S.PACK & PRINT- SAHAKIJ Mill (Thailand)
Summary on Financial Results
and Management Strategies
Nov. 22, 2012
Box Asia Group International (Thailand)
CENIBRA (Brazil)
Chitose No.1 Hydro
Contents
3. Overview of major business portfolio transition measures
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
1. Industry demand in first half of FY2012
1
1. Overseas Business
2. Trend in sales prices
2
(1) Expansion of business portfolio in Southeast Asia and India
20
3. Trend in main raw materials and fuel prices
3
(2) Expansion of packaging business in Southeast Asia and India
21
4. Financial highlight of first half of FY2012 (consolidated)
4
(3) Vision for packaging business in Asia
22
5. Net sales and operating income by segment
5
(4) Forest resources business in Southeast Asia
23
6. Sales by major types of products (consolidated)
6
(5) South America business centered around Brazil
24
7. Breakdown of increase/decrease of consolidated operating
income (FY2011/1H vs. FY2012/1H)
7
(6) Expansion of functional materials business in South America
25
(7) Expansion of forest resources business in South America
26
8. Financial forecast for the year ending March 2013
8
(8) Forest resources business in Oceania
27
9. Breakdown of increase/decrease of consolidated operating
income (FY2011 vs. FY2012 forecast)
9
2. Review of the business environment and basic strategy
2. Domestic Business -New Business・Growth-Business(1) Functional materials business
28
(2) Bio-refinery business
29
1. The need for business portfolio transition
10
(3) Power generation business
30
2. Transition to Pure holding company (HD)
11
(4) Renewable energy business
31
3. HD management structure
12
4. Results of the business portfolio transition investments
13
5. Effects of the business portfolio transition measures
14
Trends in operating income (consolidated)
32
6. Basic strategy for FY2013 – FY2015
15
Trends in consolidated interest-bearing debt
33
7. Mid-term Income forecast
16
CAPEX and depreciation trends (consolidated)
34
8. Major business strategic measures－Overseas
17
Employees trends (consolidated)
35
9.Major business strategic measures－Domestic ①
18
Domestic ②
19
Reference material
1. Result overview – 2nd Quarter, FY2012 and
Financial forecast FY2012
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
1. Industry demand in first half of FY2012
（1,000 tons）
Domestic Shipments
Custom Cleared Imports
Year on Year(%)
Containerboard
Total
*1
Year on Year (%)
Year on Year(%)
4,259
98.0%
69
124.8%
4,328
98.3%
Boxboard
780
93.2%
126
104.2%
906
94.5%
Other paperboard
317
98.6%
17
131.0%
334
99.9%
5,356
97.3%
212
112.1%
5,568
97.8%
Sanitary Paper
866
100.9%
52
102.1%
918
101.0%
Packaging Paper
380
91.2%
7
121.0%
387
91.6%
Newsprint
1,601
102.8%
23
33.5%
1,624
100.0%
Printing/
Communications Paper
3,805
93.4%
844
106.7%
4,649
95.6%
372
99.8%
11
94.6%
384
99.6%
7,025
96.5%
936
101.1%
7,962
97.0%
12,382
96.8%
1,149
102.9%
13,530
97.3%
Total (paperboard)
Miscellaneous Paper
Total (paper)
Total
(paper and paperboard)
*2
（m2 mil）
Corrugated containers
*3
6,607
99.6%
Source：Japan Paper Association – Statistics on Paper and Paperboard, Trade Statistics of Ministry of Finance, Japan
*1：For statistics for customs cleared imports of paper, please refer to April – September 2012.
* 2：The figure shown in customs cleared imports of sanitary paper includes secondary products (processed goods).
* 3：The figure shown in corrugated containers is volume of sheet production.
