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

Nippon Paper Industries — FY2006 Earnings Presentation

21 slides from Nippon Paper Industries's earnings presentation, May 8, 2007

  1. Slide 1: FY2006 Financial Review

    FY2006 Financial Review May 8, 2007 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2007 Nippon Paper Group, Inc.

  2. Slide 2: Contents

    Nippon Paper Group Contents I. FY2006 Review (April 1, 2006 – March 31, 2007) (1) Overview (2) Operating results (3) Analysis of profit and loss (4) Extraordinary items (5) Balance sheet (6) Cash flow statement II. FY2007 Forecast (April 1, 2007 – March 31, 2008) (1) Overview (2) Operating results (

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

    FY2006 Review (1)Overview Business environment Domestic shipment of paper and paperboard Paper industry FY2006 (April 2006 March 2007) % change Shipment(1,000 tons) yoy Newsprint 3,606 1.6% Uncoated printing paper 2,564 -1.2% Coated printing paper 6,512 2.0% Business communication paper 1,604 0.6% O

  4. Slide 4: Trend in paper and paperboard prices

    FY2006 Review (1)Overview Business environment Trend in paper and paperboard prices Paper industry (April 2004 March 2007) ¥ Printing A A2 Coated A3 Coated ¥ (Woodfree) (Coated woodfree) (Light weight coated woodfree) Kraft-liner board Apr. 2004 Oct. 2004 Apr. 2005 Oct. 2005 Apr. 2006 Oct. 2006 Mar.

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

    FY2006 Review (1)Overview Business environment Paper industry Trend in fuels and raw materials prices (April 2004 March 2007) Dubai Woodchip Wastepaper NBSK Crude oil Coal (AU$/BDT) (¥/kg) US$/t (US$/BL) (US$/t) 180 90 160 80 140 70 120 60 100 50 80 40 60 30 40 20 20 10 0 0 Apr. 04 Oct. 04 Apr. 05 O

  6. Slide 6: Topics of FY2006

    FY2006 Review (1)Overview Topics Topics of FY2006 Apr. Apr. 2006 2006 Merger Merger ofof San-Mic San-Mic Shoji Shoji Co., Co., Ltd. Ltd. and and Komine Komine Nissho Nissho Co., Co., Ltd. Ltd. (Name (Name ofof the the new new company company :: NPNP Trading Trading Co., Co., Ltd.) Ltd.) May. May. :L

  7. Slide 7: Operating results: Consolidated outline

    FY2006 Review (2)Operating results Outline Consolidated operating results (¥ billion) FY2005 FY2006 Difference <Net sales> 1,152.2 1,175.3 23.1 <Operating income> 48.4 44.7 -3.7 <Ordinary income> 49.4 47.1 -2.3 <Net income> 17.2 23.0 5.8 All Rights Reserved, Copyright (C) 2007 Nippon Paper Group, In

  8. Slide 8: Sales volume by product

    FY2006 Review (2)Operating results Sales volume by product Thousand tons) FY2005 FY2006 % change yoy Average domestic paper price /kg (104.4) (104.4) (0.0%) Newsprint 1,362 1,333 -2.1% Uncoated paper 744 749 0.7% Coated paper 2,020 2,072 2.6% Business communication paper 718 718 -0.1% Packaging pape

  9. Slide 9: Segment information

    FY2006 Review (2)Operating results Segment information ¥billion Sales Operating income FY2005 FY2006 Difference FY2005 FY2006 Difference Comments Pulp and Paper Div. 861.0 889.9 28.9 33.2 30.7 ▲ 2.5 Negative impact from raw materials and fuel cost Paper etc. 704.9 725.4 20.5 32.8 27.1 ▲ 5.7 hike far

  10. Slide 10: Analysis of profit and loss: FY2005 vs FY2006

    FY2006 Review (3)Analysis of profit and loss FY2005 vs FY2006 Decrease in operating income ¥-3.7billion ¥48.4 bn ¥44.7 bn Decrease in ordinary income ¥ -2.3 billion ¥49.4 bn ¥47.1 bn ¥ billion 48.4 Decrease in operating income -3.7 Depreciation, Depreciation, etc. etc. 40.0 +3.6 Price Price of of Co

