Nippon Paper Industries Co., Ltd. · TSE:3863

Nippon Paper Industries — FY2005 Earnings Presentation

21 slides from Nippon Paper Industries's earnings presentation, May 11, 2006

  1. Slide 1: FY2005 Financial Review

    FY2005 Financial Review May 11, 2006 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2006 Nippon Paper Group, Inc.

  2. Slide 2: Contents

    Nippon Paper Group Contents I. FY2005 Review (April 1, 2005 – March 31, 2006) (1) Overview (2) Operating results (3) Analysis of profit and loss (4) Extraordinary items (5) Balance sheet (6) Cash flow statement II. FY2006 Forecast (April 1, 2006 – March 31, 2007) (1) Overview (2) Operating results (

  3. Slide 3: Business environment: domestic shipment of paper and paperboard

    Ｉ．FY2005 Review (1)Overview①Business environment Domestic shipment of paper and paperboard Paper industry FY2005 (April 2005 － March 2006) % change Shipment(1,000 tons) yoy Newsprint 3,551 2.9% Uncoated printing paper 2,593 -1.6% Coated printing paper ※ 6,382 2.2% Business communication paper 1,594

  4. Slide 4: Trend in paper and paperboard prices

    Ｉ．FY2005 Review (1)Overview①Business environment Trend in paper and paperboard prices Paper industry (April 2003 － March 2006) （¥／ｋｇ） Printing A A2 Coated A3 Coated （¥／ｋｇ） (Woodfree) (Coated woodfree) (Light weight coated woodfree) 150 75 Kraft-liner board 140 70 130 65 120 60 110 55 100 50 Apr. 200

  5. Slide 5: Trend in fuels and raw materials prices

    Ｉ．FY2005 Review (1)Overview①Business environment Paper industry Trend in fuels and raw materials prices (April 2003 － March 2006) Dubai NBSK Crude oil Coal Eucalyptus Wastepaper ONP OCC Old magazine Eucalyptus (AU$/BDT) (¥/kg) （US$/t） (US$/BL) (US$/t) NBSK Crude oil Coal 180 18 900 90 160 16 800 80

  6. Slide 6: Topics of FY2005

    Ｉ．FY2005 Review (1)Overview②Topics Topics of FY2005 May. 2005：Announced ‘Group vision 2015’ Jun. ：New Board took office. Jul. ：Announced market purchase of treasury stock. (Complention of acquisition on October Number of shares purchased 30,000 shares Total purchase price 12.3 billion yen ) Jan. 200

  7. Slide 7: Consolidated operating results

    Ｉ．FY2005 Review (2)Operating results①Outline Consolidated operating results (¥ billion) FY2004 FY2005 Difference <Net sales> 1,179.7 1,152.2 -27.5 <Operating income> 65.2 48.4 -16.8 <Ordinary income> 62.8 49.4 -13.4 <Net income> 24.4 17.2 -7.2 All Rights Reserved, Copyright (C) 2006 Nippon Paper Gro

  8. Slide 8: Sales volume by product

    Ｉ．FY2005 Review （２）Operating results ②Sales volume by product （Thousand tons) FY2004 FY2005 % change （Ａ） （Ｂ） yoy （Average domestic paper price：\/kg） ※ (105.8) (104.4) (-1.3%) Newsprint 1,358 1,362 0.2% Uncoated paper 771 765 -0.8% Coated paper 1,930 2,020 4.7% Business communication paper 668 718 7.

  9. Slide 9: Segment information

    Ｉ．FY2005 Review (2)Operating results ③Segment information （¥billion） Sales Operating income FY2004 FY2005 FY2004 FY2005 Comments Pulp and Paper Div. 870.4 861.0 47.3 33.2 Negative impact from fuel price hike and sales price Paper etc. 714.7 704.9 42.2 32.8 depreciation far exceeded the cost reductio

  10. Slide 10: Analysis of profit and loss: FY2004 vs FY2005

    Ｉ．FY2005 Review (3)Analysis of profit and loss FY2004 vs FY2005 Decrease in ordinary income ¥-13.4billion（¥62.8 bn → ¥49.4 bn） （¥ billion） Decrease in operating income ¥ -16.8 billion （¥65.2 bn → ¥48.4 bn） 62.8 60.0 Decrease in ordinary income -13.4 50.0 Materials Materials price price Non-operating

