Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — FY2011 Earnings Presentation
20 slides from Nippon Paper Industries's earnings presentation, May 23, 2012
Slide 1: FY2011 Financial Review
FY2011 Financial Review May 23, 2012 Nippon Paper Group, Inc.
Slide 2: Contents
Contents 1. Business Environment 2. Financial Results 3. Earnings Forecast 2
Slide 3: Business Environment – Domestic demand
1. Business Environment – Domestic demand Steady domestic demand for paper & paperboard since last summer Domestic demand (domestic shipment and imports) yoy Printing paper Paperboard 110% 105% 100% 95% 90% 85% Apr.'10 Jul. Oct. Jan.'11 Apr. Jul. Oct. Jan.'12 Source: Japan Paper Association 3
Slide 4: Business Environment – Domestic shipment
1. Business Environment – Domestic shipment Domestic shipment declined due to the earthquake and increased imports Domestic Domestic shipment shipment of of thousand tons Japanese Japanese paper paper industry industry (Apr.2011－Mar.2012) (Apr.2011－Mar.2012) FY2010 FY2011 Change yoy Newsprint 3,264
Slide 5: Business Environment – Domestic price trends
1. Business Environment – Domestic price trends Prices of printing paper & paperboard improved (Apr.’11 = 1 Linerboard Printing Paper Household tissue 1.15 1.10 1.05 1.00 0.95 Apr.'11 Jul. Oct. Jan.'12 Apr. Source: Japan Paper Association 5
Slide 6: Business Environment – Major input price trends
1. Business Environment – Major input price trends Raw materials & fuel prices remain high Wastepaper Woodchip/Pulp Pulp Woodchip \ ONP OCC BHK BSK Woodchip (US$/t) (US$/t) 20 1000 200 800 180 16 600 160 12 undecided 400 140 8 200 120 Apr.'09 Apr.'10 Apr.11 Apr. Apr.'09 Apr.'10 Apr.11 (US$/BL) Crude
Slide 7: Financial Results - Highlights
2. Financial Results - Highlights ¥billion Change Change FY2011 (against plan) (yoy) <Net Sales> 1,042.4 -12.6 -57.4 <Operating Income> 36.5 1.5 0.9 <Ordinary Income> 6.1 1.1 -25.5 <Net Income> -41.7 2.3 -17.5 ❏ Achieved planned operating & ordinary income ❏ One-time amortized ¥25.6 b goodwill on ac
Slide 8: Financial Results - Segment information
2. Financial Results - Segment information Pulp & paper segment profitability improved due to price rise FY2010 FY2011 Upper row: Sales Change Lower row: Operating income Full Full 1H 2H 1H 2H yoy ¥billion year year 446.4 433.3 879.7 404.1 413.6 817.7 -62.0 Pulp and Paper 11.5 11.7 23.2 8.9 15.3 24.
