achievement of afforestation of 100,000 hectare. Nov. ：Planned to sign a definitive agreement of the strategic alliance between Hokuetsu Paper Mills, Ltd. an

  15. Slide 15: Assumptions for FY2006 estimation

    ＩＩ．FY2006 Forecast (2)Operating results ①Business environment for the 2nd half Assumptions for FY2006 estimation ●Sales forecast(domestic) Paper: volume +1.0% up from FY2005 price Recovery of printing and business communication paper price in the early 2nd half paperboard: volume -0.8% down from FY2

  16. Slide 16: FY2006 forecast outline

    ＩＩ．FY2006 Forecast (2)Operating results②Outline The figures of FY2006 estimation are unchanged from the figures announced on April 28, 2006. FY2006 (Reference) (¥ billion) Estimation FY2005 Results <Net sales> 1,200.0 1,152.2 <Operating income> 50.0 48.4 <Ordinary income> 51.0 49.4 <Net income> 21.0

  17. Slide 17: Forecast sales volume by product

    ＩＩ．FY2006 Forecast （２）Operating results ③Sales volume by product （Thousand tons) FY2005 FY2006 est. % change （Ａ） （Ｂ） yoy （Average domestic paper price：\/kg） ※ (104.4) (104.7) (0.4%) Newsprint 1,362 1,345 -1.2% Uncoated paper 765 763 -0.3% Coated paper 2,020 2,105 4.2% Business communication paper 71

  18. Slide 18: Forecast segment information

    ＩＩ．FY2006 Forecast (2)Operating results ④Segment information （¥billion） Sales Operating income FY2006 FY2006 FY2005 Difference FY2005 Difference Comments estimated estimated Pulp and Paper Div. 861.0 916.8 55.8 33.2 36.9 3.7 Raw materials and fuel cost hike Paper etc. 704.9 745.7 40.8 32.8 31.3 ▲ 1.

  19. Slide 19: Analysis of profit and loss: FY2005 vs FY2006 est.

    ＩＩ．FY2006 Forecast (3)Analysis of profit and loss FY2005 vs FY2006 est. Increase in operating income ¥1.6 billion（¥48.4 bn → ¥50.0 bn） Increase in ordinary income ¥ 1.6 billion （¥49.4 bn → ¥51.0 bn） （¥ billion） 50.0 Increase in 48.4 operating income +1.6 Depreciation, etc. +2.7 40.0 Cost Cost reduct

  20. Slide 20: Group's important figures

    ＩＩ．FY2006 Forecast (4)Group’s important figures FY2006 FY2006 FY2004 FY2005 Interim est. ROE 5.6% 3.9% 3.1% 4.7% Ordinary margin on sales 5.3% 4.3% 3.5% 4.3% D/E (times) x1.7 x1.5 x1.6 x1.6 Operation rate of paper 91% 92% 92% 93% machine(Calendar basis) Operation rate of paperboard 87% 86% 83% 84% m

  21. Slide 21: 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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