Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — H1 FY2027/3 Earnings Presentation
49 slides from Nippon Paper Industries's earnings presentation, Nov 6, 2026
Slide 1: 1st Half FY2027/3 Financial Results & Strategy Presentation
1st HALF FY2027/3 ２０３５ビジョン・中期経営計画２０３０（案） Financial Results & Strategy Presentation 202６年５月○○日 November 6, 2026 TSE 3863
Slide 2: Executive Summary
Executive Summary ◼ Appropriately responding to the Kumamoto Earthquake, the NDP tank collapse incident. ◼ Steadily advancing Medium-Term Business Plan 2030 strategies: B/S Optimization, Structural Reforms, and Profitability Improvement. １ Yatsushiro Mill: Future Direction ２ Response to the NDP Inci
Slide 3: Table of Contents
Table of Contents 1 Financial Results Overview 2 Key Issues and Medium-Term Business Plan 2030 • 1st Half FY2027/3 Financial Results • Yatsushiro Mill • FY2027/3 Forecast • NDP • Medium-Term Business Plan 2030: Progress on Basic Strategies Appendix NDP : Nippon Dynawave Packaging Co. Notes on NTI :
Slide 4: 1st Half FY2027/3 Financial Results
1 1st HALF FY2027/3 Financial Results
Slide 5: Consolidated Statement
Q2 FY2027/3 Results Consolidated Statement ◼ Net sales increased, driven by the addition of (¥billion) consolidated subsidiaries and foreign exchange translation effects. 1st Half 1st Half Y on Y changes FY2026/3 FY2027/3 ◼ Operating profit decreased. While the Domestic Results Results Amount % busi
Slide 6: Results by Business Segment
Q2 FY2027/3 Results Results by Business Segment ◼ Profit declined as the Domestic business grew but the Overseas business, mainly Daily-Life Products deteriorated. (¥billion) Net sales Operating profit 1st Half 1st Half 1st Half 1st Half Y on Y Y on Y FY2026/3 FY2027/3 FY2026/3 FY2027/3 Results Resu
Slide 7: Factors for Changes
Q2 FY2027/3 Results Factors for Changes (¥billion) Paper and Paperboard Business Daily-Life Products Business Volume, Sales Price 9.9 7.1 － 2.8 － Wood Chips -3.3, Wastepaper 0.7, Pulp 0.0, Raw material Oil -0.7, Coal -0.8, LNG -0.2, Wood Chips -0.1, Pulp 0.1, Coal -0.3, and fuel prices -9.8 -7.5 Che
Slide 8: Paper and Paperboard Business
Q2 FY2027/3 Results Paper and Paperboard Business • Net sales increased due to price revisions and the addition • JTOy saw a year-on-year increase in profit, with sales volume of consolidated subsidiaries. showing a recovery trend. Domestic Overseas • Operating profit increased, as cost reductions a
Slide 9: Daily-Life Products Business
Q2 FY2027/3 Results Daily-Life Products Business (¥billion) Domestic Net sales Operating profit 1st Half 1st Half 1st Half 1st Half Y on Y Y on Y • Household paper & Healthcare achieved FY2026/3 FY2027/3 FY2026/3 FY2027/3 changes changes higher revenue and profit on solid sales Results Results Resul
Slide 10: Energy Business / Wood Products and Construction Related Business
Q2 FY2027/3 Results Energy Business / Wood Products and Construction Related Business Energy Business (¥billion) • Revenue and profit declined due to Net sales Operating profit an increase in the number of 1st Half 1st Half 1st Half 1st Half maintenance shutdown days, etc. Y on Y Y on Y FY2026/3 FY2
Slide 11: Consolidated Balance Sheet
Q2 FY2027/3 Results Consolidated Balance Sheet (¥billion) ◼ Total assets increased due to the Mar.31, 2026 Sep.30, 2026 Variance addition of consolidated Total assets 1,738.4 1,772.5 34.1 subsidiaries and the weaker yen, Cash and time deposit 207.4 245.2 37.8 among other factors. Inventories 237.2 2
Slide 12: Consolidated Income Statement Summary (FY2027 Forecast)
FY2027 Forecast Consolidated Income Statement Summary ◼ Full-year forecast revised to reflect the damage (¥billion) at the Yatsushiro Mill and the NDP tank collapse incident. Y on Y changes (Reference) FY2026/3 FY2027/3 FY2027/3 Forecast ◼ Operating loss of ¥5.0 billion forecast, mainly Results Fore
Slide 13: Overview by Business Segment
FY2027 Forecast Overview by Business Segment (¥ billion ) Net sales Operating profit FY2026/3 FY2027/3 Y on Y FY2026/3 FY2027/3 Y on Y Results Forecast changes Results Forecast changes Paper and Paperboard 557.9 564.0 6.1 0.6 0.5 -0.1 Daily-Life Products 482.0 500.0 18.0 7.2 -17.0 -24.2 (Overseas) （
