Corporate Report 2022

Mitsubishi Paper Mills Ltd.

Table of Contents

Editorial Policy
Mitsubishi Paper Mills publishes the Mitsubishi Paper Mills Corporate Report, which summarizes financial
and non-financial information to provide stakeholders with an understanding of the Group’s overall businessactivities. In these pages, we report on the Mitsubishi Paper Mills Group’s corporate value building activities
which seek to bring about a more sustainable society.

Editorial Policy/Our Website ・
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Response to TCFD ・
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・35

Table of Contents ・
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Relationship with the Environment ・
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■ Scope

Message from the President・
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Environmental Management System ・
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History and Main Offices and Mills of the
Mitsubishi Paper Mills Group・
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Chemical Substance Management ・
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Consolidated Financial and Non-Financial Highlights ・・7

Preserving Biodiversity ・
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・39

The companies included are Mitsubishi Paper Mills Limited and its consolidated subsidiaries (17companies in Japan and 6 companies overseas), as well as its equity-method affiliates (2 companies inJapan and 1 company overseas).

■ Reporting Period

The reporting period is fiscal 2021 (April 1, 2021 to March 31, 2022), with some content included fromoutside this period.

To Our Stakeholders

Special Feature
Medium-term Management Plan ・
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・9

Business Activities ofthe Mitsubishi Paper Mills Group■ Guidelines Referenced

ISO26000
GRI’s Sustainability Reporting Standards
Environmental Reporting Guidelines (2018 Edition), Ministry of the Environment

Overview of Business Segments ・
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Functional Materials Business ・
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■ Contact

Paper Materials Business ・
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Mitsubishi Paper Mills Limited
General Affairs & Corporate Communications Group, General Affairs & Legal Department
2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Phone: +81 3 5600 1487
Facsimile: +81 3 5600 1489
E-mail：csr@mpm.co.jp

Research and Development ・
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・19

Initiatives Toward Sustainability
Message from an Executive in Charge of
Promotion of Sustainability ・
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The Way We See Sustainability ・
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・22

■ Issued

Sustainability Promotion Structure・
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September 2022

ESG/ISO 26000 Initiatives ・
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Key Issues (Material Issues) Concerning
Sustainability Promotion Activities ・
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Our Website

Fiscal 2021 Sustainability Promotion Activities ・・25

The Mitsubishi Paper Mills website provides a range of information on subjects that include sustainability andthe environment, investor relations, products and services, research and development, basic data on thecompany, and recruitment.

■ Sustainability / Environment
https://www.mpm.co.jp/eng/env/report-index.html

SDS / AIS / Analysis test reporthttps://www.mpm.co.jp/env/login.html■ Investor Relations
https://www.mpm.co.jp/eng/ir/index.html■ Research & Development<Cover photo>
Beside a brook in a company-owned forests “Shirakawa
Kashi Forest” in Hokkawa(Nishigo Village, Nishishirakawa-gun, Fukushima
Prefecture)https://www.mpm.co.jp/eng/rd/index.html

01

FSC®C021528

Effective Use of Materials ・
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Material Balance ・
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Environmental Indicators ・
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Fair Operating Practices ・
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Ensuring Fair Trade・
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Preventing Corruption ・
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Disavowal of Anti-Social Elements ・
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Promoting Social Responsibility in the
Value Chain ・
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Responsible Raw Material Procurement ・
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Relationship with Employees ・
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Occupational Safety and Health Initiatives ・・・・45
Promoting Good Mental and Physical Health ・・45
Efforts to Create Comfortable Work
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Relationship with Customers ・
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Quality Control System ・
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Product Safety Control System ・
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Communication with Customers ・
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Encouraging the Worry-Free Use of
Our Products ・
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Board of Directors and Audit &Supervisory Board Members ・
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Relationship with Communities・
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Outside Directors ・
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Philanthropic Expenditures ・
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Message from an Outside Director・
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Financial results management report materials

https://www.mpm.co.jp/eng/products/index.html

Basic Policy on Corporate Governance ・
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Assessments of the Board of
Directors Effectiveness ・
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Annual Business Report■ Products & Services

Corporate Governance・
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Corporate Governance Framework ・
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Corporate reports

https://www.mpm.co.jp/ir/library/presentation-materials.html

Fiscal 2022 Sustainability Promotion Action Plan ・・26

Preventing Global Warming・
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Compliance ・
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Communication with Community Members・・・・49

Financial Section

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Company Profile and Corporate Data

