Slides
Page 1
1 Summary of Financial Business Results November 7, 2025 1st-half of FY2025
Page 2
2 1st-half of FY2025 Result Overview Follow-up on the Medium-Term Management Plan 2027 FY2025 Financial Forecast01 Summary of Financial Business Results Executive Summary Shareholder Returns 1st-half of FY2025 vs previous year Operating Profit 16.7 (20.5) Profit attributable to Owners of Parent 10.9 (13.4) ⚫ Operating profit decreased mainly due to a decline in overseas pulp market, and cost increases such as raw material and fuel prices, distribution and personnel, etc. ⚫ Foreign exchange losses from revaluation of foreign currency-denominated receivables and payables. ⚫ Recorded extraordinary gains on sale of investment securities, while also recorded business restructuring expenses at Oji Fibre Solutions and Oji Nepia. FY2025F vs previous plan Operating Profit 45.0 (30.0) Profit attributable to Owners of Parent 50.0 (15.0) ROE 4.7％ (1.4pt) ⚫ Operating profit declined due to a slowdown in the pulp market recovery and decreased domestic sales volume. ⚫ Assets slimming measures contribute to increase of extraordinary profit. ⚫ Reduction of equity is progressing as planned. ⚫ Keeping the dividend forecast of ¥36/share. ⚫ Dividend payout ratio is expected to be 66.4% due to reduction of profit and the unchanged dividend forecast. Each initiatives are steadily in progress - price increase, business restructuring, expansion of sustainable products and the forest biomass business etc. 02 03 04 (¥ billion) (¥ billion)
Page 3
3 1st-half of FY2025 Result Overview Follow-up on the Medium-Term Management Plan 2027 FY2025 Financial Forecast 1. Financial Highlights of 1st-half of FY2025 (consolidated) 6 2. Sales and Operating Profit by Segment (consolidated) [1st-half of FY2025 Result] 9 3. Analysis of Operating Profit by Segment Household and Industrial Materials 10 Functional Materials 11 Forest Resources and Environmental Marketing 12 Printing and Communications Media 13 1. Financial Forecast for FY2025 15 2. Sales and Operating Profit by Segment (consolidated) [FY2025 Forecast] 18 3. Operating Profit by Segment 19 4. Impact on Operating Profit from External Environment 20 5. FY2025 Comparison with Previous Forecast 21 6. Steady price pass-through 24 7. Sales and Operating Profit by Segment (consolidated) [Revised FY2025 Forecast] 25 Summary of Financial Business Results Contents Shareholder Returns Reference Materials 01 02 04 03 05 Trends of Net Sales by Segment (consolidated) etc. 39 Overview of Initiatives for the Medium- Term Management Plan 2027 29 1. Financial Strategy – Assets Slimming 30 2. Business Strategy – Business Restructuring 31 Business Strategy – Making the Forest Biomass Business a Core Business 32 Business Strategy – Expansion of Sustainable Products 33 Business Strategy – Latest initiatives / Today’s news releases 34 3. Sustainability Strategy – Carbon Neutral and Nature Positive 35 Sustainability Strategy – Realization of Circular Economy 37 Dividend and Treasury Stock Buyback 27
Page 4
This document does not constitute a disclosure document under the provisions of the Financial Instruments and Exchange Law, and no guarantees are provided concerning the accuracy of completeness of the information contained therein. Forecasts and other forward-looking statements in this document represent judgments by Oji Holdings Corporation based on information available at the time of the briefing, and they may be affected by unforeseeable events. You are therefore urged not to make investment decisions solely on the basis of this document. Oji Holdings Corporation will not accept any liability whatsoever for losses incurred as a result of use of this document. 4
Page 5
5 1st-half of FY2025 Result Overview01
Page 6
6 01. 1st-half of FY2025 Result Overview 1. Financial Highlights of 1st-half of FY2025 (consolidated) 1st-half of FY2024 1st-half of FY2025 Increase (Decrease) 922.9 915.0 (7.9) 37.2 16.7 (20.5) [Domestic Companies] [22.8] [18.1] [(4.7)] [Overseas Companies] [14.4] [(1.4)] [(15.8)] 39.4 8.8 (30.6) 41.7 44.1 2.4 152.8 146.0 (6.8) Number of Domestic 94 94 - Consolidated Companies Overseas 124 122 (2) Total 218 216 (2) Domestic : Overseas : +1[Forest Plantation in Brazil], (1)[Packaging in Europe], (1)[Woodchips in Australia], (1)[Labels in Thailand] Equity Method Affiliates : (1)[Overseas+1,Overseas(2)] Depreciation 10.9 (¥ billion) Average Exchange Rate (¥/US$) (13.4) Net Sales Operating Profit Ordinary Profit 24.3Profit Attributable to Owners of Parent
Page 7
