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Oji Group’s

Business Expansion

in New Zealand

25th Nov. 2014

11

【NZ Map】

PANPAC

(Pan Pac Forest Products Limited)

SPFL

(Southland Plantation Forest

Company of New Zealand Limited)

Estabish 1971 1992

Location Napier Invercargill

Share

Holder

Oji Group：100% Oji Group ：51%

Itochu Corporation ：30%

FUJI Xerox ：19%

Capital 126 million NZD 22 millionl NZD

Operation Plantation,

Production and Sales of

Lumber, Pulp Wood Chip,

Log

Plantation,

Production and Sales of

Wood Chip, Log

Turnover

(2013)

341 million NZD 17 million NZD

Sales

(2013)

Lumber ：403k m3

Pulp ：242k ADT

Wood Chip ： 75k BDT

Log ：430k GMT

Wood Chip ：82k BDT

Plantation 33,800ha 9,800ha

Species Radiata Pine Eucalyptus

【Overview】

Pan Pac

(Napier)

※Oji Group’s

household products

brand, “nepia” comes

from Napier city in NZ

SPFL

(Invercargill )

Ⅰ. Existing Business ～ Business Overview of PANPAC ①

22

Planting Logging（with Thinning）Pruning Hauler（steep slope）

Skidder（moderate slope）CartageLog Yard in the Mill

Forest Management

Ⅰ. Existing Business ～ Business Overview of PANPAC ②

33

Sales Region ：

Sales Volume： 403k m3／year (2013)

（NZ total：4,057k m3／year Pan Pac is one of the larges sawmill in NZ）

Products：

◆ Flitch（from Corewood） ◆BoardUse ： Pallet, Cable Drum,

Packaging, Civil Work etc.

Use ： Furniture,

Appearance（Exterior Interior）etc.

・Further-heated kiln dried timber

・Superior stability and durability

(preservative treatment is not necessary)

Use ： Wood Deck・Exterior・Interior etc.

◆ TMT (Thermally Modified Timber)

【New Products】

Lumber

Ⅰ. Existing Business ～ Business Overview of PANPAC ③

44

【TMP (Thermo Mechanical Pulp)】

（Pulp after Bailing）

（Loading to Pulp Vessel）

【BCTMP (Bleached Chemical Thermo Mechanical Pulp)】

（BCTMP Sales Region）

Shifting from Japanese market to new market such as China or South East Asia

by added value products

Pulp

Ⅰ. Existing Business ～ Business Overview of PANPAC ④

Made from refined woodchip under high temperature and pressure.

Sales Volume: 110k ADT / year (2013)

WoodchipShipped to

Oji Paper Tomakomai millRefining

De

-wateringDrying

Baling

Packaging

High brightness TMP by Oxidation Bleaching

Sales Volume: 132k ADT / year

Woodchip RefiningScreening

BleachingDe

-wateringDrying

Baling

Packaging

Shipped to

Paper manufacturer

in China etc.

Chemical Chemical

74%

55

Ⅰ. Existing Business ～ Business Overview of PANPAC ⑤

Wood from sustainably managed forest is totally utilized for lumber, pulp, chip and fuel.

Pan Pac owned Forest

66

Planting

(Seedling)Plantation View

ChippingExporting Chip to Oji Group in Japan

Harvesting

Ⅰ. Existing Business ～ Business Overview of SPFL

7

Ⅱ. New Business ～ Acquisition of CHHPP ①

Plan : Joint acquisition of the pulp, paperboard and packaging business of Carter Holt Harvey (“CHHPP”)

with Innovation Network Corporation of Japan (“INCJ”)

Head Office Auckland, New Zealand

Mill 8 mills in NZ, 3 mills in AUS

Sales Revenue 1,147 million NZD

Sales in

FY2012

SBKP ： 0.6 million tons / year

(Only Softwood Bleached Kraft Pulp manufacturer in NZ）

Paperboards ： 0.27million tons / year

Corrugated boxes ： 2.5million ㎡/year ,etc.

