Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — FY2023/3 Earnings Presentation
27 slides from Nippon Paper Industries's earnings presentation, May 15, 2023
Slide 1: Strategies Presentation Material
STRATEGIES PRESENTATION MATERIAL May 15, 2023
Slide 2: Review the External Environment
Review the External Environment ■Changes in the External Environment and Impact on Business Changes of External Environment ・Establishment of a new lifestyle through the extension of novel corona virus epidemic ・Supply chain disruption and fragmentation caused by fluctuations in the international si
Slide 3: Financial Review
Financial Review ■Net Sales （¥Billion） FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3 ・Progressed the transformation of Results Results Results Results Forecast business structure based on the Paper and Paperboard 646.7 568.3 532.1 563.2 615.0 result of net sales by businesses Daily-Life Products 270.
Slide 4: Actions up to FY2024/3
Actions up to FY2024/3 ■Variance Analysis（FY2024/3 vs FY2021/3） ■Actions to respond the changing business environment Paper and Paperboard ・Reduced coal consumptions by 470,000 tonnes over two years （¥Billion） /Daily-Life Products (Annual coal usage, 1,720,000 tonnes in FY2021/3 → 1,250,000 tonnes i
Slide 5: Actions up to FY2023/12 (Opal)
Actions up to FY2023/12 (Opal) ■ Actions to respond to changing business environment ・Delay in recovering the demand for packaging due to prolonged ・Cost reduction by stable operation and improved production efficiency outbreak of novel corona virus ・ Reduce cost of base paper for packaging products
Slide 6: Policy Aiming for Achieving Medium-Term Business Plan 2025
Policy Aiming for Achieving Medium-Term Business Plan 2025 ・Promote business and capital strategies in response to changes in the external environment Realizing sustainable growth for the Nippon Paper Group ・Returning to Medium-Term Business Plan 2025’s growth track to achieve the target Achieving R
Slide 7: Improving Profitability of Daily-Life Products Business
Improving Profitability of Daily-Life Products Business Increase Net Sales Steady Recovery of Operating Income Margin ■Net Sales ■Operating Income Margin （¥Billion） Liquid Package* Household Paper 200 Chemical Opal 7.0% 5.7% 150 4.8% 5.0% 100 2.5% 3.0% 1.2% 50 0 0.2% FY2021/3 FY2022/3 FY2023/3 FY202
Slide 8: Improving Profitability of Daily-Life Products Business: Major CAPEXs
Improving Profitability of Daily-Life Products Business ■ Major CAPEXs and Effectiveness CAPEXs FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Liquid New printing machine at NLPP Egawa Plant*1 Package New pulp dryer, NDP Installation of metal belt calendar, L3 Paper Machine NDP Household New No.3 Pape
Slide 9: Improving Profitability of Daily-Life Products Business: Liquid Package
Improving Profitability of Daily-Life Products Business Liquid Package Operating Income Margin：Liquid Package* Market Outlook (FY2024/3-FY2026/3) 6.2% Expecting low expansion of demand of domestic liquid package market due to decrease milk and others 4.3% Expecting higher demand of liquid packag
Slide 10: Household Paper and Healthcare
Improving Profitability of Daily-Life Products Business Household Paper and Healthcare Operating Income Margin： Market Outlook (FY2024/3-FY2026/3) Household Paper and Healthcare Expecting relatively stable demand, with a full-scale recovery in inbound tourists etc. 7.8% On the other hand, compet
Slide 11: Chemical
Improving Profitability of Daily-Life Products Business Chemical Operating Income Margin ：Chemical Market Outlook (FY2024/3-FY2026/3) Medium-to long-term demand is expected to be solid overall, despite a 9.9% temporary decline due to the slowdown in the Chinese economy and 6.9% 7.1% 7.1% other fac
Slide 12: Opal
Improving Profitability of Daily-Life Products Business Opal Operating income margin : Opal (excluding goodwill) Market Outlook (FY2023/12-FY2025/12) The Australian corrugated box market is expected to show positive growth after 3.6% bottoming out in FY2022/FY2023* Demand for replacing plastic w
Slide 13: Strength Competitiveness of Graphic Paper Business
Strength Competitiveness of Graphic Paper Business Graphic Paper (Domestic) Sales Outlook of Graphic Paper Market Outlook (FY2024/3-FY2026/3) （1,000tonnes ） Expecting accelerate further demand shrink due to the progress of digitalization and price hikes, etc. 2,200 2,000 Basic Policy ・Assuming lon
Slide 14: Business Strategies: Paperboard (Domestic)
