Summary of Consolidated Financial and Business Results for the First Quarter of the Year Ending March 2017

November 7, 2016

Summary of Consolidated Financial and Business Results
for the First Half of the Year Ending March 2017


Company Name: Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange)
URL: http://www.ojiholdings.co.jp/
Representative: Susumu Yajima, President & Chief Executive Officer
Contact: Yoshiaki Takeda, Executive Officer, Corporate Governance Division
Telephone: 03-3563-1111 +81-3-3563-1111(overseas)

(All yen figures are rounded down to the nearest one million yen)

1. Results for the First Half of the Year Ending March 31, 2017 (April 1, 2016 - September 30, 2016)
(Unaudited)
(1) Consolidated Business Results
(Figures shown in percentage are ratios compared to the same period of the previous year)
Profit attributable to
Net sales Operating income Ordinary income
owners of parent
Millions of yen % Millions of yen % Millions of yen % Millions of yen %

First Half of FY2016 692,940 (3.7) 33,684 18.4 12,825 (62.1) 8,301 (51.9)
First Half of FY2015 719,197 12.9 28,456 47.9 33,825 106.3 17,250 161.3
Note: Comprehensive income First Half of FY2016 (48,765) million yen First Half of FY2015 112 million yen



Profit per share Diluted profit per share
Yen Yen

First Half of FY2016 8.40 8.39
First Half of FY2015 17.46 17.43


(2) Consolidated Financial Condition
Shareholders'
Total assets Net assets Net assets per share
equity ratio
Millions of yen Millions of yen % Yen

First Half of FY2016 1,841,773 683,715 30.4 566.43
Year ended March 2016 1,934,921 730,915 30.7 600.34
Note: Shareholders' equity First Half of FY2016 559,947 million yen FY2015 593,476 million yen


2. Dividend Conditions
Dividend per share
End of 1Q End of 2Q End of 3Q End of FY Annual
FY2015 － 5.00 － 5.00 10.00
FY2016 － 5.00
FY2016 (Forecast) － 5.00 10.00
Note : Change in forecast of dividend … None


3. Consolidated Forecasts for the Year Ending March 2017 (April 1, 2016-March 31, 2017)
(Figures shown in percentage are ratios compared to the previous year)
Profit attributable to
Net sales Operating income Ordinary income Net income per share
owners of parent
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen

Full year 1,410,000 (1.6) 72,000 (2.3) 50,000 (19.8) 33,000 116.3 33.38
Note : Change in consolidated forecasts … Yes

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4. In Addition
(1) Changes in important subsidiaries
(changes regarding specified subsidiaries accompanying changes in the scope of consolidation) : None

(2) Application of simple accounting methods and quarterly peculiar accounting methods : None

(3) Changes in accounting methods compared with recent consolidated accounting periods
① Changes due to accounting standard changes : Yes
② Changes besides ① : None
③ Accounting estimate change : None
④ Restatement : None

(4) Outstanding balance of issued shares (common stock)
① Outstanding balance of issued shares at the end of each period (Including treasury shares)
First Half of FY2016 1,014,381,817 FY2015 1,064,381,817
② Outstanding balance of treasury shares at the end of each period
First Half of FY2016 25,833,743 FY2015 75,807,429
③ Weighted average number of shares during the six months ended September 30 of each year
First Half of FY2016 988,573,587 First Half of FY2015 988,266,420

NOTICE
・ This document is exempt from audit procedures required by Financial Instruments and Exchange Act, and audit procedures for
　 consolidated financial statement haven't been finished as of the date of publication.
・ Forecasts released are based on expectations of future economic conditions as of the date of publication. The actual results may differ
drastically from these forecasts due to various factors that may arise in the future.
・ This document is an excerpt translation of the Japanese original and is only for reference purposes. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail.

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Qualitative Information Concerning Business Performance

Overview of the First Half of FY2016
During the first half of FY 2016, the domestic economic condition surrounding the Oji Group has showed a gradual recovery
trend, driven by the steady employment situations. However, the economic recovery lacks strength due to influences from yen
appreciation and unsettled weather in the summer.
With regard to the global economy, the US continued to gradually improve despite some weak economic indicators, and a
possibility of raising interest-rate by the end of the year has been pointed out. As for the future outlook, there are some
uncertain factors such as predictions for raising interest-rate, unstable oil prices and UK's leaving the EU, etc.

Factors above have led to the results shown below.

Results for the first half of FY2016 (April 1, 2016 - September 30, 2016) are as follows.
Consolidated net sales: ¥ 692,940 million (3.7% decrease)
Consolidated operating income: \ 33,684 million (18.4% increase)
Consolidated ordinary income: ¥ 12,825 million (62.1% decrease)
Consolidated profit attributable to owners of parent: ¥ 8,301 million (51.9% decrease)

Sales overview is as follows.

