November 5, 2020

Summary of Consolidated Financial and Business Results
for the First Half of the Year Ending March 2021
Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange)
https://www.ojiholdings.co.jp/
Masatoshi Kaku, President & Chief Executive Officer
Ryuichi Kisaka, Director of the Board, Senior Executive Officer
03-3563-1111+81-3-3563-1111(overseas)

Company Name:
URL:
Representative:
Contact:
Telephone:(All yen figures are rounded down to the nearest one million yen)

1. Results for the First Half of the Year Ending March 31, 2021 (April 1, 2020 - September 30, 2020)(Unaudited)(1) Consolidated Business Results(Figures shown in percentage are ratios compared to the same period of the previous year)

Net sales

Operating profit

Millions of yen

First Half of FY2020
First Half of FY2019
Note: Comprehensive income% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

652,423(14.2)

29,306(47.3)

22,097(57.0)

10,289(64.3)

760,206(0.2)

55,5801.7

51,341(3.9)

28,8397.8First Half of FY2020
First Half of FY2019

138 million yen
14,286 million yen

Profit per share

Diluted profit per
share

Yen

Yen

First Half of FY2020

10.39

10.39

First Half of FY2019

29.14

29.12

Total assets

Net assets

Shareholders'equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

1,868,786

825,74136.8

695.06

831,65736.7

699.12(2) Consolidated Financial Condition

First Half of FY2020
Year ended March 2020

1,885,280

Note: Shareholders' equity

First Half of FY2020
FY2019688,327 million yen
692,135 million yen

2. Cash Dividends
End of 1Q

End of 2Q

Dividend per share
End of 3Q

End of FY

Annual

Yen

Yen

Yen

Yen

Yen

FY2019

－

7.00

－

7.00

14.00

FY2020

－

7.00
－

7.00

14.00

FY2020 (Forecast)
Note : Change in forecast of dividend … None

3. Consolidated Forecasts for the Year Ending March 2021 (April 1, 2020-March 31, 2021)(Figures shown in percentage are ratios compared to the previous year)

Net sales
Millions of yen

Full year

Operating profit% Millions of yen

1,350,000 (10.5)

70,000

Profit attributableto owners of parent

Ordinary profit% Millions of yen(34.0)

60,000Note : Change in consolidated forecasts … Yes

1 / 11% Millions of yen(40.8)

35,000

Profit per share%(39.8)

Yen

35.35

4. Notes(1) Changes in important subsidiaries(changes regarding specified subsidiaries accompanying changes in the scope of consolidation) :None(2) Application of simple accounting methods and quarterly peculiar accounting methods : None
(3) 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(4) Outstanding balance of issued shares (common stock)(i) Outstanding balance of issued shares at the end of fiscal year (Including treasury shares)
1,014,381,817
1,014,381,817
First Half of FY2020
FY2019(ii) Outstanding balance of treasury shares at the end of fiscal year
First Half of FY2020
24,064,253
FY201924,368,163(iii) Weighted average number of shares during fiscal year
First Half of FY2020
990,099,521
First Half of FY2019
989,728,597
NOTICE・ This document is exempt from audit procedures required by Financial Instruments and Exchange Act.
・ Forecasts released are based on expectations of future economic conditions as of the date of publication. 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.

2 / 11

1. Qualitative Information Concerning Business Performance and Financial Situation(1) Qualitative Information Concerning Business Performance
Business Performance for the First Half of FY2020 (April 1, 2020 - September 30, 2020)
Net Sales
Billions of yen

Operating Profit

Ordinary Profit

Billions of yen

Billions of yen

Profit Attributable to
Owners of Parent
Billions of yen

Profit Per ShareYen

1st Half of FY2020

652.4

29.3

22.1

10.3

10.39

1st Half of FY2019

760.2

55.6

51.3

28.8

29.14

Increase (Decrease)(107.8)(26.3)(29.2)(18.6)

