The Oji Group has grown into a global company group with diversified businesses and overseas sales ratio of over 25%, with the management philosophy of “Creation of Innovative Value”, “Contribution to the Future and the World”, and “Harmony with Nature and Society”. In the midst of the recent drastically and rapidly changing business environment, we reaffirm our commitment towards being a manufacturing company that meets the ever-changing needs of the times and supports our future. Oji Group will continue advancing forward, aiming towards the development of a sustainable society.
Creation of Innovative Value
We will strive to offer “innovative value” that fulfill the society’s latent needs by swiftly grasping the change in values across broad fields of the society and promoting the “challenging manufacturing” with novel ideas.
Contribution to the Future and the World
We will continue to be a global company that provides “innovative value” for every country and region and works towards creating a new future.
Harmony with Nature and Society
We will actively address environmental problems and contribute towards the realization of a sustainable society for the sake of continual existence and flourishing with nature and the Earth.
Business Environment Surrounding the Oji Group
Demand in Japan has matured, while growing markets overseas present both opportunities and risks.
Regarding the current business environment surrounding the Oji Group, especially in the printing and communications media business which deals mainly with newsprint and printing/publication paper, it is difficult to expect future demand growth even in so-called emerging and growth-leading economies, on top of structural changes in demand such as population decline in Japan as well as the advancement of information and communication technology. On the other hand, there are still markets with growth potential to be found. For example, the consumer products market is expected to expand along with economic growth, and demand in the corrugated containers market is generated corresponding to the flow of goods.
With the increasing number of overseas companies and the overseas sales ratio coming close to 30%, movements in various currencies including Brazilian Real, New Zealand Dollar and Malaysian Ringgit are now capable of significantly impacting our business performance. Besides currency risks, there is also need to bear in mind the country risks that accompany overseas business expansion. Though regional headquarters are designated in each region for more efficient local information gathering, we believe it is important to carefully consider both political and economic stability as well as market potential when proceeding with our overseas expansion plans.
Management Strategies (Fiscal 2016-2018 Medium-term Management Plan)
We will advance with business expansion and also concentration, in accordance with the “Fiscal 2016-18 Medium-term Management Plan” which we formulated in fiscal 2015.
Last year, we established a three-year Group Management Plan which will last until fiscal 2018. The numerical management targets set for fiscal 2018 include: consolidated operating income of \100.0 billion, overseas sales ratio of 35%, interest-bearing debts of \700.0 billion, and ROE of 8%. The three Group Fundamental Strategies for achieving the targets are: “Expansion of Overseas Businesses”, “Concentration/ Advancement of Domestic Businesses”, together with “Enhancement of Financial Foundation” that forms the basis for the former two.
With regard to the further "Expansion of Overseas Businesses," we plan to actively invest in growth in the Southeast Asia region, including India, in addition to Oceania, Brazil, and elsewhere. Meanwhile, we will pursue "Concentration/Advancement of Domestic Businesses" inside Japan, which means continuing to carefully vet projects and selectively focus our operating resources. Furthermore, we will proceed with "Enhancement of our Financial Foundation" in order to support each business project and area of development.
Website of the Management Strategies