In order to boost Group operating efficiency to a new level and to further clarify Directors’ management responsibility for each business line, we separated parts of our business divisions and back-office divisions in October 2012, and had each continue as part of 100% subsidiaries. We also changed names, with Oji Paper Co., Ltd. transferring to a pure holding company newly listed under the trade name "Oji Holdings Corporation." The Group has made "Creation of Innovative Value," "Contribution to the Future and the World," and "Harmony with Nature and Society" its management philosophy and will strongly promote a host of measures toward achieving these objectives.
Going forward, Oji Holdings Corporation will dedicate itself to promoting the management strategies of the whole Group, leveraging the Group's R&D achievements and intellectual property, generating new business and new products, and encouraging synergies between business divisions. At the same time, we will work to further augment the Group's corporate value as we strive to achieve a target of 100 billion yen or more in operating income and 50 billion yen or more in net profit.
The world's demand for paper and paperboard has continued to grow rapidly in recent years. Asian nations, China in particular, have seen strong economic growth and their markets for paper and paperboard have continued to expand dramatically. It is predicted that these countries will lead global paper and paperboard markets going forward. Meanwhile, the markets in North America, Japan, and other advanced countries, which had occupied the top place in the world, are already reaching maturity. The demand structure is also undergoing changes due to the increased application of ICT, adding to a list of factors that makes it difficult to hold expectations for market growth going forward.
Over its 140 years of extensive history, the Oji Group has nimbly adapted to myriad changes in the business environment and maintained its consistent place as a leading company. Furthermore, the environment surrounding the paper industry has been entering another major inflection point in recent years. In order to traverse this inflection point and achieve sustainable growth for the Oji Group, we will keep in mind that we are "no longer a paper manufacturing company" and will enter new domains for future growth, while maintaining the stalwart conviction that we must become an entirely new corporate group.