FY2022/3
Financial and Management Report

P A R T – 1. Financial Summary
・FY2022/3 Financial results
・FY2023/3 Financial forecast

P A R T – 2. Management Report
・Medium-Term Management Plan
(FY2023/3-FY2025/3)
May 20, 2022
Mitsubishi Paper Mills Limited

PART–1

FY2022/3
Financial Results

1

FY2022/3

Financial Results（Consolidated and Segment-based）

Financial
Highlights＜Consolidated＞（Unit：100 Million Yen）

FY2021/3
Result（a）

Sales
Operatingincome1,623-18＜Segment-based＞

FY2022/3（b）-（a）
Result（b）

1,819-2

FY2021/3Result（c）

FY2022/3
Result（d）（d）-（c）

Pulp ＆paper

1,253

1,360

107

Imaging

252

323

71

Speciality
materials

151

181

30

Warehouse＆ transport,others

132

148

16

Adjustment

-165

-193

-28

Total

1,623

1,819

196

Pulp ＆paper-13-34-21

Imaging-21

829

Speciality
Operating materials

15

21

6＆ transport,others23

1

Adjustment

-1

0

1

Total

-18-2

16

196

16
Sales

Ordinary
incomeProfit attributable toowners of parent-6-25

Interestbearing
liabilities

979

D/E ratio

1.6

20

11923

1.3

26

36-56
0.3
improvement

income Warehouse

Depreciation
Capitalinvestment(Accounting base)90648558-5-6（Unit：100 Million Yen）

2

FY2022/3
FinancialHighlights

Financial Results（Variation of Operating Income）＜Variation of operating income＞ +16（-18→-2）（Unit：100 Million Yen）

20

Price+220-20

Costs
+29

2021/3-18

2022/3(Result)-2

Quantity/
product mix+53-40-60-80-100-120

Raw material ＆energy -88

3

PART–1

FY2023/3
Financial Forecast

4

Financial Forecast

FY2023/3
FinancialForecast（Consolidated and Segment-based）＜Consolidated＞（Unit: 100 Million Yen）

＜Segment-based*＞

FY2022/3
FY2023/3（f）-（e）
Result（e） Forecast（f）
Sales
OperatingincomeOrdinary
incomeProfit attributable to＜連結＞
owners of parent

1,819-2

2,0002535

FY2022/3
Result（g）

FY2023/3
Forecast（h）（h）-（g）

181

Paper
materials

1,417

1,570

153

27

Functional
materials

50257068

Others70

55-15

Adjustment-170-195-25

Sales
20（Unit：100 Million Yen）

15

1115

4

Total

1,819

2,000

181

Interestbearing
liabilities

923

880

-43

Paper
materials

-32

032

D/E ratio

1.3-

Functional
materials

3025-51

10Adjustment-1-10Total-22527

1.3

OperatingOthers
incomeDepreciation
Capitalinvestment(Accounting base)

85

5885

65

07

<Assumptions of the forecast>$1＝¥125, €１＝¥135, Dubai Crude Oil $95 per barrel (1st half) , $85（2nd half),
Coal price per MT $300 (1st half), $200（2nd half）*According to current internal organization, former “Pulp & paper” includes “Warehouse & transport” and is newly
named “Paper materials.” Also, former “Imaging” and “Speciality materials” are combined into “Functional materials.”

5FY2023/3
FinancialForecastFinancial Forecast（Variation of Operating Income ）＜Variation of operating income＞ +27（-2→25）（Unit：100 Million Yen）

60
40
Costs+17

20

Quantity/
product mix+72023/3(Forecast)25

Price+105

0-202022/3
-2-40
-60
-80
-100

Raw material ＆energy -102

6

PART–2

Medium-term Management Plan
(FY2023/3-FY2025/3)

7Medium-termManagementPlan

Creation of New MPM GroupManagement goals of FY2025/3

Destination of MPM Groupー Medium, long-term aspiration ー¥195 bil.

Sales
Sales ratio

2.5 ： 1

<Paper materials vs Functional materials＞

Operating income¥7.5 bil.

Sales¥200 bil.

Sales ratio

1：1<Paper materials vs Functional materials＞

Operating income¥15 bil.

Operating income margins above 3.5％

Operating income margins（Paper materials ２%, Functional materials 7.5%）（Paper materials 5%, Functional materials 10%）

D/E ratio

1.0

D/E ratio

7.5％
０.５

［Basic Principles］① Strengthen our earning capacity by “selection and concentration”
strategies and “expansion of new business”② “Contribution to green society”③ “Organizational change to improve sustainability”
8Medium-termManagement
Plan

Transforming the Business Portfolio▻ With paper demand decreasing, we will ensure the steady increase of sales and profit by intensive
investment to our growing “Functional materials business,” and make it our main business segment.
(Target operating income margin: 10%)
▻ We will change our existing business focusing on “Paper materials business” to stable profit-earning
infrastructure business by selection and concentration. (Target operating income margin: 5%)▻ We will also take an extra profit improvement measures equivalent to ¥1 bil. by FY2025/3 withsystematization etc.
［Sales ratio］

FY2019/3(The last FY of the MM
Plan before last)

FY2022/3(The last FY of last MM Plan)

FY2025/3(The last FY of this MM Plan)

An increasing sales
ratio of functional
materials business

3.1：1

2.8：1

Sales ¥204 bil.