Business Strategies (Paper and Paperboard Business) Paperboard (Domestic) Market Outlook (FY2024/3-FY2026/3) Expecting firm demand of domestic against the backdrop of a recovery in inbound tourists and robust e-commerce demand Export is expected to remain firm in the medium term despite a tempor
Slide 15: Business Strategies (Energy Business)
Business Strategies (Energy Business) Energy Renewable energy Electricity Selling Volume (GWh/year) Basic Policy Biomass Solar Wind ・Securing stable earnings, particularly in the biomass power generation business 2,000 1,500 Key Points of Strategy 1,000 ・Stable Operation Utilizing know-how ensured b
Slide 16: Business Strategies (Wood Products and Construction Related Business)
Business Strategies (Wood Products and Construction Related Business) Wood Products and Construction Related (Nippon Paper Lumber) of Fuel-Handling Volume Market Outlook (FY2024/3-FY2026/3) （1,000tonnes ） Timber supply/demand and the market conditions stabilized due to the convergence of the wood
Slide 17: Development Status of New Businesses and New Products
Development Status of New Businesses and New Products Progresses Toward FY2031/3 Cellulose ・Significant increase in adoption, mainly for food and cosmetics applications ・CNF power storage devices are being developed (approximately four times compared to fiscal 2021) for the Osaka Expo. Nanofiber ・St
Slide 18: Financial Strategy/Capital Strategy
Financial Strategy/Capital Strategy ■Overview of Capital Strategy FY2023/3 FY2024/3-FY2026/3 After FY2027/3 Debt/Equity Ratio 1.7 to 1.8 1.5 to 1.6 at an early stage Financial Compressing Total assets Bases ・Sale of Idle assets ・Consolidation of low-utilization assets Capital Damage Recovery and exp
Slide 19: Financial Strategy/Capital Strategy: Cash Flows
Financial Strategy/Capital Strategy ■Cash Flows (FY2024/3-FY2026/3) EBITDA Strategic ●Sale of Assets ¥300 Billion Investment ・Proceed with the sale of strategic holdings stocks and Idle assets ¥90 Billion ●Strategic investment Maintaining and ・Prioritize environmental investments to reduce GHG emiss
Slide 20: Financial Strategy/Capital Strategy
Financial Strategy/Capital Strategy ■Improve Net Debt/Equity ratio * ■Compress Net interest-bearing debt ■Improve ROE 2.25 （¥Billion） 780.1 5.0% or more 759.1 761.3 3.7% 710.0 0.8% 0.5% 637.1 1.86 1.89 1.75 1.7-1.8 -12.3% ●Reducing Net Interest- ・Achieving EBITDA of ¥100 ・Net interest-bearing debt R
Slide 21: Financial Targets of Medium-Term Business Plan 2025
Financial Targets of Medium-Term Business Plan 2025 Based on the progress of the Medium-Term Business Plan 2025 and future financial strategies, revised our targets of net sales and net debt/equity ratio. FY2023/3 FY2024/3 Medium-Term Business Plan 2025 Forecast Targets Results Net Sales ¥1,152.6 Bi
Slide 22: Reducing GHG Emissions
Reducing GHG Emissions ■Revised Target for Reducing GHG Emissions (FY2031/3) GHG Emissions Reduction, Forecast 54％ （Million tonnes-CO2） Initial Target 45％ New Target （compared with FY2014/3） ３１% Reduction（provisional） (compared with FY2014/3） ・Reducing coal consumption, converting to alternative fue
Slide 23: Green Strategies
Green Strategies The Unique Strategy of Nippon Paper Group; to strengthen our business foundation and to contribute to the creation of a circulation-oriented society through spreading biomass products while maximizing the various values of forests Initiatives, FY2022/3 - FY2023/3 Basic Policy, FY202
Slide 24: Human Resource Strategies
Human Resource Strategies Human Resource Development Vision Developing human resources who take on challenge changes 1. Drive social sustainability through our ・In-House Side Jobs ・Selective Education business ・New Career Education, etc. 2. Delight our customers Strengthening Support for Career Deve
Slide 25: Our Vision in 2030
Our Vision in 2030 Realize sustainable growth as a comprehensive biomass company shaping the future with trees ■Basic Policy of Nippon Paper Group 2030VISION 1. Reallocate management resources to growing businesses 2. Respond to rapid changes in the social landscape such as GHG reduction and environ
Slide 26: Our Vision in 2030
Our Vision in 2030 Medium-Term Business Plan 2025 Realize 2030VISION ◆Strengths of ◆Carbon neutral Business Model Contribution Nippon Paper Group Realized by Three Circulations to Local ・Rich forest resources Contribution Communities to Economic Growth Contribution to Low-Carbon Society ●Areas that
Slide 27: The Nippon Paper Group aims to contribute to better living and cultural progress
The Nippon Paper Group aims to contribute to better living and cultural progress everywhere 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., Lt
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