Myanmar Potential in Manufacturing, Trade and Services

September28, 2016

Hiroyuki Isono Director of the Board, Executive Officer

Oji Holdings Corporation

Venue: The 12th Joint Meeting of the Japan-Myanmar CCI Business Cooperation Committees

Contents

1. Introduction of Oji Group ３-４

2. Expansion of Oji Group’s Southeast Asia Business

５

3. Background of Market Entry into Myanmar

6-7

4. Business Development in Myanmar

（1）Packaging Business ８-9

（2）Consumer Products Business 10

（3）Water Environment Business 11

（4）Lumber Processing Business 12

5. Future Business Possibilities 13

3

Overview of Oji Group (as of March 31, 2016)

Start of Business : February 12, 1873

Sales Revenue : ¥ 1.4336 trillion

Overseas Sales Ratio : 27.8 ％

Operating Income : ¥73.7 billion

Number of consolidated employees

: 33,605 (Domestic: 16,845, Overseas: 16,760)

Introduction of Oji Group (1)

● Containerboard/corrugated containers

● Boxboard/packaging materials

● Folding cartons /paper bags

● Household paper/disposable diaper

● Thermal paper

● Adhesive products

● Film

● Lumber/forest plantation

● Pulp

● Energy

Printing & Communications Media

● Newsprint

● Printing/publication paper

● Communication Paper

Forest Resources & Environmental Marketing

Functional Materials

Household & Industrial Materials

Management Strategies ~FY2016-18 Group Fundamental Policies~

Creation of Innovative Values

Contribution to Future and the World

Harmony with Nature and Society

Expansion of

Overseas Businesses Concentration/Advancement of

Domestic Businesses

Enhancement of Financial Foundation

●Enhance business foundation of our existing sites

“Beyond the Boundaries”

Targeted Regions

Southeast Asia, Oceania, etc.

Packaging, Household & Consumer Products, Functional Materials, Forest Resources & Environment Marketing

4

●Expand businesses to surrounding regions from our existing sites

Targeted Businesses

●Conduct selection of existing businesses to concentrate on profitable businesses

●Accelerate development of new businesses that utilize existing facilities and accumulated expertise

●Promote development and early commercialization of new materials / products through R&D

●Reduce interest-bearing debts in preparation for rising interest rates

●Promote sales of idle assets such as real estates

Management Philosophy ~Desired Future Image of the Oji Group~

Introduction of Oji Group (2)

Oji Myanmar Packaging 2016 Scheduled start of commercial operation

Oji GS Packaging (Yangon) May 2015 Start of commercial operation

MOS Lumber Products Dec 2015 Start of commercial operation

Oji Asia Packaging (Myanmar Branch) May 2013 Established

Since 2010, Oji Group has been continually pushing forward the “Expansion of Overseas Business”

To expand both geographic markets/business field by linking up with regional headquarter

and each group company

3 Sites in Myanmar

【Map of Business Sites in Southeast Asia 】

5

Expansion Process of the Major Sites

Before FY2009 4 3 1 1

FY2010 3 2

FY2011 6 1 1

FY2012 1 1

FY2013 2 1

FY2014 1 １ ２ 1

FY2015 ２ 2 1

FY2016 4 2 1

Total 6 4 3 2 2 1 14 12

Expansion of Oji Group’s Southeast Asia Business

Industrial Materials

Household & Consumer Products

Functional Materials

Forest Resources & Environment Marketing

Regional Headquarters (Branch Office)

※Excludes regional headquarters (branch office)

※Start of commercial operation for plants/factories

MALAYS A

I

V

ETNAM

I

THA LAND

I

NDONES A

I

I

MYANMAR

CAMBOD

A

I

N

D

A

I

I

L

A

O

S

Among the overseas regions, Southeast Asia has been positioned as the core, with a total of 44 business sites currently

Background of Market Entry into Myanmar (1)

・“Expansion of Overseas Businesses” in Southeast Asia where large growth is forecasted

・Business site link-up within the Southeast Asia region where synergies with existing business are expected

Myanmar’s Environment

・ with large growth potential

- Fifth largest population in ASEAN - Forecasted continuous high economic growth - Large and talented working population

・ Growth to accelerate with the continual development of investment environment

・Borders 5 countries, Link to the world market

Increasing foreign manufacturing companies

due to the development of industrial parks

Calls for infrastructure building/environment

improvement

Natural forest resources

Further improvement of living standards

Oji’s Strategy

Development of Packaging Business (BtoB industry)

Contribute through Water Environment Business

Maximize resources’ value through Lumber Processing Business

Actively developing BtoC industry to prepare for the future

Water Infrastructure

Forest Plantation/

Lumber

Consumer Products/ Functional Materials

Converting

6

] Total

Packaging

CHINA

INDIA

LAOS

THAILAND

Mandalay

Naypyidaw

Yangon Mawlamyine

Dawei

Background of Market Entry into Myanmar (2)

Additionally, consider the expansion of business fields and geographic markets in the future

Packaging Business

To identify huge business chances and to start our business from the Total Packaging Business involving experience / human resources / network

Oji GS Packaging (Yangon)

Oji Myanmar Packaging

MOS Lumber Products

BANGLADESH

MYANMAR

To sell Japan-made high-end products and products with localized specification and price based on Japanese technologies in Yangon where middle and upper income population is large