Slide 14: Key Assumptions
FY2027 Forecast Key Assumptions ◼ Domestic Paper & Paperboard Sales Volume (Y on Y) ◼ Key Raw Material Prices and Exchange Rates 1st Half 2nd Half 2nd Half Full Year Results FOREX (USD) JPY 160/USD Newsprint -10% -16% -13% +0.55 billion yen/year due to FOREX sensitivity 1 yen appreciation against US
Slide 15: Factors for Changes
FY2027 Forecast Factors for Changes (¥billion) Paper and Paperboard Business Daily-Life Products Business Volume, Sales Price 28.0 17.2 － 10.8 － Wood Chips -8.8, Wastepaper -1.2, Pulp -0.3, Raw material and Oil -1.4, Coal -3.8, LNG -2.3, Wood Chips -0.3, Pulp -0.4, Coal -0.7, fuel prices -36.0 -26.9
Slide 16: Addressing Key Issues and Executing Medium-Term Business Plan 2030
Addressing Key Issues and 2 Executing Medium-Term Business Plan 2030
Slide 17: Yatsushiro Mill | Damage from the Kumamoto Earthquake
Addressing Key Issues Yatsushiro Mill | Damage from the Kumamoto Earthquake Status of Equipment Damage Safety Measures • Extensive and severe damage confirmed across a wide area of • Dismantling equipment such as the chimney and conveyors in sequence, with the mill. top priority on securing safety i
Slide 18: Yatsushiro Mill | Future Business Direction
Addressing Key Issues Yatsushiro Mill | Future Business Direction ◼ Leverage the Yatsushiro Mill's business base to pursue new initiatives that coexist with the local community. ◼ Transition to a capital-efficient business structure in line with the basic strategies of Medium -Term Business Plan 203
Slide 19: Yatsushiro Mill | Support for Employees and Current Partner Companies
Addressing Key Issues Yatsushiro Mill | Support for Employees and Current Partner Companies ◼ In light of the future business direction, secure employment for employees and mitigate the impact on the business and employment of current partner companies. Support for Employees Support for Partner Comp
Slide 20: NDP | Earnings Impact of the Tank Collapse and Response
Addressing Key Issues NDP | Earnings Impact of the Tank Collapse and Response NDP FY2026 Outlook (Amount Reflected in the Company's Full-Year Forecast) Operating loss Approx. ¥ -21.0 billion Extraordinary loss Approx. ¥ -11.0 billion Extraordinary income Approx. ¥3.0 billion • 1ｓｔ Half ¥ -6.4 billio
Slide 21: Medium-Term Business Plan 2030 | Progress on Basic Strategies
Medium-Term Business Plan 2030 | Progress on Basic Strategies Medium-Term Business Plan 2030 | Progress on Basic Strategies ◼ Key Progress in Line with the Basic Strategies of Medium-Term Business Plan 2030. ◼ Review of holdings: Sale of Lintec shares 1 Balance Sheet Optimization ⚫ Asset optimizatio
Slide 22: Holdings Review and Financial Base Strengthening for B/S Optimization
Medium-Term Business Plan 2030 | Balance Sheet Optimization Holdings Review and Financial Base Strengthening for B/S Optimization ◼ Steadily executing the review of holdings based on Medium-Term Business Plan 2030. ◼ Funds generated will be used with top priority on reducing interest-bearing debt. P
Slide 23: Revitalizing Opal | FY27/3 Outlook and Actions to Address Challenges
Medium-Term Business Plan 2030 | Decisive Execution of Structural Reforms Revitalizing Opal | FY27/3 Outlook and Actions to Address Challenges Operating Profit (A$ million) 1H FY27/3: Progress and Challenges 1H 2H Full year FY26/3 Actual -35 -49 -84 ⚫ Corrugated packaging sales expansion proceeding
Slide 24: Revitalizing Opal | Progress on Profit Improvement Initiatives
Medium-Term Business Plan 2030 | Decisive Execution of Structural Reforms Revitalizing Opal | Progress on Profit Improvement Initiatives under Medium-Term Business Plan 2030 Profit Improvement Target for an Early Return to Profitability: A$135 million (Medium-Term Business Plan 2030 Target) (A$ mill
Slide 25: Cessation of NPCE Business Activities
Medium-Term Business Plan 2030 | Decisive Execution of Structural Reforms Cessation of NPCE Business Activities ◼ Stop CMC＊ production in Europe and strengthen efficiency and competitiveness through consolidation in Japan. Changes in the Market Environment Review of Production Structure Strengthenin