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Risk Management ・
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Information Disclosure/Public Relations ・
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Message from an Outside Audit & Supervisory
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・34

02

Message from the President
Mitsubishi Paper Mills Group Corporate Philosophy

A corporate groupthat lives up to the trustof its customers
in the world market

Ryuichi Kisaka
President andChief Executive Officer

木坂 隆一
Creation of a new Mitsubishi Paper Mills Group03

The Mitsubishi Paper Mills Group has been operating business for over 120 years since the start-up in 1898. However,the changes in lifestyles caused by the novel coronavirus led to the advance of digitalization and accelerated a decline indemand for paper. In order to cope with such changes in the market, it is necessary to reform our business structure forstrengthening our revenue base at unprecedented speed.
To do so, we will proceed with (1) enhancement of our earning capacity by “selection and concentration” strategies and“expansion of new business,” (2) “contribution to green society,” and (3) “organizational change to improve sustainability.”Firstly, we will describe the “enhancement of our earning capacity by “selection and concentration” strategies and“expansion of new business.” The market of information media, including printing, publication, and photography, whichhave been our core business, is projected to keep shrinking. Accordingly, we will strive to maximize cash flows bythoroughly reducing costs in this field. We have made efforts to shift to the business of functional materials, including
non-woven cloth and filters, but as a matter of fact, we cannot respond to changes in the market with the speed of ourconventional system. We will accelerate the shift, by swiftly responding to market needs. Through these efforts, we willrevise our business portfolio, allocate managerial resources in an optimal manner, and enhance our earning capacity assoon as possible.
Next, we will describe the “contribution to green society.” Our company sells FSC ®-certified paper and products thatwould help reduce and get away from plastics. We will continue efforts to help attain Sustainable Development Goals(SDGs) by developing and providing new environmentally friendly products and implementing initiatives for actualizing adecarbonized society and carbon neutrality.
Lastly, we will describe the “organizational change to improve sustainability.” We will diffuse “the stance of complying
with laws and regulations,” which is the base for winning the trust of stakeholders and a prerequisite for our company’ssurvival, in our company, and strive to eradicate occupational accidents by giving top priority to the safety of all
employees of our company. In addition, we will promote “diversity-oriented management,” which triggers innovation andcreates value by providing diverse personnel with opportunities to exert their abilities to the maximum degree, and “agile
management,” which responds to changes in the environment swiftly and appropriately. For the “workstyle reform,” wewill streamline business operations and support employees in childcare and nursing care while working by adopting
staggered working hours and telecommuting, with the aim of realizing diverse work-life balances.
Furthermore, we will make efforts to improve our corporate value by communicating with all stakeholders, including
clients, business partners, shareholders, investors, local communities, and employees, and disclose information properly,
in order to live up to their expectations.
We would appreciate your further support and patronage.

FSC® C021528

A corporate groupthat is always
on the leading edgeof technology

A corporate groupthat contributes
to preserving
the global environmentand creatinga recycling society

We aim to contribute to society by pursuing the world market,
technological capabilities, and the global environment.

Through sustainability promotion activities
The Mitsubishi Paper Mills Group engages in sustainability promotion for achieving sustainable growth, improving
mid/long-term corporate value, and contributing to society, under the above-mentioned corporate philosophy. Our
corporate group started manufacturing and selling FSC®-certified paper earlier than anyone else, to help attain SDGs.
We also sell kraft paper and barrier paper as products that would reduce and get away from plastics.
Furthermore, in April 2022, we expressed our agreement with “the Recommendations of Task Force on
Climate-related Financial Disclosures (TCFD)” and joined “TCFD Consortium.” We will disclose information on risks
imposed by climate change on business and opportunities in accordance with the TCFD Recommendations, proceedwith the medium-term management plan, and strive to realize a sustainable society through business. In addition, we
joined “30by30 Alliance for Biodiversity,” which was established by the Ministry of the Environment in April 2022. We
make efforts to contribute to the mitigation of global warming and the preservation of biodiversity by utilizing sustainable
forest resources, and will accelerate our initiatives by joining this alliance. Accordingly, we will continue the “Ecosystem
Academy,” in which we offer a site for experiential environmental education, mainly in company-owned forests, tocontribute to the development of a sustainable society.
In fiscal 2021, we worked on “Enhancing activities to ensure safety and health,” “Product development centered on
harmony with society” and “Ensuring product quality” as the three top priority issues. For fiscal 2022, considering the
Mitsubishi Paper Mills Group’s business environment, conditions and performance evaluation results of the previous
fiscal year, we have established “Measures against climate change,” “Enhancing activities to ensure safety and health”
and “Product development centered on harmony with society” as the three top priority issues. We will enhance ouractivities for disclosing information in accordance with the TCFD Recommendations for (1) “Measures against climatechange,” strengthening safety guidance for eradicating similar accidents for (2) “Enhancing activities to ensure safety
and health,” and developing products intended for contributing to a green society for (3) “Product development centeredon harmony with society.”