7 01. 1st-half of FY2025 Result Overview 1st-half of FY2024 1st-half of FY2025 ¥22.8 bil. ¥18.1 bil. (¥4.7 bil.) Sales price +¥4.5 bil. Sales volume (¥3.5 bil.) Raw materials & fuels (¥1.5 bil.) (Foreign exchange +2.6) Other costs (¥4.2 bil.) Electricity, gas (2.0) Recovered paper (0.5) Coal, +1.0 Pulp, etc. +1.0 (\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - 1.2 1.2 Total 4.5 (3.5) (1.5) (4.2) (4.7) (3.6)Printing & Communications Media 0.5 (2.0) (2.0) (0.1) - Forest Resources & Environment Marketing - - - 0.6 0.6 Functional Materials 1.0 - - (1.0) (2.9)Household & Industrial Materials 3.0 (1.5) 0.5 (4.9) Personnel expenses & distribution costs (4.0) 1. Financial Highlights of 1st-half of FY2025 (consolidated) Domestic Companies - Breakdown of Operating Profit Difference (FY2024 1st-half vs FY2025 1st-half)
Page 8
8 01. 1st-half of FY2025 Result Overview 1. Financial Highlights of 1st-half of FY2025 (consolidated) Overseas Companies - Breakdown of Operating Profit Difference (FY2024 1st-half vs FY2025 1st-half) 1st-half of FY2024 1st-half of FY2025 ¥14.4 bil. (¥1.4 bil.) (¥15.8 bil.)Sales price Sales volume (¥1.0 bil.) Raw materials & fuels Other costs (¥17.0 bil.) ¥0.0 bil. +¥2.2 bil. (\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - (0.6) (0.6) Total (17.0) (1.0) - 2.2 (15.8) (13.1) Printing & Communications Media (1.0) - 2.0 (0.1) 0.9 Forest Resources & Environment Marketing (14.0) (0.5) (1.0) 2.4 (0.5) Functional Materials (2.5) - - - (2.5) Household & Industrial Materials 0.5 (0.5) (1.0) 0.5
Page 9
9 01. 1st-half of FY2025 Result Overview 2. Sales and Operating Profit by Segment [1st-half of FY2025 Result] Net Sales Operating Profit Net Sales Operating Profit Net Sales Operating Profit 449.7 8.6 462.0 5.2 12.3 (3.4) 121.5 7.9 115.5 5.4 (6.0) (2.5) 202.3 17.8 190.9 5.3 (11.4) (12.5) 146.2 6.2 136.2 3.5 (10.0) (2.7) 3.2 (3.3) 10.4 (2.7) 7.2 0.6 922.9 37.2 915.0 16.7 (7.9) (20.5) (¥ billion) Increase (Decrease) Household & Industrial Materials Functional Materials 1st-half of FY2024 1st-half of FY2025 Printing & Communications Media Others Total Forest Resources & Environment Marketing *1: Sales include inter-segment sales *2: Others include adjustment amount From FY2025, Walki and IPI (previously located in “Others”) are allocated to “Household & Industrial Materials”. HQ expenses (previously distributed to each segment) are allocated to “Others”. Accordingly, FY2024 segment results have been restated to reflect these changes in this page.
Page 10
■Household and Industrial Materials 10 01. 1st-half of FY2025 Result Overview 3. Analysis of Operating Profit by Segment ¥ bil. Other costs (Personnel expenses & distribution costs: (3.0)) (¥4.9 bil.) Sales & market factor +¥1.5 bil. etc. Domestic (¥2.9 bil.) Overseas (¥0.5 bil.) Dom ¥9.4b OS ¥(4.2b) ¥462.0 bil. ¥5.2 bil. 1st-half of FY2025 Net Sales Operating Profit 1st-half of FY2024 Net Sales Operating Profit ¥449.7 bil. Dom ¥12.3b OS ¥(3.7b) ¥8.6 bil. Price difference in raw materials & fuels (¥1.0 bil.) etc. 280 300 320 340 360 380 400 420 40 60 80 100 120 140 160 20/4 21/4 22/4 23/4 24/4 25/4 Price of Key Products in Japan Coated duplex board C linerboard Corrugated sheet Tissue Paper [right axis] ( ¥/5 Boxes)( ¥/ kg ・m2) 0 100 200 300 400 500 20/4 21/4 22/4 23/4 24/4 25/4 Price of Key Fuels Coal [Australia/Newcastle] ( $/t ) Decreased profits due to increased costs in domestic and overseas markets Domestic 1,410 86.34 121.7 1,419 85.34 121.1 9 100.6% (1.00) (0.7) Domestic 1,504 76.81 115.5 1,499 78.55 117.7 (5) 99.7% 1.74 2.2 *Total amount of consolidated Group's manufacturing companies including internal consumption Sales of Key Products (*) 1st-half of FY2024 1st-half of FY2025 Increase (Decrease) Sales Volume Unit Price Sales Amount Sales Volume Unit Price Sales Amount Sales Volume Year-on Year Unit Price Sales Amount 1,000t (or) million ㎡ ¥/kg(or)㎡ ¥ billion 1,000t (or) million ㎡ ¥/kg(or)㎡ ¥ billion 1,000t (or) million ㎡ ％ ¥/kg(or)㎡ ¥ billion Paperboard Corrugated containers (million ㎡)
Page 11
