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

Nippon Paper Industries — Q3 FY2006 Earnings Presentation

14 slides from Nippon Paper Industries's earnings presentation, Jan 29, 2007

  1. Slide 1: FY2006 3rd Quarter Financial Review

    FY2006 3rd Quarter Financial Review January 29, 2007 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2007 Nippon Paper Group, Inc.

  2. Slide 2: Contents: FY2006 3Q Review

    Nippon Paper Group Contents FY2006 3Q Review （October 1, 2006～December 31, 2006） (1) Overview (2) Topics (3) Financial results (4) Full year forecast （April 1, 2006～March 31, 2007） All Rights Reserved, Copyright (C) 2007 Nippon Paper Group, Inc. 2

  3. Slide 3: Overview – Business environment: domestic shipments of paper and paperboard

    (1)Overview – Business environment Domestic shipment of paper and paperboard Paper industry FY2006 3Q (October 2006 － December 2006) % change Shipment(1,000 tons) yoy Newsprint 916 1.1% Uncoated printing paper 646 -1.1% Coated printing paper ※ 1,677 1.6% Business communication paper 397 0.5% Other p

  4. Slide 4: Trend in paper and paperboard prices

    (1)Overview – Business environment Trend in paper and paperboard prices Paper industry (April 2004 － December 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 Apr. 2004 Oct. 2004 Ap

  5. Slide 5: Trend in fuel and raw material prices

    (1)Overview – Business environment Paper industry Trend in fuel and raw material prices (April 2004 － December 2006) Dubai Eucalyptus Wastepaper NBSK Crude oil Coal ONP OCC Old magazine Eucalyptus（US$/t） (US$/BL) (US$/t) (AU$/BDT) (¥/kg) NBSK Crude oil Coal 180 18 900 90 160 16 800 80 140 14 700 70

  6. Slide 6: Topics of the 3rd Quarter

    (2)Topics Topics of the 3rd rd Quarter Oct. 2006 ：Started operation of Ishinomaki mill’s biomass boiler. ：Announced the achievement of afforestation of 100,000 hectare. Nov. :Agreed toto work work towards towards a basic contract to form a strategic operational and capital alliance with Rengo Co., L

  7. Slide 7: Consolidated operating results

    (3)Financial results ①Outline Consolidated operating results FY2006 FY2005 FY2006 Accum. (¥ billion) 3rd Q 3rd Q (Apr. 2006-Dec. 2006) <Net sales> 292.3 301.8 882.9 <Operating income> 10.8 12.5 32.3 <Ordinary income> 10.4 12.4 32.6 <Net income> 6.7 6.2 13.1 All Rights Reserved, Copyright (C) 2007 Ni

  8. Slide 8: Sales volume by product

    (3)Financial results ②Sales volume by product （Thousand tons) FY2005 FY2006 % change 3Q 3Q yoy Newsprint 348 342 -1.7% Uncoated paper 192 192 -0.2% Coated paper 518 520 0.4% Business communication paper 178 178 -0.1% Packaging paper and others 143 139 -2.8% Total domestic sales 1,380 1,371 -0.6% Exp

  9. Slide 9: Segment information

    (3)Financial results ③Segment information （ ¥ billion） Sales Operating income FY2005 FY2006 FY2005 FY2006 Difference Difference Comments 3Q 3Q 3Q 3Q Paper: Cost reduction and price recovery partially off set ++++++raw materials and fuel cost hike impact. Paperboard: Price recovery contributed to pro

  10. Slide 10: Analysis of profit and loss

    (3)Financial results ④Analysis of profit and loss FY2005 3rdrd Q vs FY2006 3rdrd Q Increase in operating income ¥1.7billion(¥10.8bn →¥12.5bn） Increase in ordinary income ¥ 2.0billion(¥10.4bn→¥12.4bn） (¥ billion) 12.5 Increase in Depreciation, etc. operating income +0.1 +1.7 10.8 Cost Cost reduction,

  11. Slide 11: Balance sheet

    (3)Financial results ⑤Balance sheet （ ¥ billion） Balance sheet Mar. 31, Dec. 31, Difference Comments 2006 2006 Cash and time deposits 14.1 17.6 3.5 Notes and accounts receivable 218.4 281.0 62.7 Inventories 139.2 146.7 7.5 Other current assets 41.0 59.4 18.4 Property, plant, equipment, Capital inves

  12. Slide 12: Cash flow statement

    (3)Financial results ⑥Cash flow statement （ ¥ billion） Items FY2005/3Q FY2006/3Q Difference Comments Operating activities 9.1 -30.5 -39.6 Income before income taxes 12.2 11.6 -0.6 Depreciation 17.5 16.9 -0.6 Change in net working capital -12.2 ① -33.1 -20.9 ① Decrease in liquidation of receivables,

  13. Slide 13: Full year forecast

    (4)Full year forecast Considering 3Q result and recent business environment, we revise FY2006’s estimation. FY2006 FY2006 (Reference) (¥ billion) Former estimation Current estimation FY2005 Results <Net sales> 1,200.0 1,180.0 1,152.2 <Operating income> 50.0 46.0 48.4 <Ordinary income> 51.0 47.0 49.4

  14. Slide 14: 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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