November 20, 2007
The next Mid-Term Management Plan

( Post Phoenix Plan )Mitsubishi Paper Mills, Ltd. (headquarters: 4-2, Marunouchi 3-Chime, Chiyoda-ku, Tokyo)
is pleased to present our Mid term management plan from the fiscal year of 2008 to 2010.
MPM is striving to achieve our goals of the Phoenix Plan which started in the fiscal year of2005 and will be finalized in the fiscal year of 2007. We continue to face a difficult businessenvironment which includes high soaring raw material and energy costs. Despite of thesechallenges, we will aim to achieve further growth through our solid fundamental businessstructures established by the Phoenix Plan.
1. Plan Period:
April 2008 – March 2011
2. Plan Goals:
Enhancefurtherimprovement

ofcoststructure

andfinancial

structure

implemented by the Phoenix Plan. Achieve the ultimate goal of becoming aself-sustaining entity through financial growth from the establishment of solid
operating foundation for the next phase of the plan.
3. Group Goals(1) Establish a distinctive position as “MPM for High-grade & Information Media”
and secure top-level profitability in the paper industry.
(2) Establish an entity structure with well-balanced growth among three businessdivisions, Printing & Communication Paper Division, Digital Imaging Division
and New Business Development Division.
4. Basic Policies(1) Promote strategic alliance
Collaboration with FUJIFILM Corporation for RC base paper production
Collaboration of Mitsubishi Paper Sales Co. Ltd with HOKUETSU PAPERMILLS, Ltd.

Collaboration with other companies for printing paper productionCollaboration with Oji Paper Co. Ltd for business communication paper
production
Collaboration for development of new business(2) Enhance domestic sales
Enhance Mitsubishi Paper Sales Co. Ltd sales and service function forcustomers
Enhance DIAMIC Co. Ltd service function as a technical service company
Enhance inkjet papers as high value-added products
Expand sales of FSC certified paper and environmentally friendly products(3) Expand global market operations
Expand market shares of Inkjet papers
Enhance evolution of the Thermal paper market in South East Asia
Increase profitability of the business in Germany(4) Set up platform for growth in next stage
Improve infrastructure at Hachinohe mill
Increase global share of RC base paper and Inkjet paper
Secure the base to enhance evolution in global market(5) Reinforce cost restructure
Implement further reduction of production cost at mills
Minimize distribution costs with option for alliance with other entities
Enhance group-wide BPR of MPM with IT infrastructure(6) Promote CSR management
Expand tree-planting program to global scale
Increase FSC certified paper and FSC certified forest.
Establish complete internal control system and legal complianceContinue to contribute for all stakeholders(7) Enhance consolidated profit
Increase the profitability of subsidiaries and attain the further growthUpgrade group management and consolidated management of SBU

5.

Capital investment
Implement aggressive capital investments for enforcement of competitiveness andgrowth in next stage.
Strategic investment total amount: 26.5 billion yen
Main Strategic Investments
・Facilities for the production increase of RC base paper
Fulfillment of RC production for growth in next stage
・Facilities for the production increase of Inkjet paper
Fulfillment of Inkjet paper production for growth in next stage
・OEM of business communication papers at Hachinohe and Takasago millCollaboration with Oji Paper
・Recovery boiler at Hachinohe mill
Infrastructure of Hachinohe mill for growth in next stage

6.

Management financial targets
CurrentProject(Estimated)
FY 2007

FY 2008

FY 2009

FY 2010

Sales(100 million yen)

2,580

2,760

2,850

3,000

Operating profit(100 million yen)

100133

152

184

Ordinary profit(100 million yen)

70

100

120

150

Ordinary profit ratio

(%)

2.7

3.6

4.2

5.0

Interest-bearing debt

(100 million yen)

1,540

1,440

Equity to total assets

(%)

24

Over 30End