■Functional Materials 11 01. 1st-half of FY2025 Result Overview 3. Analysis of Operating Profit by Segment Domestic ¥0.0 bil. Overseas (¥2.5 bil.) Increase (Decrease) of Operating Profit (2.5) Operating Profit Dom ¥5.1b OS ¥0.3b ¥115.5 bil. ¥5.4 bil. 1st-half of FY2025 Net Sales ¥ bil. 1st-half of FY2024 Net Sales Operating Profit Dom ¥5.1b OS ¥2.8b ¥121.5 bil. ¥7.9 bil. Sales & market factor +¥1.0 bil. Other costs (Personnel expenses & distribution costs: (0.5)) (¥1.0 bil.) etc. Sales & market factor (¥2.5 bil.) etc. 0 40 80 120 20/4 21/4 22/4 23/4 24/4 25/4 Price of Key Raw Materials and Fuels Crude oil [Dubai] （$/bbl） Naphtha [Japan] （¥1,000/kl） 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 20 21 22 23 24 25 (M ㎡) Sales of Thermal paper （Domestic & Overseas） 2nd-haif 1st-half Increased cost were passed on to prices in domestic market while overseas business profit decreased due to deteriorated market conditions Domestic& Overseas 1,988 24.82 49.3 2,027 22.54 45.7 40 102.0% (2.29) (3.7) *Total amount of consolidated Group's manufacturing companies including internal consumption Sales of Key Products (*) 1st-half of FY2024 1st-half of FY2025 Increase (Decrease) Sales Volume Unit Price Sales Amount Sales Volume Unit Price Sales Amount Sales Volume Year-on Year Unit Price Sales Amount million ㎡ ¥/㎡ ¥ billion million ㎡ ¥/㎡ ¥ billion million ㎡ ％ ¥/㎡ ¥ billion Thermal paper (million ㎡)
Page 12
■Forest Resources and Environment Marketing 12 01. 1st-half of FY2025 Result Overview 3. Analysis of Operating Profit by Segment 2024Result (Jan.-Dec.) 2025Assumption (Jan.-Dec.) 2025 (Jan.-Jun. Result) NBKP LBKP 750 $/t 715 $/t 750 $/t (35) 685 $/t 625 $/t 540 $/t 550 $/t (85) 530 $/t Reference (Oct. Assumption) Overseas (¥13.1 bil.) Increase (Decrease) of Operating Profit (12.5) ¥ bil. Net Sales Operating Profit ¥5.3 bil. Dom ¥3.3b OS ¥2.0b ¥190.9 bil. 1st-half of FY2025 1st-half of FY2024 Net Sales Operating Profit ¥17.8 bil. Dom ¥2.7b OS ¥15.1b ¥202.3 bil. Sales & market factor (¥14.5 bil.) Other costs +¥2.4 bil. etc. 400 500 600 700 800 900 1000 20/4 21/4 22/4 23/4 24/4 25/4 ($/t) Price of Key Products (Pulp - Net Price for China Market) LBKP [Brazil] NBKP [Chili] 660 $/t 535 $/t 2025 (Jul.-Dec.. Assumption) Decreased profits due to deteriorated pulp market Domestic& Overseas 1,069 109.55 117.1 1,139 86.13 98.1 70 106.6% (23.42) (19.0) Domestic 797 - - 857 - - 59 107.4% - - *Total amount of consolidated Group's manufacturing companies including internal consumption Sales of Key Products (*) 1st-half of FY2024 1st-half of FY2025 Increase (Decrease) Sales Volume Unit Price Sales Amount Sales Volume Unit Price Sales Amount Sales Volume Year-on Year Unit Price Sales Amount 1,000t (or) GWh ¥/kg ¥ billion 1,000t (or) GWh ¥/kg ¥ billion 1,000t (or) GWh ％ ¥/kg ¥ billion Market pulp Electric power (GWh)
Page 13
■Printing and Communications Media 13 01. 1st-half of FY2025 Result Overview 3. Analysis of Operating Profit by Segment Domestic (¥3.6 bil.) Overseas +¥0.9 bil. (2.7) Increase (Decrease) of Operating Profit ¥ bil. 1st-half of FY2025 Net Sales Operating Profit ¥136.2 bil. ¥3.5 bil. Dom ¥2.4b OS ¥1.1b ¥146.2 bil. ¥6.2 bil. Dom ¥6.0b OS ¥0.2b 1st-half of FY2024 Net Sales Operating Profit Price difference in raw materials & fuels (¥2.0 bil.) Sales & market factor (¥1.5 bil.) etc. Price difference in raw materials & fuels +¥2.0 bil. Sales & market factor (¥1.0 bil.) etc. 100 150 200 250 20/4 21/4 22/4 23/4 24/4 25/4 (¥/kg) Price of Key Products in Japan A2 Grade coated paper A3 Grade coated paper 120 140 160 180 200 220 20/4 21/4 22/4 23/4 24/4 25/4 ($/t) Price of Key Raw Materials (Woodchip) Australia hardwood US softwood Thailand hardwood Decreased profit due to increased prices of raw materials & fuels in domestic markets while overseas business profit increased Domestic 804 126.35 101.6 746 127.80 95.3 (59) 92.7% 1.45 (6.3) *Total amount of consolidated Group's manufacturing companies including internal consumption Unit Price Sales Amount 1,000t ¥/kg ¥ billion 1,000t ¥/kg ¥ billion 1,000t ％ ¥/kg ¥ billion Newsprint, printing & communication paper Sales of Key Products (*) 1st-half of FY2024 1st-half of FY2025 Increase (Decrease) Sales Volume Unit Price Sales Amount Sales Volume Unit Price Sales Amount Sales Volume Year-on Year
Page 14
14 FY2025 Financial Forecast02
Page 15
1,849.3 1,850.0 0.7 67.7 45.0 (22.7) [47.6] [45.0] [(2.6)] [20.1] [0] [(20.1)] 68.6 35.0 (33.6) 4.3% 4.7% 0.4pt 89.2 84.3 (4.9) 152.6 148.0 (4.6) (¥ billion) Increase (Decrease)FY2024 Net Sales Operating Profit Ordinary Profit ROE [Domestic Companies] [Overseas Companies] 50.0 3.846.2 FY2025F Average Exchange Rate(¥/US＄) Depreciation Profit Attributable to Owners of Parent 15 02. FY2025 Financial Forecast 1. Financial Forecast for FY2025 (consolidated) Assumption for FY2025 Financial Forecast ◆Assumption ◆Effects of fluctuation on operation profit (per annum) Exchange rates :150JPY/USD (Assumed exchange rate for 2nd-half) Exchange [JPY] : approx. ¥0.78 billion with a fluctuation of US$ by 