What the Oji Group Aims forLong-term Vision & Medium-term Management Plan

Basic Policy of “Toward Further Growth and Evolution” to Achieve FY2030 Targets

Business Strategy

Long-term Vision
The course we should take to realize our long-term goals
Basic Policy of “Toward Further Growth and Evolution”
1. Initiatives for Environmental Issues—Sustainability—
2. Initiatives for Profitability Improvement—Profitability—
3. Initiatives for Product Development—Green Innovation—

Management
Philosophy
PurposeFY2022–2024 Medium-termManagement Plan

Environmental Action Program 2030
Action on Climate Change
Reduce greenhouse gas (GHG)
emissions by at least 70% comparedto FY2018

FY2030 targets

Functional Materials Business
Consolidated Net Sales of 2.5 Trillion Yen or More
Based on our FY2021 results, we will strive to increase our consolidated net sales target for FY2030 by over 1 trillion yen to 2.5
trillion yen or more.
Amid an anticipated contraction in demand for a portion of our products, we will improve our profit ratio through such means as cost reductions and operational improvements. However, our goals go beyond
that. In order to achieve further growth and evolution as the Group, we
will expand existing promising businesses through strategic investment and M&As. At the same time, we will focus our efforts on developing, commercializing, and expanding the sale of new and eco-friendly
products. Further, through this process, we will aim to transform ourportfolio into one which meets the demands of the times.

Sustainable forest management(forest recycling)
Resource recycling(paper and water recycling)https://ojiholdings.disclosure.site/en/themes/150/

Increase from FY2021

The Oji Group Integrated Report 2023

* Good for the earth
Good things with
forests
Nepia with Oji forests

Autumn 2023 Revamped packaging to make environmental considerations more visible¥400.0 billion

Business Strategy
Actively develop high-function and eco-friendly products
Expand global sales of imaging media business and enhance competitivenessincluding printing and converting

We aim to expand profitability by expanding sales of thin capacitor films for electric vehicles
and other high-function and eco-friendly products; and by expanding our imaging media business, which is experiencing strong demand, through means such as construction to expand
production capacity.

Forest Resources and Environment Marketing Business

Aident Corporation in Malaysia, a subsidiary of Adampak
Group

Sales target for FY2030¥600.0 billion

Business Strategy
Expand & enhance pulp business as a “comprehensive pulp manufacturer”
Expand renewable energy and other energy businesses
Expand lumber processing businessthrough Development of new &eco-friendly products

Printing and Communications Media Businessthrough M&As

Business Strategy
Restructure production system and enhance competitiveness through collaboration
with other Group segments by maximizing the use of assets owned+ ¥300 bil.
+ ¥300 bil.

Pan Pac Mill (New Zealand)

Sales forecast for FY2030¥150.0 billion

through Strategic investments¥1.8 tril.

+ ¥400 bil.

¥1.7 tril.

We will strive for the optimum production system restructuring for the Group as a whole byassessing demand trends and continuing to implement thorough cost reduction and, at thesame time, by effectively utilizing owned assets such as pulp manufacturing facilities.

The #L-1 machine (for containerboard) at the Oji Paper
Tomakomai Mill¥1.5 tril.
FY2021 FY2022 FY2024

19*

Sales target for FY2030

In addition to expanding and strengthening our global pulp business, we will focus our efforts
on expanding other businesses which leverage forest resources such as our biomass power
generation and lumber processing businesses.

¥2.5 tril.

Challenge for zero environmental impact
Biodiversity conservation

Responsible raw materials procurement
and manufacturing
Expansion of products that contribute toa decarbonized society
Zero environmental accidents and zeroproduct liability accidents

Tochigi Plant, Oji Container

Changes in Consolidated Net Sales

Development of Trusting
Relationships with Our
Stakeholders

Abundant Forests
Creation and Resource
Recycling

Environmental Action Program 2030

Consideration for
Ecosystem¥1,250.0 billion

Within our Industrial Materials Business, demand for our corrugated container business remains robust. We aim to further expand and strengthen this business through M&As and newplant construction and, at the same time, by promoting restructuring of production systems
and the integration from base paper manufacturing to product processing. We will also be focusing our efforts on expanding our liquid packaging carton and filter businesses. In ourHousehold and Consumer Products Business, we will expand our market share of our domestic household paper business through enhancing our brand value, and expand andstrengthen our disposable diaper business overseas.

