Thank you for your continued support of the Oji Group.
Since its foundation in 1873, Oji Group has continued to achieve growth, both inorganic & organic, through business mergers and expansion of business fields. With the enhancement of our various businesses such as the packaging business, pulp business, or the power generation business that has been expanded recently, I could feel that our original core business, “Paper Manufacturing”, is relatively growing smaller.
Under external changes in our business landscape coupled with changes internally, we endeavor to enhance our long-term corporate value with our Management Philosophy as our compass; “Creation of Innovative Value”, “Contribution to the Future and the World”, and “Harmony with Nature and Society”.
Oji Group’s 3 Fundamental Strategies are: “Expansion of Overseas Businesses”, “Concentration / Advancement of Domestic Businesses”, and “Enhancement of Financial Foundation” that provides the basis of support for the first two pillars.
Firstly, for “Expansion of Overseas Businesses”, overseas sales ratio is now about to reach a new historical high of 30%. This is the fruit of our efforts to speed up overseas expansion since 2010. Even though the numbers of overseas subsidiaries and employees have surpassed these in Japan, we will continue to expand more profitable businesses abroad.
Next, “Concentration / Advancement of Domestic Businesses” is an issue which we will always continue to tackle and improve on. Positive cash-flows obtained from paper manufacturing or packaging businesses are constantly channeled into Growth Areas and R&D for New Business Segments. To elaborate more on R&D, we are gradually gaining ground to commercialize Cellulose Nano-fiber, a highly anticipated new material with numerous possible applications. We are very excited to see more attractive products coming online.
Last but not least, for “Enhancement of Fundamental Foundation”, we have managed to achieve a lower level of interest-bearing debts at the end of FY2016 than our set target at the end of FY2018 as a testament to our efforts in striking a balance between strategic investment and reduction of interest-bearing debts.
Furthermore, we constantly carry out activities to instill the values of “Safety, Environment, and Compliance”, the top priority for management, to all company employees and officers globally. These activities include risk elimination of industrial accidents at each workplace, environmental conservation through compliance with regulations on greenhouse gas emissions and prevention of environmental accidents, compliance with laws/regulations to fulfill the Group’s social responsibilities etc.
From the Top Management such as CEOs and Company Presidents all the way down to the departmental level, the entire Group has strived to raise awareness of these values.
For the environment, being the largest private owner of forests in Japan, we are also committed to maintaining and improving public value of forests. We actively tap on unused resources such as biomass fuels which have an increasing usage recently; engage in sustainable forest management in the cycle of "growing, harvesting and re-planting trees"; aim to create an environment that maximizes the forest functions.
In addition to the Management Strategies for enhancement of corporate value and Governance Structure Improvement that supports them, Oji Group is also actively engaging in Human Resource Strategies which form the driving force for everything within the Group. With “working style reforms” which pursue work productivity, and “promotion of diversity” which enhances professional opportunities for women as our two main pillars, we aim to develop a working environment where every single employee can maximize his/her potential. To that end, we raise awareness through various activities as well as promote the necessary system changes, so that all diverse talents of Oji Group, regardless of their gender, nationality or age, are able to engage in their work actively.
Oji Group will strive to meet everyone’s expectations by achieving corporate value enhancement and stable dividends. We sincerely appreciate your continued patronage and loyal support. Thank you.
President and Chief Executive Officer
Oji Holdings Corporation