Oji : May 14, 2024 Presentation Material for the Year Ended March 2024 with Script

May 14, 2024

Summary of

Financial Business

Results

1

Summary of Financial Business Results

Contents

01 FY2023 Result Overview	02 FY2024 Financial Forecast	03 Topics
Financial Highlights of FY2023	5		①	Financial Forecast for FY2024	12		①	Initiatives for Sustainable Growth	17
① (consolidated)		(consolidated)		State of Progress
Sales and Operating Profit by Segment	6		②	Sales and Operating Profit by Segment	13		②	Initiatives for Forest Function	18
② (consolidated)		(consolidated)
[FY2023 Result]				[FY2024 Forecast]			③	Initiatives for Existing Business	19
③ Analysis of Operating Profit by Segment			③	Operating Profit by Segment	14
			④	Early Expansion of Environmentally Friendly	22
Household and Industrial Materials	７	④	Impact on Operating Profit from External	15		Packaging
Environment		⑤	Wood Bio-businesses	27
Functional Materials	８
					⑥	Shareholder Returns	35
Forest Resources	９
and Environment Marketing
Printing and Communications Media	10

04	Reference Materials
Trends of Net Sales by Segment (consolidated) / Trends of Operating Profit (consolidated) / Trends of Return on Equity (ROE) / Trends of Net Interest-bearing Debt (consolidated)

Trends of CAPEX/Depreciation (consolidated) / History of the Number of Employees (consolidated) / FY2023 Industry Demand

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.

01	FY2023 Result Overview

01. FY2023 Result Overview

• Financial Highlights of FY2023 (consolidated)

														(¥ billion)
						FY2022			FY2023		Increase(Decrease)
	Net Sales				1,706.6		1,696.3			(10.4)
	Operating Profit				84.8		72.6			(12.2)
	[Domestic Companies]				[18.8]		[64.8]			[46.0]
	[Overseas Companies]				[66.0]		[7.8]			[(58.2)]
	Ordinary Profit				95.0		86.0			(9.0)
	Profit				56.5		50.8			(5.7)
	Attributable to Owners of Parent
	Depreciation				73.0		79.5			6.5
	Overseas Sales Ratio				37.6%		34.9%				(2.7pt)
	Average Exchange Rate (¥/US$)			135.5				144.6		9.1
	Number of	Domestic		92		95				＋3
	Consolidated Companies	Overseas		104		105				＋1
		Total		196	200		＋4

Domestic : +1[Specialty Paper] ,+2[Lumber Processing]

Overseas : +1[Liquid Packaging Cartons in Italy], +2[Corrugated Containers in Malaysia], +1[Forest Plantation in Uruguay], (1)[Flexible Packaging in Myanmar], (1)[Logistics in Malaysia], (1)[Filter in China]

Equity Method Affiliates : (1)[Domestic(1)]			5

I will begin by giving you an outline of the financial results for the fiscal year 2023, which we announced at one oʼclock in the afternoon.

Net sales decreased 10.4 billion yen year on year and became 1,696.3 billion yen.

Operating profit came to 72.6 billion yen, which is slightly higher than the 72.0 billion yen announced as a downward revision on April 26. This is a year-on- year decrease of 12.2 billion yen.

Ordinary profit decreased 9.0 billion yen to 86.0 billion yen, and profit attributable to owners of parent was 50.8 billion yen, slightly higher than the announced forecast of 50.0 billion yen.

The overseas sales ratio was slightly below 35%.

The number of consolidated subsidiaries increased by four from the last fiscal year and become 200.

01. FY2023 Result Overview
② Sales and Operating Profit by Segment	[FY2023 Result]
											(¥ billion)
					FY2022		FY2023			Increase (Decrease)
					Net Sales	Operating	Net Sales	Operating		Net Sales	Operating
					Profit	Profit		Profit
			Household &		780.5	(1.2)	798.7	21.2		18.2	22.5
			Industrial Materials
			Functional Materials		219.9	15.5	227.5	9.1		7.6	(6.4)
			Forest Resources &		423.8	68.5	359.6	19.6		(64.2)	(48.9)
			Environment Marketing
			Printing &		281.0	(4.8)	299.4	16.8		18.4	21.6
			Communications Media
			Others		1.4	6.8	11.1	5.9		9.7	(0.9)
			Total		1,706.6	84.8	1,696.3	72.6		(10.4)	(12.2)

*1: Sales include inter-segment sales *2: Others include adjustment amount

6

I will now explain the financial results by segment.

First, in the Household and Industrial Materials segment in the first row, operating profit came to 21.2 billion yen for the fiscal year 2023. The result of the fiscal year 2022 was a deficit, and from there, we achieved profit growth of 22.5 billion yen.

The profit in the Functional Materials segment decreased 6.4 billion yen and became 9.1 billion yen.

The profit in Forest Resources and Environment Marketing segment was 19.6 billion yen after suffering a significant fall amounting to 48.9 billion yen. Printing and Communications Media segment achieved a profit of 16.8 billion yen as a result of substantial profit growth totaling 21.6 billion yen. Consolidated operating profit was 72.6 billion yen, a year-on-year decrease of 12.2 billion yen.

