Oji : FY2022-2024 Medium-term Management Plan

Renovating the 1st floor entrance of Oji Holdings head office building (scheduled to open in Oct. 2022). Creating a space where you can feel "nature" and "forests" in Ginza, Tokyo, under the concept of "forest fields".

FY2022-2024Medium-term Management Plan

May 31, 2022

Contents

1. FY2019-2021

Medium-term Management Plan

１.	Group's Basic Policy	4
２.	Numerical Management Targets	5
Ⅱ. Long-term Vision
１.	Management Policies	7
２.	Mid-to-Long Term Social Issues / Megatrends	8
３.	Group's Basic Policy	9
４.	FY2030 Targets (1)(2)	10
Ⅲ. FY2022-2024
	Medium-term Management Plan
１.	Looking ahead to Long-term Vision	13
２.	Numerical Management Targets	14
(FY2024 Targets)
３.	Sales and Operating Profit by Segment	15
(FY2024 Targets)
４.	Financial & Investment Plan	16

Ⅳ. Initiatives for Environmental Issues

-Sustainability-

１.	Sustainable Business Model	18
２.	Action on Climate Change (1)(2)(3)	19
３.	Abundant forests creation and resource recycling	23
４.	Biodiversity Conservation	24
５.	Harmony with Society	25

Ⅴ. Initiatives for Profitability Improvement -Profitability-

１.	Household & Industrial Materials (1)(2)(3)(4)	27
２.	Functional Materials (1)(2)	31
３.	Forest Resources & Environment Marketing (1)(2)	33
４.	Printing & Communications Media	35

Ⅵ. Initiatives for Product Development -Green Innovation-

１. OJI Group's Green Innovation	37
２.	Eco-friendly Materials & Products (1)(2)(3)	38
３.	Entry into Medical Field	41

• FY2019-2021Medium-term Management Plan

Ⅰ . FY2019-2021Medium-term Management Plan

1. Group's Basic Policy

■Profitability Improvement of Domestic Business

■Expansion of Overseas Business

Achievement

・Optimization of Production Structure

Shutting / utilizing own facilities, etc.

・Expansion of Growing Businesses

Building new plants of corrugated containers

and household papers, biomass power plants, etc.

・Expansion of Packaging Business Starting up containerboard machine in Malaysia, 4 corrugated container plants in SE Asia & India

・Expansion of Disposable Diaper, Thermal Paper and Pulp Businesses

・Development of Materials and Products

Ongoing Challenges

・Strengthen highly-expected businesses besides optimization

Restructuring across group segments

Expansion of eco-friendly businesses

・Further expand overseas business utilizing existing units

M&A, Strategic investment

Synergize group businesses and units

・Expedite commercialization

■ Promotion

of Innovation

Eco-friendly materials & products (Substitutes for plastic, Biomass plastic & film, etc.) Advancement into medical fields (Establishment of Oji Pharma, Oji Medicinal Plants Laboratory) Total Solution (Launching auto-packaging system, Domestic integrated production of liquid packaging, etc.)

■Contribution to a Sustainable Society

・Establishment of "Environmental Vision 2050"	・Execute Action Plans
& "Environmental Action Program 2030"	Convert energy Expand plantation
・Fixation of Sustainable Business Model	Increase renewable energy consumption

4

Ⅰ . FY2019-2021Medium-term Management Plan

2. Numerical Management Targets

						Numerical Management Targets for FY2021				FY2021 Results
			Operating profit			More than		Continue stable profit of				¥120.1 billion
					(consolidated)			¥150.0 billion		more than ¥100.0 billion
			Overseas sales				40%					Aim for 50% at an early point		33.5%
						ratio
						ROE					10.0%																	10.9%
			Net D/E Ratio			Status quo*		*FY2018 Result : 0.7							0.7
						Record profits were achieved, although some numerical targets were missed
						due to the impact of Covid-19 and other factors.
(¥ bil.)				Operating profit /										ROE												Net D/E Ratio
		Overseas sales ratio 40%
150
					Domestic			Overseas	12.0%												10.9%	0.8	0.7
					Overseas Sales Ratio	120.1																									0.7
		110.2	106.1							10.0%															0.7
100										33.5%	7.7%										0.6
		32.0%	36.1		84.8			8.0%						8.5%													0.6	0.6
						6.0%
			21.6			58.6
						70.0												6.9%				0.4
							63.2
50										61.5	4.0%
		76.5
		29.9%																							0.2
						29.3%
		33.7
						2.0%
0															0.0%															0.0
	FY2018	FY2019	FY2020	FY2021				FY2018	FY2019	FY2020	FY2021		FY2018	FY2019	FY2020	FY2021

5