Oji : Financial Section 2021

OJI HOLDINGS CORPORATION

[Translation]

OJI HOLDINGS CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS

For the fiscal year ended March 31, 2022

The accompanying consolidated financial statement expressed in Japanese yen are the translation of those issued domestically. The amounts expressed in U.S. dollars are not included in the original audited consolidated financial statements. Such U.S. dollar amounts are translated in accordance with the basis stated in "Basis of Presentation" in the next page and are additionally presented herein solely for the convenience of readers outside Japan, and are not subject to audit.

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OJI HOLDINGS CORPORATION

Basis of Preparation

1. The accompanying consolidated financial statements of Oji Holdings Corporation (the "Company") and its consolidated subsidiaries (collectively, the "Group") are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects to the application and disclosure requirements of International Financial Reporting Standards, and which are compiled from the consolidated financial statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
2. The accompanying consolidated financial statements are expressed in yen, and solely for the convenience of readers outside Japan, have been translated into U.S. dollars at the rate of ¥ 122.39 to U.S. $ 1.00, the approximate rate of exchange prevailing at March 31, 2022. This translation should not be construed as a representation that the yen amounts shown could be converted into U.S. dollars at the above or any other rate. Japanese yen figures less than a million yen are rounded down to the nearest million yen, and U.S. dollars figures less than a thousand dollars are rounded down to the nearest thousand dollars, except for per share data.

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OJI HOLDINGS CORPORATION

CONSOLIDATED BALANCE SHEET

As of March 31, 2022 and 2021

	Millions of yen		Thousands of
		U.S. dollars
	2022		2021	2022
ASSETS
Current assets
Cash and deposits (Note 9 (2))	¥44,749		¥ 130,529	$365,633
Notes and accounts receivable-trade	－	297,718	－
(Note 9 (2))
Notes receivable-trade	60,227		－	492,097
Accounts receivable-trade	260,231		－	2,126,249
Contract assets	3,983		－	32,546
Short-term investments	11,074		5,725	90,483
Merchandise and finished goods	98,616		86,440	805,759
(Note 9 (2))
Work in process (Note 9 (2))	20,294		19,273	165,816
Raw materials and supplies (Note 9 (2))	106,266		89,090	868,265
Short-term loans receivable (Note 9 (2))	4,764		4,324	38,926
Accounts receivable-other	18,575		19,608	151,772
Other (Note 9 (2))	18,800		17,734	153,614
Allowance for doubtful accounts	(1,790)		(1,675)	(14,625)
Total current assets	645,795		668,770	5,276,539
Non-current assets
Property, plant and equipment
Buildings and structures	709,982		685,779	5,800,985
Accumulated depreciation (Note 9 (7))	(513,533)		(494,548)	(4,195,879)
Buildings and structures (Net)	196,448		191,231	1,605,106
(Notes 9 (2), (8))
Machinery, equipment and vehicles	2,495,207		2,389,121	20,387,351
Accumulated depreciation (Note 9 (7))	(2,156,261)		(2,090,184)	(17,617,957)
Machinery, equipment and vehicles (Net)	338,946		298,937	2,769,394
(Notes 9 (2), (8))
Tools, furniture and fixtures	61,622		60,791	503,495
Accumulated depreciation (Note 9 (7))	(56,037)		(55,099)	(457,856)
Tools, furniture and fixtures (Net)	5,585		5,691	45,638
(Note 9 (2))
Land (Notes 9 (2), (5))	240,765		239,052	1,967,199
Forests (Note 9 (2))	116,490		105,560	951,793
Plantations (Notes 9 (2), (8))	92,343		85,584	754,504
Leased assets	65,356		55,844	534,005
Accumulated depreciation (Note 9 (7))	(22,713)		(19,767)	(185,579)
Leased assets (Net)	42,643		36,077	348,426
Construction in progress (Note 9 (2))	94,091		79,279	768,783
Total property, plant and equipment	1,127,315		1,041,413	9,210,845
Intangible assets
Goodwill	3,472		3,122	28,369
Other (Note 9 (2))	8,079		9,049	66,017
Total intangible assets	11,552		12,171	94,386

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OJI HOLDINGS CORPORATION

	Millions of yen		Thousands of
		U.S. dollars
	2022	2021	2022
Investments and other assets
Investment securities (Notes 9 (1), (2))	168,545	163,961	1,377,117
Long-term loans receivable	5,571	6,933	45,518
Long-term prepaid expenses	3,497	3,692	28,580
Net defined benefit asset	61,542	60,993	502,836
Deferred tax assets	8,819	7,074	72,064
Other (Note 9 (2))	22,095	17,379	180,529
Allowance for doubtful accounts	(982)	(952)	(8,026)
Total investments and other assets	269,089	259,083	2,198,619
Total non-current assets	1,407,956	1,312,668	11,503,852
Total assets	¥2,053,752	¥1,981,438	$16,780,391

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OJI HOLDINGS CORPORATION

	Millions of yen		Thousands of
		U.S. dollars
	2022		2021	2022
LIABILITIES
Current liabilities
Notes and accounts payable-trade (Note 9 (2))	¥234,650		¥197,950	$ 1,917,239
Short-term loans payable (Note 9 (2))	166,445		129,963	1,359,957
Accounts payable-other (Note 9 (2))	24,653		20,741	201,434
Accrued expenses	51,457		48,874	420,441
Income taxes payable	23,993		11,526	196,042
Other	31,818		32,657	259,979
Total current liabilities	533,020		441,713	4,355,095
Non-current liabilities
Bonds	155,000		155,000	1,266,443
Long-term loans payable (Note 9 (2))	329,062		362,718	2,688,638
Deferred tax liabilities	64,013		59,892	523,029
Deferred tax liabilities for land revaluation	7,737		7,739	63,218
(Note 9 (5))
Net defined benefit liability	54,022		54,010	441,396
Long-term deposits	6,809		7,305	55,639
Other	28,616		27,450	233,812
Total non-current liabilities	645,261		674,117	5,272,178
Total liabilities	¥ 1,178,282		¥ 1,115,831	$ 9,627,274
CONTINGENT LIABILITIES (Note 9 (3))
NET ASSETS
Shareholders' equity
Common stock	103,880		103,880	848,769
Capital surplus	99,163		109,100	810,226
Retained earnings	567,150		493,224	4,633,963
Treasury stock	(13,277)		(13,400)	(108,483)
Total shareholders' equity	756,918		692,805	6,184,476
Accumulated other comprehensive income
Valuation difference on available-for-sale	30,500		31,654	249,208
securities
Deferred gains and losses on hedges	2,076		2,721	16,963
Revaluation reserve for land (Note 9 (5))	5,728		5,684	46,802
Foreign currency translation adjustment	29,593		(6,418)	241,799
Remeasurements of defined benefit plans	26,415		24,533	215,829
Total accumulated other comprehensive income	94,314		58,176	770,602
Share acquisition rights	157		199	1,289
Non-controlling interests	24,080		114,426	196,749
Total net assets	875,470		865,606	7,153,117
Total liabilities and net assets	¥2,053,752		¥1,981,438	$ 16,780,391

The accompanying notes are an integral part of these financial statements.

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