1
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
2. Trend in sales prices
2
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
3. Trends in main raw materials and fuel prices
3
1. Result overview – 2nd Quarter, FY2012 and Financial forecastFY2012
4. Financial highlight of first half of FY2012 (consolidated)
（¥ bil.）
First half of FY2011
First half of FY2012
Increase (Decrease)
611.4
604.7
(6.7)
Operating Income
33.1
21.9
(11.2)
Ordinary Income
23.5
17.0
(6.5)
Net Income
12.0
8.4
(3.6)
Depreciation
36.8
34.6
(2.2)
79.8
79.4
(0.4)
Net Sales
Exchange rate （¥/US$）
Scope of consolidation:
No. of consolidated companies
127 companies
153 companies
+26 companies
(No. of overseas consolidated companies)
(47 companies)
(67 companies)
(+20 companies)
No. of affiliated companies which the
equity method applies
14 companies
17 companies
+3 companies
(No. of overseas affiliated companies
which the equity method applies)
(2 companies)
(6 companies)
( + 4 companies )
Consolidated companies: ＋26 companies
Japan Brazil Paper&Pulp Resources Development Co., Ltd. and CENIBRA group companies:
＋6 companies (Pulp production business in Brazil) (via additional stock acquisition)
Overseas forestry group companies: ＋13 companies (Australia, New Zealand, Vietnam, China, Laos, Cambodia) (due to increase in strategic importance)
Due to transition to Holding company: ＋5 companies (New establishment)
Oji India Packaging: ＋1 company (New establishment of corrugated container business in India), etc
Companies which the equity method apply: ＋3 companies
CENIBRA group companies: ＋1 company (Equity method affiliate with CENIBRA becoming a consolidated company)
Japan Brazil Paper&Pulp Resources Development Co., Ltd.:－1 company (Equity method affiliate with additional stock acquisition)
Overseas forestry companies: ＋3 companies (China, Indonesia, Vietnam) (due to increase in materiality)
4
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
5. Net sales and operating income by segment
（¥ bil.）
First half of FY2011
First half of FY2012
Operating
Income
Net Sales
Increase (Decrease)
Operating
Income
Net Sales
Operating
Income
Net Sales
Pulp and paper
products
270.6
20.0
265.3
15.0
(5.3)
(5.0)
Converted paper
products
230.0
7.7
242.6
8.0
12.6
0.3
Other
110.8
5.8
96.7
3.3
(14.1)
(2.5)
−
(0.4)
−
(4.4)
−
(4.0)
611.4
33.1
604.7
21.9
(6.7)
(11.2)
Adjustment
Total (Consolidated)
Note: Net sales stated above are external sales (excluding inter-segment sales)
5
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
6. Sales of major products (consolidated)
First half of FY2011
Sales
Volume
First half of FY2012
Unit Price
Sales
1,000 tons
¥/kg
¥ bil
1,563
65.85
Sanitary paper
103
Packaging paper
Total (paperboard)
Printing & Writing
paper etc.
Specialty paper, etc
Total (paper)
Total
(paper and paperboard)
Sales
Volume
Increase (Decrease)
Unit Price
Sales
1,000 tons
¥/kg
¥ bil
102.9
1,437
67.66
209.20
21.5
100
149
100.96
15.1
1,427
110.37
121
Sales
Volume
Year on year
Unit Price
Sales
1,000 tons
%
¥/kg
¥ bil
97.2
(126)
92.0%
1.81
(5.7)
206.61
20.6
(3)
97.1%
(2.59)
(0.9)
135
103.43
14.0
(14)
90.6%
2.47
(1.1)
157.5
1,300
111.79
145.3
(127)
91.1%
1.42
(12.2)
226.59
27.5
111
217.36
24.2
(10)
91.6%
(9.23)
(3.3)
1,800
123.06
221.5
1,646
123.98
204.1
(154)
91.4%
0.92
(17.5)
3,363
96.48
324.5
3,083
97.73
301.3
(280)
91.7%
1.25
(23.1)
Note: Figures above are aggregations of production subsidiaries under consolidation, which include inter-segment consumption
Corrugated containers
104.5
109.0
4.5
Note: External sales
6
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
7. Breakdown of increase/decrease of consolidated operating income
（FY2011/1H vs. FY2012/1H）
(First half of FY2011 to first half of FY2012)
First half of FY2011 ¥33.1 bil.
First half of FY2012 ¥21.9 bil. (- ¥11.2 bil.)
7
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
8. Financial forecast FY2012
（¥ bil.）
FY2011
FY2012E
Increase (Decrease)
1,212.9
1,260.0
47.1
Operating Income
53.8
58.0
4.2
Ordinary Income
48.4
50.0
1.6
Net Income
22.2
22.0
(0.2)
Depreciation
76.0
71.4
(4.6)
79.1
79.2
0.1
Net Sales
Exchange rate(¥//US$）
(Based on assumption:
¥79.0/US$ for FY2012/2H）
Key financial forecast assumptions for FY2012
・Raw materials
and fuel prices
Wood chips
： Based on current contract
・Fluctuation effect
Exchange rate
： Fluctuation of ¥1/US$: approximately±¥0.4 bil.
(Exchange rate changes for export/import and overseas companies, etc)
Recovered paper： Price to remain static at
current level
Coal
： Based on current contract
Recovered paper： Fluctuation of ¥1/kg: :approximately±¥4.2 bil.
Dubai crude oil ： Fluctuation of ¥1/kg: :approximately±¥0.4 bil.
