Q1 Earnings Briefing Q&A - Question 18 (^o^)♪

[Question]

18. (Following up on the answer to Q17) Which specific item accounted for the realization of over JPY 2 billion in fiscal year 2014?

[Answer]
The main factors for Oji Fibre Solutions were the suspension of paperboard production and the sale of the corrugated cardboard business. These two factors contributed to a profit improvement effect of over JPY 2 billion realized in this first quarter.

【Masao's Viewpoint (^o^)♪】

For the full year, amortization expenses are projected to decrease by JPY 3.7 billion compared to the previous period. While this figure naturally includes an JPY 8 billion impact from business withdrawals, it is being offset by amortization related to growth investments. Furthermore, amortization of goodwill will increase this term due to the acquisition of Austrocel. Therefore, looking at the total of amortization expenses and goodwill, we expect it to be equivalent to or slightly higher than the previous period.

Since these are deducted from net sales as expenses, they act as a drag on operating profit, which inevitably makes operating profit look weaker.

（；^ω^）

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