1% (strong US$ -) Woodchip :based on current contract [BRL] : approx. ¥0.37 billion with a fluctuation of US$ by 1% (strong US$ +) Recovered paper :static at current level [NZD] : approx. ¥0.68 billion with a fluctuation of US$ by 1% (strong US$ +) Coal :based on current Australia Price of pulp : approx. ±¥3.28 billion with a fluctuation of US$10/t (high price +) coal price (US$105/t) Price of woodchip : approx. ±¥4.73 billion with a fluctuation of US$10/BDt (high price -) Heavy Oil :based on current Dubai Price of recovered paper : approx. ±¥3 billion with a fluctuation of ¥1/kg crude oil price (US$65/bbl) Price of Coal : approx. ±¥0.09 billion with a fluctuation of US$1/t Price of Dubai crude oil : approx. ±¥0.32 billion with a fluctuation of US$1/bbl (heavy oil, bunker, naphtha and others)
Page 16
16 02. FY2025 Financial Forecast 1. Financial Forecast for FY2025 (consolidated） Domestic Companies – Breakdown of Operating Profit Difference (FY2024 vs FY2025F) FY2024 FY2025F ¥47.6 bil. ¥45.0 bil. (¥2.6 bil.) Sales price +¥18.0 bil. Sales volume (¥7.5 bil.) Raw materials & fuels (¥2.5 bil.) (Foreign exchange +4.6) Other costs (¥10.6 bil.) Base paper (3.5) Electricity, gas (3.5) Coal +2.5 Pulp, etc. +1.5 Personnel expenses & distribution costs (7.0) HQ expenses (3.5) (\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - (3.9) (3.9) Total 18.0 (7.5) (2.5) (10.6) (2.6) Household & Industrial Materials 14.0 (3.0) (1.0) (6.4) 3.6 Forest Resources & Environment Marketing - - - 0.9 0.9 Functional Materials 2.5 (0.5) 0.5 (1.2) 1.3 Printing & Communications Media 1.5 (4.0) (2.0) - (4.5)
Page 17
17 02. FY2025 Financial Forecast 1. Financial Forecast for FY2025 (consolidated） Overseas Companies – Breakdown of Operating Profit Difference (FY2024 vs FY2025F) FY2024 FY2025F (¥20.1 bil.)¥20.1 bil. ¥0.0 bil. Sales price (¥34.5 bil.) Sales volume +¥5.5 bil. Raw materials & fuels ¥0.0 bil. Other costs +¥8.9 bil. Foreign exchange +3.5 Efficiency, etc. +5.5 (\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - (0.4) (0.4) Total (34.5) 5.5 - 8.9 (20.1) Household & Industrial Materials (3.0) (1.5) 6.5 1.0 Functional Materials (2.5) 0.5 - 0.3 (1.7) (1.0) - 3.0 0.7 2.2 Forest Resources & Environment Marketing (29.5) 8.0 (1.5) 1.8 (21.2) Printing & Communications Media (1.5)
Page 18
18 02. FY2025 Financial Forecast 2. Sales and Operating Profit by Segment [FY2025 Forecast] Net Sales Operating Profit Net Sales Operating Profit Net Sales Operating Profit 917.8 18.4 935.0 23.0 17.2 4.6 236.4 12.4 236.0 12.0 (0.4) (0.4) 392.3 31.3 398.0 11.0 5.7 (20.3) 293.2 13.3 268.0 11.0 (25.2) (2.3) 9.6 (7.7) 13.0 (12.0) 3.4 (4.3) 1,849.3 67.7 1,850.0 45.0 0.7 (22.7) (¥ billion) FY2024 FY2025F Increase (Decrease) *1: Sales include inter-segment sales *2: Others include adjustment amount Functional Materials Printing & Communications Media Others Total Forest Resources & Environment Marketing Household & Industrial Materials From FY2025, Walki and IPI (previously located in “Others”) are allocated to “Household & Industrial Materials”. HQ expenses (previously distributed to each segment) are allocated to “Others”. Accordingly, FY2024 segment results have been restated to reflect these changes in this page.
Page 19
Net Sales 917.8 935.0 Operating Profit 18.4 23.0 [Domestic] [24.9] [28.5] [Overseas] [(6.5)] [(5.5)] Operating Margin 2.0% 2.5% Net Sales 236.4 236.0 Operating Profit 12.4 12.0 [Domestic] [9.2] [10.5] [Overseas] [3.2] [1.5] Operating Margin 5.2% 5.1% Net Sales 392.3 398.0 Operating Profit 31.3 11.0 [Domestic] [6.6] [7.5] [Overseas] [24.7] [3.5] Operating Margin 8.0% 2.8% Net Sales 293.2 268.0 Operating Profit 13.3 11.0 [Domestic] [14.0] [9.5] [Overseas] [(0.7)] [1.5] Operating Margin 4.5% 4.1% FY2024 FY2025F FY2024 FY2025F FY2024 FY2025F FY2024 FY2025F Household & Industrial Materials Functional Materials Forest Resources & Environment Marketing Printing & Communications Media +¥4.6 bil. Operating Profit (¥0.4 bil.) Operating Profit (¥20.3 bil.) Operating Profit (¥2.3 bil.) Operating Profit Domestic +¥3.6 bil. Overseas +¥1.0 bil. Domestic +¥1.3 bil. Overseas (¥1.7 bil.) Domestic +¥0.9 bil. Overseas (¥21.2 bil.) Domestic (¥4.5 bil.) Overseas +¥2.2 bil. 19 02. FY2025 Financial Forecast 3. Operating Profit by Segment From FY2025, Walki and IPI (previously located in “Others”) are allocated to “Household & Industrial Materials”. HQ expenses (previously distributed to each segment) are allocated to “Others”. Accordingly, FY2024 segment results have been restated to reflect these changes in this page.