(Heavy fuel oil, naphtha, bunker, electricity, gas, etc)
Note: The above forecasts, concerning future economic conditions and other factors, are based on forecasts made at the time of publication.
As such, actual results may differ from these forecasts due to various unforeseen reasons.
8
1. Result overview – 2nd Quarter, FY2012 and Financial forecast FY2012
9. Breakdown of increase/decrease of consolidated operating income
（FY2011 vs. FY2012 forecast）
(FY2011 to FY2012E)
FY2011 ¥53.8 bil.
FY2012E ¥58.0 bil. (+ ¥4.2bil.)
9
2. Review of the business environment and basic strategy
2. Review of the business environment and basic strategy
1. The need for business portfolio restructuring
Review of the business environment
The trend towards shrinking domestic production due to decline in demand and increase in imports
Reasons for decline in
domestic demand
Widespread use of technology devices
Reduction of domestic industry
Declining Birthrate and Aging Population
・% change in domestic demand
(Yr ’12 as compared to Yr’07)
Paper 84% Paperboard 91%
・% of Imports for Paper
2012: 12%
Adverse impact on
Printing and
Communications paper
・% of imports
20%
・% change in domestic shipment 70%
(Yr ’12 as compared to Yr’07)
(2012 Forecast)
*Percentage of import＝Imports ÷ (Imports+ Domestic Shipment)
Data source：Japan Paper Association（Oji’s forecast based on results from Jan – Sep ‘12)
Economic conditions in Japan
Increasing Globalization
Hollowing out of domestic industry
Increasing fiscal deficit
Persistent strong yen
⇒ GDP growth stagnation
(IMF Forecast：Annual growth of 2% for the next 5 years)
Basic strategy
6
measures
Business reform measures to accomplish
business portfolio restructuring
・Enhancement of global competitiveness via aggressive
cost reduction
・Expansion of overseas businesses
・Growth through incubation of R&D oriented model
・Promotion of resource and environmental business
・Establishment of integrated business model from raw
materials to converting process
・Enhancement of the trading business
10
2. Review of the business environment and basic strategy
2. Transition to Pure holding company (HD)
Rationale for
the transition
Oji Paper
Kanzaki Paper
Maximizing Group’s management efficiency
Enhance Oji Group’s
Enterprise Value
・ Enhancement of operations ・Clarification of management
responsibilities
of each business unit
The transition towards segmentation of business unit
Oct 2012
Printing & Writing paper business, Newsprint business、
Imaging media business, Duplex board & Packaging paper business
Honshu Paper
1998
Merger of the 3
companies in 1990s
Formation of an
integrated company
with a widely
diversified
businesses portfolio
List of businesses:
Printing & Writing paper,
Newsprint,
Duplex board & Packaging,
Containerboard,
Corrugated container,
Household products,
Specialty products,
Functional film, etc
Corrugated
Container Business
2001
Containerboard
Business
Oji Container Co., Ltd.
2003
Household
Products Business
Oji Materia Co., Ltd.
Pure
Holding
Company
2004
Specialty Paper
Functional Film Business
Oji Nepia Co., Ltd.
Oji F-Tex Co., Ltd.
Consolidated
tax payment
started from
Apr 2012
*Corporate names are as of 1 Oct 2012
11
2. Review of the business environment and basic strategy
3. HD management structure
Oji Group’s
management
structure
Aggressive pursuit of various strategies to accomplish business portfolio restructuring
Streamlining of workforce throughout the Group
HD management structure
Oji Holdings
Corporate Governance Division
Household and
Industrial
Materials Company
Duplex board and
Packaging Materials,
Containerboard
Folding Carton and
Paper Bag,
Corrugated Container
Household Products
Printing and
Communications
Media Company
Functional
Materials Company
Newsprint
Imaging Media
Printing & Writing
Paper
Specialty Paper
Communications
Paper
Functional Film
Adhesive products
Research & Development Division
Forest Resources
and Environmental
Marketing Company
Lumber,
Tree Planting
Pulp
Corporate
Management
Group and
Independent
Business
Shared Service
Companies
Renewable Energy
Raw Materials and
Fuel
Domestic workforce reduction target: Reduce 2,000 employees by FY2015 (10% of Oji Group’s domestic workforce as of end Sep 2012)
12
2. Review of the business environment and basic strategy
4. Results of the business portfolio restructuring investments
Devotion of substantial management resources to overseas growth markets and
domestic growth sectors
Household and
Industrial Materials Business
¥50.0
bil.
Diaper business
Adult diaper (tape type)
2013
Operation of new plant to start in early of the year
(Fukushima)
Acceleration of business portfolio
restructuring from 2010
■ 3-year investment
target:
¥200 bil.