Sales ¥182 bil.

Sales ¥195 bil.

Sales ¥200 bil.

FY2022/3(The last FY of last MM Plan)

FY2025/3(The last FY of this MM Plan)

An increasing operating income offunctional materials to become
the core business［Operating income］FY2019/3(The last FY of the MMPlan before last)

1：1

2.5：1

⇒Operating income ¥0.0 bil.

Operating income -¥0.2 bil.

Operating income ¥7.5 bil.

Operating income ¥15 bil.

9Medium-termManagement
Plan

Deepening and Developing of Functional Nonwoven Fabric Related Business.

Contribution to the creation of sustainable society with safety and comfort
Additional ¥2.5 bil. sales of functional non-woven fabric related business（FY2022/3 ¥7.5 bil.
FY2025/3 ¥10 bil.）
Water treatment membrane
support substrate business【Specific strategy】

Filter business【Specific strategy】

Gain market share abroad due toGrow the total enthalpy heat

Entering ｎew market segmentsof non-woven fabrics【Specific strategy】
Enter the markets of melt blown

increased demand in water related

exchanger business (as high moisture(dry) non-woven fabric, expansion ofbusinesses and take competitive

permeable film is newly developed)

the functional filter media business,advantage of the high technology

with the increased demand ofand super heat-resistant glass fiberused in the production of the non-ventilation related products related tonon-woven fabrics etc.

woven fabric.

both Covid-19 and energy savings.
Before treatment

Membrane
Non-woven fabricAfter treatment

10Medium-termManagementPlan

Business Expansion in Electronics-related Field

Additional ¥2 bil. sales in total of battery separator andelectronics industry materials（FY2022/3 ¥1.5 bil.
Battery separator business(New paper machine in operation）

FY2025/3 ¥3.5 bil.）Electronics industry materials business*based on special DFR(*DFR：Dry Film Resist)【Specific strategy】
Starting the operation of No.13 paper machine atTakasago Mill, we will expand the scale of businessfor car, energy saving and communication equipment.

【Specific strategy】
With the system of high development technology
acquired by extensive experience with photographic
sensitive materials, we will expand the scale ofprocessing business of electronics-related materials as
information and communication technology advances.
＜Metal parts processing＞

Car（EV･HV）

Smart meter

Mobile battery

Communicationbase station

Wind powergeneration

Pattern formation Metal etching

Resist stripping11Medium-termManagement
Plan

Further Expansion of Other Functional
Materials Business

Additional ¥5.5 bil. sales of other functional materials businesssuch as industrial speciality paper area by expansion of product line andnew product development.

Sales expansion of KJ
Speciality Paper Co.,Ltd.
【Specific strategy】
Increase sales by utilizing the quality-advantage

Kitakami HiTec Paper Corp.
ｎew business development【Specific strategy】
Accelerate the shift in business focus fromfor the base paper of decorative laminates andmarket-shrinking imaging to industrial materials

masking tape backing where the foreign market

by retooling and remodeling current facilities anddemand is expected to grow.

developing new products.

12Medium-termManagement
Plan

Strengthening the Revenue Base of Paper Materials－From “Paper” to “Materials”－
Explore the potential of pulp and paper materials, and open up wideranging applications.
Sales FY2022/3 ¥4.5 bil. ⇒ FY2025/3 ¥7.5 bil.
①Expansion of pulp business
An increase in sales of pulp for external sales through product line expansion, copingwith shrinking demand for graphic paper.

②Expansion of eco-conscious products Sales FY2022/3 ¥0.5 bil. ⇒ FY2025/3 ¥3 bil.
＜Kraft paper＞ Strong and steady demand for paper bag of e-commerce andtakeout bag at restaurants etc. continues.
＜Barrier paper＞ With the enforcement of new plastic law in April 2022, movement
toward “less plastic” and “plastic-free” products will be accelerated.
[Application examples of our products]

Outer bag（barricote®）
LOTTE CO., LTD. DO Cacao chocolate③Structural change in production and sales system
Optimizing production system including streamlining facilities according to energy-savingand demand, promoting drastic systematization including reorganization of subsidiaries, andchanging to a sales policy for profitability, i.e. streamlining the brands etc.

