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Financial results presentation3863Nippon Paper Industries Co.,Ltd.Materials and Chemicals

Earnings Presentation Materials for the Fiscal Year Ending March 2026

In FY2025, revenue and operating income increased, driven by higher sales volumes in the lifestyle-related business and improved profitability in the overseas business. In FY2026, revenue is expected to increase, while operating income is forecast to decline slightly, reflecting persistently high raw material and fuel prices, among other factors.

Worth reading
87Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
55
Year-on-year change in operating income (¥100 million)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFY2025 results and FY2026 earnings forecast11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,926 100 million+0.9%
Operating profit¥252 100 million+27.9%
Ordinary income¥231 100 million+49.0%
Net income¥117 100 million+158.7%
Operating profit margin2.1 %
Results for the three months of the current quarter
Net Sales
1Q¥2,926 100 million
2Q¥2,966 100 million
3Q¥3,003 100 million
4Q¥3,031 100 million
Operating profit
1Q¥55 100 million
2Q¥35 100 million
3Q¥60 100 million
4Q¥102 100 million
Full-year earnings forecast
Net Sales
¥12,200 100 million
Operating profit
¥250 100 million
Ordinary income
¥180 100 million
Net income
¥100 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Volume and selling prices
    Paper and paperboard0
    Life-related120
    Total378
  • Raw Materials and Fuel Prices
    Paper and paperboard-210
    Life-related-81
    Total-291
  • Cost reductions, etc.
    Paper and paperboard-5
    Life-related-11
    Total-16
  • Other
    Paper and paperboard6
    Life-related-20
    Total-14
  • Other Businesses
    Total-59
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign Exchange
US dollars160 Yen/Dollar
Foreign exchange sensitivity¥5.5 billion per year for a ¥1 appreciation against the U.S. dollar
Coal
130 USD/t Australian coal
Crude oil
100 USD/barrel Dubai
Recovered paperTaking current price trends into consideration
New initiatives
  • The three basic strategies of Medium-Term Management Plan 2030 (optimizing the balance sheet, carrying out structural reforms, and improving profitability)
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥920 100 million
    Year on year against the same period last year+13.0%
  • ROE2.4 %
    Year on year against the same period last year+1.4%
  • Net interest-bearing debt¥6,752 100 million
    Year on year against the same period last year-197.0%
  • Net debt-to-equity ratio1.74 times
    Year on year against the same period last year-0.1%
  • Earnings per share¥101.69
    Year on year against the same period last year+158.7%
Segment results
  • Paper and paperboard
    Net Sales5,579
    Operating profit6
    Year-on-year change in revenue-80
    Year-on-year operating profit growth-77
  • Life-related
    Net Sales4,820
    Operating profit72
    Year-on-year change in revenue241
    Year-on-year operating profit growth133
  • Energy
    Net Sales432
    Operating profit33
    Year-on-year change in revenue-51
    Year-on-year operating profit growth-3
  • Timber, building materials, and civil engineering-related
    Net Sales765
    Operating profit100
    Year-on-year change in revenue-23
    Year-on-year operating profit growth4
  • Other
    Net Sales330
    Operating profit41
    Year-on-year change in revenue15
    Year-on-year operating profit growth-2
Medium-term management plan targets
PlanMedium-Term Management Plan 2030
Target fiscal year2,030
ROIC4% or higher
ROE8% or higher
Net debt-to-equity ratio1.0x or lower
Operating profitAt least ¥60.0 billion
Financial targets
Target
ROIC4% or higher
ROE8% or higher
Net debt-to-equity ratio1.0x or lower
Actual results
ROE2.4%
Net debt-to-equity ratio1.74x
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥70 100 million
DetailsNegative impact on earnings from the situation in the Middle East, persistently high raw material and fuel prices, and price revisions for various products
Number of employees
15,042 people
Change during the period-103
Capital expenditures
¥606 100 million
Annual Dividend
¥15 per share