Slide 26: Logistics Base Strengthening through Integration of Three Subsidiaries
Medium-Term Business Plan 2030 | Decisive Execution of Structural Reforms Logistics Base Strengthening through Integration of Three Subsidiaries ◼ Combine the management resources, technologies and know-how of the three logistics subsidiaries to build a stable and competitive logistics system that l
Slide 27: Packaging Downstream Strategy | Base Paper-Converting Collaboration Progress
Medium-Term Business Plan 2030 | Profitability Improvement Packaging Downstream Strategy | Base Paper-Converting Collaboration Progress ◼ Established a collaboration structure and started evaluating and verifying specific themes, mainly in development and logisti cs. Collaboration Structure Collabor
Slide 28: Australian Plantation Business | NPRA's Value Creation from Wood Resources and Carbon Credits
Medium-Term Business Plan 2030 | Profitability Improvement Australian Plantation Business | NPRA's Value Creation from Wood Resources and Carbon Credits ◼ Convert existing hardwood plantations to softwood to achieve both use of wood resources and creation of carbon credits . Utilization of wood reso
Slide 29: Effective Use of Mill Sites and Existing Infrastructure
Medium-Term Business Plan 2030 | Profitability Improvement Effective Use of Mill Sites and Existing Infrastructure ◼ Attract a container-type data center (DC) to NPI's Kushiro Mill, effectively utilizing existing assets by providing land and supplying power. Business Scheme through Significance for
Slide 30: Progress toward Social Implementation
Medium-Term Business Plan 2030 | Profitability Improvement Initiatives toward Social Implementation of Bioethanol from Domestic Timber ◼ Promote demonstration and commercialization efforts toward building a fully domestic ATJ -SAF *1 supply chain starting from domestic timber. ◼ May 2026 Strengthene
Slide 31: New Materials | cellenpia PLAS (CNF-Reinforced Resin)
Medium-Term Business Plan 2030 | Profitability Improvement New Materials | cellenpia®PLAS (CNF * -Reinforced Resin) ◼ Steadily expanding the areas of practical application of cellenpia®PLAS. Deepening in Existing Priority Fields Expansion into New Application Fields Adopted for exterior parts of Yam
Slide 32: Appendix
‘NIPPON PAPER
Slide 33: Overview of Yatsushiro Mill
Overview of Yatsushiro Mill Basic Information Location 1-1 Jujo-cho, Yatsushiro City, Kumamoto Prefecture Start of operations 1924 Site area Approx. 330,000 m² Number of employees 381 (as of October 1, 2026) Major Production Facilities Facility Production capacity Main products No. 4 paper machine 3
Slide 34: Sales Volume (Paper & Paperboard)
Sales Volume (Paper & Paperboard) * volume: ’000 tonnes 1st Half 1st Half Against FY2026/3 FY2027/3 1st Half FY26/3 Newsprint 259 233 -9.9% Printing paper 431 415 -3.6% Business communication paper 170 154 -9.4% Others 151 153 1.1% Domestic sales (paper) 1,011 956 -5.5% Export (paper) 80 71 -12.1% P
Slide 35: Capital Expenditure, Depreciation
Capital Expenditure, Depreciation Capital expenditure (¥billion) Depreciation (¥billion) 86.0 70.6 60.7 60.6 63.4 66.5 66.3 64.2 66.6 63.2 57.9 58.1 58.7 52.4 54.4 31.6 32.2 22.8 TBD TBD 2019 2020 2021 2022 2023 2024 2025 2025 2026 2026 2019 2020 2021 2022 2023 2024 2025 2025 2026 2026 1st Half 1st
Slide 36: Net Sales Trends by Business Segment
Net Sales Trends by Business Segment (¥billion) FY2026/3 FY2027/3 1st Half 2nd Half Q1 Q2 Q3 Q4 Q1 Q2 Actual Forecast Paper and Paperboard 138.2 136.0 144.5 139.2 153.3 147.2 300.5 263.5 Daily-Life Products 116.7 122.5 121.2 121.6 126.6 130.7 257.3 242.7 Energy 10.6 12.2 8.6 11.8 8.5 12.6 21.1 18.9
Slide 37: Operating Profit Trends by Business Segment
Operating Profit Trends by Business Segment (¥billion) FY2026/3 FY2027/3 1st Half 2nd Half Q1 Q2 Q3 Q4 Q1 Q2 Actual Forecast Paper and Paperboard -0.9 -0.6 1.3 0.8 -0.1 -0.8 -0.9 1.4 Daily-Life Products 3.0 -0.6 1.8 3.0 0.3 -5.6 -5.3 -11.7 Energy 0.6 1.1 0.1 1.5 0.0 1.2 1.2 0.8 Wood Products and Con
