Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — H1 FY2010 Earnings Presentation
19 slides from Nippon Paper Industries's earnings presentation, Nov 8, 2010
Slide 1: 1st 6-month FY2010 Financial Review
1st 6-month FY2010 Financial Review November 8, 2010 Nippon Paper Group, Inc.
Slide 2: Index
< Index > (1) Business environment 3-5pp (2) Financial results 6-12pp (3) Earnings forecast 13-18pp 2
Slide 3: Business environment – Domestic shipment
(1) Business environment – Domestic shipment Domestic shipment of paper and paperboard Paper industry 1stst 6-month / FY2010 (Apr. Sep.2010) change (1,000 tons) yoy Newsprint 1,636 -2.1% Printing & Business communication paper 4,254 -1.3% Coated 2,385 -1.7% Uncoated & Specialty printing 1,143 -2.0%
Slide 4: Business environment – Domestic market price trends
(1) Business environment – Domestic market price trends Trend in paper and paperboard prices Paper industry (Apr. 2008 Sep. 2010) (Apr.’08 = 1) Source: Bank of Japan”Corporate Goods Price Index” 4
Slide 5: Business environment – Major input price trends
(1) Business environment – Major input price trends Trend in raw material and fuel prices (Apr. 2008 ) \ Wastepaper Woodchip/Pulp Crude oil (Dubai) Coal Source: Paper Recycling Promotion Center, Pulp&Paper Week, Crude oil= Platts, Coal=Global Coal Index 5
Slide 6: Financial results – Outline: consolidated operating results
(2) Financial results - Outline Consolidated operating results 1st 6-month 1st 6-month (¥ billion) FY09 FY10 Change <Net sales> 526.8 551.5 24.6 <Operating income> 18.6 16.8 -1.8 <Ordinary income> 17.8 14.2 -3.6 <Net income> 7.8 6.3 -1.5 6
Slide 7: Financial results – Sales volume by product
(2) Financial results - Sales volume by product (Thousand tons) 1 st 6-month 1 st 6-month change FY09 FY10 yoy Newsprint 606 595 -1.8% Printing & Business communication paper 1,400 1,361 -2.8% Coated paper 754 730 -3.3% Uncoated paper & Specialty printing paper 329 314 -4.5% Business communication p
Slide 8: Financial results – Segment information
(2) Financial results - Segment information Sales Operating income st st st st ¥billion 1 6-month 1 6-month 1 6-month 1 6-month Change Change FY09 FY10 FY09 FY10 Pulp and Paper 423.8 446.4 22.6 16.3 11.5 -4.7 Paper-related (packaging, chemical products) 44.5 46.7 2.3 1.9 4.0 2.1 Wood Products and Co
Slide 9: Variance analysis for operating income
(2) Financial results – Variance analysis for operating income 1stst 6-month/FY09 vs. 1stst 6-month/FY10 Decrease in operating income ¥1.8 bn (¥16.8bn ¥18.6bn Decrease in ordinary income ¥3.6 bn (¥14.2bn ¥17.8bn ¥ billion 18.6 +1.8 16.8 Decrease in operating income Sales Sales (volume (volume && pri
Slide 10: Financial results – Extraordinary items
(2) Financial results – Extraordinary items ¥ billion st 1 6-month st 1 6-month FY09 FY10 Ordinary income 17.8 14.2 Extraordinary gains 0.4 0.7 Gain on sale of property, plant and equipment 0.3 0.5 Gain on sale of securities, etc. 0.0 0.1 Others 0.1 0.1 Extraordinary losses 2.8 5.3 Loss on disposal
Slide 11: Financial results – Balance sheet
(2) Financial results - Balance sheet ¥ billion June. 30, Sep. 30, Change 2010 2010 Cash and time deposits 24.3 15.3 -8.9 Notes and accounts receivable 223.7 217.8 -5.9 Inventories 153.5 152.8 -0.7 Other current assets 49.1 48.3 -0.8 Property, plant, equipment, 865.5 845.3 -20.2 and intangible fixed
Slide 12: Financial results – Cash flow statement
(2) Financial results - Cash flow statement ¥ billion 1 st 6-month 1st 6-month Items Change FY09 FY10 Operating activities 59.5 45.5 -13.9 Income before income taxes 15.4 9.6 -5.8 Depreciation 40.6 39.0 -1.6 Change in net working capital 10.3 2.3 -7.9 Others -6.9 -5.4 1.4 Investing activities -52.8
Slide 13: Earnings forecast – Outline: FY10 forecast revised
(3) Earnings forecast - Outline FY10 Earnings forecast revised : Previous: Revised: (Reference) (¥ billion) as of 28 Apr. as of 2 Nov. FY09 Results <Net sales> 1,140.0 1,120.0 1,095.2 <Operating income> 42.1 35.0 43.1 <Ordinary income> 36.0 30.0 37.5 <Net income> 20.0 15.0 30.1 13
Slide 14: Earnings forecast – Assumptions
(3) Earnings forecast - Assumptions Domestic sales (2nd 6-mos) -Sales volume [full year] Paper : +1.2% [ -0.4%] Paperboard : +2.5% [ +3.5%] -Sales price Paper : Stay at current levels Paperboard : Same as 1st 6-mos Raw material and fuel prices (2nd 6-mos) Crude oil : US$80/BL(Dubai) Woodchips & Coal
Slide 15: Earnings forecast – Sales volume by product
(3) Earnings forecast - Sales volume by product (Thousand tons) change FY09 FY10e yoy Newsprint 1,217 1,193 -2.0% Printing & Business communication paper 2,771 2,773 0.1% Coated paper 1,481 1,499 1.2% Uncoated paper & Specialty printing paper 650 633 -2.6% Business communication paper 641 642 0.2% P
Slide 16: Earnings forecast – Segment information
(3) Earnings forecast - Segment information Sales Operating income ¥billion FY09 FY10 est. Change FY09 FY10 est. Change Pulp and Paper 882.8 903.7 20.9 35.9 24.3 -11.6 Paper-related (packaging, chemical products) 88.6 91.9 3.4 4.2 6.4 2.2 Wood Products and Construction-related 52.2 54.4 2.2 0.6 1.3
Slide 17: Variance analysis for operating income FY09 vs FY10 estimate
(3) Earnings forecast – Variance analysis for operating income FY09 vs. FY10 estimate Decrease in operating income ¥8.1 bn (¥35.0bn ¥43.1bn Decrease in ordinary income ¥7.5 bn (¥30.0bn ¥37.5bn ¥ billion 43.1 Sales Sales -8.1 Decrease in operating income (volume (volume & & prices) prices) -13.8 -13.
Slide 18: Earnings forecast – Key figures and indices
(3) Earnings forecast – Key figures and indices st FY08 FY09 1 6-mos FY10e FY10 ROE -5.4% 7.0% 2.8% 3.3% Operating margin on sales 1.7% 3.9% 3.1% 3.1% Ordinary margin on sales 1.5% 3.4% 2.6% 2.7% D/E (times) x1.9 x1.6 x1.7 x1.7 Capital investment (\ billion) 649.0 355.9 247.9 496.1 Depreciation (\ b
Slide 19: 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. These statements are based on management’s assumptions an