2012
2012
2013
2013
Acquired corrugated container business, GSPP( Malaysia)
Acquired folding carton business, S.PACK (Thailand)
Acquired Harta (Malaysia, Cambodia)
Set up of new paper bag plants（Qingdao、Wuhan: China）
(*Number of paper bag business’s site in China ：3）
Set up of new corrugated container company (India)
（*Operation of plant scheduled to start in Jan 2014）
Operation of new corrugated container plant
scheduled to start in Apr. (Vietnam)
Operation of new corrugated container plant
scheduled to start in early of the year. (Cambodia)
Functional Materials Business
¥40.0
bil.
¥170 bil.
Domestic ¥30 bil.
Overseas ¥140 bil.
Overseas business
2010
2011
■ Total investment
made:
Mar 2013 Scheduled start of new production line (Shiga)
¥80.0
bil.
Power generation business
Biomass power generation
Mar 2015
Scheduled start of new generator (Fuji Mill)
Solar power generation
Aug 2013 Scheduled start of new generator (Hokkaido)
Bio-refinery business
Furfural, DP, etc
Mar 2014 Scheduled start of new facility (Yonago Mill)
Overseas business
Under
Consideration:
¥30 bil.
2012 Conversion of CENIBRA (pulp business) into a
consolidated company (Brazil)
2012 Start of operation of BC-TMP production facilities at
PAN PAC （New Zealand）
2012 Establishment of plywood manufacturing company (Vietnam)
On-going
projects:
¥20 bil.
Enhancement of trading business
Functional materials business
Film for use in Capacitor
Forest resources and
environmental Marketing
Completed projects: ¥150 bil.
Film for use in smartphone and adhesive sheet
Jan 2013 Scheduled expansion of production facility at
New Tac Kasei Co., Ltd
2010 Conversion of Kyokuyo Pulp and Paper into
consolidated company
ÆReorganization and consolidation of Oji Trading’s
business
Specialty paper business
Expansion of specialty paper‘s production facility
(release liner, grease-proof paper, etc)
Increase in operating income
Mar 2013 Scheduled start of new production line (Ebetsu Mill)
Overseas business
Total investments made: ¥170 bil.
¥25 bil.
（Including unrealized amount of ¥11 bil.）
2011 Acquired paper & converting business, OPE (Brazil) –
(Thermal Paper Business)
2011 Set up of adhesive laminator at OLT（Thailand）
13
2. Review of the business environment and basic strategy
5. Effects of the business portfolio restructuring measures
Realized effects
as of FY2012
Net sales contribution of ¥180 bil.
Operating profit contribution due to portfolio restructuring measures: ¥14 bil.
Operating profit contribution due to restructure of manufacturing operations: ¥15 bil.
Net Sales
•Overseas sales ratio 8% to 15%
•Overseas consolidated
companies: 15 to 67 companies
Operating Income
Effect of portfolio restructuing : +¥180 bil.
Breakdown:
Household and Industrial:
Functional Materials:
Forestry Resources:
Trading business:
¥40bil.
¥20bil
¥50bil
¥70bil
Breakdown:
Household and Industrial:: +¥3.5 bil.
Printing and Communication: +¥14.5 bil.
Functional Materials: +¥2.0 bil.
Forestry resources: +¥9.0 bil.
14
2. Review of the business environment and basic strategy
6. Basic strategy for FY2013 – FY2015
Basic Strategy for
FY2013- FY2015
Business portfolio restructuring investment of ¥90 bil.
Reduction of interest-bearing debt to ¥700 bil.（by end of FY2015）
Financial balance for FY2013 – FY2015
Strengthening of financial
base
Further business portfolio
restrucuring
Financial strategy for FY2013 – FY2015
Restructuring of domestic
business and review of
possible further reduction
Units: ¥ bil.
Ordinary
Investment
¥90 bil.
Others
310
Operating cash flow
410
Reduction of
interest-bearing
debt
¥130 bil.
Business portfolio
restructuring
investment
¥90 bil.
Dividend, etc.
100
To review the possibility of further
business portfolio restructuring investments
after ascertaining the financial situation
and Investment balance.
Priority investment
Regions： Southeast Asia, India, South America
Business： Packaging
Plantation/log processing
Energy
Agriculture business, etc
15
2. Review of the business environment and basic strategy
7. Mid-term income forecast
Management Target
Operating income : over ¥100 bil.
FY2011
FY2012E
Net income : over ¥50 bil.
FY2015
Forecast
FY2017
Target
¥1,400.0 bil.
¥1,500.0 bil.
FY2015 Net sales composition
Others ¥40 bil.