Slide 38: Reference (Domestic)
Reference (Domestic) Domestic Shipment and Import / Export Volume (Paper & Paperboard, 1st Half FY2027/3 Results) volume: '000 tonnes Domestic shipments Exports Imports against against against volume volume volume H1 FY26/3 H1 FY26/3 H1 FY26/3 Newsprint 618 -9.2% 0 － 0 -42.7% Printing & business com
Slide 39: Reference (Domestic)
Reference (Domestic) Domestic Shipments (YoY) Sanitary Paper Output (YoY) Imports of Coated Paper Paper Paperboard Household tissue Toilet paper rolls Towel paper ('000 t) 120% 120% 20 110% 110% 15 100% 100% 10 90% 90% 5 80% 80% 0 23/10 24/4 24/10 25/4 25/10 26/4 23/10 24/4 24/10 25/4 25/10 26/4 23/
Slide 40: Reference (Domestic)
Reference (Domestic) Price Trends by Product Coated Paper Inventory Containerboard Inventory ('000 t) ('000 t) (2020＝100) Manufacturers Merchants Manufacturers 160 Coated paper Linerboard 600 800 Household tissue 150 450 600 140 130 300 400 120 110 150 200 100 90 0 0 23/10 24/4 24/10 25/4 25/10 26/4
Slide 41: Reference
Reference ONP (Export) OCC (Export) Crude Oil (¥/kg) (¥/kg) (US$/BL) 50 50 150 40 40 120 30 30 90 20 20 60 10 10 30 0 0 0 20/4 21/4 22/4 23/4 24/4 25/4 26/4 20/4 21/4 22/4 23/4 24/4 25/4 26/4 20/4 21/4 22/4 23/4 24/4 25/4 26/4 Source: Wastepaper Revitalization Promotion Center, Trade Statistics of J
Slide 42: Consolidation of Graphic Paper Production Sites
Medium-Term Business Plan 2030 Announced on May 28, 2026 Decisive Execution of Structural Reforms | Consolidation of Graphic Paper Production Sites ◼ Reduction of production capacity to maintain operating rates in anticipation of ► Strengthen the Graphic Paper Business and demand decline Basic Polic
Slide 43: Revitalization of Opal | Basic Policy
Medium-Term Business Plan 2030 Announced on May 28, 2026 Decisive Execution of Structural Reforms | Revitalization of Opal Strategic Direction: Sharpening Business Focus Post- Operating profit (A$ million) FY2025 measures ► Prioritize resources toward the Integrated packaging business Integrated Pac
Slide 44: Decisive Execution of Structural Reforms | Revitalization of Opal
Medium-Term Business Plan 2030 Announced on May 28, 2026 Decisive Execution of Structural Reforms | Revitalization of Opal [Trends in the Australian Corrugated Packaging Market and Opal Sales] Profitability in the Integrated Corrugated Source: Australian Market Overall: IBIS World 2025 Packaging Bus
Slide 45: Downstream Strategy for the Packaging Business: Base Paper
Medium-Term Business Plan 2030 Announced on May 28, 2026 Profitability Improvement | Downstream Strategy for the Packaging Business (Promoting Collaboration Between Base Paper and Converting) Packaging Paper Business (Base Paper Manufacturing) ► Generate synergies and profitability improvement at an
Slide 46: Downstream Strategy for the Packaging Business: Converting
Medium-Term Business Plan 2030 Announced on May 28, 2026 Profitability Improvement | Downstream Strategy for the Packaging Business (Promoting Collaboration Between Base Paper and Converting) Packaging Converting Business (Integrated Base Paper and Converting Business) ► Develop and launch different
Slide 47: Daily-Life Products: Household Paper and Healthcare
Medium-Term Business Plan 2030 Announced on May 28, 2026 Profitability Improvement | Enhancement of Daily-Life Products Business Profitability Household Paper and Healthcare Business ► Develop business in response to social structural changes, including an Basic Policy aging population. ► Accelerate
Slide 48: Daily-Life Products: Chemicals Business
Medium-Term Business Plan 2030 Announced on May 28, 2026 Profitability Improvement | Enhancement of Daily-Life Products Business Profitability Chemicals Business ► Expand sales of products for growth markets such as Basic Policy automotive and display industries. ► Develop new products and applicati
Slide 49: Disclaimer
The NIPPON PAPER GROUP aims to contribute to better living and cultural progress ever ywhere it does business. 〈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., L
Nippon Paper Industries — H1 FY2027/3 Earnings Presentation on 6ix