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About Oji Group

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Industrial Material Business/Household and Consumer Product Business

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Through offering innovative proposals using sustainable paper packaging materials to protect the environment while increasing profits, we will respond to the trust of our stakeholders.

Akio Hasebe
President, Industrial Materials COMPANY
Director of the Board,
Executive Officer,
Oji Holdings Corporation

Segment Overview



In FY2022, the Household and Industrial Materials Businesses had net sales of 780.5 billion yen (up 81.7 billion yen from FY2021) and operating loss of 1.2 billion yen (down 27.4 billion yen from FY2021). In the domestic business, net sales increased with efforts for price revision in a number of products. Net sales of disposable diapers remained almost unchanged from the previous year. In the overseas business, net sales of containerboard and corrugated containers increased mainly due to higher sales in Southeast Asia and India and penetration of price increases, as well as the operation of new containerboard machines in Malaysia started in October 2021. In FY2023, net sales of 866.0 billion yen (up 85.5 billion yen from FY2022) and operating profit of 39.0 billion yen (up 40.2 billion yen from FY2022) are planned.

Industrial Material Business

【Business Overview】
The Industrial Materials Business has production and sales structures that integrate material and converting from base paper manufacturing to product processing and packaging design for the packaging materials that are essential to industry such as corrugated containers, folding cartons, and paper bags and responds in a timely manner to customer needs.

【Corrugated container business】
As well as corrugated containers used in foodstuffs, daily products, electronics, and other areas, we also offer heavy-duty packaging materials used for transporting mainly industrial parts. We also provide automatic packaging systems adjusting the packaging dimension in order to fit each product size inside.

【Folding carton business】
For folding cartons used in a range of fields including confectionaries, cosmetics, and pharmaceuticals, we are combining aesthetically pleasing base paper with structural design tailored to the application and appealing graphics, thereby further enhancing the value of our customers’ products.

【Paper bag business】
We handle a wide range of customer needs—such as heavy-duty sacks for packaging used for safe and secure transport of various products, paper bags that are used for packaging of retail products which also play a role in sales promotions, and bags for home delivery, which are seeing increased demand given the growth in online shopping.






Segment Overview

In FY2022, the Household and Industrial Materials Businesses had net sales of 780.5 billion yen (up 81.7 billion yen from FY2021) and operating loss of 1.2 billion yen (down 27.4 billion yen from FY2021). In the domestic business, net sales increased with efforts for price revision in a number of products. Net sales of disposable diapers remained almost unchanged from the previous year. In the overseas business, net sales of containerboard and corrugated containers increased mainly due to higher sales in Southeast Asia and India and penetration of price increases, as well as the operation of new containerboard machines in Malaysia started in October 2021. In FY2023, net sales of 866.0 billion yen (up 85.5 billion yen from FY2022) and operating profit of 39.0 billion yen (up 40.2 billion yen from FY2022) are planned.

 


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Challenges for the Achievement of the Medium-term Management Plan and Priority Measures for 2023

 

Further Expansion & Enhancement of Packaging Business in Southeast Asia, India, and Oceania

To meet the increasing demand for packaging in various regions, we own a total of 47 manufacturing bases in nine countries throughout Southeast Asia, India, and Oceania, and we are developing our business in the countries. From 2022 to 2023, following the start of operation of new corrugated container plants in Malaysia (two plants) and Vietnam (two plants), in June 2023, we decided to construct our fifth corrugated container plant in India. In Southeast Asia and India, we will continue to expand our business and increase our market share including through M&A. In addition, we will strengthen our business foundation by improving our competitiveness in terms of cost and quality by proactively introducing the latest equipment not only at new plants but also when renewing facilities at existing plants. In Oceania, a new plant started operation in Christchurch, New Zealand in 2022, and we intend to expanding our business and strengthen our competitiveness through aggressive M&A in the corrugated container business including in Australia, as well as by introducing the latest equipment to existing plants. We will also work on the development of plastic alternative products to respond to the expected growing demand.


Our 6th corrugated container plant in Vietnam (started operation in August 2022)

Main Overseas Sites







Initiatives for Environmental Issues

At the integrated containerboard processing plant in Tochigi Prefecture, a solar power generation system with an output of 1.5 megawatts is being installed (scheduled for completion by the end of September 2023). It is not the first solar power generation system installed at our corrugated container plant, but having a larger output, this system will be able to cover the daytime electricity for the corrugated container processing section when weather conditions are favorable. We are also working to install solar power equipment in existing plants if their weight does not exceed the allowable roof load or when the roof is repaired, and examining the possibility of fuel conversion for coal-fired boilers. We will continue to work on initiatives for environmental issues along with business expansion.