Page 20
20 02. FY2025 Financial Forecast 4. Impact on Operating Profit from External Environment （¥billion/year) ◆Changes in exchange rates Japanese Yen * 150.00 JPY/USD (7.8) Brazilian Real (BRL) 5.40 BRL/USD +3.7 New Zealand Dollar (NZD) 1.73 NZD/USD +6.8 * The figure includes the effect of conversion of profit in USD to JPY ◆Changes in pulp prices Pulp sales & purchase (USD 10/t higher) +3.3 Total Impact from USD fluctuation on trade & profit- conversion (in case of stronger USD by 10%) Functional Materials Functional Materials Total Assumed exchange rates for 2nd-half of FY2025 Household & Industrial Materials Forest Resources & Environment Marketing Printing & Communi- cations Media Household & Industrial Materials Forest Resources & Environment Marketing Printing & Communi- cations Media
Page 21
1,900.0 1,850.0 (50.0) 75.0 45.0 (30.0) [56.0] [45.0] [(11.0)] [19.0] [0] [(19.0)] 60.0 35.0 (25.0) 6.1% 4.7% (1.4pt) 87.8 84.3 (3.5) 145.0 148.0 3.0 36 36 - 51.8% 66.4% 14.6pt [Domestic Companies] Net Sales Operating Profit (¥ billion) FY2025F FY2025F (Revised) Increase (Decrease) 65.0 50.0 (15.0) [Overseas Companies] Ordinary Profit ROE Dividend(¥/share) Dividend payout ratio Depreciation Average Exchange Rate(¥/US＄) Profit Attributable to Owners of Parent 21 02. FY2025 Financial Forecast 5. FY2025 Comparison with Previous Forecast
Page 22
(\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - 1.8 1.8 Total (3.5) (9.0) 1.5 - (11.0) (8.0) (4.0) 1.1 0.1 (0.9) (0.9) Forest Resources & Environment Marketing Printing & Communications Media - (1.5) - (5.0) - (0.5) (1.0) Household & Industrial Materials Functional Materials (1.5) (0.5) (2.5) (1.5) 1.0 1.0 (1.0) 22 02. FY2025 Financial Forecast 5. Revised Financial Forecast for FY2025 (consolidated) Domestic Companies - Breakdown of Operating Profit Difference (FY2025F vs Revised FY2025F) FY2025F Revised FY2025F ¥56.0 bil. ¥45.0 bil. Sales price (¥3.5 bil.) Sales volume (¥9.0 bil.) Raw materials & fuels +¥1.5 bil. Other costs ¥0.0 bil. (¥11.0 bil.) Pulp (1.5) Paper (2.0) (Export market factor, Sales mix, etc.)
Page 23
23 02. FY2025 Financial Forecast 5. Revised Financial Forecast for FY2025 (consolidated) Overseas Companies – Breakdown of Operating Profit Difference (FY2025F vs Revised FY2025F) FY2025F Revised FY2025F ¥19.0 bil. ¥0.0 bil. (¥19.0 bil.) Sales price (¥18.0 bil.) Sales volume (¥3.5 bil.) Raw materials & fuels +¥1.5 bil. Other costs +¥1.0 bil. (\ billion) Sales price Sales volume Raw materials & fuels Other costs Total Others - - - (0.8) (0.8) Total (18.0) (3.5) 1.5 1.0 (19.0) (1.5) (3.0) (1.6) (14.1) (3.0) - 0.5 0.5 (2.0) (0.5) 2.5 2.5 - (2.5) (1.5) 1.5 0.4 (2.1) Household & Industrial Materials Functional Materials Forest Resources & Environment Marketing Printing & Communications Media (4.5) (8.0)
Page 24
Domestic Paper Products: Currently working to steadily pass on increased costs to prices 24 02. FY2025 Financial Forecast 6. Steady Price Pass-through Segments Target products Implementation period Revision range Household & Consumer Products ⚫ General household paper products Shipments from April 21, 2025 +10% or more Industrial Materials ⚫ Containerboard, core paperboard, base paper of gypsum board, miscellaneous paper ⚫ Boxboard, color board, chipboard Shipments from October 1, 2025 +10% or more ⚫ Corrugated container Delivery from October 1, 2025 Customer-specific handling ⚫ Packaging paper Shipment from January 1, 2026 +10% or more Functional Materials ⚫ Products manufactured at Oji F-Tex Ebetsu Mill Shipments from October 1, 2025 Customer-specific handling Printing & Communications Media ⚫ General printing & communication paper Shipments from October 1, 2025 +10% or more Latest price revision (Domestic paper products)
Page 25
25 02. FY2025 Financial Forecast 7. Sales and Operating Profit by Segment [Revised FY2025 Forecast] Net Sales Operating Profit Net Sales Operating Profit Net Sales Operating Profit 966.0 27.0 935.0 23.0 (31.0) (4.0) 240.0 14.0 236.0 12.0 (4.0) (2.0) 413.0 26.0 398.0 11.0 (15.0) (15.0) 293.0 21.0 268.0 11.0 (25.0) (10.0) (12.0) (13.0) 13.0 (12.0) 25.0 1.0 1,900.0 75.0 1,850.0 45.0 (50.0) (30.0) *1: Sales include inter-segment sales *2: Others include adjustment amount Printing & Communications Media Others Total Household & Industrial Materials Functional Materials Forest Resources & Environment Marketing (¥ billion) FY2025F FY2025F (Revised) Increase (Decrease)
Page 26
26 Shareholder Returns03
Page 27
03. Shareholder Returns 1. Dividend and Treasury Stock Buyback Dividend payout ratio is 50%. Minimum annual dividend is ¥24/share. ⇒Plan to increase dividend to ¥36/share for FY2025 （¥12/share increase compared to FY2024) Profit attributable to owners of parent (¥ billion) 50.0 Dividend per annum (¥/share) Dividend payout ratio (%) 36 66.4 FY2025F 46.2 24 50.7 FY2024 Dividend Policy 29.3 29.3 15.4 44.7 44.7 (30%) FY2024 1st-half of FY2026 FY2027 Target (FY2024-2027 in Total) ¥150.0 bil. ¥44.7 bil. Progress (vs ¥150 bil.) 30% 2026 Target ¥100.0 bil. Progress of Treasury Stock Buyback ¥29.3 bil. (Reference) Buyback in Oct. 2025: ¥2.3 bil. ⇒Progress in Total: ¥47.0 bil. 27 FY2025
Page 28
28 Follow-up on the Medium-Term Management Plan 202704
Page 29
