Oji : Summary of Consolidated Financial and Business Results for the Third Quarter of the Year Ending March 2023 (3Q/FY2023)

		February 3, 2023
	Summary of Consolidated Financial and Business Results
	for the Third Quarter of the Year Ending March 2023
Company Name:	Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange)
URL:	https://www.ojiholdings.co.jp/
Representative:	Hiroyuki Isono, President & Chief Executive Officer
Contact:	Akio Hasebe, Director of the Board, Executive Officer
Telephone:	03-3563-1111	[phone](overseas)

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

1. Results for the Third Quarter of the Year Ending March 31, 2023 (April 1, 2022 - December 31, 2022) (Unaudited)

1. Consolidated Business Results

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

					Net sales	Operating profit			Ordinary profit			Profit attributable to
									owners of parent
			Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
First Nine Months of FY2022		1,296,723	19.4	59,507	(37.5)		68,514	(32.1)		39,104	(41.3)
First Nine Months of FY2021		1,085,614	8.2	95,283	70.6		100,839	111.5		66,645	154.9
Note: Comprehensive income	First Nine Months of FY2022	139,936 million yen
			First Nine Months of FY2021	93,501 million yen
				Profit per share	Diluted profit per
					share
					Yen				Yen
First Nine Months of FY2022		39.46			39.45
First Nine Months of FY2021		67.29			67.25
(2) Consolidated Financial Condition
				Total assets		Net assets			Shareholders'			Net assets per share
							equity ratio
				Millions of yen		Millions of yen				%			Yen
First Nine Months of FY2022		2,373,538		999,423		41.0		981.20
Year ended March 2022			2,053,752		875,470		41.4		859.29
Note: Shareholders' equity		First Nine Months of FY2022	972,545 million yen
			FY2021			851,232 million yen
2. Cash Dividends
								Dividend per share
		End of 1Q		End of 2Q			End of 3Q			End of FY			Annual
		Yen				Yen			Yen				Yen			Yen
FY2021		－				7.00			－				7.00		14.00
FY2022		－				8.00			－
FY2022 (Forecast)													8.00			16.00

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 are ratios compared to the previous year)

	Net sales	Operating profit	Ordinary profit	Profit attributable to	Profit per share
	owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	1,800,000	22.4	105,000	(12.6)	110,000	(18.6)	70,000	(20.0)	70.66

Note : Change in consolidated forecasts … None

4. Notes

1. Changes in important subsidiaries

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

1. Application of simple accounting methods and quarterly peculiar accounting methods : None
2. Changes in accounting methods compared with recent consolidated accounting periods

(i)	Changes due to accounting standard changes :	None
(ii)	Changes besides (i) :	None
(iii)	Accounting estimate change :	None
(iv)	Restatement :	None

1. Outstanding balance of issued shares (common stock)
2. 1. Outstanding balance of issued shares at the end of fiscal year (including treasury shares)

First Nine Months of FY2022	1,014,381,817	FY2021	1,014,381,817
(ii) Outstanding balance of treasury shares at the end of fiscal year
First Nine Months of FY2022	23,204,493	FY2021	23,764,570
(iii) Weighted average number of shares during fiscal year
First Nine Months of FY2022	990,910,132	First Nine Months of FY2021	990,469,434

NOTICE

・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 Business Performance for the First Nine Months of FY2022

	Net Sales	Operating Profit	Ordinary Profit	Profit Attributable to	Profit Per Share
	Owners of Parent
	Billions of yen	Billions of yen	Billions of yen	Billions of yen	Yen
First Nine Months of
FY2022	1,296.7	59.5	68.5	39.1	39.46
First Nine Months of
FY2021	1,085.6	95.3	100.8	66.6	67.29
Increase (Decrease)	211.1	(35.8)	(32.3)	(27.5)
Increase (Decrease)	19.4%	(37.5%)	(32.1%)	(41.3%)

In its FY2022-2024Medium-term Management Plan, the Oji Group has set the basic policy of "Growth to Evolution" as the Long-term Vision for 2030, 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 FY2024 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 nine months of FY2022 increased by ¥211.1 billion to ¥1,296.7 billion (year-on-year increase of 19.4%) 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 6.4 points from the previous year to 38.7%.