Increase (Decrease)(14.2%)(47.3%)(57.0%)(64.3%)The Oji Group has set "Profitability Improvement of Domestic Business", "Expansion of Overseas Business" and"Promotion of Innovation" as the fundamental policies of its FY2019-2021 Medium-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 torespond 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 haveorganically 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.
Although the worldwide spread of the Coronavirus Disease 2019 (COVID-19) has subsided in some countries andregions, there are many countries and regions where the spread of the virus has not stopped, and there is still no prospectfor economic recovery.
Meanwhile, we expect the demand to recover at a moderate pace as economic activities resume while preventing the
spread of COVID-19. We will continue to steadily implement various measures in line with our group management
strategy, and strive to strengthen profitability and enhance our corporate value over the medium-to long- term.
Consolidated net sales for the first half of FY2020 decreased by \107.8 billion to \652.4 billion (year-on year decrease of
14.2%) as both domestic and overseas businesses were affected by the spread of COVID-19. Overseas sales ratio
decreased by 1.8 points from the previous year to 28.6%.
Consolidated operating profit decreased by \26.3 billion to \29.3 billion (year-on-year decrease of 47.3%) due todecreased profit in both domestic and overseas businesses. Ordinary profit decreased by \29.2 billion to \22.1 billion(year-on-year decrease of 57.0%) .
Profit before taxes decreased by \25.4 billion to \22.2 billion (year-on-year decrease of 53.3%), and profit attributable toowners of parent decreased by \18.6 billion to \10.3 billion (year-on-year decrease of 64.3%).

3 / 11

Overview of Business Performance for the First half of FY2020 by Segment(I) Business Performance by Segment(Unit: Billions of yen)
Net Sales
1st Half of
FY2019

ReportingSegment

Operating Profit(Loss)

1st Half of
FY2020

Increase(Decrease)

1st Half of
FY2019

1st Half of
FY2020

Increase(Decrease)

Household &Industrial Materials

342.2

309.6

(9.5%)

18.7

13.0(30.8%)

Functional Materials

108.2

90.9

(15.9%)

6.9

5.1(25.9%)

152.1

119.3

(21.6%)

21.9

6.7(69.6%)

146.9

114.1

(22.3%)

2.9

0.7(76.3%)

749.5

634.0

(15.4%)

50.5

25.4

(49.6%)

145.6

128.1

(12.0%)

5.0

2.8(43.8%)(14.9%)

55.5

28.2

(49.1%)

0.1

1.1

55.6

29.3

Forest Resources &Environment Marketing
Printing &Communications Media
Total
Others
Total

895.1

762.1

Adjustment (*)(134.9)(109.7)

Consolidated total

760.2

652.4

(14.2%)(47.3%)*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 orprocesses 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.

4 / 11

○Household and Industrial Materials
In the first half of FY2020, net sales amounted to ¥309.6 billion (year-on-year decrease of 9.5%), and operating profit
was ¥13.0 billion (year-on-year decrease of 30.8%) due to a decrease in sales in both domestic and overseas businesses.
Regarding domestic business, domestic sales volume of containerboard and corrugated containers decreased from theprevious year due to the restriction on economic activity caused by the spread of COVID-19, whereas sales forprocessed food packaging performed steadily as a result of a trend of staying home. Export sales volume ofcontainerboard increased from the previous year.
As for boxboard, domestic sales volume decreased from the previous year due in part to a decrease in demand forsouvenirs and gifts on account of the trend of staying home. Export sales volume decreased from the previous year due
to a decline in demand as a result of implementation of lockdowns in Southeast Asia and Oceania. As for packing paper,
domestic sales volume decreased from the previous year as a demand for paper bags and heavy-duty paper sacks forindustrial products declined due in part to the trend of staying home and the restriction on economic activity. Export
sales volume declined from the previous year.
As for disposable diapers for babies, domestic sales volume decreased, but export sales volume increased. As a result,overall sales volume increased from the previous year. Sales volume of disposable diapers for adults decreased from theprevious year. As for household paper which comprises tissue paper and toilet rolls, sales volume remained static fromthe previous year as sales for professional-use products declined due to the economic stagnation caused by the spread of
COVID-19, while sales of kitchen towels increased as the use of disposable wipes has diversified due to a greater
hygiene awareness accompanying the spread of COVID-19. As for processed goods, such as wet wipes and face masks,
both sales volume and sales amount increased significantly from the previous year due to growing demand
accompanying the spread of COVID-19.
Regarding overseas business, in containerboard business, sales volume in Southeast Asia decreased from the previous
year due to the economic stagnation caused by the spread of COVID-19. In Oceania, sales volume remained static fromthe previous year despite the impact of the spread of COVID-19. As for corrugated container business, in Southeast
Asia, sales volume decreased from the previous year due to the economic stagnation caused by the spread of COVID19, despite strong sales of those for medical rubber gloves. In Oceania, sales volume increased from the previous year
both in New Zealand and Australia.
As for disposable diaper business, sales volume increased significantly from the previous year, due to the introductionof the new packaging design of Doraemon in China, and our continual efforts for sales expansion to convenience storesin Indonesia, although sales volume remained static from the previous year in Malaysia, due to sluggish sales at retailstores as a result of the trend of staying home in response to the spread of COVID-19.