04. Follow-up on the Medium-Term Management Plan 2027 Overview of Initiatives for the Medium-Term Management Plan 2027 <Basic Policy> 1. Financial Strategy ⚫ Shareholder returns Dividend Forecast and Treasury Stock Buyback ▶︎p.27 ⚫ Assets slimming Improving Capital Efficiency 2. Business Strategy Business Restructuring ▶︎p.31 Making the Forest Biomass Business a Core Business ▶︎p.32 Expansion of Sustainable Products ▶︎p.33 ⚫ Profitability Enhancement of Existing Business 3. Sustainability Strategy Carbon Neutral, Nature Positive ▶︎p.35 Realization of Circular Economy ▶︎p.37 Price Increase ▶︎p.24 Enhancing competitiveness/ Stable operation Enhancing group sales system Shift to high value-added products Reduction of Strategic Shareholdings ▶︎p.30 29 Portfolio Transformation Promoting Sustainability ⚫ Business portfolio transformation ⚫ R&D investment ⚫ Environmental Action Plan 2040
Page 30
04. Follow-up on the Medium-Term Management Plan 2027 1. Financial Strategy – Assets Slimming ■Sales of lease property Proceeding some cases and promoting further sales. 30 ■Reduction of shareholdings Reducing both Strategic shareholding (A) and Shares contributed to retirement benefit trust (B). Accelerating the sale of non-core assets to improve capital efficiency <Progress of shareholdings reduction> (A) (B) Progress 51％ (¥43 bil./¥85 bil.) Progress 40％ (¥14 bil./¥35 bil.) Forecast in Total ¥120.0 bil. 3rd-quarter of FY2025 -FY2027 Scheduled FY2028-FY2030 Scheduled FY2024 Completed ★14.0 ★29.0 31.0 11.0 1st-half of FY2025 3rd-quarter of FY2025 -FY2027 Scheduled FY2024 Completed★14.0 21.0 Total of (★) ¥57.0 bil. FY2024-1st-half of FY2025 progress Strategic shareholding ¥85.0 bil. Shares contributed to retirement benefit trust ¥35.0 bil.
Page 31
Executing Withdrawal and Business Restructuring in Timely Manner 31 Oji Fibre Solutions Domestic Overseas 04. Follow-up to the Medium-Term Management Plan 2027 2. Business Strategy – Business Restructuring Withdrawal from low profitability business and enhancing competitiveness through production consolidation Completion of withdrawal from containerboard business Sale of Australian packaging business decided in September (2nd-half of 2025) (June 2025) Oji Nepia Closure of Fujinomiya plant (2nd-half of 2025) Consolidated at Fukushima and Nagoya plants Closure of Edogawa plant(1st-half of 2025) Closure of Tomakomai plant Focusing on pulp business and Packaging business in New Zealand Consolidated at Nagoya and Tokushima plants Enhancing competitiveness through production consolidation ⚫ Household paper Progress 1 Progress 2 (2nd-half of 2025) ⚫ Disposable diaper for adults
Page 32
04. Follow-up on the Medium-Term Management Plan 2027 2. Business Strategy – Making the Forest Biomass Business a Core Business Making the Forest Biomass Business a Core Business Making the Forest Biomass Business a core business by accelerating innovation through broadly incorporating biomass technologies 32 Installed a pilot plant of Wood-derived Sugar solution & Bioethanol Business expansion of Biomass Pharmaceuticals (for animals etc.) Ｍ＆ＡIn-house & Joint development Approved in AUS for the manufacture and export of active pharmaceutical ingredients for veterinary use. Start up of Sugar solution pilot plant 2024 Dec. Start up of Bioethanol pilot plant 2025 Mar. Chemfield Acquired Location: Maharashtra, India Business: Manufacturing and sales of MCC 2025 Sep. AustroCel Location: Salzburg, Austria Business: Manufacturing and sales of dissolving pulp and biorefinery Strength: Circular & zero waste model which utilize every part of wood resources Signed a share transfer agreement
Page 33
04. Follow-up on the Medium-Term Management Plan 2027 2. Business Strategy – Expansion of Sustainable Products Sales target of Sustainable products ＊1 (¥0.1 bil.) *1)Sustainable products: Not only paper products and includes products which reduce negative impact on the environment. 33 0 500 1,000 1,500 2,000 2,500 3,000 2024 Result 2025 Plan 2027 Plan 2030 Plan 2035 Plan By utilizing the strengths of paper as a sustainable material, expanding sales of high-value-added products contributing to reducing the environmental impact on society and customers OJI Sustainable Mulching Sheet Biodegradable, Reduces Soil Heat Buildup, and Improves Yield After 4days After 1.5month OJI Plastic Mulch OJI Plastic Mulch Growth Comparison (Same Transplanting) *2) Case Study: Chinese Cabbage Cultivation in Ibaraki Prefecture ⚫ Paper-based OJI Sustainable Mulching Sheet achieved a 40% yield increase by moderating soil temperature ＊2 ⚫ Biodegradable in soil, reducing collection and disposal after harvest ⚫ Nestlé’s “Maggi” instant cup noodles (sold in Southeast Asia) adopted Walki’s recyclable, aluminum-free paper lid material ⚫ Nestlé responded proactively to growing consumer scrutiny on sustainability—well ahead of packaging regulations*3—enhancing its brand value. *3) In Southeast Asia, regulations equivalent to the European “Packaging and Packaging Waste Regulation (PPWR)” have not yet been implemented. Rising summer temperatures lead to reduced yields, a serious agricultural challenge. Global brand owners value paper-based packaging as a symbol of their commitment to sustainability. Walki（Finland):Packaging Solutions Strengthening Corporate Sustainability Commitments
Page 34
04. Follow-up on the Medium-Term Management Plan 2027 2. Business Strategy – Latest initiatives / Today’s news releases Title Alignment with Medium-Term Plan Initiatives Details Wood-Derived Material “Sulfated Hemicellulose” Obtains Approval as Veterinary Pharmaceutical API in AUS R&D investment to centralize the Forest Biomass Business In Australia, obtained approval for the manufacture and export of sulfated hemicellulose (PPS) as an active pharmaceutical ingredient (API) for veterinary use. Establishment of New Liquid Packaging Carton Plant in Vietnam Growth investment, Expansion of sustainable packaging business Will establish a new liquid packaging carton plant in southern Vietnam aiming to develop market around SE Asia area. Planned start of operations: around March 2028 Production Expansion of Cellulose-based Press Board for Transformers Growth investment To respond to the rapid expansion of global demand, will increase production capacity – approximately 3 times the current level. Planned start of production: April 2029 Closure of a Newspaper Production Machine Production consolidation To optimize production system in line with the change of demand / market structure, will close one machine. Machine to close: N-4 at Tomakomai Mill, Oji Paper Timing of closure: around the end of March 2026 34
