1 ST HALF FY2018/3 FINANCIAL REVIEW. Investor Meeting on November 8, 2017

Transcription

1 1 ST HALF FY2018/3 FINANCIAL REVIEW Investor Meeting on November 8, 2017

2 Contents 1.1 st Half FY2018/3 Financial Results (April 1,2017 September 30,2017) 2.FY2018/3 Forecast 2

3 1.1 st Half FY 2018/3 Financial Results Consolidated Statement FY2017/3 Results FY2018/3 Results Variance Amount % Net Sales % Operating Income % Ordinary Income % Net Income* * Profit attributable to owners of parent Net Sales Operating Income FY14/3 FY15/3 FY16/3 FY17/3 FY18/3 3

4 1.1 st Half FY 2018/3 Financial Results Results by Segment FY2017/3 Results Net Sales FY2018/3 Results Variance FY2017/3 Results Operating Income FY2018/3 Results Variance Pulp & Paper Paper related Wood Products and Construction related Other Total

5 1.1 st Half FY2018/3 Results - Pulp & Paper segment Sales Volume (Paper & Paperboard) 1H FY2017/3 1H FY2018/3 volume: 000 tonnes Newsprint % Printing & Business communication paper 1,098 1, % Coated paper % Uncoated & Specialty printing paper % Business communication paper % Others % Domestic sales (paper) 1,760 1, % Export (paper) % Paper total 1,933 1, % Container board % Folding box board and others % Domestic sales (paperboard) % Export (paperboard) % Paperboard total % Grand total (paper and paperboard) 2,756 2, % Total means the sum of sales volume of Nippon Paper Industries Co., Ltd., Nippon Paper Papylia Co., Ltd. and Nippon Paper Crecia Co., Ltd(Not include house hold tissue). Shin Tokai Paper Co., Ltd is not included YOY Shipment Paper:-1.3%(Domestic:-3.5% Export:+21.4%) Paperboard:+4.0%(Domestic:-0.6% Export:+69.5%) 5

6 1. 1 st Half FY2018/3 Results - Pulp & Paper segment Pulp & Paper Segment Net Sales Operating Income Paper Sales decreased from the same period of previous year due to circulation decline in newspapers and sluggish demand on printed advertisement Paperboard Net sales increased from the same period of previous year, as Nippon Tokai Industrial Paper Supply started its operation last October. However, operating income decreased due to rise in wastepaper price. Household tissue Demand for healthcare products and business products for hotel stay firm. FY14/3 FY15/3 FY16/3 FY17/3-1.6 FY18/3 6

7 1.1 st Half FY2018/3 Results - Paper Related Segment Paper Related Segment Net Sales Operating Income For Paper-Pak Business, sales volume increased from the same period of previous year mainly on cartons for fruit and vegetable juice For chemical business, sales volume of dissolving pulp and chemical products increased from the same period of previous year. In addition, new grade development on functional films contributed to revenue growth FY14/3 FY15/3 FY16/3 FY17/3 FY18/3 1st Hafl 7

8 1.1 st Half FY 2018/3 Results Wood Products and Construction Related and Other Segment Wood Products and Construction Related Segment Housing starts was stable while it remained flat from the previous year. Other Segment Both logistics and leisure business were stable. Net Sales Operating Income FY14/3 FY15/3 FY16/3 FY17/3 FY18/3 FY14/3 FY15/3 FY16/3 FY17/3 FY18/3 Shikoku Coca-Cola was removed in 2 nd quarter of FY 2016/3 8

9 1.1 st Half FY2018/3 Results Variance Analysis for Operating Income Operating Income -5.4 billion JPY Volume Sales Price -2.7 Raw materials & Fuel Price 10.5 Others st Half FY2017/3 Cost reductions st Half FY 2018/3 9

10 1.1 st Half FY2018/3 Financial Results Consolidated Balance Sheet Mar 31, 2017 Sep30, 2017 Variance Total assets 1, , Cash and time deposits Inventories Other current assets Property, equipment, and intangible fixed assets Investments and other assets Total liabilities Interests bearing liabilities Other liabilities Total net assets Shareholder s equity Total liabilities and net assets 1, , Net interest-bearing debt Net D/E ratio ROA 2.6% - - :ROA=(Ordinary income+interest expenses)/total assets 10

11 1.1 st Half FY2018/3 Financial Results Consolidated Cash flow Statement 1 st Half FY2017/3 1 st Half FY2018/3 Variance Operating activities Income before income taxes Depreciation Change in net working capital Other Investing activities Purchase of noncurrent assets and investment securities, Payment for transfer of business and business withdrawal Sale of noncurrent assets and investment securities Other Free cash flows Financing activities Cash and cash equivalents at the end of period Capital expenditure

12 2.FY 2018/3 Forecast Consolidated Statements FY 2017/3 Results FY 2018/3 Forecast Variance Amount % Net Sales , % Operating Income Ordinary Income % % Net Income* % * Profit attributable to owners of parent 12

