Summary of Consolidated Financial and Business Results for the Second Quarter of the Year Ending March 2022 (2Q/FY2022)

		November 2, 2021
	Summary of Consolidated Financial and Business Results
	for the Second Quarter of the Year Ending March 2022
Company Name:	Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange)
URL:	https://www.ojiholdings.co.jp/
Representative:	Masatoshi Kaku, President & Chief Executive Officer
Contact:	Hiroyuki Isono, Director of the Board, Senior Executive Officer
Telephone:	03-3563-1111	[phone](overseas)

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

1. Results for the Second Quarter of the Year Ending March 31, 2022 (April 1, 2021 - September 30, 2021) (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 Half of FY2021	708,529	8.6		63,681	117.3		68,835	211.5		45,582	343.0
First Half	of FY2020	652,423	(14.2)		29,306	(47.3)		22,097	(57.0)		10,289	(64.3)
Note: Comprehensive income	First Half	of FY2021		72,934 million yen
		First Half	of FY2020		138 million yen
		Profit per share		Diluted profit per
			share
		Yen		Yen
First Half	of FY2021	46.02		46.00
First Half	of FY2020	10.39		10.39

Note: Oji Holdings has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the current consolidated fiscal year.

The figures for the first half of the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

(2) Consolidated Financial Condition

	Total assets	Net assets		Shareholders'	Net assets per share
		equity ratio
	Millions of yen	Millions of yen		%	Yen
First Half of FY2021	2,030,733	852,218		39.6	811.26
Year ended March 2021	1,981,438	865,606		37.9	758.28
Note: Shareholders' equity	First Half of FY2021	803,601 million yen
	FY2020	750,981 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
FY2020	－	7.00	－	7.00	14.00
FY2021	－	7.00
FY2021 (Forecast)			－	7.00	14.00

Note : Change in forecast of dividend … None

3. Consolidated Forecasts for the Year Ending March 2022 (April 1, 2021-March 31, 2022)

(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	1,450,000	6.7		120,000	41.5		120,000	44.5		70,000	41.0	70.68
Note : Change in consolidated forecasts … No

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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 :	Yes
(ii)	Changes besides (i) :	None
(iii)	Accounting estimate change :	None
(iv)	Restatement :	None

(Note)Please refer to "Consolidated Quarterly Financial Statements and Notes (Changes in accounting policies)" on page 12 of the attached document for more details.

(4) Outstanding balance of issued shares (common stock)

1. Outstanding balance of issued shares at the end of fiscal year (Including treasury shares)

First Half of FY2021	1,014,381,817	FY2020	1,014,381,817
(ii) Outstanding balance of treasury shares at the end of fiscal year
First Half	of FY2021	23,820,587	FY2020	24,002,558
(iii) Weighted average number of shares during fiscal year
First Half	of FY2021	990,430,547	First Half of FY2020	990,099,521

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.

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1. Qualitative Information Concerning Business Performance and Financial Situation

(1) Qualitative Information Concerning Business Performance

Business Performance for the First Half of FY2021

	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
1st Half of FY2021	708.5	63.7	68.8	45.6	46.02
1st Half of FY2020	652.4	29.3	22.1	10.3	10.39
Increase (Decrease)	56.1	34.4	46.7	35.3
Increase (Decrease)	8.6%	117.3%	211.5%	343.0%

The Oji Group has set "Profitability Improvement of Domestic Business", "Expansion of Overseas Business" and "Promotion of Innovation" as the fundamental policies of its FY2019-2021Medium-term Management Plan. Through "Contribution to a Sustainable Society", we aim to become a global corporate group which stably maintains consolidated operating profit of more than ¥100.0 billion.

Based on the fundamental policies, in the domestic business, we have focused on restructuring our production system to respond to the structural changes in demand, and worked to improve capital efficiency while concentrating management resources on promising businesses to strengthen our ability to generate cash flow. In regard to overseas business, we have organically expanded the existing operations by expanding the number of overseas operations as well as developing new businesses utilizing existing infrastructure. We have also worked to create synergies among our businesses as well as operations. In regard to promoting innovation, we have promoted the development and the early commercialization of new businesses and products that meet the needs of the environment and society, in order to actualize "Contribution to a Sustainable Society".

As the business environment has changed drastically due to the spread of COVID-19, consumption structure, lifestyles, and working styles have diversified, and many opportunities and risks are expected to expand. Meanwhile, we will continue to steadily implement strategic measures to improve our corporate value in line with our fundamental policies of management strategies in Medium-term Management Plan. We will also promptly and appropriately implement business structure reforms in light of environmental changes caused by COVID-19.

Consolidated net sales for the first half of FY2021 increased by ¥56.1 billion to ¥708.5 billion (year-on-year increase of 8.6%) due to a gradual recovery in demand resulting from the resumption of economic activities that had been stagnant due to the spread of COVID-19 and higher pulp sales prices. Overseas sales ratio increased by 3.8 points from the previous year to 32.4%.

Consolidated operating profit increased by ¥34.4 billion to ¥63.7 billion (year-on-year increase of 117.3%) due to increased sales volume, higher pulp sales prices, and cost reduction efforts throughout the Group. Ordinary profit increased by ¥46.7 billion to ¥68.8 billion (year-on-year increase of 211.5%) due in part to an increase in operating profit and foreign exchange gains from revaluation of foreign currency-denominated receivables and payables. Profit before taxes increased by ¥45.6 billion to ¥67.8 billion (year-on-year increase of 205.1%), and profit attributable to owners of parent increased by ¥35.3 billion to ¥45.6 billion (year-on-year increase of 343.0%).