Net sales ¥1,212.9 bil. ¥1,260.0 bil.
Operating
income
¥53.7 bil.
¥58.0 bil.
¥90.0 bil.
¥100.0 bil.
Year-end Interestbearing debt
¥784.7 bil.
¥830.0 bil.
¥700.0 bil
Less than ¥700.0 bil.
D/E ratio
ROE
1.7x
5.0%
1.6x
4.9%
1.2x
7%
1.0x
More than 8%
Functional
Materials
¥240 bil
Overseas
¥360 bil.
Domestic
¥1040 bil.
Household and
Industrial
Materials
¥670 bil.
Printing and
Communications
Media
¥280 bil.
Breakdown for the increase of ¥32 bil. in operating income
for FY2012 - FY2015
Effects of business portfolio restructuring investment:
Restructuring of domestic business:
Cost reduction:
Decline in demand and differences in sales prices, etc
Forest
Resources
and
Environmental
Marketing
¥170 bil.
+¥11 bil.
+¥19 bil.
+¥26 bil.
（-¥24 bil.）
Overseas sales ratio 26％
16
2. Review of the business environment and basic strategy
8. Major business strategic measures-Overseas
Overseas
business
Accelerate expansion of business in high-growth countries and resource-rich countries
Aggressively expand business via M&A
Overseas net sales
Aggregation of all overseas
businesses
Europe
¥11 bil.
Focus areas
FY2012 (Plan)
¥190 bil.
FY2015(Target)
¥360 bil.
India, Southeast Asia,
South America
China
¥24 bil.
*Taking into
consideration of
investment projects
taken throughout
FY2012
North
America
¥17 bil.
Japan
(Domestic)*
¥1,070 bil.
Aggressively pursue
business expansion in
India and Southeast Asia
FY2015
Net sales target for Asia:
¥180 bil.
Asia. Ex China
¥52 bil.
To make use of the
current business operations
in Brazil for a full-scaled
market entry into South America
(¥64 bil.)
Oceania
¥27 bil.
FY2015
Net sales target for Brazil:
¥100 bil.
South America
¥59 bil.
（¥72 bil.）
*Elimination of intra-company sales have been taken
into account for Japan’s domestic sales figure
17
2. Review of the business environment and basic strategy
9. Major business strategic measures – Domestic (1)
Current existing
domestic business
Implement bold restructuring measures
Drastically improve earnings structure
Decline in demand
FY2015 Capacity
utilization rate
Worsening
production efficiency
Printing and
communications paper
Paperboard
Up to 6% annually
Up to 3% annually
90,000 tons（currently）to
400,000 tons
340,000 tons (currently）to
600,000 tons
79% to 95%(currently)
81% to 89%(currently)
Decline in domestic
shipments
FY2015 Excess
production capacity
Excess production
capacity
Ceased production
from 2008 onwards:
・Printing & writing paper machine: 14
・Paperboard machine: 1
・Specialty paper machine: 2
(Includes scheduled ceased production)
*Excess capacity & utilization rates are
projected based on the assumption of
maintaining current market share
Further drastic improvements
in earnings structure
To cease production of
low profit-margin products
and to shift towards
high profit-margin products
Exit unprofitable brands to
improve profitability
Restructuring and consolidation
of Group’s businesses
Closure of paper mills
Consolidation of overlapping
Group’s businesses
Consolidation of business sites
Bold restructuring of
production system
18
2. Review of the business environment and basic strategy
9. Major business strategic measures – Domestic (2)
Domestic
Growth Sectors
To devote greater management resources in both growth sectors and
new business sectors
Strengthening of Household and
Industrial Materials Business
Care and support business
Further market growth expected
Built new plant for adult diaper in Fukushima
Packaging business
To promote integrated model from raw materials to
converting process
To review alliances with other companies
Conversion of product type
Modification of production facility (Ebetsu Mill)
(Scheduled operation in Mar 2013)
To convert the production of #6PM from printing and
communications paper to specialty paper
Oji Nepia products
6M/C of Ebetsu Mill and the Aerial view
Development of growth and
new promising businesses
New plant in Fukushima
Higher asset management efficiency
Downsizing and disposal of idle fixed asset
Utilization of company’s domestic forest resources
Capacitor film
(Oji F-Tex)
Survey location of
geothermal energy
（Company forest at Hokkaido）
Furfural
(Bio-refinery business)
19
3. Overview of major business portfolio transition measures
3. Overview of major business portfolio transition measures
1. Overseas business
1-（1） Expansion of business portfolio in Southeast Asia and India
To pursue total packaging solution provider business, functional materials business,
forest resources and environmental marketing business in growing Southeast Asia and India market
FY2015 Net sales target
¥50 bil.
