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

Nippon Paper Industries — H1 FY2005 Earnings Presentation

21 slides from Nippon Paper Industries's earnings presentation, Nov 9, 2005

  1. Slide 1: FY2005 Interim Financial Review

    FY2005 Interim Financial Review November 9, 2005 Nippon Paper Group, Inc. All Rights Reserved, Copyright (C) 2005 Nippon Paper Group, Inc.

  2. Slide 2: Nippon Paper Group Contents

    Nippon Paper Group Contents I. FY2005 Interim Review (April 1, 2005 – September 30, 2005) (1) Overview (2) Operating results (3) Analysis of profit and loss (4) Extraordinary items (5) Balance sheet (6) Cash flow statement II. FY2005 Full Year Forecast (April 1, 2005 – March 31, 2006) (1) Overview (

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

    Ｉ．Interim Review (1)Overview①Business environment Domestic shipment of paper and paperboard Paper industry FY2005 Interim (April 2005 － September 2005) % change Shipment(1,000 tons) yoy Newsprint 1,741 1.9% Uncoated printing paper 1,285 -2.9% Coated printing paper ※ 3,116 1.6% Business communication

  4. Slide 4: Trend in paper and paperboard prices

    Ｉ．Interim Review (1)Overview①Business environment Trend in paper and paperboard prices Paper industry (April 2003 － September 2005) （¥／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

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

    Ｉ．Interim Review (1)Overview①Business environment Paper industry Trend in fuel and raw material prices (April 2003 － September 2005) Dubai Eucalyptus Wastepaper NBSK Crude oil Coal 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

  6. Slide 6: Topics of the 1st half

    Ｉ．Interim Review (1)Overview②Topics Topics of the 1st half Apr. 2005：Suzukawa Mill and Fuji Mill to integrate. (The new integrated mill is called Nippon Paper Paper Industries Industries Co., Co., Ltd. Ltd. Fuji Fuji Mill) Mill) May. ：Announcd ‘Group vision 2015’ Jun. ：New Board of Directors started

  7. Slide 7: Consolidated operating results

    Ｉ．Interim Review (2)Operating results①Outline Consolidated operating results FY2004 FY2005 (¥ billion) Difference Interim Interim <Net sales> 597.8 578.2 -19.6 <Operating income> 34.4 30.6 -3.8 <Ordinary income> 32.7 31.2 -1.5 <Interim net income> 10.4 3.5 -6.9 All Rights Reserved, Copyright (C) 200

  8. Slide 8: Sales volume by product

    Ｉ．Interim Review （２）Operating results ②Sales volume by product （Thousand tons) FY2004 FY2005 % change Interim Interim yoy （Average domestic paper price：\/ｋｇ） ※ (105.5) (105.5) (0.0%) Newsprint 675 673 -0.4% Uncoated paper 380 374 -1.5% Coated paper 956 986 3.1% Business communication paper 325 357 9

  9. Slide 9: Segment information

    Ｉ．Interim Review (2)Operating results ③Segment information （¥billion） Sales Operating income FY2004 FY2005 FY2004 FY2005 Comments Interim Interim Interim Interim Pulp and Paper Div. 440.8 424.6 24.4 22.3 Profit increased with healthy demand of coated Paper etc. 362.3 349.7 20.8 21.3 paper, notwithst

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

    Ｉ．Interim Review (3)Analysis of profit and loss FY2004 Interim vs FY2005 Interim Decrease in ordinary income ¥-1.5billion（¥32.7 bn → ¥31.2 bn） Decrease in operating income ¥ -3.8 billion （¥34.4 bn → ¥30.6 bn） （¥ billion） Decrease in 32.7 ordinary income -1.5 Non-operating 30.0 income and Depreciatio

  11. Slide 11: Extraordinary items

    Ｉ．Interim Review (4)Extraordinary items FY2004 FY2005 Interim Interim Ordinary income 32.7 31.2 （¥billion） Extraordinary gains 12.6 1.7 Gain on sale of property, plant and equipment 11.3 0.8 Gain on sale of securities, etc. 0.2 0.5 Others 1.1 0.4 Extraordinary losses 21.2 19.5 Loss on disposal of pr