Page 35
Collaboration with New Forests Contribute to environmental values and profitability with high-value-added lumber business of “African Mahogany” 200 250 300 350 400 450 2018 2024 2025 2026 2027 2028 2029 2030 04. Follow-up on the Medium-Term Management Plan 2027 3. Sustainability Strategy – Carbon Neutral and Nature Positive Petroleum Alternative Materials Wood pellet Sawmill Business ■Uruguay (Acquired in 2024) ■Brazil (Acquired in 2025) ■Collaboration with New Forests (Year 2025-2028) African Mahogany plantation in Brazil (2025-2028) Teada Pine plantation in Uruguay Target Expand forests grown and managed sustainably, create values by utilizing forest resources Establish new resource circular model from lumber business to new developing business Production Forest (Kha) Biochar Lumber Residue utilizing Biochemical Fund scheme Add ValueBusiness expansion utilizing a forest fund ⚫Carbon Credit ⚫Biodiversity Assessment ⚫Natural Capital Accounting 35 High-grade furniture wood, tonewood
Page 36
Oji’s biomass Aiming for the full utilization of our valuable forest resources 04. Follow-up on the Medium-Term Management Plan 2027 3. Sustainability Strategy – Carbon Neutral and Nature Positive Development of Biochar from Oji’s Biomass Resources Participation in Natural Capital Accounting (NCA) Initiatives Biochar Reducing atmospheric CO2 ⚫ promoting resource circulation by utilizing unused resources ⚫ contributing to climate change mitigation ⚫ creating economic value through the generation of carbon credits Wood (Unutilized bark) By-products (Paper sludge) <Participation in International Initiatives on NCA> Organization Initiative International Sustainable Forestry Coalition Natural Capital Accounting Project Piloting natural capital accounting in the forest sector using consistent frame of reference under ISFC leadership. Nature Positive Initiative State of Nature Metrics Piloting Programme Participating in the standardization of State of Nature Metrics to visualize the value of natural capital. University of Tokyo Center for Global Commons “Nature on the Balance Sheet” Sponsorship Program Aiming to reflect Japan’s perspective in international rule- making on natural capital value through a joint project with the University of Tokyo and Japanese companies. Engage globally to strengthen participation in discussions on the institutionalization of NCA. In response to the growing global concern, we accelerate global collaborations. 36 Charring Applying<Features of Biochar> Improving the soil's water retention and aeration, which promotes plant growth. Sequestering carbon Soil improvement Offers multifaceted nature-positive effects ⚫ Verification tests are currently underway at multiple agricultural sites. ⚫ Starting in FY2025, we have begun a demonstration trial applying biochar produced from unutilized bark of plantation trees in our company-owned forests in Vietnam. Forests Farmland
Page 37
Promotion of material recycling for a circular economy, realization of a carbon-neutral society 04. Follow-up on the Medium-Term Management Plan 2027 3. Sustainability Strategy – Realization of Circular Economy < Initiative Examples / Related Releases > A partnership-based recycling system that turns materials once considered difficult to recycle into renewable resources. 37 We promote resource circulation across the value chain - from forest plantation to manufacturing and recycling of sustainable products. “Renewa”- Oji Group’s new brand symbolizing its commitment to resource circulation. With Hoshino Resorts Horizontal recycling of paper hand towels Recycled into toilet rolls from Al* coated package With Keihan Holdings With Tetra Pak / Gold Pack (Expo 2025 Osaka) Recycled into corrugated boxes from Al* coated package With McDonald’s Holdings Japan / Kentucky Fried Chicken Japan / Tully’s Coffee Recycled into paper hand towels from paper cups Paper cups recycled 27.5t* Planted trees by Oji Group 1,267trees Forest carbon stocks 138t CO₂e Results of initiatives Forest Resources Sustainable Products Material Recycling Recycling System *Al:Aluminum *Planned collecting volume per year
Page 38
38 Reference Materials05
Page 39
302.9 292.7 244.0 244.5 281.0 299.4 293.2 268.0 326.5 285.6 245.3 320.6 423.8 359.6 392.3 398.0 224.1 214.7 182.3 184.7 219.9 227.5 236.4 236.0 681.2 686.1 647.5 698.8 780.5 803.2 917.8 935.0 1,551.0 1,507.6 1,359.0 1,470.2 1,706.6 1,696.3 1,849.3 1,850.0 32.0% 29.9% 29.3% 33.5% 37.6% 34.9% 40.8% 40.5% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025F 39 05.Reference Materials Trends of Net Sales by Segment (consolidated) Forest Resources & Environment Marketing OthersPrinting & Communications Media Functional Materials Household & Industrial Materials Overseas Sales Ratio (¥ billion) From FY2025, Walki and IPI (previously located in “Others”) are allocated to “Household & Industrial Materials.” Accordingly, the past segment results (FY2023 and FY2024) have been restated to reflect this change in this page.