  11. Slide 11: Extraordinary items

    FY2006 Review (4)Extraordinary items FY2005 FY2006 Ordinary income 49.4 47.1 ¥billion Extraordinary gains 19.5 7.8 Gain on sale of property, plant and equipment 14.7 3.4 Gain on sale of securities, etc. 1.8 3.9 Others 3.0 0.5 Extraordinary losses 29.9 16.7 Loss on disposal of property, plant and equ

  12. Slide 12: Balance sheet

    FY2006 Review (5)Balance sheet ¥billion Balance sheet Mar. 31, Mar. 31, Difference Comments 2006 2007 Cash and time deposits 14.1 16.0 1.9 Notes and accounts receivable 218.4 247.1 28.8 Inventories 139.2 147.1 7.9 Other current assets 41.0 46.3 5.3 Property, plant, equipment, Capital investment 103.

  13. Slide 13: Cash flow statement

    FY2006 Review (6)Cash flow statement ¥billion Items FY2005 FY2006 Difference Comments Operating activities 132.1 75.4 -56.7 Income before income taxes 39.0 38.1 -0.9 Depreciation 70.1 67.0 -3.1 Change in net working capital 25.9 -21.6 -47.5 Others -2.9 -8.2 -5.3 Investing activities -40.4 -107.0 -66

  14. Slide 14: Topics of FY2007

    FY2007 Forecast (1)Overview :Topics Topics of FY2007 Apr. 2007 : Established Overseas Sales Division. Oct. : Merger of NP Trading Co., Ltd. and Mantsune Corporation.(planned) : Start operation of Fuji mill’s biomass boiler.(planned) Nov. : Start operation of Ishinomaki mill’s N6 M/C(planned) (Produc

  15. Slide 15: Business environment and assumptions for FY2007

    FY2007 Forecast (2)Operating results Business environment for FY2007 Assumptions for FY2007 estimation Sales forecast(domestic) Sales volume: paper +1.4% up from FY2006 paperboard +1.5% up from FY2006 Sales price : maintain price levels Raw materials, fuel price and exchange rate Crude oil price:US$

  16. Slide 16: Forecast of consolidated results

    FY2007 Forecast (2)Operating results Outline Forecast of consolidated results FY2006 FY2007 (¥ billion) estimation Difference <Net sales> 1,175.3 1,210.0 34.7 <Operating income> 44.7 30.0 -14.7 <Ordinary income> 47.1 29.0 -18.1 <Net income> 23.0 10.0 -13.0 All Rights Reserved, Copyright (C) 2007 Nip

  17. Slide 17: FY2007 Forecast: Sales volume by product

    FY2007 Forecast Operating results Sales volume by product Thousand tons) FY2006 FY2007 est. % change yoy Average domestic paper price /kg (104.4) (105.7) (1.3%) Newsprint 1,333 1,337 0.3% Uncoated paper 749 739 -1.4% Coated paper 2,072 2,160 4.2% Business communication paper 718 745 3.9% Packaging p

  18. Slide 18: FY2007 Forecast: Segment information

    FY2007 Forecast (2)Operating results Segment information ¥billion Sales Operating income FY2007 FY2007 FY2006 Difference FY2006 Difference Comments estimated estimated Pulp and Paper Div. 889.9 917.4 27.6 30.7 16.7 ▲ 13.9 Profit decreases due to raw materials and Paper etc. 725.4 744.7 19.4 27.1 15.

  19. Slide 19: FY2006 vs FY2007 est. profit and loss analysis

    FY2007 Forecast (3)Analysis of profit and loss FY2006 vs FY2007 est. Decrease in operating income ¥-14.7 billion ¥44.7 bn ¥30.0 bn Decrease in ordinary income ¥ -18.1 billion ¥47.1 bn ¥29.0 bn ¥ billion 44.7 40.0 Decrease in operating income Price Price of of -14.7 raw raw materials materials and an

  20. Slide 20: Group's important figures

    FY2007 Forecast (4)Group’s important figures FY2007 FY2004 FY2005 FY2006 est. ROE 5.6% 3.9% 5.2% 2.2% Ordinary margin on sales 5.3% 4.3% 4.0% 2.4% D/E (times) x1.7 x1.5 x1.6 x1.7 Operation rate of paper 91% 92% 93% 92% machine(Calendar basis) Operation rate of paperboard 87% 86% 82% 83% machine(Cale

  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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