Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — H1 FY2013 Earnings Presentation
19 slides from Nippon Paper Industries's earnings presentation, Nov 11, 2013
Slide 1: 1st 6-month FY2013 Financial Review
1st 6-month FY2013 Financial Review November 11, 2013 Nippon Paper Industries Co., Ltd.
Slide 2: Contents
Contents 1st 6-month FY2013 Review (April 1, 2013 – September 30, 2013) 1. Business environment 2. Financial results 3. Topics 4. Earnings forecast 2
Slide 3: Business Environment: Domestic Shipment
1. Business Environment: Domestic Shipment Domestic shipment has been improving Domestic shipment of Japanese paper industry (YOY) Paper Paperboard 110% 105% 100% 95% 90% 85% Apr. '11 Jul. Oct. Jan. '12 Apr. Jul. Oct. Jan. '13 Apr. Jul. Source: Japan Paper Association 3
Slide 4: Business Environment: Domestic Shipment, Exports and Imports
1. Business Environment: Domestic Shipment, Exports and Imports Imports volume fell off, meanwhile domestic shipments and exports increased Apr. - Sep. 2013 Apr. - Sep. 2013 Domestic shipments Exports Imports volume volume volume YOY YOY YOY ('000 tons) ('000 tons) ('000 tons) Newsprint 1,580 -1.4%
Slide 5: Business Environment: Domestic Price Trends
1. Business Environment: Domestic Price Trends Printing paper price has much improved (Apr. ‘11＝1.00) Printing paper Linerboard Household tissue 1.15 1.10 1.05 1.00 0.95 0.90 Apr. '11 Oct. Apr. '12 Oct. Apr. '13 Source: Bank of Japan ”Corporate Goods Price Index” 5
Slide 6: Business Environment: Major Input Price Trends
1. Business Environment: Major Input Price Trends OCC price has risen, while JPY keeps relatively stable to the US dollar Wastepaper Pulp & Woodchip Pulp Woodchip (¥/kg) ONP OCC (US$/t) BHK BSK Woodchip (US$/t) 20 1000 200 800 180 16 600 160 12 400 140 8 200 120 Apr. '11 Oct. Apr. '12 Oct. Apr. '13
Slide 7: Financial Results: Highlights
2. Financial Results: Highlights FY2013 FY2012 Change (¥billion) 1st Half 1st Half (YOY) <Net sales> 523.3 507.2 16.1 <Operating income> 10.4 12.7 -2.3 <Ordinary income> 10.9 10.2 0.7 <Net income> 9.2 1.7 7.5 -Net sales increased YOY due to the recovery of paper sales. -Printing paper price has rise
Slide 8: Financial Results: Segment Information
2. Financial Results: Segment Information Sales increased YOY due to the recovery of paper sales Upper row: Sales Lower row: Operating income FY2011 FY2012 FY2013 Change (YOY) (\billion) 1st Half 2nd Half 1st Half 2nd Half 1st Half 404.1 413.6 399.4 401.9 412.9 13.5 Pulp and paper 8.9 15.3 7.5 5.4 5
Slide 9: Financial Results: Sales Volume by Product
2. Financial Results: Sales Volume by Product Domestic & export sales increased due to the capacity restoration of the tsunami-suffered mill （’000 tons） FY2012/1H FY2013/1H Change YOY Newsprint 583 574 -1.6% Printing & business communication paper 1,181 1,274 7.9% Coated paper 631 704 11.5% Uncoated
Slide 10: Financial Results: Variance Analysis for Operating Income
2. Financial Results: Variance Analysis for Operating Income Cost reductions firmly supported operating income (¥billion) Operating income -2.3 12.7 10.4 Sales (volume & price) -7.4 Raw materials & fuel prices FY2012/1H -3.4 FY2013/1H Cost Others reductions -5.6 +14.1 10
Slide 11: Financial Results: Balance Sheet
2. Financial Results: Balance Sheet Steadily reduced interest-bearing debt Mar. 31, Sep. 30, （¥billion） Change 2013 2013 Total Assets 1,497.7 1,464.3 -33.5 Cash and time deposits 110.9 90.9 -20.0 Notes and accounts receivable 198.9 195.5 -3.4 Inventories 149.3 156.4 7.1 Other current assets 48.2 38.
Slide 12: Financial Results: Cash Flow Statement
2. Financial Results: Cash Flow Statement （¥billion） Items FY2012/1H FY2013/1H Operating activities 12.4 29.9 Income before income taxes 3.6 15.9 Depreciation 31.9 31.3 Change in net working capital -27.3 -17.1 Other 4.2 -0.1 Investing activities -28.4 -4.0 Purchases of property, plant and equipment
Slide 13: Topics
3. Topics April 3 Developed new biomass solid fuel effective for reducing CO2 emissions which could increase a biomass co-firing rate in existing coal fired boiler by approximately 10 times 8 Decided to introduce Japan’s 1st biomass power project utilizing 100% unused wood materials as its fuels at
Slide 14: Earnings Forecast: Highlights
4. Earnings Forecast: Highlights FY2013 estimate FY2013 estimate (¥billion) (Revised on Nov.7) (as of May.15) FY2012 <Net sales> 1,070.0 1,050.0 1,025.0 <Operating income> 30.0 30.0 25.1 <Ordinary income> 25.0 25.0 23.1 <Net income> 15.0 15.0 10.6 -Raised net sales projection, estimating increase in
Slide 15: Earnings Forecast: Assumptions
4. Earnings Forecast : Assumptions Domestic Sales (for full fiscal year) Assumptions for full fiscal year as of May 30, 2013 - Volume (year-on-year) Paper : +1.9% +1.4% Paperboard : +2.6% +1.8% - Price Paper : Reflecting the 2nd price hikes Reflecting the 1st price hikes (Announced on Sep. 10) (Anno
Slide 16: Earnings Forecast: Sales Volume by Product
4. Earnings Forecast : Sales Volume by Product Exports increase consecutively, meanwhile domestic stays at current level （’000 tons） FY2012 FY2013 Change YOY Newsprint 1,184 1,162 -1.9% Printing & business communication paper 2,455 2,554 4.0% Coated paper 1,342 1,413 5.3% Uncoated & specialty printi
Slide 17: Earnings Forecast: Variance Analysis for Operating Income
4. Earnings Forecast: Variance Analysis for Operating Income Paper price hikes contribute to results improvement (¥billion) Operating income +4.9 30.0 25.1 Raw material Cost & fuel prices reductions -15.9 Others Sales +18.8 -4.3 +6.3 FY2012 FY2013 17
Slide 18: Earnings Forecast: Key Figures and Indices
4. Earnings Forecast: Key Figures and Indices FY2013 FY2013 FY2009 FY2010 FY2011 FY2012 1H Est. Operating margin on sales 3.9% 3.2% 3.5% 2.5% 2.0% 2.8% Ordinary margin on sales 3.4% 2.9% 0.6% 2.3% 2.1% 2.3% D/E (times) 1.64 1.75 1.94 1.89 1.81 1.76 Capital investment 35.6 46.6 57.2 53.3 22.7 51.9 (¥
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 Industries, Co., Ltd. and its group companies. These statements are based on management’s assumptions and beliefs in light of info
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