○Functional Materials
In the first half of FY2020, net sales amounted to ¥90.9 billion (year-on-year decrease of 15.9%), and operating profit
was ¥5.1 billion (year-on-year decrease of 25.9%) due to a decrease in sales of products in both domestic and overseas
businesses.
Regarding domestic business, as for specialty paper, sales volume for tickets and souvenirs decreased due to a decline in
the number of tourists visiting Japan and travel restrictions caused by the spread of COVID-19, although sales for foodand medical use performed steadily due to the trend of staying home and a greater hygiene awareness. As a result,overall sales volume decreased from the previous year. Sales volume of thermal paper decreased from the previous year
as sales for POS decreased due in part to the trend of staying home.
Regarding overseas business, our sales of products were affected by implementation of stay-at-home order and theeconomic stagnation caused by the spread of COVID-19. As for thermal paper, sales volume decreased in North
America, South America and Southeast Asia from the previous year due in part to a decrease in demand for POS andtickets, but increased in Europe from the previous year as a result of customers' trends to secure inventories.

5 / 11

○Forest Resources and Environment Marketing
In the first half of FY2020, net sales amounted to ¥119.3 billion (year-on-year decrease of 21.6%), and operating profit
was ¥6.7 billion (year-on-year decrease of 69.6%) due to a decrease in sales of products in both domestic and overseas
businesses, and effects of weakening overseas pulp market.
Regarding domestic business, sales volume of pulp business decreased from the previous year mainly because of adecrease in the export volume of dissolving pulp to China due to the economic stagnation caused by the spread of
COVID-19. Sales volume of energy business increased from the previous year and MPM Oji Eco-Energy Co., Ltd, abiomass power generation facility which started operation in Hachinohe City, Aomori Prefecture, in September 2019,
has contributed to the increase throughout the period.
Regarding overseas business, sales volume of pulp business decreased from the previous year, due to a decrease indemand in China caused by the economic stagnation caused by the spread of COVID-19.

○Printing and Communications MediaIn the first half of FY2020, net sales amounted to ¥114.1 billion (year-on-year decrease of 22.3%), and operating profit
was ¥0.7 billion (year on-year decrease of 76.3%) due to a decrease in sales of products in both domestic and overseas
businesses.
Regarding domestic business, sales volume of newsprint decreased from the previous year due to the reduced circulationand total pagination as a result of the economic stagnation caused by the spread of COVID-19.
As for printing paper, sales volume decreased significantly from the previous year due to the economic stagnation
caused by the spread of COVID-19. In regard to those for publication use, sales volume decreased mainly due toreduced circulation and total number of pages of women's magazines, travel magazines, sports magazines, etc., whereas
there was an increase in demand for comic books accompanying the trend of staying home. In regard to those forcommercial printing use, sales volume decreased significantly due to a decrease in demand for catalogs, posters, flyers,
etc. as a result of the trend of refraining from attracting customers and holding events. As for communication paper,
sales volume decreased from the previous year due to a decrease in demand in offices as a result of the spread ofworking from home.
Regarding overseas businesses, at Jiangsu Oji Paper Co., Ltd., sales volume of printing paper decreased from theprevious year mainly as the demand for commercial printing, including advertising, decreased both in China and abroad
because of the economic stagnation caused by the spread of COVID-19.
(2) FY2020 Forecast and Future Outlook

Given the impact of the spread of COVID-19 on our business performance, we have revised the forecast of consolidated
business results for FY2020 (April 1,2020-March 31, 2021) from that announced in the Summary of Consolidated
Financial and Business Results on August 4, 2020 as follows. Please refer to "Difference between the Forecasts and theResults of Consolidated for the First Half of the Fiscal Year 2020 and Revisions to the Consolidated Forecasts for the
Fiscal Year 2020" disclosed today (November 5, 2020).
Net sales
Billions of yen

Operating profit
Billions of yen

Ordinary profit
Billions of yen

Profit attributableto owners of parent
Billions of yen

Profit per share
Yen

Previous Forecast (A)1,400.0

90.0

80.0

50.0

50.50

Revised Forecast (B)1,350.0

70.0

60.0

35.0

35.35

Difference (B－A）(50.0)(20.0)(20.0)(15.0)