Consolidated net
sales of 2.5 trillion yen
or moreTargets We Aim to Achieve in FY2030
To Achieve Environmental Action Program 2030
In our Environmental Action Program 2030, we set a target of reducing our greenhouse gas (GHG) emissions by at least 70% in FY2030
compared to FY2018 levels, as a milestone for our target of net-zerocarbon in 2050 per our Environmental Vision 2050. By FY2030, weplan to invest 1 0 0.0 billion yen into the reduction of emissions and100.0 billion yen into increasing the net increment in carbon stocks
by forests, for a total investment of 200.0 billion yen.
In addition to realizing carbon neutrality, the Oji Group will also fully
engage in a wide range of initiatives as outlined in our Environmental
Action Program 2030.

Sales target for FY2030

Industrial Materials Business
Further expand & enhance packaging business in Southeast Asia, India & Oceania
Expand & enhance corrugated container business in Greater Tokyo area, Japan
Household and Consumer Products Business
Enhance branding & expand sales of household paper products in Japan
Expand & enhance overseas disposable diaper businessTo achieve
Environmental Action
Program 2030

P43 – 62

Initiatives for Profitability Improvement—Profitability—

Household and Industrial Materials Businesses
Long-term Vision

P25 – 34, 83 – 102

Initiatives for Environmental Issues—Sustainability—

What the Oji Group Aims for

The core of the Oji Group’s business is forests. The appropriate cultivation and management of forests not only produce renewable forest resources; they also help to enhance the multifunctional role of forests. In addition, at thesame time as supporting and enriching the lives of people around the world, we are also able to replace fossil resource-derived materials and products through products that utilize forest resources. We believe that our purpose isto leverage these characteristics to respond to such environmental issues as global warming and biodiversity conservation. Reflecting our Management Philosophy and Purpose, the Oji Group has formulated and is implementing
the Long-term Vision for 2030 and the FY2022–2024 Medium-term Management Plan as a roadmap for enhancing
corporate value, achieving sustainable growth amid societal changes, and realizing our long-term goals.

FY2030Initiatives for Product Development—Green Innovation—

P35 – 42The Oji Group Integrated Report 2023

20

What the Oji Group Aims forLong-term Vision & Medium-term Management Plan

Initiatives for Environmental Issues—Sustainability—

Overview of FY2022–2024 Medium-term Management Plan

Numerical Management Targets for FY2024
Consolidated operating profit

150.0 billion yen or more

Profit attributable toowners of parent

100.0 billion yen or more(Continue stable profit of 100.0 billion yen or more)

Overseas sales ratio

40%(With a target of 50% in the future)

Net D/E ratio

0.7 times maintained(End of March 2022: 0.7 times)

Key Initiatives
In response to the increasing importance of addressing
environmental issues, implement our Environmental Vision 2050
and Environmental Action Program 2030 action plans.
Make effective use of own facilities, promote further production
system restructuring.
Implement strategic investments and M&As, etc. in order to further
expand promising businesses in Japan and overseas businesses.
In addition to developing new materials and products, accelerate
rapid commercialization initiatives with regard to our green
innovation themes: “Development of new materials derived fromwood,” “challenge to the medical and healthcare field,” and“development of eco-friendly paper materials.”