01. FY2023 Result Overview

• Analysis of Operating Profit by Segment

■Household and Industrial Materials	Increased profit due to strong domestic market,
	while overseas business profit decreased.

Increase (Decrease) of Operating Profit

+22.5bil.

FY2023

Net Sales Operating Profit

¥798.7 bil.	¥21.2 bil.
	D ¥26.1b O ¥(4.9b)

FY2022

Net Sales Operating Profit

Domestic	+¥28.0 bil.
Sales & market		+¥36.1 bil.
factor		+¥1.5 bil.
Price difference
in raw materials &
fuels
Other costs		(¥9.3 bil.)etc
Overseas	(¥5.6 bil.)
Sales & market		(¥16.9 bil.)
factor
Price difference +¥12.4 bil.
in raw materials &		etc.
fuels
	Sales Volume
Sales of Key Products (*)
			1000t(or)
			million	㎡

Price of Key Products in Japan

Price of Key Fuels

(¥/kg・m2 )

( ¥ / 5 Boxes)

($/t)

Coal [Australia/Newcastle]

160

420

500

140

Coated duplex board

400

400

380

120

300

360

100

C linerboard

340

200

80

320

60

Corrugated sheet 300

100

40

Tissue Paper[right axis]

0

280

18/ 4

19/ 4

20/ 4

21/ 4

22/ 4

23/ 4

18/ 4

19/ 4

20/ 4

21/ 4

22/ 4

23/ 4

FY2022

FY2023

Increase (Decrease)

Unit Price

Sales Amount

Sales Volume

Unit Price

Sales Amount

Sales Volume

Year-on Year

Unit Price

Sales Amount

¥/kg(or)㎡

¥ billion

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

¥/kg(or)㎡

¥ billion

million ㎡

million ㎡

％

¥780.5 bil.	(¥1.2 bil.)
	D ¥(1.9b) O ¥0.7b

Paperboard	Domestic	2,981	78.87	235.1	2,828	86.12	243.6	(153)	94.9%	7.25	8.4
Corrugated contain	Domestic	3,097	69.39	214.9	2,974	77.18	229.6	(122)	96.1%	7.79	14.7

*Total amount of consolidated Group's manufacturing companies including internal consumption 7

Now, we will look at the details of each segment.

First, the 22.5 billion yen profit growth in the Household and Industrial Materials segment consists of an increase of 28.0 billion yen from the domestic business and a decrease of 5.6 billion yen from the overseas business. Unfortunately, the overseas business sustained a negative profit, but the domestic business was able to raise selling prices to cover the cost increase, which resulted in profit growth of 36.1 billion yen (sales and market factors). Meanwhile, other cost factors amounted to 9.3 billion yen, reducing profit growth to 28.0 billion yen.

In the overseas business, price and quantity competition with competitors, particularly in Southeast Asia, continued (sales and market factors) to have a significant negative factor.

01. FY2023 Result Overview

• Analysis of Operating Profit by Segment

■Functional Materials	Decreased profit due to lower volumes and raw material price differences
despite price revisions in domestic and overseas markets

Increase (Decrease) of Operating Profit

(6.4) bilbil. .

FY2023

Net Sales Operating Profit

¥227.5 bil.	¥9.1 bil.
	D ¥7.2b O ¥1.9b

Domestic	+¥1.4 bil.
Sales & market	+¥7.3 bil.
factor
Price difference	(¥2.8 bil.)
in raw materials &
fuels	etc.
Overseas	(¥7.8 bil.)
Price difference	(¥3.4 bil.)
in raw materials &
fuels
Other costs	(¥3.3 bil.)
	etc.

	Price of Key Raw Materials	(M ㎡)	Sales of Thermal paper
150	and Fuels	4,500	（Domestic & ・Overseas）
	Crude oil [Dubai]	4,000
	（$/bbl）
	Naphtha [Japan]	3,500
100	（¥1,000/kl）	3,000
		2,500
		2,000

501,500

1,000

500

0	19/4	20/4	21/4	22/4	23/4	0	19	20	21	22	23
18/4	18

FY2022

Sales of Key Products (*)

FY2022

FY2023

Increase (Decrease)

Sales Volume

Unit Price

Sales Amount

Sales Volume

Unit Price

Sales Amount

Sales Volume

Year-on Year

Unit Price

Sales Amount

Net Sales

Operating Profit

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

％

¥/kg(or)㎡

¥ billion

million ㎡

million ㎡

million ㎡

¥219.9 bil.

¥15.5 bil.

Thermal paper(million Domestic&Overseas

3,951

22.42

88.6

3,696

24.97

92.3

(255)

93.6%

2.54

3.7

D ¥5.8b

O ¥9.7b

*Total amount of consolidated Group's manufacturing companies including internal consumption 8

In the Functional Materials segment, a profit decrease of 6.4 billion yen consists of an increase of 1.4 billion yen from the domestic business and a decrease of 7.8 billion yen from the overseas business.