Effective from the beginning of the first quarter of FY2021, Oji Holdings has applied "Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)" and has changed the accounting method for revenue recognition. Please refer to "Consolidated Quarterly Financial Statements and Notes (Changes in accounting policies)" on page 12 of the attached document for more details.

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Overview of Business Performance for the First Half of FY2021 by Segment
	(I) Business Performance by Segment				(Unit: Billions of yen)
				Net Sales		Operating Profit
			1st Half of FY2020	1st Half of FY2021	Increase	1st Half of FY2020	1st Half of FY2021	Increase
			(Decrease)	(Decrease)
	Reporting	Household &	309.6	343.6	11.0%	13.0	18.1	39.4%
	Segment	Industrial Materials
		Functional Materials	90.9	91.4	0.5%	5.1	7.2	40.5%
		Forest Resources &	119.3	141.6	18.7%	6.7	23.7	256.6%
		Environment Marketing
		Printing &	114.1	117.6	3.0%	0.7	10.8	1,463.0%
		Communications Media
		Total	634.0	694.1	9.5%	25.4	59.8	135.2%
	Others		128.1	144.3	12.6%	2.8	4.1	48.1%
	Total		762.1	838.4	10.0%	28.2	64.0	126.6%
	Adjustment (*)	(109.7)	(129.8)		1.1	(0.3)
	Consolidated total	652.4	708.5	8.6%	29.3	63.7	117.3%

*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.

- 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.

As stated in "Changes in accounting policies", "Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)" has been adopted from the beginning of the first quarter of FY2021 and the accounting method for revenue recognition and the method used to calculate profit and loss for business segments have been changed.

As a result of this change, compared to the previous method, net sales in the first quarter of FY2021 decreased by ¥1.2 billion for Household and Industrial Materials segment, ¥6.6 billion for Functional Materials segment, ¥0.3 billion for Forest Resources and Environment Marketing segment, ¥13.3 billion for Printing and Communications Media segment, and ¥2.6 billion for Others. The effects on each segment's profit is immaterial.

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○Household and Industrial Materials

In the first half of FY2021, net sales amounted to ¥343.6 billion (year-on-year increase of 11.0%), and operating profit

was ¥18.1 billion (year-on-year increase of 39.4%).

Regarding domestic business, domestic sales volume of containerboard and corrugated containers increased from the previous year, due to continued steady sales for e-commerce industry as a result of a trend of staying home to prevent the spread of COVID-19, in addition to the overall recovery in demand. As for containerboard, export sales volume decreased from the previous year. As for boxboard, domestic sales volume increased from the previous year due to a recovery in demand for goods for events, souvenirs and gifts, which had declined in the previous year on account of the trends of staying home and refraining from holding events. Export sales volume increased from the previous year. As for packing paper, domestic sales volume increased from the previous year due to the overall recovery in demand. Export sales volume increased from the previous year mainly in Southeast Asia. As for disposable diapers for babies, both domestic and export sales volume decresed from the previous year. As for disposable diapers for adults, sales volume decreased from the previous year. As for household paper, sales volume increased from the previous year due to an increase in sales promotional campaigns and events, which had been refrained from due to the spread of COVID-19. As for processed goods including masks and wet wipes, sales volume decreased from the previous year as the temporary increase in demand accompanying the spread of COVID-19 in the previous year has subsided.

Regarding overseas business, in Southeast Asia, in containerboard business, both sales volume and sales amount increased from the previous year due to strong demand from converting companies. As for corrugated containers, sales volume and sales amount increased from the previous year due to strong sales since the end of last year and the penetration of price increases. As for disposable diapers, in Indonesia, sales volume increased significantly from the previous year due to our continual efforts for sales expansion at convenience stores. In Malaysia, sales volume decreased from the previous year due to sluggish sales at retail stores on account of the impact of COVID-19. In Oceania, as for containerboard, export sales volume decreased from the previous year due in part to a disruption of marine transport schedules accompanying the worldwide shortage of containers. As for corrugated containers, sales volume increased from the previous year both in New Zealand and Australia.

○Functional Materials

In the first half of FY2021, net sales amounted to ¥91.4 billion (year-on-year increase of 0.5%), and operating profit was ¥7.2 billion (year-on-year increase of 40.5%).

Regarding domestic business, overall sales volume and sales amount increased from the previous year due to an increase in demands for films for condensers used in electric vehicles (electric vehicles, hybrid vehicles, plug-in hybrid vehicles and fuel cell vehicles), film separate for manufacturing electronic components for smartphones, and paper for manufacturing electronic components, although demands for tickets and luxury packages have continued to decrease accompanying the spread of COVID-19. As for thermal paper, sales volume increased from the previous year due to a recovery in demand.

Regarding overseas business, as for thermal paper, sales volume increased from the previous year in North America, Southeast Asia and South America. However, sales volume decreased in Europe from the previous year in reaction to customers' trends to secure inventories in the previous year.

○Forest Resources and Environment Marketing

In the first half of FY2021, net sales amounted to ¥141.6 billion (year-on-year increase of 18.7%), and operating profit was ¥23.7 billion (year-on-year increase of 256.6%).

Regarding domestic business, sales volume of pulp business increased from the previous year mainly because of an increase in the export volume of dissolving pulp to China due to a recovery from the economic stagnation caused by the spread of COVID-19. Sales volume of energy business decreased from the previous year due to regular inspections for facilities at MPM Oji Eco-Energy Co., Ltd. As for lumber business, sales volume increased from the previous year.

Regarding overseas business, sales volume of pulp business decreased from the previous year, while sales amount increased due to higher pulp sales prices. As for lumber business, sales volume increased from the previous year.

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