Main FY2022 Results
June

Acquired forest plantation (Roundhill, New Zealand)
Acquired forest plantation (Shiranuka, Hokkaido)

AugustBuilt new Edogawa Warehouse at Oji Nepia, withelectricity supplied by solar power generation

September Acquired forest plantation (Invercargill, New Zealand)
Acquired forest plantation (Kuromatsunai, Hokkaido)
OctoberNovember Made PT Korintiga Hutani, a forestry company inDecemberStarted operation of biomass power plant in Tokushima Prefecture in a joint venture with ITOCHU ENEX

Main FY2023 Priority Measures †Timings of future measures are scheduled timings
Shut down coal-fired boiler at Oji F-Tex Ebetsu MillMay
September Start operation of solar power generation facility at
Tochigi Plant, Oji Container

Indonesia, a consolidated subsidiary

What the Oji Group Aims forIn the FY2022–2024 Medium-term Management Plan, we have set numerical management targets to serve as milestones on theway to achieving our Long-term Vision for 2030. Under the basic policy of “Toward Further Growth and Evolution,” we will steadily execute “Initiatives for Product Development,” “Initiatives for Profitability Improvement,” and “Initiatives for Environmental Issues” in a timely manner and strive for the enhancement of corporate value by achieving those numerical management targets.

Pick Up
Expansion of Forest Plantations in Japan and Overseas

Operation of Solar Power Generation Facilities

As one of our initiatives toward the achievement of the Environmental Action Program 2030, we are expanding our forest plantations in Japan andoverseas to increase the net increment in carbon stocks.

We continue to engage in the establishment of solar power generation
facilities and other measures to promote the use of renewable energy.

Solar panels at Edogawa Warehouse, Oji Nepia

FY2022 Results and FY2023 Priority Measures
Industrial Materials BusinessHousehold and Consumer Products Business
Functional Materials Business
Forest Resources and Environment Marketing Business
Printing and Communications Media BusinessResearch and development, others

Initiatives for Profitability Improvement—Profitability—
Main FY2022 Results

Main FY2023 Priority Measures †Timings of future measures are scheduled timings

AprilStarted operation of paperboard machine relocatedfrom Oji Materia’s Nayoro Mill to Oji Paper’s
Tomakomai MillMay

Acquire IPI, a company that operates liquid packaging
carton business in Italy

Shiranuka, Hokkaido

JulyStarted operation of nineth corrugated container
plant in Malaysia

July

Increase ultrathin OPP film machine at Oji F-Tex Shiga
Mill and start operation

Initiatives for Product Development—Green Innovation—

AugustStarted operation of sixth corrugated container
plant in Vietnam

September Acquired Adampak Group, a high-performancelabel printing and converting company withbusiness bases in Southeast Asia and China

January

Started operation of tenth corrugated container
plant in Malaysia

February

Relocated Oji Container’s Utsunomiya Plant andstarted operation as Tochigi Plant

in Vietnam
Start operation of filter production plant in Japan
Expand thermal paper production facilities in Germany

Pick Up
Business Expansion through Company Acquisitions and Plant Construction

As one of our key initiatives, we are proceeding with the expansion of ourbusiness through such means as strategic investments and M&As.

IPI Head Office in Italy

21

The Oji Group Integrated Report 2023

Main FY2022 Results

September Start operation of seventh corrugated container plant
January
January

Tenth corrugated container plant in Malaysia

Film Business: Expansion of Production Facilities

To meet the rapid expansion of demand for capacitor films for electricvehicles, we will expand our production facilities in 2023 and 2024.

New film machine building at Oji F-Tex Shiga MillPan Pac Roundhill on New Zealand’s North Island(plans to convert grazing land to forest plantation)

Main FY2023 Priority Measures †Timings of future measures are scheduled timings

April

Developed laminated paper using plant-derived
polylactic acid

May

Invest in venture capital fund specializing in materials
and scientific fields

May

Packaging material made with SILBIO BARRIER, apaper material with barrier properties, adopted forcoffee packaging by Nakabayashi

January

Start operation of bench plant for polymerization ofwood-derived lactic acid inside Edogawa Mill

July
OctoberDeveloped eco-friendly paper cup baseDecemberDeveloped eco-friendly anti-heat windshield film

February

Developed cellulose polymer pellets

Started sales of cell culture substrate, “CellArray”
Developed cellulose nanofiber and natural rubbercomposites

Pick Up
Development of Eco-Friendly Products

Demonstration Manufacturing of Wood-derived Plastics

Making full use of the technologies wehave built up over 150 years, we aredeveloping a wide variety of products
aimed at solutions to environmental
issues.