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2025 results and FY2026 earnings forecast
Net Sales¥11,926 100 million (YoY +0.9%)
Operating profit¥252 100 million (YoY +27.9%)
Ordinary income¥231 100 million (YoY +49.0%)
Net income¥117 100 million (YoY +158.7%)
Operating profit margin2.1 %
Results for the three months of the current quarterNet Sales 1Q ¥2,926 100 million / 2Q ¥2,966 100 million / 3Q ¥3,003 100 million / 4Q ¥3,031 100 million / Operating profit 1Q ¥55 100 million / 2Q ¥35 100 million / 3Q ¥60 100 million / 4Q ¥102 100 million
Full-year earnings forecastNet Sales ¥12,200 100 million / Operating profit ¥250 100 million / Ordinary income ¥180 100 million / Net income ¥100 100 million
Segment resultsSegment Paper and paperboard / Net Sales ¥5,579 100 million / Operating profit ¥6 100 million / Year-on-year change in revenue ¥-80 100 million / Year-on-year operating profit growth ¥-77 100 million, Segment Life-related / Net Sales ¥4,820 100 million / Operating profit ¥72 100 million / Year-on-year change in revenue ¥241 100 million / Year-on-year operating profit growth ¥133 100 million, Segment Energy / Net Sales ¥432 100 million / Operating profit ¥33 100 million / Year-on-year change in revenue ¥-51 100 million / Year-on-year operating profit growth ¥-3 100 million, Segment Timber, building materials, and civil engineering-related / Net Sales ¥765 100 million / Operating profit ¥100 100 million / Year-on-year change in revenue ¥-23 100 million / Year-on-year operating profit growth ¥4 100 million, Segment Other / Net Sales ¥330 100 million / Operating profit ¥41 100 million / Year-on-year change in revenue ¥15 100 million / Year-on-year operating profit growth ¥-2 100 million
Breakdown of Factors Affecting the ChangeFactors Volume and selling prices / Paper and paperboard ¥0 100 million / Life-related ¥120 100 million / Total ¥378 100 million, Factors Raw Materials and Fuel Prices / Paper and paperboard ¥-210 100 million / Life-related ¥-81 100 million / Total ¥-291 100 million, Factors Cost reductions, etc. / Paper and paperboard ¥-5 100 million / Life-related ¥-11 100 million / Total ¥-16 100 million, Factors Other / Paper and paperboard ¥6 100 million / Life-related ¥-20 100 million / Total ¥-14 100 million, Factors Other Businesses / Total ¥-59 100 million
Key KPIs¥920 100 million, 2.4 %, ¥6,752 100 million, 1.74 times, ¥101.69
Number of employees15,042 people
Assumptions Underlying the Business OutlookForeign Exchange US dollars 160 Yen/Dollar / Foreign exchange sensitivity ¥5.5 billion per year for a ¥1 appreciation against the U.S. dollar / Coal 130 USD/t (Australian coal) / Crude oil 100 USD/barrel (Dubai) / Recovered paper Taking current price trends into consideration
Risk amount incorporated into the outlook¥70 100 million
Medium-term management plan targetsPlan Medium-Term Management Plan 2030 / Target fiscal year 2,030 / ROIC 4% or higher / ROE 8% or higher / Net debt-to-equity ratio 1.0x or lower / Operating profit At least ¥60.0 billion
Financial targetsTarget ROIC 4% or higher / ROE 8% or higher / Net debt-to-equity ratio 1.0x or lower / Actual results ROE 2.4% / Net debt-to-equity ratio 1.74x
Annual Dividend¥15 per share
Capital expenditures¥606 100 million
New initiativesThe three basic strategies of Medium-Term Management Plan 2030 (optimizing the balance sheet, carrying out structural reforms, and improving profitability)
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, the factors behind the increases in revenue and operating income were higher sales volumes resulting from the effects of investment in the lifestyle-related business, improved profitability at Opal, and NDP's return to normal operations after conducting major maintenance in the previous fiscal year. In FY2026, the company expects the full-year contribution from price revisions implemented in FY2025, while factoring in a ¥7 billion negative impact on earnings from the situation in the Middle East, persistently high raw material and fuel prices, and additional price revisions.

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Earnings Presentation Materials for the Fiscal Year Ending March 2026 | Nippon Paper Industries Co.,Ltd. (3863) timely disclosure | Komori