Oji Holdings Corporation
3861・Prime Market・Pulp & Paper
Business
Oji Holdings is a major paper manufacturer founded in 1873, forming a global corporate group with 312 subsidiaries and 58 affiliates. The company's core operations comprise four segments: Lifestyle & Industrial Materials (corrugated board, household paper, packaging), Functional Materials (specialty paper, thermal, adhesive, and film products), Resource & Environment Business (afforestation, pulp, energy), and Printing & Information Media (newsprint, printing paper), with production sites across Asia, Europe, South America, and Oceania. Of net sales of ¥1,861,709 million (FY2026 (ending March 2026)), Lifestyle & Industrial Materials forms the largest segment at ¥874,117 million. In recent years, the company has been accelerating its portfolio shift toward Sustainable Packaging and the wood-based biomass business.
Business Model
The company secures stability and competitiveness in raw material procurement by vertically integrating operations from afforestation and log/chip procurement through pulp manufacturing to the production and sale of paper and Functional Materials. It produces a diverse range of products at manufacturing sites in Japan and overseas, selling to corporate customers (food, distribution, publishing, electronic component manufacturers, etc.). It is pursuing business expansion through M&A (Walki, AustroCel, etc.) in parallel with structural reform of low-profitability businesses (closure of the Oji Nepia plant, withdrawal from Oji Fibre Solutions, etc.) to improve capital efficiency.
Company Strengths
The company holds afforestation land in Brazil (Celulose Nipo-Brasileira), New Zealand (Pan Pac), Indonesia (PT. Korintiga Hutani), Uruguay and other locations, operating an integrated business from raw material procurement through product sales. In March 2025, the company established a fund with New Forests aiming to acquire approximately 70,000 hectares of afforestation land, among other continuous efforts to expand its resource base.
The company operates manufacturing and sales sites in Southeast Asia (Malaysia, Vietnam, Thailand, India), China, Europe (Walki in Finland, IPI in Italy, AustroCel in Austria), South America, North America, and Oceania. Of the ¥1,861,709 million in external customer sales in FY2026 (ending March 2026), Lifestyle & Industrial Materials led with ¥874,117 million, and the company secures overseas revenue across multiple segments.
The company invested ¥13,202 million in R&D expenses (FY2026, ending March 2026) to develop CNF, semiconductor resists, polylactic acid, sulfated hemicellulose pharmaceuticals, and other products. In February 2026, it obtained manufacturing and marketing approval for a treatment drug for homocystinuria, and in September 2025, it obtained approval for an active pharmaceutical ingredient for veterinary medicine in Australia. The company holds an intellectual property portfolio of 2,917 domestic patents and 1,009 overseas patents.
ENVALITH's Perspective
Performance Trend
Revenue maintained an expansionary trend, growing from ¥1,470,161 million in FY2022 (ended March 2022) to ¥1,861,709 million in FY2026 (ending March 2026), up 0.7% year on year. Operating profit, however, has continued to decline since peaking at ¥120,119 million in FY2022, falling to ¥34,582 million in FY2026, down 48.9% year on year. The primary external causes were deterioration in the pulp market (overseas operating profit in the Resource & Environment Business plunged from ¥24.7 billion to a loss of ¥0.6 billion) and a decrease in domestic sales volume. An increase in interest expense due to rising interest rates (from ¥8,564 million in the previous period to ¥11,590 million in the current period) also weighed on ordinary profit. Net income for the period rose to ¥55,582 million, supported by the recording of ¥92,835 million in extraordinary gains, including gains on sales of rental real estate and investment securities, but the decline in the profitability of the core business has continued.
Growth Strategy
Aiming for FY2027 ROE of 8% and operating income of ¥60,000 million through three pillars: improving capital efficiency, transforming the business portfolio, and promoting sustainability
Implemented closures of Oji Nepia's Edogawa Mill (August 2025) and Tomakomai Mill (March 2026), Oji Fibre Solutions' withdrawal from the containerboard business and sale of its Australian packaging business, and the shutdown of Oji Paper's newsprint production facilities (March 2026), among other measures. Business structure improvement expenses of ¥24,459 million and impairment losses of ¥10,195 million have already been recorded. The full impact of profitability improvements is expected to emerge from FY2027 (ending March 2027) onward.
Completed the acquisition of Austria's AustroCel Hallein GmbH (manufacturer and seller of dissolving pulp and bioethanol) in January 2026 for ¥19,579 million. Recorded goodwill of ¥38,925 million (provisional). Entered into an investment agreement with Nordic Bioproducts Group Oy in November 2025 and is executing the investment in phases. There was no contribution to profit or loss in the current consolidated fiscal year, with full-scale contribution expected to begin from FY2027 (ending March 2027).
Decided to build a new liquid paper container plant in Vietnam and established a new company for this purpose. Oji F-Tex's Nakatsu Mill is undergoing expansion work to approximately triple its production capacity for cellulose-based pressboard for transformers. Accelerating the European expansion of the Sustainable Packaging business through the consolidation of Walki (Finland) as a subsidiary. Continuing to allocate resources to high-growth areas such as India and Southeast Asia.
Raised the dividend payout ratio from the previous 30% to 50%; the annual dividend for FY2026 (ending March 2026) is ¥36 per share (payout ratio 58.9%). Planning share buybacks of ¥1,200 million over the three years of the medium-term plan (¥1,500 million for FY2024–FY2027), with ¥47,691 million executed in FY2025. In May 2026, resolved to cancel 100 million shares of treasury stock already acquired (9.9% of total shares issued). Continuing to sell cross-shareholdings (¥45.0 billion over the three years of the medium-term plan). Net D/E ratio stands at 0.8x, maintaining the target of within 1.0x.
Obtained approval in Australia in September 2025 for the manufacture and export of active pharmaceutical ingredients for veterinary medicines. Invested in LTL Pharma Co., Ltd., a company engaged in the manufacture and sale of prescription pharmaceuticals, in February 2026. Steadily advancing efforts toward commercialization as a new business area utilizing wood biomass-derived technologies, though the contribution to performance remains limited at this time.
Last updated: July 19, 2026