○Household and Industrial Materials
Regarding domestic businesses, sales volume of containerboard was almost at the same level as the previous year.
Sales volume of corrugated sheet and container slightly increased relative to the previous year because sales of those for
customers of beer, instant noodle and green grocery industries steadily performed.
As for household paper, sales volume of both tissue paper and toilet rolls increased. Sales volume of both baby and adult
disposable diapers increased.
Regarding overseas businesses, sales of containerboard remained steady and that of corrugated sheet and container, mainly
for customers of beverage and processed food industries, recorded healthy in Southeast Asia.

○Functional Materials
Regarding domestic businesses, domestic sales of specialty paper increased compared to the previous year as a result of
efforts made for sales expansion through development of new products and customers. Export sales increased in terms of
volume from the previous year due to new orders received, but remained static in terms of amount due to yen appreciation.
Domestic sales of thermal paper recorded healthy.
Regarding overseas businesses, sales volume of thermal paper decreased in North America but increased in South America
and Asia. However, the yen-converted sales amount decreased relative to the previous year because of yen appreciation.

○Forest Resources and Environment Marketing
Regarding domestic businesses, sales of dissolving pulp increased from the previous year, as a result of strong sales mainly
for export. In addition, sales amount of electric selling business increased, with a contribution of the start of commercial
operation of a biomass boiler in Ebetsu City, Hokkaido in January 2016.
Regarding overseas businesses, sales volume of pulp increased compared to the previous year due to sales expansion of
Jiangsu Oji Paper's products. However, sales amount decreased as a result of influences from fall in market as well as yen
appreciation which reduces the yen-converted sales amount.

○Printing and Communications Media
Regarding domestic businesses, sales amount of newsprint decreased from the previous year as a result of reduced
Sales amount of printing and communication paper decreased due to a decreased demand as well as fall in market, etc.
Regarding overseas businesses, a steady increase in sales of Jiangsu Oji Paper's products resulted in an increase in sales
volume of printing paper relative to the previous year.

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Consolidated quarterly balance sheets
(Unit : Millions of yen)
FY2015 First Half / FY2016
Mar 31,2016 Sep 30,2016

Assets
Current assets
Cash and deposits 43,968 44,817
Notes and accounts receivable - trade 285,954 281,644
Securities 7,486 7,398
Merchandise and finished goods 98,145 93,448
Work in process 18,921 21,048
Raw materials and supplies 80,109 76,056
Other 52,885 49,738
Allowance for doubtful accounts (3,438) (3,003)
Total current assets 584,033 571,148
Non-current assets
Property, plant and equipment
Buildings and structures, net 210,163 206,269
Machinery, equipment and vehicles, net 414,754 370,449
Land 237,478 239,780
Other, net 275,081 248,079
Total property, plant and equipment 1,137,477 1,064,579
Intangible assets
Goodwill 9,836 9,080
Other 13,167 12,785
Total intangible assets 23,004 21,866
Investments and other assets
Investment securities 149,094 144,577
Other 42,932 41,207
Allowance for doubtful accounts (1,620) (1,606)
Total investments and other assets 190,405 184,178
Total non-current assets 1,350,887 1,270,624
Total assets 1,934,921 1,841,773

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 (Unit : Millions of yen)
FY2015 First Half / FY2016
Mar 31,2016 Sep 30,2016

Liabilities
Current liabilities
Notes and accounts payable - trade 198,167 196,113
Short-term loans payable 178,157 170,201
Commercial papers 27,000 25,000
Current portion of bonds 20,020 40,000
Income taxes payable 7,354 6,953
Provision 3,553 3,467
Other 81,825 77,229
Total current liabilities 516,079 518,966
Non-current liabilities
Bonds payable 120,000 80,000
Long-term loans payable 432,556 422,332
Provision 6,854 6,718
Net defined benefit liability 52,207 53,302
Other 76,307 76,737
Total non-current liabilities 687,925 639,090
Total liabilities 1,204,005 1,158,057
Net assets
Shareholders' equity
Capital stock 103,880 103,880
Capital surplus 112,857 112,756
Retained earnings 359,830 334,633
Treasury shares (42,638) (14,371)
Total shareholders' equity 533,930 536,899
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 25,316 26,008
Deferred gains or losses on hedges (771) (653)
Revaluation reserve for land 5,463 5,992
Foreign currency translation adjustment 41,369 2,444
Remeasurements of defined benefit plans (11,833) (10,743)
Total accumulated other comprehensive income 59,545 23,048
Subscription rights to shares 260 275
Non-controlling interests 137,179 123,493
Total net assets 730,915 683,715
Total liabilities and net assets 1,934,921 1,841,773