  11. Slide 11: Extraordinary items

    Ｉ．FY2005 Review (4)Extraordinary items FY2004 FY2005 Ordinary income 62.8 49.4（¥billion） Extraordinary gains 22.1 19.5 Gain on sale of property, plant and equipment 13.8 14.7 Gain on sale of securities, etc. 6.3 1.8 Others 2.0 3.0 Extraordinary losses 38.1 29.9 Loss on disposal of property, plant an

  12. Slide 12: Balance sheet

    Ｉ．FY2005 Review (5)Balance sheet （¥billion） Balance sheet Mar. 31, Mar. 31, Difference Comments 2005 2006 Cash and time deposits 18.3 14.1 -4.2 Notes and accounts receivable 247.9 218.4 -29.5 Inventories 131.8 139.2 7.4 Other current assets 45.1 41.0 -4.1 Capital investment69.7bn , Property, plant,

  13. Slide 13: Cash flow statement

    Ｉ．FY2005 Review (6)Cash flow statement （¥billion） Items FY2004 FY2005 Difference Comments Operating activities 108.2 132.1 23.9 Income before income taxes 46.8 39.0 -7.8 Depreciation,and amortization of difference between cost and underlying net equity in consolidated subsidiaries 77.0 72.0 -5.0 Cha

  14. Slide 14: Topics of FY2006

    ＩＩ．FY2006 Forecast (1)Overview :Topics Topics of FY2006 Apr. 2006：Merger of San-Mic Shoji Co., Ltd. and Komine Nissho Co., Ltd. (Name of the new company : Nippon Paper Trading Co., Ltd.) :Established Agribio Business Promotion Office. ：Increased equity stake in Everwealth Paper Industries (Shanghai)

  15. Slide 15: Assumptions for FY2006 estimation

    ＩＩ．FY2006 Forecast (2)Operating results ①Business environment for the 2nd half Assumptions for FY2006 estimation ●Sales forecast(domestic) Paper: volume +1.0% up from FY2005 price Several recovery of printing and business communication paper price from May through October ( ¥5-10/kg) paperboard: vol

  16. Slide 16: Forecast of consolidated results

    ＩＩ．FY2006 Forecast (2)Operating results②Outline Forecast of consolidated results FY2005 FY2006 (¥ billion) estimation Difference <Net sales> 1,152.2 1,200.0 47.8 <Operating income> 48.4 50.0 1.6 <Ordinary income> 49.4 51.0 1.6 <Net income> 17.2 21.0 3.8 All Rights Reserved, Copyright (C) 2006 Nippon

  17. Slide 17: FY2006 forecast: sales volume by product

    ＩＩ．FY2006 Forecast （２）Operating results ③Sales volume by product （Thousand tons) FY2005 FY2006 est. % change （Ａ） （Ｂ） yoy （Average domestic paper price：\/kg） ※ (104.4) (105.5) (1.1%) Newsprint 1,362 1,360 -0.2% Uncoated paper 765 761 -0.5% Coated paper 2,020 2,074 2.7% Business communication paper 71

  18. Slide 18: FY2006 forecast: segment information

    ＩＩ．FY2006 Forecast (2)Operating results ④Segment information （¥billion） Sales Operating income FY2006 FY2006 FY2005 FY2005 Comments estimated estimated Pulp and Paper Div. 861.0 908.7 33.2 36.8 Cover up raw materials and fuel cost hike Paper etc. 704.9 739.4 32.8 34.0 by cost reduction and price rec

  19. Slide 19: Analysis of profit and loss: FY2005 vs FY2006 est.

    ＩＩ．FY2006 Forecast (3)Analysis of profit and loss FY2005 vs FY2006 est. Increase in operating income ¥1.6billion（¥48.4 bn → ¥50.0 bn） Increase in ordinary income ¥ 1.6 billion （¥49.4 bn → ¥51.0 bn） （¥ billion） 50.0 Increase in Depreciation, Depreciation, etc. etc. 48.4 operating income +1.6 +2.1 +2.

  20. Slide 20: Group's important figures

    ＩＩ．FY2006 Forecast (4)Group’s important figures FY2006 FY2003 FY2004 FY2005 est. ROE 5.8% 5.6% 3.9% 4.7% Ordinary margin on sales 4.2% 5.3% 4.3% 4.3% D/E (times) x1.9 x1.7 x1.5 x1.6 Operation rate of paper 87% 91% 92% 93% machine(Calendar basis) Operation rate of paperboard 85% 87% 86% 87% machine(C

  21. Slide 21: 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, which are based on management’s assumptions and beliefs i

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