Aiming to popularize biomass plastics
derived from inedible materials, we will
demonstrate the manufacture of polylactic acid made with pulp.
Recyclable aqueous coated paper cup baseLaminated paper using plant-derived polylactic acidEco-friendly anti-heat windshield film

Wood-derived biomass plastic (polylactic acid)

The Oji Group Integrated Report 2023

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What the Oji Group Aims forLong-term Vision & Medium-term Management Plan

Message from the Director in Charge of FinanceGroup Financial Strategies to Achieve
the Long-term Vision toward
the Realization of Our Purpose

Oji Holdings Corporation
Director of the Board,
Senior Executive Officer

Kazuhiko Kamada

Review of the First Year of the Medium-termManagement Plan and Future Strategies
Management Numbers
In FY2022, the first year of the FY2022–2024 Medium-term Management Plan, earnings fell due to the significant impact of cost
increases, such as soaring fuel and raw material prices, risingtransportation costs and rising commodity prices, as well as delays in passing those cost increases on to our product prices. In
addition, the net D/E ratio rose to 0.8 times because of the increase in working capital in response to those soaring fuel andraw material prices.
FY2022
Results

FY2023
Forecasts

FY2024
Targets

Consolidated operating
profit (¥billion)

84.8

100.0

150.0

Profit attributable toowners of parent (¥billion)

56.5

65.0

100.0

Overseas sales ratio

37.6%

33.0%

40.0%

0.8

0.7

0.7

FY2022–2024 Investment Plancrease in profits with consolidated operating profit of 100.0
billion yen and profit attributable to owners of parent of 65.0
billion yen through continuous cost reduction and steady realization of the effects of price adjustments in the domestic
business. In this second year of the Medium-term Management Plan, amid an unclear and uncertain global situation,
we aim to achieve our numerical management targets for
FY2024 by implementing, without delay, various measures
based on the basic policies of our Long-term Vision andMedium-term Management Plan, namely “Initiatives for Profitability Improvement,” “Initiatives for Environmental Issues,”
and “Initiatives for Product Development”.

In FY2023, the overseas business is facing a severe situation, with earnings plummeting due to the worldwide stagnation in movement of goods and the decline in the pulp
market. Nevertheless, we plan to achieve a year-on-year in-

Capital Allocation
In the Medium-term Management Plan, we plan to executestrategic investments worth 400.0 billion yen over three
years, while maintaining a net D/E ratio of 0.7 times. In
FY2022, although cash inflow fell short of initial expectations
due to the slump in earnings and increase in working capital, we made the necessary investments, including expansion of corrugated container production bases and installation of new film facilities in Japan, and the construction of
new corrugated container plants in Southeast Asia and expansion of forest plantations overseas. For the remaining

Consolidated Net Sales and Sales Composition by Business Segment

Operating Profit by Business Segment

Net D/E ratio¥ 150.0 billion
8.0

14.9%
15.2%
12.6% 14.4%

15.7%

18.0

40.9%

40.8%
38.6%

FY2022 Results¥1,706.6 billion
23¥ 84.8 billion
6.8

FY2023 Plan

¥1,800.0 billion

The Oji Group Integrated Report 2023

¥ 100.0 billion
6.0

63.5

21.0

13.9%

18.0
68.5

20.9% 10.9%
17.7%
11.9%
19.5%
12.1%

15.5

(1.2)
(4.8)

FY2022 Results
FY2024 Plan

1,800.0 billion yen or moresides of achieving our targets “the reduction of GHG emissions”
by improving energy efficiency and increasing our usage rate ofrenewable energy and “the increase in the net increment in carbon stocks by forests” by expanding our forest plantations,and we plan to invest 100.0 billion yen each into these two areas by FY2030, for a total investment of 200.0 billion yen.
We are also actively working to contribute to the reduction of
GHG emissions by other parties through the supply of renewable power, including biomass power generation and hydroelectric power generation.
To accelerate these efforts through the use of financing fromgreen bonds and green loans, we formulated a Green Financing Framework in January 2023.
Funds procured through green bonds and green loans will beallocated to investment in the following eligible green projects.

