Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — Q3 FY2011 Earnings Presentation
16 slides from Nippon Paper Industries's earnings presentation, Feb 9, 2012
Slide 1: 3rd Quarter FY2011 Financial Review
3rd Quarter FY2011 Financial Review February 9, 2012 Nippon Paper Group, Inc.
Slide 2: Contents
Contents 3rd Quarter FY2011 Review October 1 - December 31, 2011 1. Business environment 2. Financial results 3. Earnings forecast 4. Progress of the revitalization plan 5. Topics 2
Slide 3: Business environment – Domestic demand
1. Business environment – Domestic demand Demand recovered from the temporary drop Total Total of of domestic domestic shipment shipment and and imports imports (yoy) (yoy) (Apr.2010 (Apr.2010 Dec.2011) Dec.2011) Paperboard Paper Source: Japan Paper Association 3
Slide 4: Business environment – Domestic shipment
1. Business environment – Domestic shipment Domestic shipment decreased yoy mainly due to import increase Domestic Domestic shipment shipment of of Japanese Japanese paper paper industry industry (Oct. (Oct. Dec.2011) Dec.2011) Change (1,000 tons) yoy Newsprint 836 -0.8% Printing & Business communic
Slide 5: Business environment – Domestic price trends
1. Business environment – Domestic Price trends Prices of printing paper and linerboard have increased (Apr.’11 = 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 Stay on high level Wastepaper Woodchip/Pulp ( /kg) Pulp (US$/t) Woodchip (A$/t) 20 1,200 280 ONP(export) 16 1,000 260 BHK ONP OCC 12 800 240 BSK Woodchip 8 600 (Eucalyptus) 220 OCC (export) 4 400 200 Apr.'09 Oct. Apr.'10 Oct. Apr.11 Oct. Apr.'09 Oct
Slide 7: Financial results - Highlights
2. Financial results - Highlights ¥billion FY2011 FY2010 3rd Quarter Change 3rd Quarter <Net Sales> 267.9 -15.2 283.0 <Operating Income> 10.2 0.7 9.5 <Ordinary Income> 9.1 0.1 9.0 <Net Income> -0.6 -5.9 5.3 ❏ Operating income and ordinary income exceeded 3Q/FY2010, 1Q and 2Q/FY2011. ❏ Booked ¥10.1b
Slide 8: Financial results - Segment information
2. Financial results - Segment information Despite the decrease of sales, operating income improved mainly in Pulp and Paper business ( billion) (Upper row: Sales) FY2010 FY2011 Change (Lower row: Operating income) 1Q 2Q 3Q 4Q 1Q 2Q 3Q yoy 222.8 223.6 225.0 208.3 198.3 205.8 209.0 -16.0 Pulp and Pap
Slide 9: Financial results - Sales volume by product
2. Financial results - Sales volume by product Paper decreased yoy due to the capacity restraints of Ishinomaki mill FY2010 FY2011 change thousand tons 3rd Quarter 3rd Quarter yoy Newsprint 308 311 1.0% Printing & Business communication paper 699 581 -16.9% Coated paper 388 293 -24.4% Uncoated & Spe
Slide 10: Financial results - Variance analysis for operating income
2. Financial results - Variance analysis for operating income Operating income slightly improved despite input price rises (¥billion) +0.7 Sales 10.2 9.5 -3.8 Others* +6.4 Raw material Cost Reduction, & fuel prices etc. -3.9 +2.0 3rd Quarter 3rd Quarter FY2010 FY2011 *Fixed costs transferred to extr
Slide 11: Earnings forecast – Highlights
3. Earnings forecast – Highlights Unchanged from the estimates released November 2, 2011. ¥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 11
Slide 12: Progress of the revitalization plan – Ishinomaki mill
4. Progress of the revitalization plan – Ishinomaki mill Revitalization plan is on schedule Sep. 16 Nov. 7 Resumed operation of PM8 Resumed operation of pulverized coal boiler Nov. 16 Nov. 30 Resumed operation of PMN4, CM4 Wood chip carrier entered Ishinomaki Port 12
Slide 13: Progress of the revitalization plan – Ishinomaki mill
4. Progress of the revitalization plan – Ishinomaki mill 80% of the capacity is to be resumed by the end of March 2012 Restoration of the facilities Already restored To be restored by To be restored by the end of Sep.2012 the end of Mar.2012 13
Slide 14: Progress of the revitalization plan - schedule
4. Progress of the revitalization plan - schedule Balance supply & demand conditions Recovery Shutdown (Ishinomaki mill) (Revitalization plan) Capacity Capacity PM CM Mill PM CM (,000t/yr) (,000t/yr) Already finished 2 1 +240 Ishinomaki 2 1 -240 nd 2 6-month FY2011 Iwanuma 1 1 -100 Late Feb.2012 1 +
Slide 15: Topics
5. Topics 2011 Nov. 16 Nippon Paper Industries restarted operation of PM N4 and CM 4 at Ishinomaki mill Nov. 30 First woodchip carrier after the earthquake entered Ishinomaki port Dec. 1 Nippon Paper Group established Energy Business Promotion Office Nippon Paper Chemicals launched new pulp machine
Slide 16: 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