History of the Oji Group’s Value Creation

History of the Oji Group’s Value Creation

10— Green Innovation —Initiatives for ProductDevelopment

1,500
1,400
1,300

8— Profitability —1,2001,100

6Pulp output (overseas)

4<Start of Global COVID-19 Pandemic><Global Financial Crisis>

Jiangsu Oji Paper established (China)

Oji F-Tex foundedMorishigyo Group acquired

Oji Materia and Oji Container founded<Kyoto Protocol>

Oji Paper (merges with Honshu Paper)

Full-scale overseas forest plantation business starts
New Oji Paper (merges with Kanzaki Paper Manufacturing)<Fall of the Berlin Wall>

Disposable diaper production starts<First Flight of a Space Shuttle>

Merges with Nippon Pulp Industries

High-grade boxboard production starts (former Nippon Pulp Industries)
Thermal paper production starts (former Kanzaki Paper Manufacturing)<1973 Oil Crisis>

Production of non-woven fabric starts (Oji Kinocloth)
Production of household paper (tissue paper and toilet rolls) starts<Tokyo Olympics>

Production of coated paper and kraft paper starts

Corrugated container production starts (former Honshu Paper)
Trade name changes to Oji Paper

Develops DIP from old newspaper

KP continuous digester starts operation (Kasugai Mill)
Woodfree paper production starts<Outbreak of the Korean War>

Splits into three companies (Tomakomai Paper, Honshu Paper, and Jujo Paper)<End of the World War II>

Merges with Fuji Paper and Karafuto Industries An era of Great Oji

Oji Paper Tomakomai Mill opens

Established Shoshi Kaisha

The Oji Group Integrated Report 2022

Paper output (domestic)

2

Financial andNon-financial Data05

We worked on unimaginably difficult
construction such as building alatest hydroelectric power plant atWaterfall Nassou on the undeveloped shore of Lake Shikotsu.

Paperboard output (domestic)

Paper materials such as boxboard, thermal paper, andhousehold paper have come toplay an active role in various
situations that support daily life.

Sustainability Strategy

Shibusawa advocated that “paperand printing businesses are thesource of civilization.” He held on
to his great ambition to supply
domestic paper.

Tomakomai Mill for newsprint andKasugai Mill for woodfree paper
contributed to our growth.
Kasugai Mill even became apioneer of urban factories.

Oji Fibre Solutions acquired (New Zealand and Australia)
People & Grit acquired (Malaysia)

Paper output (overseas)

GSPP Group acquired (Malaysia)
Oji Papéis Especiais acquired (Brazil)
Transitioned to a pure holding company structure Celulose Nipo-Brasileira acquired (Brazil)

Paperboard output (overseas)

Governance Strategy

Net sales

From thecollectionof theShibusawa
MemorialMuseum

Initiatives for Profitability
Improvement

Light-weighted newsprint became
common, and in the household paper
field, we succeeded in volume reduction of box tissues. In addition, due toadvances in recovered paper
utilization technology, the recovered
paper utilization ratio exceeded 50%.

— Sustainability —Output (million tons)

1,600

Initiatives forEnvironmental Issues

Net sales (¥billion)

What the Oji GroupAims For

We have newly established corrugated containerand folding carton factories in Malaysia, Cambodia and India, among other countries, to meet
vigorous local demand.

History of the Oji Group’s
Value Creation

Demand for paperboard as a packaging material
was strong. The production ratio of paper andpaperboard gradually changed.

Further Global
Deployment

2010s
We actively developed theoverseas business witha focus on Southeast Asia.
The overseas sales ratio
reached approximately30%.

Shift in the BusinessStructure

Paper production volume
has been declining since2008. This unprecedented
crisis created anopportunity for shifts in thebusiness structure.

1990s

Response toEnvironmental Issues

Lifestyle Changes andPaper Diversification

Demand for paper was only growing,
and people started to have high expectations
for the material, which found its way
into products other than newsprint andprinting paper.

With a view to producing high-quality paper
quickly and in large quantities, we turned toa continuous digester, which was unproven at thattime but highly productive. We introduced theequipment at the Kasugai Mill.

Establishment of Domestic
Supply Structure

1910
We established the Tomakomai Mill in a fishingvillage in Hokkaido, which had abundantresources such as forests and water as well as vastand flat land, which are required for paper
manufacturing, and started producing newsprint.

The origin of the Oji Group dates back to
the establishment of Shoshi Kaisya, apaper manufacturing company, advocatedby Eiichi Shibusawa, the founder of themodern Japanese economy.

Birth of the Modern PaperManufacturing Industry

1873

1970s

Efforts toward NewTechnologies

1950s

2000s

Attention was drawn to issues that are
directly related to people’s lives, such as
resource saving, energy saving, and urban
waste treatment.

Since its founding in 1873, the Oji Group has been growing through the expansion of business fields. While keeping
abreast of the trends of the times, we have tackled changing social needs and evolved our business structure. Further, we have supported Japan’s diversifying lifestyles through paper. In the early 1900s, we achieved the domesticproduction of printing and communications media such as newsprint and printing paper. During the country’s rapid
economic growth, we began producing corrugated containers, household paper, and other household and industrial
materials. In the 1990s, we promoted the recycling of recovered paper as a solution to the issue of municipal refuse.
In recent years, aiming for contribution to a sustainable society, we have been actively rolling out the technologies
cultivated in our domestic business to the global market. We were quick to expand overseas business and transformed our business structure to one focusing on household and industrial materials. As a result of these efforts, ouroutput ratio of paperboard to paper reversed for the first time in 2020. In FY2021, we achieved record-high profits,
and we will continue to take steps toward further growth.

0The Oji Group Integrated Report 202206