16.0

18.5

39.0

42.0

FY2023 Plan

FY2024 Plan

Household and Industrial Materials
Functional Materials
Forest Resources and Environment Marketing Business
Printing and Communications Media
Others

Project Category

Renewable Energy

Strategic investments
Sustainable Forest
Management

Install adult disposable diaper
machineInstall biomass power plants

Upkeep CAPEX¥ 150 billion

Construction to improve pulp
business profitability

Financial Strategies to Achieve Harmony with
Nature and SocietyGroup Financial Strategy in FY2023 and Beyond
Regarding the funds necessary for these investments based on
medium- to long-term strategies, while considering the balance
between self-financing and external procurement, where necessary, we will compare and consider various financing methods and schemes, including ESG bonds and other sustainablefinance, and procure the funds at the appropriate time.
It should be noted that the capital condition of the Oji
Group as a whole is being centrally managed by Oji Holdings. In line with our growing global expansion, demand forfunds from our overseas business companies is increasing.
We will engage in efficient, global fund management, allocating surplus funds generated by our overseas businesses to investment in new opportunities in their regions. We
will also conduct thorough funds management, including
reducing the balance of cash and deposits, in our efforts tofurther strengthen our financial governance.
Formulation of Green Financing Framework
The Oji Group has formulated an Environmental Vision 2050
and Environmental Action Program 2030 and has set targetsof achieving net-zero carbon in 2050 and, in the process, reducing greenhouse gas (GHG) emissions by 70% or more compared to FY2018 by 2030. We have positioned as the two

Biomass (power generation, heat supply)
Solar energy
Hydropower energy
Onshore wind energy

Build corrugated container plants
in Japan/overseas

Install film facilities for next
generation automobiles

Eligible Projects
Capital and operating expenditures relating to
the following renewable energy projects

Examples of Expanded
Investments to Growing
Segments¥ 400 billion

What the Oji Group Aims for

two years of the plan, we will also continue to accelerate investments in promising businesses, such as strengthening
and expanding existing businesses through the constructionof new facilities and plants and M&As, and creating corebusinesses through the development of new materials andproducts, in addition to environmental investments toachieve the Environmental Action Program 2030, while taking appropriate risks in consideration of the balance with financial soundness. In particular, we will focus on initiatives
for environmental issues and product development from along-term perspective, taking into account their future potential as well as being conscious of responses to social issues, even though short-term investment effects may not be
expected in some aspects.

Capital and operating expenditures relating
to acquisition and conservation of production forests and conservation forests†

Please refer to the Green Financing Framework page for details.
https://investor.ojiholdings.co.jp/en/ir/greenfinance.html

Involvement in Stakeholder Engagement
In accordance with the provisions of the Oji Group Corporate Code of Conduct, we will respect the diverse positions of our stakeholders and build relationships of trustwith them by pursuing our corporate activities based onawareness of our responsibilities as a corporate citizen andon high ethical principles appropriate for an organizationthat enjoys the trust of society.
In addition, as expressed in our Purpose that we formulated in May 2022, we will walk alongside all our stakeholders to bring this world a brighter future filled with hope.
For example, in addition to proactively sharing and disclosing
financial and non-financial information to shareholders and investors, we strive to achieve mutual understanding and build
relationships of trust through engagement and interviews.
We also maintain relationships with local communities
with an emphasis on trust, by providing appropriate information about our corporate activities, actively participatingin local activities such as groundwork, and striving to communicate with sincerity.
We will continue to build relationships of trust and walk alongside all our stakeholders going forward.
With regard to returns to shareholders, it is our fundamental policy to maintain stable dividends while at the same time
giving consideration to internal reserves in order to prepare
for future management measures. In FY2022, we have decided to pay an ordinary dividend of 16 yen per share , anincrease of 2 yen over the previous fiscal year. We will also
continue the well-received shareholder benefits program that
we introduced in FY2021.

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