Presentation Materials on Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | Hokuetsu Corporation (3865) timely disclosure

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54Recurring

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-3461

¥ millions (year-on-year change in operating income)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 20278 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales147,564 Millions of yen+5.6%

Operating profit-1,442 Millions of yen

Ordinary income-405 Millions of yen

Net income654 Millions of yen-72.5%

Full-year earnings forecast

Net Sales

305,000 Millions of yen

Operating profit

3,000 Millions of yen

Ordinary income

4,000 Millions of yen

Profit attributable to owners of parent

5,000 Millions of yen

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Year-on-year operating profit

Selling Prices3

Raw material and fuel prices-66

Production and sales volumes10

Internal factors-10

Selling, general and administrative expenses-1

Other30

Difference from Previous Forecast

Selling Prices5

Raw material and fuel prices-1

Production and sales volumes-5

Other-3

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Market exchange rate
Forecast for the fiscal year ending March 2027160
Dubai crude oil
Forecast for the fiscal year ending March 202797
Dubai crude oil, second half$100 /bbl
Depreciation and amortization
Forecast for the fiscal year ending March 2027150
Capital Expenditure
Forecast for the fiscal year ending March 2027220

Key KPIsA metric the company considers important as a management benchmark.

Printing paper sales volume484 thousand tonnes+0.3%
Average unit price of paper142.4 Yen/kg
Paperboard sales volume178 thousand tonnes+0.4%
Average unit price of paperboard121.8 Yen/kg
Pulp sales volume320 thousand tonnes+6.2%
Average unit price of pulp96 Yen/kg
Overseas sales ratio36 %
ROE2 %
ROA (ordinary income)1 %
Net debt-to-equity ratio0.3 Times
EBITDA21,000 Millions of yen

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Paper

Volume484

Volume unitthousand tonnes

Average ticket142.4

Price unitYen/kg

Paperboard

Volume178

Volume unitthousand tonnes

Average ticket121.8

Price unitYen/kg

Pulp

Volume320

Volume unitthousand tonnes

Average ticket96

Price unitYen/kg

Segment results

Pulp and Paper Business

Net Sales

133,213 Millions of yen+5.5%

Operating profit

-2,079 Millions of yen

Packaging and paper processing business

Net Sales

9,181 Millions of yen+3.9%

Operating profit

191 Millions of yen-18.0%

Timber Business

Net Sales

2,584 Millions of yen+6.1%

Operating profit

181 Millions of yen-10.3%

Other segments, etc.

Net Sales

2,584 Millions of yen+15.0%

Operating profit

264 Millions of yen-39.8%

Financial targets

ROE

2 %

ROA (ordinary income)

1 %

Net debt-to-equity ratio

0.3 Times

Capital expenditures

¥102 100 million second-quarter actual) / ¥22 billion (full-year plan

Annual Dividend

Annual

¥26 per share

Interim

¥13 per share

End of period

¥13 per share

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	147,564 Millions of yen (YoY +5.6%)
Operating profit	-1,442 Millions of yen
Ordinary income	-405 Millions of yen
Net income	654 Millions of yen (YoY -72.5%)
Full-year earnings forecast	Net Sales 305,000 Millions of yen / Operating profit 3,000 Millions of yen / Ordinary income 4,000 Millions of yen / Profit attributable to owners of parent 5,000 Millions of yen
Segment results	Pulp and Paper Business Net Sales 133,213 Millions of yen (YoY +5.5%) / Operating profit -2,079 Millions of yen / Packaging and paper processing business Net Sales 9,181 Millions of yen (YoY +3.9%) / Operating profit 191 Millions of yen (YoY -18.0%) / Timber Business Net Sales 2,584 Millions of yen (YoY +6.1%) / Operating profit 181 Millions of yen (YoY -10.3%) / Other segments, etc. Net Sales 2,584 Millions of yen (YoY +15.0%) / Operating profit 264 Millions of yen (YoY -39.8%)
Breakdown of Factors Affecting the Change	Year-on-year operating profit Selling Prices 3 / Raw material and fuel prices -66 / Production and sales volumes 10 / Internal factors -10 / Selling, general and administrative expenses -1 / Other 30 / Difference from Previous Forecast Selling Prices 5 / Raw material and fuel prices -1 / Production and sales volumes -5 / Other -3
Key KPIs	Printing paper sales volume 484 thousand tonnes (YoY +0.3%), Average unit price of paper 142.4 Yen/kg, Paperboard sales volume 178 thousand tonnes (YoY +0.4%), Average unit price of paperboard 121.8 Yen/kg, Pulp sales volume 320 thousand tonnes (YoY +6.2%), Average unit price of pulp 96 Yen/kg, Overseas sales ratio 36 %, ROE 2 %, ROA (ordinary income) 1 %, Net debt-to-equity ratio 0.3 Times, EBITDA 21,000 Millions of yen
Unit price and quantity metrics	Paper Volume 484 / Volume unit thousand tonnes / Average ticket 142.4 / Price unit Yen/kg / Paperboard Volume 178 / Volume unit thousand tonnes / Average ticket 121.8 / Price unit Yen/kg / Pulp Volume 320 / Volume unit thousand tonnes / Average ticket 96 / Price unit Yen/kg
Assumptions Underlying the Business Outlook	Item Market exchange rate / Forecast for the fiscal year ending March 2027 ¥160 /US$, Item Dubai crude oil / Forecast for the fiscal year ending March 2027 $97 /bbl, Dubai crude oil, second half $100 /bbl, Item Depreciation and amortization / Forecast for the fiscal year ending March 2027 ¥150 100 million, Item Capital Expenditure / Forecast for the fiscal year ending March 2027 ¥220 100 million
Financial targets	ROE 2 % / ROA (ordinary income) 1 % / Net debt-to-equity ratio 0.3 Times
Annual Dividend	Annual ¥26 per share / Interim ¥13 per share / End of period ¥13 per share
Capital expenditures	¥102 100 million (second-quarter actual) / ¥22 billion (full-year plan)

Items this document does not state (16)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&ANew initiatives

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.

Revenue increased due to price revisions for paper and paperboard in Japan and higher export prices resulting from foreign exchange movements. Operating profit declined due to soaring raw material and fuel prices, lower pulp selling prices, production and sales volumes, and internal factors.

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