Page 40
33.7 70.0 63.2 61.5 18.8 64.8 47.6 45.0 76.5 52.0 36.1 58.2 21.6 49.6 58.6 87.5 66.0 56.5 7.8 50.8 20.1 46.2 0.0 50.0 110.2 106.1 84.8 120.1 84.8 72.6 67.7 45.0 7.1% 7.0% 6.2% 8.2% 5.0% 4.3% 3.7% 2.4% 40 05.Reference Materials Trends of Operating Profit (consolidated) Profit Attributable to Owners of Parent Operating Profit of Domestic Companies Operating Profit of Overseas Companies Operating Profit Margin FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025F (¥ billion)
Page 41
684.50 699.12 758.28 859.29 945.27 1,083.13 1,177.99 1,009.44 52.52 58.78 50.13 88.35 57.00 51.31 47.34 54.25 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025F 41 05.Reference Materials Trends of Return on Equity (ROE) Net Profit per Share (¥)Net Assets per Share (¥) ROE (%) 7.7 8.5 6.9 10.9 6.3 5.1 4.3 4.7
Page 42
535.0 497.3 511.4 594.7 731.3 673.9 837.5 884.5 0.7 0.6 0.6 0.7 0.8 0.6 0.7 0.8 Mar.31.2019 Mar.31.2020 Mar.31.2021 Mar.31.2022 Mar.31.2023 Mar.31.2024 Mar.31.2025 Mar.31.2026F 42 05.Reference Materials Trends of Net Interest-bearing Debt (consolidated) *D/E(×)＝consolidated net interest-bearing debt / net assets at the year-end Consolidated Net Interest-bearing Debt (¥ billion) D/E (×)
Page 43
44.6 54.7 44.1 47.8 44.8 34.8 50.3 47.4 29.9 51.9 78.9 175.0 87.8 98.5 170.2 128.2 44.9 38.1 36.7 36.8 38.8 40.7 39.1 39.2 24.6 25.3 26.1 29.1 34.2 38.8 50.1 45.1 74.5 69.5 106.7 63.4 123.0 62.8 222.8 65.9 132.6 73.0 133.3 79.5 220.4 89.2 175.6 84.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025F 43 05.Reference Materials Trends of CAPEX / Depreciation (consolidated) Depreciation [Overseas] CAPEX, Investment & loan [Overseas] CAPEX, Investment & loan [Domestic] Depreciation [Domestic] (¥ billion)
Page 44
17,140 16,987 16,578 16,368 16,192 16,283 16,233 19,169 19,823 19,456 19,240 21,653 22,039 22,903 36,309 36,810 36,034 35,608 37,845 38,322 39,136 Mar.31.2019 Mar.31.2020 Mar.31.2021 Mar.31.2022 Mar.31.2023 Mar.31.2024 Mar.31.2025 44 05.Reference Materials Trends of the Number of Employees (consolidated) Employees [Overseas] (consolidated)Employees [Domestic] (consolidated) (person)
Page 45
(thousand ton) Year-on-Year Year-on-Year Year-on-Year Containerboard 4,308 99.6% 15 118.6% 4,323 99.6% Boxboard 711 98.6% 91 88.7% 802 97.4% Other Paperboard 278 100.1% 12 110.1% 290 100.4% Paperboard Total 5,297 99.5% 118 93.5% 5,415 99.3% Sanitary Paper 911 99.5% 130 106.7% 1,041 100.4% Packaging Paper 294 98.7% 7 117.4% 301 99.1% Newsprint 681 91.0% 0 82.1% 681 91.0% Printing/Communications Paper 2,172 95.2% 267 103.0% 2,439 96.0% Miscellaneous Paper 271 99.2% 10 103.3% 282 99.4% Paper Total 4,330 95.9% 414 104.3% 4,744 96.5% Paperboard and Paper Total 9,627 97.8% 532 101.7% 10,159 98.0% (million ㎡) Corrugated Containers 7,046 99.6% - 7,046 99.6% Source: Japan Paper Association - Statistics on Paper and Paperboard; Trade Statistics of Ministry of Finance, Japan; Japan Corrugated Case Association - Production Volume of Corrugated Case *1: Statistics for customs cleared imports of paper: April 2025 - September 2025(preliminary) *2: The figure includes secondary products (processed goods) *3: The figure represents the production volume of corrugated board Domestic Shipments Imports (Custom-cleared) Total PaperboardPaper 45 05.Reference Materials 1st-half of FY2025 Industry Demand *1 *2 *3