¥180 bil.
（FY2012 Plan）
Existing
number
of
business
sites
Packaging business
Forest resources and
environmental marketing
Functional material
19
7
Expansion
2
20
3. Overview of major business portfolio transition measures
1. Overseas business
1-（2） Expansion of packaging business in Southeast Asia and India
To aggressively expand packaging business sites in each country to expand market share
India
Oct 2012
India
Decided to start
corrugated container
business as a joint
venture with leading
paper manufacturer
in India
Oji JK Packaging
Gurgaon, Haryana state (Head office)
Neemrana industrial park, Rajasthan state (Plant)
Total Investment
Production
capacity
Start-up
Shareholders
Approximately ¥2.2 bi.
Corrugating: 48 million sqm/yr、
Box & Printing: 44 million sqm/yr
Jan 2014
Oji：60% JK Paper：20%
Marubeni：20%
Entrance to Neemrana industrial park
Cambodia
Recent business expansion
Cambodia
Feb 2012
Decided to build a
new corrugated
container plant
Location
(Planned site)
Ojitex Harta Packaging
(Sihanoukville)
Planned site
Production
capacity
Total
Investment
Start-up
Sihanoukville Harbor industrial area
Corrugating: 67 million sqm/yr,
Box & Printing: 40 million sqm/yr
Approximately ¥1.2 bil.
Early 2013
Construction of Cambodia plant
Oct 2012
Thailand
Additional acquisition
S.PACK & PRINT’s
stock and making it
into a consolidated
company
Thailand
S.PACK & PRINT
Had yai (Southern Thailand), Bangkok
Manufacturing and sales of folding box, high grade
and general corrugated carton box
1,101 million THB (approximately ¥2.8 bil.)
*As of Dec 2011
S.PACK
Thailand
Oct 2012
Acquisition of Box
Asia Group
International Co.,Ltd.
Location
Business
line
Sales
Box Asia
Location
Business
line
Sales
Rayong (Eastern Thailand)
Manufacturing and sales of folding box and high
grade corrugated carton box
297 million THB (approximately ¥0.7 bil)
*As of Dec 2011
Box Asia
21
3. Overview of major business portfolio transition measures
1. Overseas business
1-（3） Vision for packaging business in Asia
To aim for business expansion throughout the whole of Southeast Asia
Main business policies
To move into new markets
Set up of containerboard machine
Integrated business model from raw
materials to converting process
Packaging business sales revenue
FY2012 (Plan)
FY2015
¥40 bil.
¥160 bil.
22
3. Overview of major business portfolio transition measures
1. Overseas business
1-（4） Forest resources business in Southeast Asia
To aggressively explore uses of sustainable forest resources other than raw materials for paper
To expand log processing business, gum plantation, etc throughout Southeast Asia
Myanmar
Under
consideration
Cambodia
OCP
Indonesia
KTH
New plantation business
(Gum, Teak, Acacia, etc)
Lumber sawing, Plywood, Gum
processing
Business Line
Plantation business
Land area
7,500ha
Start-up
2012
Under
consideration
Lumber sawing, etc
Business Line
Plywood and lumber sawing
business
Lumber sawing：10,000㎥/yr
Production
capacity
Plywood：36,000㎥/yr
Start-up
2013
Joint venture company
Oct 2012
Joint venture with
Vietnam
OJI-VINAFOR PLYWOOD
CORPORATION
Capital
Quang Chau industrial zone, Bac Giang
Province
US$ 3 million
Shareholders
Oji Forest & Products 60%
Business lines
Location
VINAFOR 40%
(VINAFORD) to set
Production
Eucalyptus plantation for main raw materials
Manufacturing and sales of plywood used for
floors
30,000㎥/yrr
up plywood plant.
Start-up
2013
national forestry
company
Setting up of local
sales company
Local sales company
OJI FOREST&PRODUCTS
VIETNAM(Temporary name)
Location
Business
lines
Hanoi city
Sales of products manufactured by JV
plywood company within Vietnam and for
export sales
FY2015 Sales Target
¥10 bil.
23
3. Overview of major business portfolio transition measures
1. Overseas business
1-（5） South America business centered around Brazil
To set up bases in fast-growing Brazil market
to accelerate global expansion
◆ To strengthen functional materials business centered around
Oji Papeis Especiais (OPE)
◆To expand resources business centered around CENIBRA
Investment situation in Brazil
Increase in overseas investment from all over the world attracted
to Brazil due to its fast-growing economy and rich natural resources
2011 Investment：USD 69.5 billion
（consists of Japan’s USD 7.5 billion ）
Investment from Japanese companies
Automobile, Steel plate manufacturing, Electronics industry
Investment announced in 2011
*Automobile-related manufacturer *Beverages manufacturer
*Trading house（Agriculture）etc.