Percentage change (%)(Reference) FY2019(results, cumulative)(3.6%)(22.2%)(25.0%)(30.0%)

1,507.6

106.1

101.3

58.2

6 / 1158.78

2. Outline of Business Performance and Financial Situation
Billions of yen
Forecasts for FY2020

Business Performance
1st half of FY2020
Increase(Decrease)

Net Sales

652.4(107.8)Domestic

466.0(63.0)

Overseas186.4(44.8)

28.6%(1.8%)

Operating Profit

29.3

Ordinary Profit
Profit attributable to owners of parent

ratio

Increase(Decrease)1,350.0(157.6)(26.3)

70.0(36.1)

22.1(29.2)

60.0(41.3)

10.3(18.6)

35.0(23.2)

Depreciation

30.2

(0.9)

61.7

Billions of yen(1.7)

Capital expenditure

43.5

(2.4)

101.7

13.2

Average foreign exchange rate
1st half of FY2020

Forecasts for FY2020

Increase(Decrease)

Increase(Decrease)

JPY ／ USD April to March

106.9

(1.7)

105.8

(2.9)

BRL ／ USD January to December

4.92

1.08

5.21

1.26

NZD ／ USD January to December

1.60

0.11

1.55

0.03

CNY／ USD January to December

7.04

0.25

6.92

0.00

Financial situation

Billions of yen
Sep-30-2020
Increase(Decrease)from Mar 31,2020

Total assets

1,868.8(16.5)Net assets

825.7

(5.9)

Interest bearing debts

611.4

29.7

Net debts

503.0

5.6

Number of employees

personSep-30-2020
Increase(Decrease)from Mar 31,2020

Number of employees

36,581(229)

Domestic

16,958(29)

Overseas

19,623(200)

7 / 11

Consolidated quarterly balance sheets(Unit : Millions of yen)

FY2019Mar 31,2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8 / 11First Half /FY2020
Sep 30,2020

73,943
301,682
10,381
98,483
23,467
94,94639,390(1,811)
640,484

100,681273,575
7,727
88,78623,24992,61733,035(1,850)617,821

188,286
297,632
235,700
294,174
1,015,794

191,142
292,678
239,568
299,488
1,022,878

4,672
8,388
13,0603,458
8,726
12,185150,831
66,020(910)
215,941
1,244,796
1,885,280

150,760
66,047(906)
215,901
1,250,965
1,868,786

(Unit : Millions of yen)

FY2019Mar 31,2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
Current portion of bonds payable
Income taxes payable
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provisions
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

9 / 11First Half /FY2020
Sep 30,2020

209,669
172,027
14,00020,00022,984
3,627
90,668532,976

189,984
167,793
27,000
－
8,780
4,141
83,325
481,02580,000295,647
5,096
54,21385,690520,647
1,053,623

120,000
296,590
5,198
54,72885,501
562,018
1,043,044

103,880
110,750
457,568(13,577)
658,623

103,880
110,956
460,902(13,435)
662,305

21,004
(957)
5,813
2,390
5,261
33,512
216
139,305
831,657
1,885,280

23,355186
5,810(8,002)
4,672
26,022
216
137,198
825,741
1,868,786

Consolidated quarterly statements of income(Unit : Millions of yen)First Half /FY2019Apr '19 - Sep '19
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Freight and incidental costs
Employees' salaries
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance claim income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income
Gain on sale of businesses
Other
Total extraordinary income
Extraordinary losses
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10 / 11First Half /FY2020
Apr '20 - Sep '20

760,206
576,013
184,193652,423
503,998
148,425

70,73825,98831,886
128,61255,58063,751
25,77929,588
119,119
29,306

1,132
1,733
161
1,067
2,760
6,855

678
1,650
1,222
－
1,525
5,076

3,529
－
3,770
3,795
11,09551,341

3,053
1,122
3,722
4,386
12,28522,097

609
－
824
1,434

1,857
906
1,340
4,104

2,299
2,841
5,140
47,634
16,586(3,040)13,54634,088
5,248
28,839

1,850
2,123
3,973
22,228
10,948707
11,655
10,573283
10,289

Consolidated quarterly statements of comprehensive income(Unit : Millions of yen)First Half /FY2019Apr '19 - Sep '19
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11 / 11First Half /FY2020
Apr '20 - Sep '20

34,088

10,573(1,992)(409)(16,124)
(677)
(598)

2,039
1,144
(13,102)(666)
150(19,801)
14,286(10,434)
138

12,5881,698

2,803(2,664)