FY2019/3 Q1 (Apr-Jun 2018) Financial Overview

Transcription

1 Daio Paper Corporation FY219/ Q1 (Apr-Jun 218) Financial Overview Aug 8, 218 Notes regarding figures and expressions: 1. Amounts are rounded off to the nearest.1 billion yen; totals may not sum due to rounding. 2. Fiscal year (FY) represents the 1-year period from Apr 1 to Mar 1. (FY19/ is the fiscal year from Apr 1, 218 to Mar 1, 219.) Disclaimers regarding translation: 1. This document is an English translation of the original Japanese document dated Aug 8, 218 and is only for reference purposes. In the event of any discrepancy between the original Japanese document and this translated document, the Japanese document shall prevail. 2. Translations of brand names and product names not yet launched in English-speaking regions are not official and are subject to change without notice. DAIO PAPER CORPORATION 1

2 Consolidated financial results for FY219/ Q1 Financial overview billions of yen, % FY18/ Q1 FY19/ Q1 Variance % % % Operating income Ordinary income ,557. Profit attributable to owners of parent Depreciation Capital expenditure Exchange rate (period-average): JPY/USD 19.1 JPY/USD -2. JPY/USD Dubai crude oil (period-average): 9.7 USD/barrel 72.1 USD/barrel 22. USD/barrel billions of yen, times 18/-end 18/6-end Variance Net interest-bearing debt Net D/E ratio DAIO PAPER CORPORATION 2

3 Consolidated financial results for FY219/ Q1 Increase/decrease of consolidated operating income 6 2 Sales and market conditions 1. Operating income, YoY:.6 bn yen (FY18/ Q1:.8 bn yen FY19/ Q1:. bn yen) Paper & Paperboard (P&P), YoY: 2.9 Home & Personal Care (H&PC), YoY: 1. Prices of raw materials and fuels -. Mill/factory cost reduction.5 Fixed manufacturing costs 1.1 Others. Sales and market conditions.2 Prices of raw materials and fuels -.5 Mill/factory cost reduction -. Fixed manufacturing costs -.1 Overseas business 1.8 Other(incl. adjustments) FY18/ Q1 FY19/ Q1 P&P H&PC Other * Total P&P major factors H&PC major factors Sales and market conditions Price 1. Volume.2 Prices of raw materials and fuels Recovered paper 1., coal -1., woodchip -.2, pulp -.1, heavy oil -.1, chemicals and others -.2 Mill/factory cost reduction Yield and raw materials composition.5, energy-saving.1, production -., others.2 Fixed manufacturing costs Maintenance.6, labor cost.2, depreciation -.1, others.2 Pulp -., chemicals and others -.2 Production -., energy-saving and others -.1 Maintenance.2, labor cost and others -. Overseas business Sales expansion 1.8 Others Corrugated container subsidiary.1, logistics cost and others.2, YoY, total Increase, total Decrease, total * Other is the sum of Other category (business segments not included in reporting segments, such as wood, forestry, machinery, logistics, electric power selling, golf club, parking facilities, and real estate leasing) and adjustment for elimination of intersegment transactions. - DAIO PAPER CORPORATION

4 Consolidated financial results for FY219/ Q1 Business results by segment (P&P) Paper and Paperboard (P&P) results %.% % 5 Variance % increase/decrease Sales and market conditions 1. Prices of raw materials and fuels -. Mill/factory cost reduction.5 Fixed manufacturing costs 1.1 Others. Total FY16/ Q1 FY17/ Q1 FY18/ Q1 FY19/ Q1 A) Recovered paper prices Old newspapers, export (yen/kg) Old corrugated containers, export (yen/kg) 2 1 YoY change in sales volume and value by category 1 Vol. Val. Newsprint - - -Decline in newspaper circulation Paper - - Containerboard & corrugated container 12 Structural shift in product composition (increase in wrapping paper, functional materials) -Margin of decrease in domestic demand for printing paper expanded due to decline of print and shift to digital media Increase in demand in fields of e-commerce and processed food (mainly beverage) Price revision of containerboard and corrugated container prices B) Major products prices(apr 215 = 1) Coated paper (A2 grade) Kraft linerboard (Source: Ministry of Finance Japan Statistics) 1 Apr'15 Sep Mar'16 Sep Mar'17 Sep Mar'18 (Source: The Nikkei) 8 Apr'15 Sep Mar'16 Sep Mar'17 Sep Mar'18 DAIO PAPER CORPORATION

5 Overseas Domestic Consolidated financial results for FY219/ Q1 Business results by segment (H&PC) FY16/ Q1 FY17/ Q1 FY18/ Q1 FY19/ Q Home and Personal Care (H&PC) results 5.7% 5.% 1.9% China S.E. Asia Exports (S. Korea, Taiwan, Russia, Turkey, etc.) 9.5.9% 5 5 YoY change in sales value by category Household paper Strong sales of value-added products Adult care Baby care Feminine care Baby care Others Variance % % increase/decrease Sales and market conditions.2 Prices of raw materials and fuels -.5 Mill/factory cost reduction -. Fixed manufacturing costs -.1 Overseas business 1.8 Retail: User acquisition from the launch of new slim pants Institutional: User acquisition rate remained robust Total Market contraction (low birth rate and decline in inbound demand) Expanded distribution of absorbent liners China: Strong sales growth centered on products with high unit price and high margin Thailand: Increased sales volume in neighboring countries, such as Vietnam, Myanmar and Laos -Indonesia: Tougher market competition -S. Korea: Market stagnation due to low birth rate China: Launched sales of premium toilet rolls Thailand: Launched sanitary pads customized for local market H&PC overseas net sales (by country/region) Exchange rates (Monthly average TTM / Apr 215 = 1) 12 1 JPY/USD JPY/CNY JPY/THB JPY/IDR JPY/KRW JPY/RUB 8 FY16/ Q1 FY17/ Q1 FY18/ Q1 FY19/ Q1 (Source: MURC Exchange Quotations) 6 Apr'15 Sep Mar'16 Sep Mar'17 Sep Mar'18 DAIO PAPER CORPORATION 5

6 Consolidated financial forecasts for FY219/ Business results forecasts by segment Paper & Paperboard (P&P) Home & Personal Care (H&PC) %.% Q1 results (loss) OP margin.2%.5 FY16/ FY17/ FY18/ FY19/ forecast H1 forecast (loss) H2 forecast 197. Full year forecast OP margin OP margin OP margin P&P % % % % FY18/ Results % % H&PC % % % % FY18/ Results % % % % Other* FY18/ Results % Total % % % % FY18/ Results % % % % % 6.% 8.1.1% FY16/ FY17/ FY18/ FY19/ forecast 5.5% * Other is the sum of businesses not included in the reporting segments and adjustment for elimination of intersegment transactions. DAIO PAPER CORPORATION 6

7 Cautions regarding forward-looking statements Forward-looking statements such as projections and forecasts on business results included in this document are derived by Daio Paper Corporation (the Company ) based on beliefs as well as assumptions made using information currently available to it at the time of the release (Aug 8, 218), and are subject to contingencies, risks and uncertainties. As such, actual future performance and results could differ materially from the statements included herein as a result of latent risks, factors not yet known to the Company or not currently considered material to the Company and its subsidiaries by the Company. DAIO PAPER CORPORATION 7