Consumer Products Business

To smoothen the construction of infrastructure / industrial park / commercial facilities by carrying out technical support – equipment installation – maintenance/management of water infrastructure, utilizing our accumulated technologies

Water Business

To develop lumber processing business by focusing on rich rubber resources in Southern Myanmar and re-utilizing old trees

Lumber Processing Business

7

Business Development in Myanmar (1) Packaging Business

Oji GS Packaging (Yangon) [OGPY]

To enter packaging business of Myanmar by leveraging the experience/ human resources/network gained and accumulated in Southeast Asia

8

Mar 2014 ：Established May 2015 ：Start of commercial operation

To start business as the First Major Foreign Corrugated Containers Company

Japan’s technology in corrugated containers

Experience/ human resources

accumulated in Southeast Asia

To meet local demands of good quality products and services

Mingaladon Industrial Park

Existing Business

Sites

New Market

New Market

Establishment of OGPY is one example of “Overseas Development Model” in which the acquired company develops new market

GSPP (Acquired in 2010, Malaysia’s containerboard/ corrugated container company）took the lead to work together with local company in setting up OGPY

To push forward this model in the future to develop new market in Myanmar and Southeast Asia region

Exterior view of OGPY Interior view of OGPY

New Market

Oji Myanmar Packaging

Plant in Thilawa Industrial Park (SEZ) is under construction (scheduled completion in 2016）

Provide high-quality products targeted at Japanese and foreign companies which are increasing in Myanmar steadily

Consideration of offering of flexible packaging products targeted at various food manufacturers

Corrugated Containers

Labels

Others

Strengthen/establish the Total Packaging Business by deepening the co-operation within and outside the Group

Adhesive labels Examples of other products Corrugated containers

Business Development in Myanmar (1) Packaging Business

Develop Total Packaging Business while linking up with other countries in the region and fully exerting synergies

Thilawa Industrial Park

Exterior view of Oji Myanmar Packaging

9

Offer adhesive label products by co-operating with Group companies such as Hyper-Region Labels (Acquired in 2016, Malaysia’s Label Printing Company)

Business Development in Myanmar (2) Consumer Products Business

Plan to offer products ranging from Oji’s standard products to high-quality products

To offer and localize high-quality products manufactured using Japan technology in consideration of the future population increase and consumption standard improvement

Household paper products offered in Japan

10

Household Paper

Baby Disposable Diapers

Already strengthening our sales at major supermarkets, convenience stores, retail stores Products are offered in all 32 outlets of the largest supermarket, City Mart

View of a City Mart Store Offer products with specifications/price targeted at Southeast Asia based on Japan Technology （Genki! Pants (Malaysia-made)）

Offering of some Japan-made high-end products (Genki! Premium Soft Tape (Japan-made))

Started sales of Oji’s diaper under our global brand, “Genki” from Aug 2016 and are targeting sales expansion

Business Development in Myanmar (3) Water Environment Business

Public drinking water and sewage system is under-developed, and factories/commercial facilities, etc. are installing water discharge equipment themselves

Water environment business, which Oji Group has been expanding/promoting, are also being actively expanded in Myanmar

→ Provide technical support to management company of water treatment (Mingaladon)

→ Provide water discharge equipment and maintenance/management services targeted at factories

in Thilawa Industrial Park, commercial facilities such as apartment and hotel

→ Also, provide various water infrastructure related products in line with each customer’s needs

11

Stability &

Low Price

Research

Design/ Build

Maintenance/ Management

To seek equipment that fulfills the needs and budget requirements by fully exploiting accumulated technology and experience

Offering packaged

services ranging from

Proposal →

Installation →

Management

Award at exhibition

Approaches taken in Myanmar

Chemicals to purify water Media for bio-treatment system

Aeration tank OJI-MEMBRANE

Business Development in Myanmar (4) Lumber Processing Business

MOS Lumber Products

Dec 2014 ・Oji Forest & Product

JV formed by 3 companies

Dec 2015 Start of commercial operation and export of wood laminae to Japan/China

To re-utilize old trees of which latex has been harvested with our unique technology by leveraging the rich rubber resources in Southern Myanmar

・Sumitomo Forestry (Singapore) （Singapore subsidiary of Sumitomo Forestry）

・Moe Mya Chai （Myanmar local furniture manufacturing company）

Efficiently operate and expand business by leveraging each strength

12 To aim for production of processed building materials for housing

First Japanese company to produce wood laminae (furniture materials) in Myanmar

Moe Mya

Chai

Oji Forest & Product

Sumitomo Forestry

(Singapore)

・Production management ・Overseas export including Japan

・Raw materials procurement

・Operation of local plant

Mawlamyaing, Mon State

54%

26%

20%

Future Business Opportunities

13

Going forward, Oji would continue investments in Myanmar to contribute towards the development of its economy and culture

Myanmar’s Development Oji Group’s Growth

Development of industries and manufacturing

Improvement in living standards

Increase in employment opportunities

(1) Develop total packaging business

(2) Develop consumer products/functional materials business

(3) Further expansion of business fields / geographic markets

Expand the business as an infrastructure to support “development of industries and manufacturing”, similar to roads/telecommunication

To support further improvement by meeting the increasing needs for daily necessities and high-quality product

To support improvement in quality of living through creation of employment by Oji’s expansion in terms of business fields and geographic markets