01. FY2023 Result Overview

③ Analysis of Operating Profit by Segment

■Forest Resources and Environment Marketing	Decreased profits due to cyclone and
deteriorating market conditions overseas

Increase (Decrease) of Operating Profit

(48.9)bil.

FY2023

Net Sales Operating Profit

¥359.6 bil.	¥19.6 bil.
	D ¥5.5b O ¥14.1b

Overseas (¥47.3 bil.)

PanPac Cyclone	(¥7.0 bil.)
Damage		(¥35.8 bil.)
Sales & market
factor				etc.
NBKP
920	▲195	725	765	790
$/t		$/t	$/t	$/t
LBKP
790	▲210	580	685	710
$/t		$/t	$/t	$/t
2022 Result		2023 Result	2024	Reference
(Jan,-Dec.)		(Jan,-Dec.)	(Jan,-Dec.	(May.Assumption)

Assumption)

	Price of Key Products
($/t)	(Pulp - Net Price for China Market)

1,000

900

NBKP [Chili]

800

700

600

500				LBKP [Brazil]
400	19/4	20/4	21/4	22/4	23/4
18/4

FY2022

Net Sales Operating Profit

¥423.8 bil.	¥68.5 bil.
	D ¥7.1b O ¥61.4b

Sales of Key Products (*)

FY2022

FY2023

Increase (Decrease)

Sales Volume

Unit Price

Sales Amount

Sales Volume

Unit Price

Sales Amount

Sales Volume

Year-on Year

Unit Price

Sales Amount

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

％

¥/kg(or)㎡

¥ billion

million ㎡

million ㎡

million ㎡

Market pulp

Domestic&

2,334

103.08

240.6

2,070

91.84

190.1

(264)

88.7%

(11.24)

(50.5)

Overseas

Electric power

Domestic

1,603

-

-

1,723

-

-

120

107.5%

-

-

(GWh)

*Total amount of consolidated Group's manufacturing companies including internal consumption 9

In the Forest Resources and Environment Marketing segment, most of the decrease of 48.9 billion yen comes from the overseas business. The decrease in profit of 47.3 billion yen in the overseas business includes 7.0 billion yen incurred by PanPac from a natural disaster and 35.8 billion yen attributable to sales and market factors caused by a very low level of pulp selling prices. As for pulp selling prices, NBKP was, from the left, 920 dollars per ton in the year 2022, which fell by slightly less than 200 dollars to 725 dollars in the year 2023. LBKP, too, was 790 dollars for the year 2022 but fell more than 200 dollars in the year 2023, making the average approximately 580 dollars.

In our 2024 plan, which we will talk about later, we forecast a full-year average price of NBKP to be 765 dollars and LBKP to be 685 dollars.

For your reference, the prices in the most current May are higher than these full-year average. NBKP is 790 dollars and LBKP is 710 dollars, which are higher than the plan.

01. FY2023 Result Overview

• Analysis of Operating Profit by Segment

■ Printing and Communications Media Increased profits due to strong domestic market

Increase (Decrease) of Operating Profit

+21.6bil.

FY2023

Net Sales Operating Profit

¥299.4 bil.	¥16.8 bil.
	D ¥17.4b O ¥(0.6b)

Domestic +¥19.4 bil.

Sales & market	+¥29.3 bil.
factor
Price difference	(¥2.0 bil.)
in raw materials &	etc.
fuels

Overseas +¥2.2 bil.

Price difference	＋¥4.0 bil.
in raw materials &
fuels
Sales & market	(¥0.2 bil.)
factor	etc.

Sales of Key Products (*) Sales Volume

1000t(or) million ㎡

Price of Key Products

($/t)

Price of Key Raw Materials

(¥/kg)

(Woodchip)

250

220

Australia ha rdwoo d

200

US so ftwoo d

Tha ilan d har dwood

200

180

A2 Grade

160

coated paper

150

140

A3 Grade coated paper

120

100

100

18/ 4

19/ 4

20/ 4

21/ 4

22/ 4

23/ 4

18/ 4

19/ 4

20/ 4

21/ 4

22/ 4

23/ 4

FY2022

FY2023

Increase (Decrease)

Unit Price

Sales Amount

Sales Volume

Unit Price

Sales Amount

Sales Volume

Year-on Year

Unit Price

Sales Amount

¥/kg(or)㎡

¥ billion

1000t(or)

¥/kg(or)㎡

¥ billion

1000t(or)

％

¥/kg(or)㎡

¥ billion

million

㎡

million ㎡

Newsprint, printing & Domestic	1,838	106.75	196.2	1,693	126.43	214.0		(145)	92.1%	19.68	17.9

*Total amount of consolidated Group's manufacturing companies including internal consumption10

Most of the Printing and Communications Media segmentʼs significant profit growth of 21.6 billion yen came from the domestic business. The major factor in profit growth totaling 19.4 billion yen was a price increase to cover increased costs.

Meanwhile, raw materials and fuel prices remained high due to the depreciation of the yen, although dollar-dominated prices have come down somewhat.