13 2.FY 2018/3 Forecast - Assumption Domestic Sales(Full year base projection) Volume (YOY) Paper -3.4% Paperboard +0.4% Previous assumption(may ) Paper -2.5% Paperboard +1.0% Sales Forecast (Paper and Paperboard) FY2017/3 results FY2018/3 estimate (As of Nov.8) FY2018/3 estimate (As of May.12) Newsprint 1, % 997 Printing & Business communication paper 2,228 2, % 2,172 Coated paper 1,220 1, % 1,184 Uncoated & Specialty printing paper % 480 Business communication paper % 508 Packaging paper and others % 311 Domestic sales (paper) 3,569 3, % 3,479 Export (paper) % 413 Paper total 3,925 3, % 3,892 Container board 1,156 1, % 1,164 Folding box board and others % 369 Domestic sales (paperboard) 1,518 1, % 1,533 Export (paperboard) % 144 Paperboard total 1,659 1, % 1,677 Grand total (paper and paperboard) 5,584 5, % 5,570 YOY volume: 000 tonnes Total means the sum of sales volume of Nippon Paper Industries Co., Ltd., Nippon Paper Papylia Co., Ltd. and Nippon Paper Crecia Co., Ltd(Not include house hold tissue). Shin Tokai Paper Co., Ltd is not included 13

14 2.FY 2018/3 Forecast- Assumption Raw materials and fuel prices, FOREX(2 nd Half Projection) Coal Crude Oil US$85/t(Australian black coal) US$55/BL(Dubai) Waste Paper Remain at high level FOREX 115/US$ Previous Assumption (May 12,2017) US$85/t US$52/BL Remain at current level 115/US$ Coal (US$/t) Crude Oil(Dubai) (US$/BL) Waste Paper ( /kg) ONP(Domestic) ONP(Export) OCC(Domestic) OCC(Export) Source:Paper Recycling Promotion Center, Kanto Seishi Genryo Chokuno Shoko Kumiai, Crude Oil=Platts, Coal=Global Coal Index 14

15 2.FY2018/3 Forecast Variance analysis for Operating Income Raw materials & Fuel prices Operating Income -8.8billion yen Others Cost reduction 15.0 Volume Sales Price +4.9 FY 2017/ FY 2018/3 Initial Forecast Market Factors -8.3 Cost reductions +7.4 Others

16 2.FY 2018/3 Forecast Key indicators FY 2014/3 FY 2015/3 FY 2016/3 FY 2017/3 1 st Half Results FY 2018/3 Full year Forecast Operating margin on sales 2.6% 2.2% 2.2% 2.4% 1.0% 1.4% Ordinary margin on sales 2.6% 2.2% 1.7% 2.7% 1.3% 1.7% Capital expenditure Depreciation Net interest-bearing debt Net D/E(times) Number of employees 13,107 12,771 11,741 13,057 13,127 13,147 Earnings per share( ) Dividends per share( ) ROA 2.7% 2.2% 2.0% 2.6% - 1.8% :ROA=(Ordinary income+interest expenses)/total assets Full year forecast is based on the total assets as of the end of September

17 REFERENCE MATERIALS November 8,2017

18 (Reference Materials) Domestic industry shipment,exports and imports (1 st Half FY2018/3 ) Apr '17 - Sep '17 Domestic shipments(a) Exports(B) (A+B) Imports(C) volume: '000 tonnes Domestic demand(a+c) volume YOY volume YOY volume YOY volume YOY volume YOY Newsprint 1, % % 1, % % 1, % Printing & business communication paper 3, % % 3, % % 4, % Coated paper * 2, % % 2, % % 2, % Uncoated paper % % % % % Business communication paper % % % % % Other papers 1, % % 1, % % 1, % Paper total 6, % % 7, % % 7, % Container board 4, % % 4, % % 4, % Folding box board and others 1, % % 1, % % 1, % Paperboard total 5, % % 5, % % 5, % Paper and paperboard total 12, % % 13, % % 13, % Bitoko-shi paper is included in coated paper. Source: Japan Paper Association, Trade Statistics of Japan 18

19 (Reference Materials) Domestic shipment of paper industry(yoy) 115% 110% Paper Paperboard 105% 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 ( 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 Source:Japan Paper Association,Trade Statics of Japan 19

20 (Reference Materials) (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 Coated paper industry inventory movement ( 000 tonnes) ( 000 tonnes) Merchants Manufacturers Containerboard industry inventory movement Manufacturers Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Source:Japan Paper Association, Bank of Japan(Corporate Goods Price Index 20

21 (Reference Materials) ( /kg) ONP OCC price ternds ONP(Domestic) OCC(Domestic) ONP(Export) OCC(Export) Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Pulp (US$/t) Woodchip Pulp price trends BHK BSK Woodchip(EUC) Woodchip (US$/t) Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr Source:Paper Recycling Promotion Center, Kanto Seishi Genryo Chokuno Shoko Kumiai etc. 21

22 (Reference Materials) (US$/t) 120 Coal price trends Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 (US$/BL) 120 Crude oil price trends Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Source:Crude Oil=Platts Coal=Global Coal Index 22

23 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. Nippon Paper Industries Co., Ltd.