Nippon Paper Industries Co., Ltd. · TSE:3863
Nippon Paper Industries — Q1 FY2011 Earnings Presentation
19 slides from Nippon Paper Industries's earnings presentation, Aug 8, 2011
Slide 1: 1st Quarter FY2011 Financial Review
1st Quarter FY2011 Financial Review August 8, 2011 Nippon Paper Group, Inc.
Slide 2: 1st Quarter FY2011 Review
1st Quarter FY2011 Review April 1 - June 30, 2011 1. Highlights 2. Financial Results 3. FY2011 Earning Forecasts 4. Appendix 2
Slide 3: 1. Highlights
1. Highlights Achieved ¥1.6 billion net income despite the impact of the Great East Japan Earthquake ¥billion FY10/1Q FY11/1Q Change <Net Sales> 273.0 250.2 -22.8 <Operating Income> 8.8 7.1 -1.7 <Ordinary Income> 7.7 7.0 -0.7 <Net Income> 3.8 1.6 -2.2 ❏ Iwanuma and Nakoso mill were fully resumed by
Slide 4: Financial results - Variance analysis for operating income
2. Financial results - Variance analysis for operating income Sales volume decreased for the impact of the earthquake ¥billion -1.7 Volume -7.0 8.8 Others(*) +7.8 7.1 Price -2.5 Raw material Cost Reduction, & fuel prices etc. (*) includes a fixed cost during the suspension -2.3 +2.3 of the damaged m
Slide 5: [Reference] FY10/1Q vs. FY11/1Q
[Reference] FY10/1Q vs. FY11/1Q ¥billion Sales (volume & prices) -9.5 Volume -7.0 Price -2.5 Raw material Wastepaper -0.5 Pulp 0.1 Oil -0.9 Coal -0.6 & fuel prices -2.3 LNG -0.1 Others -0.3 price -5.1 forex 2.8 Cost reduction 2.3 Manufacturing 1.3 Logistics 0.2 Labor 0.8 Others Depreciation 1.1 Fixe
Slide 6: Financial results - Segment information
2. Financial results - Segment information Paper-related segment achieved steady performance (\ billion) (Upside:Sales) FY10 FY11 Change (Downside:Operating income) 1Q 2Q 3Q 4Q 1Q yoy 222.2 223.6 225.0 208.3 198.3 -23.9 Pulp and Paper 6.5 5.0 5.4 6.3 4.6 -1.9 Paper-related 22.7 24.0 22.5 25.1 23.6 0
Slide 7: Financial results - Sales volume by product
2. Financial results - Sales volume by product Domestic paper sales decreased 10.6% yoy thousand tons change FY10/1Q FY11/1Q yoy Newsprint 297 277 -6.8% Printing & Business communication paper 681 588 -13.7% Packaging paper and others 97 97 -0.4% Domestic sales (paper) 1,076 962 -10.6% Export (paper
Slide 8: Earnings Forecast
3. Earnings Forecast (¥ billion) Change <Net sales> 1,099.8 1,050.0 -49.8 <Operating income> 35.6 30.0 -5.6 <Ordinary income> 31.6 26.0 -5.6 <Net income> -24.2 -12.0 12.2 ❏ The operation of Ishinomaki mill will partly restart from September ❏ Estimated extraordinary losses ¥13.4 billion - fixed cost
Slide 9: Earnings forecast - Assumptions
3. Earnings forecast - Assumptions Domestic Sales -Sales volume (yoy) Paper : -6.1% Paperboard : +1.0% -Sales price Paper and Paperboard : Same level as 1Q results - Announced price increase (from Sep.’11) is not included Raw material and fuel prices, Forex Crude Oil : US$115/BL(Dubai) Coal : US$130
Slide 10: Earnings forecast - Sales volume by product
3. Earnings forecast - Sales volume by product Estimate recovery in domestic paper sales from 2nd Half change thousand tons FY10 FY11 yoy Newsprint 1,186 1,142 -3.7% Printing & Business communication paper 2,704 2,479 -8.3% Packaging paper and others 375 384 2.3% Domestic sales (paper) 4,265 4,004 -
Slide 11: Earnings forecast - Variance analysis for operating income
3. Earnings forecast - Variance analysis for operating income Operating income decrease due to high input costs ¥billion -5.6 Volume -13.6 Cost reduction, etc. Price +9.3 -4.3 35.6 Others(*) 30.0 Raw material +18.4 & fuel prices -15.4 (*) includes a fixed cost during the suspension of the damaged mi
Slide 12: [Reference 2] FY10 vs. FY11 est.
[Reference 2] FY10 vs. FY11 est. ¥billion Sales (volume & prices) -17.9 Volume -13.6, Price -4.3 Raw material Woodchips -1.5, Wastepaper -2.0, Pulp 0.2 & fuel prices -15.4 Oil -5.0, Coal -3.5, LNG -0.6, Others -3.0 [price -20.6, forex 5.2] Cost reduction 9.3 Manufacturing 5.6, Logistics 1.2, Labor 2
Slide 13: Earnings forecast - Key figures and indices
3. Earnings forecast - Key figures and indices FY11 FY09 FY10 est. ROE 7.0% -5.6% -3.0% Operating margin on sales 3.9% 3.2% 2.9% Ordinary margin on sales 3.4% 2.9% 2.5% D/E (times) x1.6 x1.8 x1.9 Capital investment (\ billion) 35.6 46.6 63.9 Depreciation (\ billion) 81.9 78.6 75.6 Interest-bearing d
Slide 14: Appendix
Slide 15: Appendix - Major input price trends
Appendix - Major input price trends \ Wastepaper Woodchip/Pulp Crude Oil(Dubai) Coal Source: Paper Recycling Promotion Center, Pulp&Paper Week, Crude oil= Platts, Coal=Global Coal Index
Slide 16: Appendix - Domestic shipment
Appendix - Domestic shipment Paper & paperboard (FY11/1Q) change (1,000 tons) yoy Newsprint 763 -6.6% Printing & Business communication paper 1,995 -6.5% Coated 1,110 -6.3% Uncoated & Specialty printing 535 -7.6% Business communication 349 -5.6% Other papers (Packaging paper, sanitary paper, and pap
Slide 17: Appendix – Domestic shipment trends (yoy)
Appendix – Domestic shipment trends (yoy) Paperboard Printing paper & Business communication paper Source: Japan Paper Association
Slide 18: Appendix - Domestic market price trends
Appendix - Domestic market price trends (Apr.’08 = 1 Source: Bank of Japan”Corporate Goods Price Index”
Slide 19: 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