Brazil as a “market”
Growing investment in service industry,
sales and distribution industry
24
3. Overview of major business portfolio transition measures
1. Overseas business
1-（6） Expansion of functional materials business in South America
To aggressively expand throughout South America
with OPE as a toehold
Brazil
2011
Acquisition of Fibria’s manufacturing plants and renamed as OPE
Enter into high potential thermal paper market
Production plant for
functional materials
OPE
Location
Business line
Production
capacity
Piracicaba city, Sao Paulo state, Brazil
Manufacture of thermal paper, carbonless paper, etc
Approximately 110,000 ton/year (2011)
Main business policies
To expand the export of functional materials’ from OPE to
Central and South America
To review the integrated production of TB (transformer board),
separator paper, adhesive paper, etc, in which demand is
forecasted to rise
To review the entry into other specialty paper business such
Bird’s eye view of OPE
as tobacco packaging, inserting paper for liquid crystal glass,
in which demand is forecasted to rise
25
3. Overview of major business portfolio transition measures
1. Overseas business
1-（7） Expansion of forest resources business in South America
Acquisition of pulp business site with CENIBRA becoming a consolidated company
To aggressively expand throughout South America
Brazil
Making CENIBRA into a subsidiary company in 2012
Internationally competitive pulp production site.
Major pulp production plants
in Brazil
Strengthening of competitiveness of plantation business.
Pulp business
CENIBRA
Location
Business line
Minas Gerais state, Brazil
Plantation business and production and sales of pulp
Para state
Eucalyptus LBKP
Production Capacity
1.2 million tons/yr
Eucalyptus forest
145,000 ha
(FSC certified）
Top 10 in the world
in terms of LBKP
production capacity
Bahia state
Brazil is one of world’s leader
in large-scale eucalyptus
forest
Brasilia
Minas Gerais state
High profits achievable
CENIBRA
Espirito Santo state
Sao Paulo state
Rio de Janeiro state
Rio Grande do Sul state
●
●
●
Currently existing plants
Sites with high potential
Sites in the planning stage
CENIBRA
26
3. Overview of major business portfolio transition measures
1. Overseas business
1-(8) Forest resources business in Oceania
Utilization of forest resources of PAN PAC（New Zealand）
to further promote total forestry business
・To expand the sales of wood products
(lumber sawing, pulp, etc) via the use of Group’s
trading functions
・To expand the multi forest business with overseas
as a core
general
Main approaches
PAN PAC business
Lumber sawing business
Expansion in production capacity
Enhancement of kiln for drying purposes
28% increase in production capacity
(400,000m3/yr)
Company forest(33,000ha) and
surrounding resources
Enhancement of BCTMP facility
Pulp business
Modification of BCTMP production facility
Wood Chips
(improved bleaching, sewage treatment equipment)
BCTMP’s external sales target
200,000 tons/year in Asia
Logs
Mechanical Pulp Demand Forecast
(Source：RISI)
Wood chips export business
Forestry business
*Mechanical pulp that are being produced
nowadays mainly consists of BCTMP
27
3．Overview of major business portfolio transition measures 2. Domestic business -New business・Growth business-
2-(1) Functional materials business
To promote new product development in areas of functional sheet and film by utilizing Oji Group’s core
Technologies (manufacture of sheets using various materials and processing technologies)
Film used in capacitors
Non-carrier film (NCF), Anti-fingerprint film
The world’s first commercialization of ultra-thin PP film
*First Commercialization of the world’s thinnest capacitor film
(2.5micrometer) in 2011
Production line specially for thin grade at Shiga mill scheduled to
start in Mar 2013
Example of Oji Group’s products used in smartphones
To further develop the high voltage endurance and heat
resisting property.
HCF：Anti-scattering front side of cover glass
Main use of ultra-thin film
Capacitors used in hybrid
electric vehicles (HEV) and
electric vehicles（EV）
Cover glass
HCF ： Anti-scattering flip side of cover glass
NCF : Attaches cover glass to touch panel
Touch panel module
HCF：Anti-scattering flip side of touch panel
NCF : Attaches touch panel to LCD module
Film used in capacitors and HEV capacitor modules
LCD module NCF : Attaches polarizing plate
Medical products
Alliance with other companies to bring about
commercialization of special gel plaster,
cooling fever patch, etc
Hard coat film
Non-carrier film
28
3．Overview of major business portfolio transition measures 2. Domestic business -New business・Growth business-
2-(2) Bio-refinery business
Remodeling of existing pulp facility and promoting of commercialization of valuable bio-refinery
⇒ Implementation of new facility in Yonago Mill
Furfural
Valuable bio-refinery production process
Solvent for petroleum refining, furan resin* To be used as bio-mass derived raw
materials
Most imports from China now
Evaluation and verification of production and to
promptly review its commercialization potential
Wood chips
*Furan resin：Plant-derived plastic.
used in cast mold、brake, etc
Partial remodeling of existing pulp facility
Dissolving pulp
(Yonago Mill scheduled to start operation in Mar 2014
Production capacity：90,000 tons/yr, Sales：¥9 bil.)
