Summary of Consolidated Financial and Business Results

for the First Quarter of the Year Ending March 2023

Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange)

https://www.ojiholdings.co.jp/

Hiroyuki Isono, President & Chief Executive Officer

Akio Hasebe, Director of the Board, Executive Officer

(All yen figures are rounded down to the nearest one million yen)

1. Results for the First Quarter of the Year Ending March 31, 2023 (April 1, 2022 - June 30, 2022) (Unaudited)

(Figures shown in percentage are ratios compared to the same period of the previous year)

Note : Change in forecast of dividend … None

3. Consolidated Forecasts for the Year Ending March 2023 (April 1, 2022-March 31, 2023)

(Figures shown in percentage for the full year are ratios compared to the previous year, Figures shown in percentage for the first half are ratios compared to the same period of the previous year)

Note : Change in consolidated forecasts … None

(changes regarding specified subsidiaries accompanying changes in the scope of consolidation) : None

Changes due to accounting standard changes :

(ii) Outstanding balance of treasury shares at the end of fiscal year

(iii) Weighted average number of shares during fiscal year

・ This document is exempt from audit procedures required by Financial Instruments and Exchange Act.

・ The statements regarding future mentioned in this document are based on the information currently available and thepremise deemed reasonable. The actual results may differ drastically from these forecasts due to various factors that may arise in the future.

・ This document is an excerpt translation of the Japanese original and is only for reference purposes. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

1. Qualitative Information Concerning Business Performance and Financial Situation

(1) Qualitative Information Concerning Business Performance

Business Performance for the First Quarter of FY2022 (April 1, 2022 - June 30, 2022)

In its FY2022-2024Medium-term Management Plan, the Oji Group has set "Growth to Evolution", which is long-term vision for 2030, as the basic policy, and is promoting "Initiatives for Environmental Issues -Sustainability-", "Initiatives for Profitability Improvement - Profitability-" and "Initiatives for Product Development -GreenInnovation-" to achieve the consolidated operating profit of ¥150.0 billion or more by FY 2024 and stably maintain consolidated profit attributable to owners of parent of ¥100.0 billion or more.

Based on this basic policy, we will continue our efforts on environmental issues by promoting greenhouse gas reduction and expanding net CO2 absorption by forests, as countermeasures against climate change. At the same time, we will enhance the value of our business by deepening the existing businesses through the establishment of an optimal production system, and expanding the highly-expected businesses including overseas packaging business and eco-friendly products. Furthermore, we will develop and quickly commercialize new wood-derived products and materials such as eco-friendly materials and products, based on a range of core technologies we have cultivated through paper manufacturing and forestation. We will continue to contribute to society as a company that "grows and manages the sustainable forest, develops and delivers the products from renewable forest and brings this world a brighter future filled with hope".

Consolidated net sales for the first quarter of FY2022 increased by ¥56.5 billion to ¥399.2 billion (year-on-year increase of 16.5%) due to a recovery in demand, resulting from the resumption of economic activities that had been stagnant due to the spread of COVID-19, a rise in the pulp market and the implementation of price revision in response to the impact of the recent sharp rise in raw material and fuel prices. Overseas sales ratio increased by 4.5 points from the previous year to 37.0%.

Consolidated operating profit decreased by ¥12.5 billion to ¥15.6 billion (year-on-year decrease of 44.5%) due to the significant impact of higher raw material and fuel prices in spite of the price revision mentioned above and an increase in sales volume. Ordinary profit decreased by ¥1.6 billion to ¥33.0 billion (year-on-year decrease of 4.6%) despite foreign exchange gains from revaluation of foreign currency-denominated receivables and payables. Profit before taxes decreased by ¥0.9 billion to ¥33.0 billion (year-on-year decrease of 2.6%), and profit attributable to owners of parent increased by ¥2.7 billion to ¥23.3 billion (year-on-year increase of 13.0%) due to a decrease in profit attributable to non-controlling interests as a result of the acquisition of treasury stock by a consolidated subsidiary and the additional acquisition of shares of a subsidiary.

Overview of Business Performance for the First Quarter of FY2022 by Segment

(I) Business Performance by Segment

*Adjustment is mainly those concerning internal transactions.

(II) Overview of Business Performance by Segment

The Oji Group's four reporting segments are: "Household and Industrial Materials", "Functional Materials", "Forest Resources and Environment Marketing", and "Printing and Communications Media". Each of the reporting segment consists of those that are recognized to be similar in terms of economic characteristics, manufacturing methods or processes of products, markets in which products are sold, and types of customers, among the constituent units of the Oji Group.

Business segments that are not included in the reporting segments are classified as "Others".

Major business lineup for the segments are as follows.

- Household and Industrial Materials:

Containerboard/corrugated containers, boxboard/folding cartons, packing paper/paper bags, household paper, disposable diapers, etc.

Specialty paper, thermal paper, adhesive materials, film, etc.

- Forest Resources and Environment Marketing:

Pulp, energy, forest plantation/lumber processing, etc.

- Printing and Communications Media:

Newsprint, printing/publication/communication paper, etc.

Real estate, engineering, trading business, logistics, etc.

In the first quarter of FY2022, net sales amounted to ¥187.7 billion (year-on-year increase of 12.2%), and operating loss was ¥0.3 billion (year-on-year decrease of ¥8.9 billion).

Regarding domestic business, sales amount increased from the previous year due to the implementation of price revision in addition to the overall recovery in demand of containerboard, corrugated containers and boxboard. As for disposable diapers, sales amount decreased from the previous year. As for household paper, sales amount remained stable from the previous year.

Regarding overseas business, sales amount increased from the previous year due to the strong sales of containerboard and corrugated containers in Southeast Asia and India, the penetration of price increases and the operation of a new containerboard machine in Malaysia from October 2021.

In the first quarter of FY2022, net sales amounted to ¥52.5 billion (year-on-year increase of 16.2%), and operating profit was ¥3.7 billion (year-on-year increase of 11.2%).

Regarding domestic business, sales amount increased from the previous year due to a recovery trend in demand for thermal and adhesive paper, which had declined due to the spread of COVID-19, as well as steady sales of films for condensers used in electric vehicles and general industrial use and packaging films for foods and general goods, although sales amount of specialty papers decreased from the previous year.

Regarding overseas business, sales amount of thermal paper increased from the previous year due to the recovery trend in demand similarly in the domestic market, as well as the completion of enhancement and expansion work in Brazil, which started operation in January 2022.

○ Forest Resources and Environment Marketing

In the first quarter of FY2022, net sales amounted to ¥91.3 billion (year-on-year increase of 36.5%), and operating profit was ¥13.1 billion (year-on-year increase of 35.4%).

Regarding domestic business, pulp business remained steady as in the previous year. Sales amount of energy business increased from the previous year due to a shorter period of facility shutdown for periodic inspections at MPM Oji Eco-Energy Co., Ltd.

Regarding overseas business, sales volume of pulp business increased from the previous year due to a rise in the pulp market.

In the first quarter of FY2022, net sales amounted to ¥63.7 billion (year-on-year increase of 10.1%), and operating loss was ¥1.6 billion (year-on-year decrease of ¥6.4 billion).

Regarding domestic business, sales amount increased from the previous year. While demand for newsprint continued to decline, demand for printing paper has increased because a decline in imported paper increased the demand for domestic products. Regarding overseas business, sales amount increased from the previous year at Jiangsu Oji Paper Co., Ltd.

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Oji Holdings Corporation published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 04:29:05 UTC.