1 ST QUARTER FY2019/3 FINANCIAL REVIEW. August 8,2018

Transcription

1 1 ST QUARTER FY2019/3 FINANCIAL REVIEW August 8,2018

2 1 st Quarter FY2019/3 Financial Consolidated Statement 1Q FY 2018/3 1Q FY 2019/3 Variance ( billion) Amount % Net Sales % Operating Income % Ordinary Income % Net Income* * Profit attributable to owners of parent ( billion) Net Sales Operating Income 1Q FY15/3 1Q FY16/3 1Q FY17/3 1Q FY18/3 1Q FY19/3 2

3 1 st Quarter FY2019/3 Financial by Segment Net Sales Operating Income ( billion) 1Q FY2018 1Q FY2019 Variance 1Q FY2018 1Q FY2019 Variance Paper and paperboard Livelihood-related Energy Wood Products and construction related Other Total

4 1 st Quarter FY2019/3 Financial Variance Analysis for Operating Income ( billion) Operating Income +3.6billion JPY Raw materials & Fuel prices -1.4 Volume Sales price +1.9 Cost reductions +0.3 Others +1.6 Other businesses Paper and paperboard business Q FY2018/3 1Q FY2019/3 4

5 1 st Quarter FY2019/3 Financial Paper and paperboard business Net Sales Operating Income( billion) Volume Sales price Q FY18/ Net Sales -1.4 Raw material & Fuel prices Q FY19/3 Operating Income Variance analysis for operating income ( billion) Cost Overseas Others reductions Businesses Paper(Domestic) Domestic sales volume remained low due to circulation decline in newspaper and sluggish demand on printing advertisement. In regard to export, demand has been strong mainly in Asia. The company also achieved sales price increase. Paperboard(Domestic) Domestic demand remained steady mainly for application in beverages. For export, demand has been strong mainly in Asia and the volume increased by 12% compared to the same period of previous year. Overseas business For Paper Australia and Jujo Thermal Oy, the sales remained steady. The sale of assets owned by NPI USA, which was done last year, contributed increase in profit. 5

6 1 st Quarter FY2019/3 Financial Sales Volume(Paper & Paperboard) volume: 000 tonnes Apr '17 - Jun '17 Apr '18 - Jun '18 YOY Newsprint % Printing paper % Business communication paper % Others % Domestic sales (paper) % Export (paper) % Paper total % Container board % Folding box board and others % Domestic sales (paperboard) % Export (paperboard) % Paperboard total % Grand total (paper and paperboard) 1,527 1, % Total means the sum of sales volume of Nippon Paper Industries Co.,Ltd., Nippon Paper Papylia Co.,Ltd. Nippon Paper Crecia Co., Ltd.(Not include house hold tissue), and Shin Tokai Paper Co., Ltd. 6

7 1 st Quarter FY2019/3 Financial Livelihood-related business Package Net Sales Operating Income( billion) For liquid packaging, the sales volume increased from the previous year mainly on cartons for fruit and vegetable juice as sales of new-shape carton with closure increased. Nippon Dynawave Packaging has been steady as both sales and profit remained almost flat from 3.9 the previous year. 1Q FY18/3-0.1 Package Net Sales -0.2 Household tissue Health Care 3.3 1Q FY19/3 Operating Income Variance analysis for operating income ( billion) -0.3 Chemical Household tissue Health Care Products The sales volume increased from the same period of previous year as demand for health care products and business-use products for hotel stayed firm. However, operating income decreased from the same period of previous year due to rise in raw materials and fuel prices. Chemical While the demand for functional coating resin and functional cellulose stayed firm, volume for functional film decreased from the same period of previous year. In addition, rise in raw materials and fuel prices resulted in decrease in sales and profit. 7

8 1 st Quarter FY2019/3 Financial Energy business Net Sales Operating Income( billion) Q FY18/3 Net Sales Q FY19/3 Operating Income Wood products and construction related business Ishinomaki Hibarino Power Plant (Nippon Paper Ishinomaki Energy Center), which started commercial operation in March 2018, continues stable operation. As a result, both sales and profit increased from the same period of previous year. Net Sales Operating Income( billion) For Nippon Paper Lumber, both sales and profit decreased due to weak housing starts and sales decrease in pulp logs. For AMCEL, its profit increased, as the sales ratio in Europe was going up. 1Q FY18/3 Net Sales 1Q FY19/3 Operating Income 8

9 FY2019/3 Forecast Consolidated Statements FY 2018/3 FY 2019/3 Forecast Variance ( billion) Amount % Net Sales 1, , % Operating Income % Ordinary Income % Net Income* * Profit attributable to owners of parent 9

10 Topic Let paper do what it can do Setting up the new department Paperising Promotion Office Increasing awareness of environmental issues Marine pollution originate from plastic trash China restricts import of waste. Our strengths Trend toward non-plastic Shopping bag, dish, straw Integrated operation system from base paper to converting and filling machines on liquid packaging business. Technical capabilities and knowledge relative to Paper Paperising Promotion Office Research:Flexibly react on variety of paper needs. Development:Promote new products development and expand product line-up. Sales:Create and gain new business opportunity. 10

11 REFERENCE MATERIALS

12 (Reference) Domestic demand and export (Paper and paperboard) volume: '000 tonnes volume YOY volume YOY volume YOY volume YOY volume YOY Newsprint % % % % Printing & business communication paper 1, % % 1, % % 1, % Coated paper * % % 1, % % 1, % Uncoated paper % % % % % Business communication paper % 9 7.8% % % % Other papers April, June,2018 Domestic shipments(a) Exports(B) (A+B) Imports(C) Domestic demand(a+c) % % % % % Paper total 3, % % 3, % % 3, % Container board 2, % % 2, % % 2, % Folding box board and others % % % % % Paperboard total 2, % % 3, % % 2, % Paper and paperboard total 6, % % 6, % % 6, % Bitoko-shi paper is included in coated paper. Source: Japan Paper Association, Trade Statistics of Japan 12

13 (Reference) Domestic shipment of paper industry (YOY) 115% 110% 105% Paper Paperboard 100% 95% 90% Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 ( 000 tonnes) Coated paper and copy paper import volume Copy Paper Coated Paper Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Source: Japan Paper Association, Trade Statistics of Japan 13

14 (Reference) (April, 2012=1) Price trends by products Printing Paper Linerboard Household Tissue Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Coated paper inventory ( 000 tonnes) ( 000 tonnes) Containerboard inventory Merchants Manufacutrers Manufacutrers Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Source: Japan Paper Association, Bank of Japan Corporate Goods Price Index 14

15 (Reference) ONP price trend ( /kg) 32 Domestic Export Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 OCC price trend ( /kg) 32 Domestic Export Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Pulp (US$/t) 1,000 BHK BSK Woodchip(EUC) Woodchip & Pulp price trend Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Woodchip (US$/t) Source:Paper Recycling Promotion Center, Kanto Seishi Genryo Chokuno Shoko Kumiai etc. 15

16 (Reference) (US$/t) Coal (US$/BL) Crude Oil Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Source:Crude Oil=Platts Coal=Global Coal Index 16

17 <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., Ltd., and its Group companies. These statements are based on management s assumptions and beliefs in light of information currently available and involve risks and uncertainties. Actual results may differ materially from these forecasts.