Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — H1 FY2011 Earnings Presentation
19 slides from Nippon Paper Industries's earnings presentation, Nov 4, 2011
Slide 1: 1st 6-month FY2011 Financial Review
1st 6-month FY2011 Financial Review November 4, 2011 Nippon Paper Group, Inc.
Slide 2: Contents
Contents 1st 6-month FY2011 Review April 1 - September 30, 2011 1. Business environment 2. Financial results 3. Earnings forecast 2
Slide 3: Business environment – Domestic shipment
1. Business environment – Domestic shipment 1stst half of FY2011 domestic shipment volume decreased on a year-on-year basis due to the earthquake Industry Industry data data of of domestic domestic shipment shipment (Apr. (Apr. Sep.2011) Sep.2011) Change (1,000 tons) yoy Newsprint 1,558 -4.8% Printi
Slide 4: Business environment – Domestic shipment trends
1. Business environment – Domestic shipment Since August 2011 domestic paper shipment showed a remarkable recovery Domestic Domestic shipment shipment trends trends (yoy) (yoy) (Apr.2010 (Apr.2010 Sep.2011) Sep.2011) Paperboard Printing paper & Business communication paper Source: Japan Paper Associ
Slide 5: Business environment – Domestic price trends
1. Business environment – Domestic Price trends Printing paper price turned up from a low & flat level (Apr.’10 = 1 Source: Bank of Japan”Corporate Goods Price Index” 5
Slide 6: Business environment – Major input price trends
1. Business environment – Major input price trends Prices of major input material & fuel stayed at a high level (\/kg) Wastepaper Pulp (US$/t) Woodchip/Pulp Woodchip (A$/t) 20 1,200 280 ONP(export) 16 1,000 260 BHK 12 ONP OCC 800 240 BSK Woodchip 8 600 (Eucalyptus) 220 OCC (export) 4 400 200 Apr.'09
Slide 7: Financial results - Highlights
2. Financial results - Highlights ¥billion FY2011 Change from Change from 1st 6-month 1H/FY10 1H/FY11 Target <Net Sales> 511.5 -39.9 1.5 <Operating Income> 14.4 -2.4 1.4 <Ordinary Income> -12.5 -26.7 -24.5 <Net Income> -39.2 -45.5 -26.2 ❏ Achieved the target of 1H/FY11 at Net Sales & Operating Incom
Slide 8: Financial results - Segment information
2. Financial results - Segment information Other than pulp & paper segment stayed at a good level (\ billion) (Upper row: Sales) FY10 FY11 Change (Lower row: Operating income) 1st Half 2nd Half 1st Half yoy 446.4 433.3 404.1 -42.3 Pulp and Paper 11.5 11.7 8.9 -2.7 Paper-related 46.7 47.6 48.2 1.4 (p
Slide 9: Financial results - Sales volume by product
2. Financial results - Sales volume by product Paper shipment volume decreased sharply due to the tsunami disaster at Ishinomaki mill thousand tons FY2010 FY11 change 1st 6-month 1st 6-month yoy Newsprint 595 573 -3.6% Printing & Business communication paper 1,361 1,172 -13.9% Coated paper 730 587 -
Slide 10: Financial results - Variance analysis for operating income
2. Financial results - Variance analysis for operating income Operating income decreased mainly due to the earthquake and input cost rise (¥billion) -2.4 Others* +13.3 16.8 14.4 Cost Reduction, Volume etc. -11.8 +5.8 1st 6-month Price 1st 6-month -4.4 FY2010 FY2011 Raw material & fuel prices -5.3 *F
Slide 11: Financial results – Balance sheet
2. Financial results – Balance sheet Mar. 31, Sep. 30, ¥billion Change 2011 2011 Total Assets 1,560.6 1,508.6 -51.9 Cash and time deposits 104.8 83.6 -21.2 Notes and accounts receivable 210.8 209.8 -1.0 Inventories 141.4 153.0 11.7 Other current assets 58.5 55.3 -3.2 Property, plant, equipment, and
Slide 12: Financial results – Cash flow statement
2. Financial results – Cash flow statement ¥billion FY2010 FY2011 Items Change 1st 6-month 1st 6-month Operating activities 45.5 17.8 -27.7 Income before income taxes 9.6 -40.9 -50.5 Depreciation 39.0 36.8 -2.2 Change in net working capital 2.3 -12.3 -14.6 Others -5.4 34.1 39.6 Investing activities
Slide 13: Earnings forecast – Highlights
3. Earnings forecast – Highlights ¥billion FY2011 Change FY2010 <Net Sales> 1,099.8 1,055.0 -44.8 <Operating Income> 35.6 35.0 -0.6 <Ordinary Income> 31.6 5.0 -26.6 <Net Income> -24.2 -44.0 -19.8 ❏ Executing price hike of printing paper, business communication paper, industry paper, folding box boar
Slide 14: Earnings forecast – Assumptions
3. Earnings forecast – Assumptions Domestic Sales As of Aug. 3 -Sales volume (yoy) Paper : -8.7% -6.1% Paperboard : +1.7% +1.0% -Sales price Paper and Paperboard : reflecting price hike Same as 1Q level Raw material and fuel prices, Forex Crude Oil : US$110/BL(Dubai) US$115/BL Coal : US$130/t(Austra
Slide 15: Earnings forecast – Topics
3. Earnings forecast – Topics Execute the revitalization plan on schedule Nov. 2011 - Resume the paper machine N4 (PM N4) & the coating machine 4 (CM4) at Ishinomaki mill Dec. 2011 - Resume the woodchip intake facility at Ishinomaki Port - Restart manufacturing kraft pulp at Ishinomaki mill - Launch
Slide 16: Earnings forecast - Sales volume by product
3. Earnings forecast - Sales volume by product 2H/FY11 paper shipment volume forecast decreases on year-on-year basis thousand tons change FY2011 change FY2011 yoy 2nd 6-month yoy Newsprint 1,160 -2.1% 587 -0.7% Printing & Business communication paper 2,360 -12.7% 1,188 -11.5% Coated paper 1,192 -18
Slide 17: Earnings forecast - Variance analysis for operating income
3. Earnings forecast - Variance analysis for operating income Operating income decrease narrows due to price hike, while input costs of raw material & fuel increase (¥billion) -0.6 Others* +19.7 Cost Reduction, Sales etc. 35.6 (Volume & Prices) +9.6 -13.9 35.0 Raw material & fuel prices -16.0 FY2010
Slide 18: Earnings forecast - Key figures and indices
3. Earnings forecast - Key figures and indices FY2011 FY2011 FY09 FY10 st 1 6-mos est. Operating margin on sales 3.9% 3.2% 2.8% 3.3% Ordinary margin on sales 3.4% 2.9% -2.4% 0.5% D/E (times) x1.6 x1.8 x2.0 x2.1 Capital investment (\ billion) 35.6 46.6 27.0 66.8 Depreciation (\ billion) 81.9 78.6 36.
Slide 19: Disclaimer
Disclaimer 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. These statements are based on management’s assumptions and beliefs in light of information cur