Plantation 3,200ha (Eucalyptus)

Acquisition Overview

New Zealand

Tasman / Pulp mill

Christchurch /

Corrugated

boxes mill

Levin / Corrugated boxes mill

Auckland / Corrugated boxes mill

Penrose / Paperboard mill

Kinleith / Pulp, Paperboard mill

Hamilton / Paperboard

processing mill

Auckland / Paper bags mill

East Coast Australia

Brisbane / Paper cups mill

Sydney / Corrugated boxes mill

Melbourne / Corrugated boxes mill

CHHPP

Shareholders Ratios Oji Holdings 60%

INCJ 40%

Transaction Value 1,037 million NZD

● Pulp Business Enhancement with broader products

● Synergy effects through technology sharing in Packaging Business

● Synergy effects with Pan Pac in North Island of NZ

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Ⅱ. New Business ～ Acquisition of CHHPP ②

Forest Resources Overview in New Zealand

(Plantation Area)

North

Island

70%

South

Island

30%

（NZ Plantation Owner/Supervisor） （000 ha）

Plantation Area2012 (Ratio)

Hancock Natural Resource 235 14%Kaingaroa Timberlands 174 10%Matariki Forests 129 8%Ernslaw One 109 6%Global Forest Partners 84 5%P F Olsen 71 4%Oji Group (PanPac, SPFL, CHHPP) 47 3%Crown Forestry (MPI) 46 3%Juken New Zealand 31 2%GMO Renewable Resources 26 2%Roger Dickie NZ 26 2%Hikurangi Forest Farms 25 1%Wenita 25 1%Blakely Pacific 23 1%Forest Enterprises 21 1%City Forests 16 1%Lake Taupo Forest Trust 16 1%Others 629 37%

Total　　　 1,720Resource ： Facts & Figures 2012/13 -Forest Owner Association

9

June 2014 : Commissioning Starts

PAN PACNew Zealand, Napier

Jiangsu Oji PaperChina, Nantong

CHHPPNew Zealand, North Island

SBKP, etc, : 0.6 million tons / yearBC-TMP(Increasing) : 0.2 million tons / year

CENIBRABrazil, Minas Gerais State

HBKP : 1.2 million tons / year

(Eucalyptus)

Oji Paper (Yonago mill)Japan, Tottori Prefecture

Dissolving Pulp : 90k tons / year

Pulp Business Strategy

of Oji Group

Broad Product Lineup(Softwood/Hardwood)

HBKP : 0.24 million tons / year

Sales Development in All Asia

Lineup expands with addition of Softwood Pulp of CHHPP Expands Business in region with active demand

2.4 million tons

Ⅱ. New Business ～ Acquisition of CHHPP ③

Synergy Effect

Cooperation in Material procurement,

sales, technical investigation

Pulp Supply(Outsales) Capacity of Oji Group

10

Share of Paperboards and Corrugated boxes

Ⅱ. New Business ～ Acquisition of CHHPP ④

Company Share

1 CHHPP 55%

2Import from

Australia45%

3

Paperboards

Corrugated

boxes

Company Share

1 Oji Group 25%

2Rengo

Group21%

3Nippon

Group15%

Company Share

1Rengo

Group27%

2 Oji Group 21%

3Tomoku

Group8%

Company Share

1 Amcor 33%

2 CHHPP 31%

3 Visy 23%

New Zealand Japan

(Reference) CHHPP’s Share in Australia

・Paperboards ：8%

・Corrugated boxes ：5%

Oji Group’s Share

In South East Asia

(Oji Estimation)

Malaysia 25% 2nd

Cambodia 45% 1st

Malaysia 26% 1st

Vietnam 9% 2nd

Synergy effects through

Technology sharing

※Base Paper for

Corrugated boxes

11

Ⅱ. New Business ～ Acquisition of SCFP （Pan Pac）

Milburn sawmill

Southern Cross Forest Products

（Pan Pac Forest Products(Otago) limited）

Mill 2 mills in Otago area , NZ

Operation Production and Sales of Lumber

Production

Capacity

50,000m3 / year

⇒(after investment) 100,000m3 / year