 


Initiatives for Product Development

Development of Corrugated Cardboard Packaging Solution for Export Shipment of Car Seats

 We developed a corrugated cardboard packaging solution for export shipment of car seats as an alternative to steel packaging material that had been used. The solution made all of corrugated cardboard are expected to reduce cost, reduce workload in packaging, and further facilitates recycling. In recognition of these, the solution received the WorldStar Winner in the WorldStar Awards 2023 organized by the World Packaging Organization (WPO). To promote paper recycling, which is one of the Group’s sustainable business models, we will continue to develop products that open up new possibilities for paper packaging materials.


 

Initiatives for Product Development

“OJI FLEX PACK’AGE, ” Automated Packaging System

We sell “OJI FLEX PACK’AGE,” automatic packaging system, which helps packaging adjust flexibly to the product size, and fanfold corrugated sheets “Rakudan,” its packaging material. In addition to saving labor in packaging operations, they also help reduce greenhouse gas emissions by reducing the amount of materials used and transportation. This has been well accepted by customers in various industries as a next-generation packaging solution. Having started the production of “Rakudan” in the Kansai region in June 2022 following the Kanto region, now we can offer this solution to an even more customers. We will further accelerate its market rollout and work to strengthen the foundation of the “Rakudan” business and reduce environmental burdens.

  

 

Household and Consumer Products Business


 

We will maximize the internal resources of the Oji Group to enhance the value of the “nepia” brand and deliver products that stand by people and the environment to our customers.

Takayuki Moridaira
Oji Holdings Corporation Executive Officer President,
Household and Consumer Products COMPANY

Business Overview

Oji Nepia has developed the “nepia” brand of household paper and conducts its business activities with the aim of being a brand that stands by people’s lives and the environment. “Perceived quality for life” as in the seeking of good texture, comfort, and functionality. “Environmental Quality” as in the adoption of FSCTM certified paper for forest conservation and the tie-up with WWF. Oji Nepia pursues these two qualities and activities by integrating sales, marketing, and production functions. (FSCTM C018118)

 


 

Challenges for the Achievement of the Medium-term Management Plan and Priority Measures for 2023

Enhancement of Branding and Expansion of Sales of Household Paper Products in Japan

Oji Nepia started using FSCTM certified paper in 2011 ahead of others in the industry. Since then, it has continued to produce environmentally-friendly products, adopting biomass film and ink and developing products using paper instead of film for packaging. In the Japan Sustainable Brands Index (JSBI) 2022, a corporate brand survey regarding SDGs as viewed by consumers* published in February 2023, Oji Nepia was ranked fourth Enhancement of Branding and Expansion of Sales of Household Paper Products in Japan (of 306 companies), and the first (of 17 companies) in the ranking by industry, in the “Cosmetics and Toiletries Category.” * Survey by Sustainable Brands Japan (15,300 samples nationwide, web survey, male and female aged 18–79, 306 companies)

 

Initiatives for Product Development

Launched “nepia Hana-Celeb facial towel”

 In response to concerns about cloth towel hygiene and dissatisfaction with rough or fluffy textures when wiping moisture from the face after washing, we developed a new “nepia Hana- Celeb facial towel” suitable for gently wiping wet skin. Compared to Hana-Celeb boxed tissue, it absorbs water about three times faster, boasts double the strength when wet, and its embossed sheet quickly wipes away moisture from the face. Containing the same triple moisturizing ingredient as used in Hana Celeb Tissue, a proprietary technology of nepia, it also provides a soft feel even with a larger thickness. We will continue to develop products that bring consumers' desires to life.

Initiatives for Environmental Issues

Launched “nepia nepinepi Tissue Filmless Box, 5-Pack 400 Sheets (200 Sets)”

 We developed a filmless box having no film on the opening, which users can just push to take out tissues. The structure of the box eliminates the film while still ensuring a smooth tissuepicking experience. The box is designed to be opened easily by simply pressing on the opening at the beginning of use and produce no waste. After use, the box can be effortlessly folded for direct recycling as paper waste. In addition, eliminating the film on the opening has reduced about 25% of the plastic used in the product, making it an environmentally-friendly product that saves resources and plastic.