Changing to stable profit-earning infrastructure businessby structural reform with selection and concentration

13Medium-termManagement
Plan

Contribution to Green SocietyCarbon Neutrality by 2050 and 2030 Target
2030 Target

MPM Group Green Vision 2050

Decrease in energy-related CO2emissions of 40% from 2013
⇒ Promotion of energy-saving⇒ Reduction in fossil fuel use

Contribution to Japanese gov. long-term
goal, “realization of decarbonized and carbon
neutral society by 2050, which enables net
zero greenhouse gas emissions .“Support for the recommendationsof the TCFD and information
disclosure (April 13, 2022 news release)・Support for the recommendations of theTCFD, participation in TCFD Consortium
・Carrying out scenario analysis of climaterelated risks and opportunities, information
disclosure based on TCFD recommendations

Actions on SDGs
・Participation in “30by30 Alliance for
Biodiversity” established by Japanese
Ministry of the Environment.
(April 13, 2022 news release)・Contribution to the creation of sustainable
society by continuous activity of “Ecosystem
Academy.”[The logo of Ecosystem Academy]

14Medium-termManagement
Plan

Organizational Change to Promote
Sustainability

Strengthening corporate governanceObservance of compliance・Building up a system of governance meeting

・Extensive training, cultivation of corporate

the Prime Market standards of TSEculture・Appropriate information disclosure

・Improvement of the effectiveness of whistle-・Good communication with outside directors

blowing system
・Building up credibility with stake-holders

Promoting sustainability
・Creation of sustainability promotion committee

Work style reform

・Promotion of corporate-wide activities involving

・Improvement of working efficiency, reducing

a director in charge of sustainability promotion

working hours by revision of humanresources allocation
・ Strengthening the system of occupational

Diversity and inclusion
・Development of personnel systems, whichtakes advantage of diverse human resources
・Reallocation of human resources, which offers
flexibility with the changing externalenvironment
・Enrichment of career advancement training

health and safety
・Helping employees to balance work withchild and family care, introducing staggered
working hours/working
from home system
・ Introduction ofshared-desk styleat the Head Office15

Medium-termManagementPlan

Management Targets（Consolidated）＜Consolidated＞（Unit：100 Million Yen）

FY2022/3
Result（i）

FY2025/3
Plan（j）（j）-（i）

1,819

1,950131

Operating income-275

77

Ordinary income

208565Interest-bearing liabilities

923760-163

D/E ratio

1.31.0Depreciation

8575

Sales

＜Consolidated operating income＞（Unit：100 Million Yen）

80+77（-2→75）

Costs
+79

-40
-80
-120

improvement-10＜Assumptions＞ *FY2025/3$１＝ ¥125€１＝ ¥135

4002025/3(Target)75

0.3

Price+101

Dubai Crude Oil⇒ $85 per barrel

Coal price (FOB AU) ⇒ ＄200 per MT

2022/3-2

Raw material &energy cost▲-77
Quantity/productmix -26

16

Medium-termManagementPlan

Management Targets（Segment-based）/
Investment Plan

＜Segment-based＞（Unit：100 Million Yen）

（Unit： 100 Million Yen）

FY2022/3
Result（k）

FY2025/3
Plan（l）（l）-（k）

OperatingincomeFY2022/3
Result（m）

FY2025/3
Plan（n）(n) –(m)Papermaterials

1,417

1,50083

Papermaterials

-32

3062

Functional
materials

50260098

Functional
materials

3045

15

Others70

50-20

Others10-1

Adjustment-170-200-30

Adjustment

-1

0

1

Total

1,819

1,950

131

Total

-275

77

Sales

＜Investment plan of Medium-term three-year Management Plan＞
Investment plan

220(breakdown)
Strategic investment＊１
Investment in maintenanceand improvement

90130（Unit： 100 Million Yen ）＊１ With the recent energy costs hike,we are going to make investments
in shifting energy, energy-saving,growth strategies and transforming
business portfolio.
（Breakdown）
Paper materials business¥25
Functional materials business¥45Others¥2017Medium-termManagement
Plan

Outlook on Financial Ground＜The Change in Financial Status＞（Unit： 100 Million Yen ）FY2019/3

FY2020/3

FY2021/3

FY2022/3

FY2022/3

Last MM Plan

FY2025/3

Three-year MMPlan

ResultResultResultLast MM Plan
Targets

ResultImproved
Results

MM PlanTargets

Total
Improvement

Interestbearing
Liabilities

1,046

1,019

979980923

D/E ratio

1.6

1.7

1.6

1.3

1.3

57
reductionachieved

760

1.0163
reduction

0.3
improvement（100 Million Yen）

Last medium-termManagement Plan

Medium-termManagementPlan18

The statements concerning expected numbers andbusiness forecasts in this documents have been
prepared based on predictions of the economic

environment in the future and information available
at the present point in time. The actual numbers in
our financial results and performance in the future
may differ.