  12. Slide 12: Balance sheet

    Ｉ．Interim Review (5)Balance sheet （¥billion） Balance sheet Mar. 31, Sep. 30, Difference Comments 2005 2005 Cash and time deposits 18.3 15.4 -3.0 Notes and accounts receivable 247.9 240.2 -7.6 Inventories 131.8 140.1 8.2 Other current assets 45.1 41.4 -3.7 Capital investment30.4bn , Property, plant,

  13. Slide 13: Cash flow statement

    Ｉ．Interim Review (6)Cash flow statement （¥billion） Items FY2004 InterimFY2005 Interim Difference Comments Operating activities 44.0 55.3 11.3 Income before income taxes 24.1 13.4 ① -10.7 ① Income before taxes decreased Depreciation,and amortization of difference between cost and underlying net equit

  14. Slide 14: FY2005 Forecast: Topics of the 2nd half

    ＩＩ．FY2005 Forecast (1)Overview :Topics Topics of the 2nd half Oct. 2005：Merger of Nichiita Package Industries Co., Ltd. and Tokan Packaging Packaging System System Co., Co., Ltd. Ltd. (subsidiary of Tokan Kogyo Co., Ltd.) ：Announced CRECIA’s subdivision and reorganizing of the company. ：Announced Ni

  15. Slide 15: Assumptions for FY2005 estimation

    ＩＩ．FY2005 Forecast (2)Operating results ①Business environment for the 2nd half Assumptions for FY2005 estimation ●Sales forecast(domestic) Paper：Expansion of sales volume mainly by coated paper （Sales volume:+1.5% up from FY2004） Paperboard：Maintain price levels （Sales volume:+0.9% up from FY2004） ●

  16. Slide 16: Forecast of consolidated results

    ＩＩ．FY2005 Forecast (2)Operating results②Outline Forecast of consolidated results FY2005 FY2005 FY2004 (¥ billion) Former estimation Current estimation Results <Net sales> 1,180.0 1,165.0 1,179.7 <Operating income> 65.0 53.0 65.2 <Ordinary income> 64.0 53.0 62.8 <Net income> 17.0 17.0 24.4 All Rights

  17. Slide 17: Forecast: Sales volume by product

    ＩＩ．FY2006 Forecast （２）Operating results ③Sales volume by product （Thousand tons) FY2005 FY2006 % change （Ａ） （Ｂ） yoy （Average domestic paper price：\/ｋｇ） ※ (105.8) (105.3) (-0.5%) Newsprint 1,358 1,355 -0.3% Uncoated paper 760 754 -0.8% Coated paper 1,922 2,007 4.4% Business communication paper 671 72

  18. Slide 18: FY2005 Forecast: Segment information

    ＩＩ．FY2005 Forecast (2)Operating results ④Segment information （¥billion） Sales Operating income FY2005 FY2005 FY2004 FY2004 Comments estimated estimated Pulp and Paper Div. 870.4 872.9 47.3 37.8 Cover up raw materials and fuel cost hike Paper etc. 714.7 712.4 42.2 36.3 by cost reduction and expansion

  19. Slide 19: FY2004 vs FY2005 est. analysis of profit and loss

    ＩＩ．FY2005 Forecast (3)Analysis of profit and loss FY2004 vs FY2005 est. Decrease in ordinary income ¥-9.8billion（¥62.8 bn → ¥53.0 bn） Decrease in operating income ¥ -12.2 billion （¥65.2 bn → ¥53.0 bn） （¥ billion） 62.8 60.0 Decrease in ordinary income -9.8 Non-operating 50.0 Materials Materials price

  20. Slide 20: Group's important figures

    ＩＩ．FY2005 Forecast (4)Group’s important figures FY2005 FY2005 FY2003 FY2004 interim est. ROE 5.8% 5.6% 1.6% 3.8% Ordinary margin on sales 4.2% 5.3% 5.4% 4.5% D/E (times) x1.9 x1.7 x1.7 x1.5 Operation rate of paper 87% 91% 91% 92% machine(Calendar basis) Operation rate of paperboard 85% 87% 87% 87% m

  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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