Furfuryl alcohol
Furfural
World’s fabric demand (mil.tons)
Dissolving pulp*
Xylooligosacchaide
Xylose
Ethanol
Furfural*
Furan resin
Commercialization of products using rayon
Enter into the market of specialized
medical and chemicals area where rayon is used (medical products, cosmetics, LCD film)
Rayon, etc
Cotton
Synthetic fiber
Wool
Rayon, etc
◆ Rise in fabric demand per
capita
Cotton (Flat growth)
Synthetic fiber
(Annual growth rate of 3%)
Wool
Developed into various
chemical raw materials
Furan
Adipic acid
◆World population, 7
8.4 bil.
(in next 20 years)
(projected annual growth rate of 3%)
Demand for dissolving pulp
used for rayon is also expected
to rise
(projected annual growth rate of 5% and
above)
World’s fabric demand (Oji’s study)
29
3．Overview of major business portfolio transition measures 2. Domestic business -New business・Growth business-
2-(3) Power generation business
To further expand the power generation business
To make aggressive investments in renewable energy
Further approaches
Current power generation business
To make greater utilization of idle plant facilities, company forest
and idle land
To make aggressive entry into renewable energy market
In the past, External sales were only
surplus power.
Bio-mass
Due to the shortage in power, there has
been a growing dependence on selfgenerated power since 2011.
Solar energy
Geothermal
Hydropower
¥60 bil. investment
Power sales volume target：1,100GWh/year
Increase in volume of surplus power for
sale due to stop of machines.
(Kushiro, etc.)
Chitose No.3 Hydro
Sales target：¥28 bil./year
Sales amount of electricity by generation methods
Oji Group’s
power sales
results
Total sales
volume
Hydroelectricity
Etc.
FY2011
378GWｈ
106GWｈ
272GWｈ
FY2012 1H
268GWｈ
54GWｈ
214GWｈ
*Others include fossil
fuels, lignin, RPF, etc
30
3．Overview of major business portfolio transition measures 2. Domestic business -New business・Growth business-
2-(4) Renewable energy business
Bio-mass power
Solar power
Installation of new bio-mass boiler and
To utilize idle land via installation of solar panels.
utilization of current generator facility
Shiranuka, Hokkaido
Scheduled to start operation in Aug 2013
Power sales volume：1.4GWh/year
Fuji Mill (Oji Materia)
New boiler scheduled to start in Mar 2015
Power sales volume：105GWh/year
Plans for Tokushima, Tomakomai
are under consideration
Plans for Hokkaido, Kyushu, etc
are under consideration
Yonago Mill
Geothermal power
(From Japan Photovoltaic Energy Association)
Hydroelectricity power
Biei, Hokkaido
・Geological/alteration zone survey
・Electromagnetic/Gravity survey
・Geochemical survey, etc
are being carried out
To utilize existing facility via
maintenance work
Chitose and Niseko/Hokkaido
Plans to expand the scale of
generators are being considered
*Based on the survey results, decisions
will be made on scale of project, etc
Company forest at Biei
Chitose generator
31
<Reference material>
<Reference material>
Trends in operating income (consolidated)
32
<Reference material>
Trends in consolidated interest-bearing debt
33
<Reference material>
CAPEX and depreciation trends (consolidated)
*With regards to some of the subsidiaries’ investment and loan amount for CAPEX with different fiscal period, it will also be included in the parent’s company financial statements
34
<Reference material>
Employees trends (consolidated)
*The figures for domestic and overseas employees include temporary employees (annual average)
35
This document does not constitute a disclosure document under the provisions of the Financial Instruments and Exchange
Law, and no guarantees are provided concerning the accuracy or completeness of the information contained therein.
Forecasts and other forward-looking statements in this document represent judgments by Oji Holdings Corporation based
on information available at the time of the briefing, and they may be affected by unforeseeable events. You are therefore
urged not to make investment decisions solely on the basis of this document.
Oji Holdings Corporation will no accept any liability whatsoever for losses incurred as a result of use of this document.