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Consolidated quarterly statements of income
(Unit : Millions of yen)
First Half / FY2015 First Half / FY2016
Apr '15 - Sep '15 Apr '16 - Sep '16

Net sales 719,197 692,940
Cost of sales 560,535 531,269
Gross profit 158,662 161,671
Selling, general and administrative expenses
Freightage related expenses 71,314 69,740
Other 58,890 58,247
Total selling, general and administrative expenses 130,205 127,987
Operating income 28,456 33,684
Non-operating income
Interest income 800 517
Dividend income 1,968 1,748
Foreign exchange gains 836 －
Share of profit of entities accounted for using equity method 7,013 910
Other 3,931 3,105
Total non-operating income 14,550 6,281
Non-operating expenses
Interest expenses 5,595 3,570
Foreign exchange losses － 20,375
Other 3,585 3,194
Total non-operating expenses 9,181 27,140
Ordinary income 33,825 12,825
Extraordinary income
Gain on sales of non-current assets 102 6,452
Other 80 960
Total extraordinary income 183 7,413
Extraordinary losses
Impairment loss 4,599 1,008
Loss on retirement of non-current assets 556 773
Other 1,389 981
Total extraordinary losses 6,545 2,764
Profit before income taxes 27,464 17,474
Income taxes - current 9,913 6,077
Income taxes - deferred (2,344) 3,357
Total income taxes 7,569 9,435
Profit 19,894 8,039
Profit (loss) attributable to non-controlling interests 2,644 (262)
Profit attributable to owners of parent 17,250 8,301

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Consolidated quarterly statements of comprehensive income

(Unit : Millions of yen)
First Half / FY2015 First Half / FY2016
Apr '15 - Sep '15 Apr '16 - Sep '16

Profit 19,894 8,039
Other comprehensive income
Valuation difference on available-for-sale securities (2,780) 792
Deferred gains or losses on hedges (878) 106
Revaluation reserve for land 9 －
Foreign currency translation adjustment (15,808) (58,112)
Remeasurements of defined benefit plans, net of tax 597 942
Share of other comprehensive income of entities accounted for (922) (533)
using equity method
Total other comprehensive income (19,782) (56,805)
Comprehensive income 112 (48,765)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent (176) (30,510)
Comprehensive income attributable to non-controlling interests 288 (18,255)

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Sales and Operating Profit by Segment
(Unit : Millions of yen)
1. First Half of FY2015 (April 1, 2015 – September 30, 2015)
Reporting Segment
Household and Functional Forest Printing and Total Others Total Adjustment Consolidated
Industrial Materials Resources and Communica- Total
Materials Environmental tions Media
Marketing


Sales
(1) Sales to outside 280,837 100,218 112,125 139,222 632,404 86,793 719,197 － 719,197
customers


(2) Intra-group sales 20,095 8,815 23,717 14,256 66,884 46,780 113,664 (113,664) －
between segments or
transfers


Total 300,932 109,034 135,842 153,478 699,288 133,573 832,862 (113,664) 719,197

Segment profit 7,099 5,810 12,485 (1,162) 24,232 3,513 27,746 710 28,456
(or loss)



2. First Half of FY2016 (April 1, 2016 – September 30, 2016)
Reporting Segment
Household and Functional Forest Printing and Total Others Total Adjustment Consolidated
Industrial Materials Resources and Communica- Total
Materials Environmental tions Media
Marketing


Sales
(1) Sales to outside 281,087 94,644 102,233 131,976 609,943 82,997 692,940 － 692,940
customers


(2) Intra-group sales 20,727 8,485 25,428 13,514 68,155 47,734 115,890 (115,890) －
between segments or
transfers


Total 301,815 103,129 127,662 145,491 678,099 130,731 808,830 (115,890) 692,940

Segment profit 9,415 7,405 10,388 1,755 28,964 4,372 33,336 347 33,684
(or loss)



Household and Industrial Materials : Containerboard, boxboard, packaging paper, corrugated container, paper container, paper bag product, sanitary
paper, paper diaper, etc.
Functional Materials : Specialty paper, thermal paper, adhesive paper, functional film, etc.


Forest Resources and Environmental Lumber, tree planting, pulp, renewable energy, etc.
Marketing :
Printing and Communications Media : Newsprint, printing and writing papers, business form paper, copy paper, stationery, etc.


Others : Real estate, engineering, trading business, logistics etc.

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