Consolidated operating profit decreased by ¥35.8 billion to ¥59.5 billion (year-on-year decrease of 37.5%) 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 ¥32.3 billion to ¥68.5 billion (year-on-year decrease of 32.1%) despite foreign exchange gains from revaluation of foreign currency-denominated receivables and payables. Profit before taxes decreased by ¥37.4 billion to ¥

64.2 billion (year-on-year decrease of 36.8%), and profit attributable to owners of parent decreased by ¥27.5 billion to ¥39.1 billion (year-on-year decrease of 41.3%) .

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Overview of Business Performance for the First Nine Months of FY2022 by Segment
(I) Business Performance by Segment				(Unit: Billions of yen)
				Net Sales		Operating Profit（Loss）
			First Nine	First Nine	Increase	First Nine	First Nine	Increase
			Months of	Months of	Months of	Months of
			(Decrease)	(Decrease)
			FY2021	FY2022	FY2021	FY2022
	Reporting	Household &	519.8	594.5	14.4%	23.2	0.4	(98.3%)
	Segment	Industrial Materials
		Functional Materials	138.1	167.6	21.3%	11.7	12.0	2.3%
		Forest Resources &	228.5	324.0	41.8%	39.6	47.7	20.6%
		Environment Marketing
		Printing &	180.4	207.7	15.1%	15.2	(4.7)	-
		Communications Media
		Total	1,066.9	1,293.7	21.3%	89.7	55.4	(38.2%)
	Others		216.9	242.3	11.7%	6.0	6.7	12.8%
	Total		1,283.8	1,536.1	19.6%	95.7	62.2	(35.0%)
	Adjustment (*)	(198.2)	(239.4)		(0.4)	(2.7)
	Consolidated total	1,085.6	1,296.7	19.4%	95.3	59.5	(37.5%)

*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".

From the first half of FY2022, some businesses that had been classified under "Household and Industrial Materials" and "Others" have been reclassified under "Forest Resources and Environment Marketing". Year-on-year comparisons are made with figures for the previous year after reclassification into the new segment classifications.

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.

- Functional Materials:

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.

- Others:

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

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○Household and Industrial Materials

In the first nine months of FY2022, net sales amounted to ¥594.5 billion (year-on-year increase of 14.4%), and operating profit was ¥0.4 billion (year-on-year decrease of 98.3%).

Regarding domestic business, sales amount increased from the previous year due to ongoing price revision for 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 and the penetration of price increases of containerboard and corrugated containers mainly in Southeast Asia and India, in addition to the start of operation of a new containerboard machine in Malaysia in October 2021.

○Functional Materials

In the first nine months of FY2022, net sales amounted to ¥167.6 billion (year-on-year increase of 21.3%), and operating profit was ¥12.0 billion (year-on-year increase of 2.3%).

Regarding domestic business, sales amount increased from the previous year. A recovery trend in demand for thermal paper, which had declined due to the spread of COVID-19, and the implementation of price revision resulted in an increase in the overall sales, 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 nine months of FY2022, net sales amounted to ¥324.0 billion (year-on-year increase of 41.8%), and operating profit was ¥47.7 billion (year-on-year increase of 20.6%).

Regarding domestic business, sales amount of pulp business increased from the previous year due to a rise in the pulp market. Sales amount of energy business increased from the previous year due to the start of operation of a new biomass power plant in Tokushima Prefecture in December 2022.

Regarding overseas business, sales amount of pulp business increased from the previous year due to a rise in the pulp market in addition to the strong sales. Sales amount of lumber processing business increased from the previous year due to steady sales.

○Printing and Communications Media

In the first nine months of FY2022, net sales amounted to ¥207.7 billion (year-on-year increase of 15.1%), and operating loss was ¥4.7 billion (year-on-year decrease of ¥19.9 billion).

Regarding domestic business, sales amount increased from the previous year. While demand for newsprint continued to decline, sales of printing paper increased due to higher demand for domestic products resulting from a decline in imported paper, in addition to price revision.

Regarding overseas business, sales amount increased from the previous year at Jiangsu Oji Paper Co., Ltd..

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