Slide 9: Financial Results - Sales volume by product
2. Financial Results - Sales volume by product Sales volume declined due to constrained production thousand tons change FY2010 FY2011 yoy Newsprint 1,186 1,190 0.3% Printing & Business communication paper 2,704 2,326 -14.0% Coated paper 1,460 1,172 -19.7% Uncoated & Specialty printing paper 609 549
Slide 10: Financial Results - Variance analysis for operating income
2. Financial Results - Variance analysis for operating income Operating income improved under severe circumstances (¥billion) +0.9 35.6 36.5 Sales -19.8 Others* +23.4 Raw material Cost reduction, & fuel prices etc -12.4 FY2010 +9.7 FY2011 *Fixed costs transferred to extraordinary loss account, depre
Slide 11: [Reference] FY2011 vs. FY2010 Variances
[Reference] FY2011 vs. FY2010 Variances ¥billion Sales -19.8 Volume -18.8, Prices -1.0 Woodchips -1.3, Wastepaper -2.0, Pulp 1.4 Raw materials and fuel prices -12.4 Oil -3.7, Coal -2.7, LNG -1.3, Chemicals & others -2.8 [price -19.9, forex 7.5] Cost reduction, etc 9.7 Manufacturing 6.1, Labor 3.3, L
Slide 12: Financial Results – Balance sheet
2. Financial Results – Balance sheet ¥billion Mar. 31, Mar. 30, Change 2011 2012 Total Assets 1,560.6 1,527.6 -33.0 Cash and time deposits 104.8 119.4 14.5 Notes and accounts receivable 210.8 205.2 -5.6 Inventories 141.4 154.9 13.5 Other current assets 58.5 66.9 8.4 Property, plant, equipment, 824.5
Slide 13: Financial Results – Cash flow statement
2. Financial Results – Cash flow statement ¥billion Items FY2010 FY2011 Change Operating activities 115.5 60.1 -55.3 Income before income taxes -38.5 -41.1 -2.6 Depreciation 78.6 74.4 -4.3 Change in net working capital 23.4 9.5 -13.9 Others 52.0 17.4 -34.6 Investing activities -93.5 -46.6 46.8 Purch
Slide 14: Earnings Forecast – Highlights
3. Earnings Forecast – Highlights ¥billion FY2012 FY2011 Change (estimate) (result) (yoy) <Net Sales> 1,080.0 1,042.4 37.6 <Operating Income> 41.0 36.5 4.5 <Ordinary Income> 38.0 6.1 31.9 <Net Income> 20.0 -41.7 61.7 ❏ Projecting improvement in operating income by implementing the revitalization pla
Slide 15: Earnings Forecast – Assumptions
3. Earnings Forecast – Assumptions Domestic Sales -Sales volume (yoy) Paper : +6.0% (vs FY2010 -3.3%) Paperboard : +1.0% -Sales price Paper and Paperboard : reflecting last year’s price hike Raw material and fuel prices, Forex Crude Oil : US$115/BL (Dubai) Coal : US$115/t (Australian Black Coal) Was
Slide 16: Earnings Forecast - Sales volume by product
3. Earnings Forecast - Sales volume by product Projecting recovery from the earthquake thousand tons change FY2011 FY2012 yoy Newsprint 1,190 1,164 -2.1% Printing & Business communication paper 2,326 2,585 11.1% Coated paper 1,172 1,418 21.0% Uncoated & Specialty printing paper 549 582 6.1% Business
Slide 17: Earnings Forecast - Variance analysis for operating income
3. Earnings Forecast - Variance analysis for operating income Steadily promote the revitalization plan to achieve cost-cutting (¥billion) +4.5 Raw material & fuel prices -6.8 Sales 41.0 36.5 +16.3 Others* Cost reduction, -20.5 etc +15.5 FY2011 FY2012 *The reversal of FY2011 fixed costs of disaster-a
Slide 18: [Reference] FY2012 vs. FY2011 Variances
[Reference] FY2012 vs. FY2011 Variances ¥billion Sales 16.3 Woodchips -0.1, Wastepaper -2.0, Pulp 0.9, Oil -1.4 Raw materials and fuel prices -6.8 Coal -0.3, LNG -0.8, Electricity -1.3, Others -1.8 [price -5.5, forex -1.3] Cost reduction, Manufacturing 3.1, Labor 6.2, Logistics 0.3 etc 15.5 Fixed co
Slide 19: Earnings Forecast - Key figures and indices
3. Earnings Forecast - Key figures and indices FY2012 FY2008 FY2009 FY2010 FY2011 est. Operating margin on sales 1.7% 3.9% 3.2% 3.5% 3.8% Ordinary margin on sales 1.5% 3.4% 2.9% 0.6% 3.5% D/E (times) x1.8 x1.6 x1.8 x1.9 x1.9 Capital Investment (¥ billion) 64.9 35.6 46.6 57.2 64.4 Depreciation (¥ bil
Slide 20: 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 cu
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