The restrictions on various activities in response to the COVID-19 pandemic, which have had a significant impact on our social and economic activities, have been eased in many countries around the world, and we believe that this fiscal year will be marked as the year we make a full recovery from the COVID-19 pandemic in many ways. In addition, this year a number of events are scheduled to be held for the first time in several years at Japan Pulp & Paper, and we feel that this is an opportunity for us to fully demonstrate our real strengths.
Although the group's revenue and profits declined in FY2020, the first year of the COVID-19 pandemic, we were fortunate that our diversification strategy has been successful, and in FY2021, the first year of the Medium-term Business Plan 2023, we achieved both the highest profit in our history and also our target for the final year of the plan of JPY 15 billion in ordinary profits. Furthermore, in FY2022, the second year of the Medium-term Business Plan 2023, despite a difficult business environment that included soaring resource and energy prices, all segments performed strenuously.
The Non-Japan Wholesaling segment had a major breakthrough due to various rationalization measures at major subsidiaries outside of Japan, as well as many significant price hikes also in major external markets. In terms of net income, we also recorded a partial gain on the sale of real estate in the Kachidoki area of Tokyo, resulting in an operating profit of JPY 20.3 billion, ordinary profit of JPY 21.2 billion, and profit attributable to owners of the parent company of JPY 25.4 billion, which were record highs of a different order of magnitude for our group.
At the same time, in recent years, the entire group has been making further efforts to strengthen risk management and respond more appropriately to expanding social demands, such as thorough compliance, enhanced safety management of products and operations, thorough the execution of business contracts, responses to SDGs and sustainability, and internal audit follow-up work. We will continue to make further efforts throughout the group to strengthen risk management and respond appropriately to the expanding demands of society.
On the other hand, this fiscal year, the final year of the Medium-term Business Plan 2023, started amidst a certain amount of headwind in many segments, such as high prices for energy and resources, stagnant demand for paper, paperboard, and household paper due to structural factors, and declining market conditions and demand in major markets outside of Japan, as well as rising interest rates. We are determined to achieve the final year targets of the Medium-term Business Plan 2023 and, as we did when we declared an emergency situation in the first year of the COVID-19 pandemic (FY2020), we will take significant steps to eliminate waste and reduce costs in operations while at the same time making bold moves to make the next leap forward, including the formulation of the next Medium-term Business Plan 2026.
In addition, we will continue to share and mutually utilize intra-group intelligence to differentiate ourselves from our competitors in each of our business fields and provide further added value and services to our business partners.
As mentioned above, this fiscal year marks the formulation of the next Medium-term Business Plan 2026. In order to realize the vision of our group as proposed in our long-term vision, OVOL Vision 2030 (to become the world's leading paper distribution group, to become a group that contributes to a sustainable society and global environment, and a corporate group that strives to be considered a trustworthy and engaging partner both within and beyond the paper industry), we view the next Medium-term Business Plan 2026 as a period for creating the mechanisms and measures that will determine the success or failure of this vision. We are determined to set the most ambitious, aggressive, dramatic, exciting, and challenging goals and concrete action plans in the history of our group.
Society's values and demands on companies are changing rapidly. Even if the current situation is good, it is impossible to survive in today’s society if we don’t change, and it is easy to imagine that by the time we realize this, it will be too late. We believe that maintaining the status quo is a sin, and we will continue to make pioneering efforts in each of our business areas to stay ahead of the curve.
I would like to ask all of our stakeholders, including business partners, shareholders, local communities, regulatory authorities, and group executives and employees, for their continued understanding and support.
Akihiko Watanabe
Representative Director, President & CEO
June 2023