FSC® C021528 04

History and Main Offices and Mills of the Mitsubishi Paper Mills Group■ Domestic Production Facilities

History
April 1898 Hisaya Iwasaki took over a paper mill operated by the Walsh Brothers in Sannomiya, Kobe, andHachinohe Mill

Kitakami HiTec Paper Corp.

Shirakawa Site

Hachinohe-shi, Aomori
Principal products: Printing paper, white
paperboard, and copier paper

Kitakami-shi, Iwate
Principal products: Photographic base paperand sanitary paper

Nishigo Village, Nishishirakawa-gun,
Fukushima Prefecture
Principal product: Pressboard

established Kobe Paper Mill Company
June 1901 Moved the mill (currently Takasago Mill) to Takasago City in Hyogo Prefecture
February 1917 Constructed the Nakagawa Mill in Katsushika-ku, Tokyo (closed in March 2003)
November 1917 Incorporated and changed name to Mitsubishi Paper Mills, Ltd.
April 1944 Merged with Kyoto Photographic Industry Company, Ltd. and made it the Kyoto Trial Mill (currently
Kyoto Mill), to produce photographic paper
November 1950 Acquired all stock of a manufacturer and seller of non-wood pulp (currently Toho Tokushu Pulp Co.,Ltd.)
April 1966 Constructed the Hachinohe Mill in Hachinohe City, Aomori
April 1966 Merged with Shirakawa Pulp Industry Ltd. and acquired the Shirakawa Mill (currently Shirakawa Site)and the Kitakami Mill (currently Kitakami HiTec Paper Corporation)
April 1972 Formed Mitsubishi Paper Sales Co., Ltd. (currently Mitsubishi Oji Paper Sales Co., Ltd.) by merging
Ryosan Shokai with CASIWA Co., Ltd.
April 1992 Formed Diamic Co., Ltd. by merging Yamamoto Shokai with Gekko Shokai
May 1994 Established the subsidiary Mitsubishi Imaging (MPM), Inc. in New York, U.S.
January 1999 Acquired the shares of two manufacturers in Germany, including them in the scope of consolidation

Toho Tokushu Pulp Co., Ltd.

MPM Oji Home Products
Co., Ltd.
Hachinohe-shi, Aomori
Principal product: Sanitary paper

MPM Oji Eco-Energy Co.,Ltd

(Oyama Mill) Oyama-shi, Tochigi(Kitakami Mill) Kitakami-shi, Iwate
Principal product: Non-wood pulp

Hachinohe-shi, Aomori
Principal business: Biomass power
generation(present: Mitsubishi HiTec Paper Europe GmbH).
November 2007 Established Zhuhai MPM Filter Ltd. in China, and commenced filter product processing in China

KJ SPECIALTY PAPER Co.,Ltd.

Takasago Mill

Kyoto Mill

Takasago-shi, Hyogo
Principal products: Non-woven fabric products,
thermal paper, carbonless paper, inkjet paper,and speciality paper

Nagaokakyo-shi, Kyoto
Principal products: Photographic paper,
printing plate materials and photo inkjet paper

Fuji-shi, Shizuoka
Principal products: Speciality paper(decorative laminate base paper, impregnateddecorative sheets, base paper for wallpaper,masking tape backing, etc.)

Hachinohe Development
Office in the ProductDevelopment Department

October 2011 Acquired shares of KJ SPECIALTY PAPER Co., Ltd., a chemical-based paper subsidiary of KohjinCo., Ltd.
March 2016 Established joint venture with Oji Green Resources Co., Ltd. called MPM Oji Eco-Energy Co., Ltd.
April 2017 Established joint venture with Oji Nepia Co., Ltd. called MPM Oji Home Products Co., Ltd.
March 2019 Became an equity-method affiliated company of Oji Holdings Corporation
June 2021 Established Takasago R&D Laboratory

Main Offices and Mills■ Head Office & Branches■ Domestic R&D Facilities

Head OfficeOsaka Sales Branch

Takasago R&D Laboratory

Kyoto R&D Laboratory

2-10-14 Ryogoku, Sumida-ku, Tokyo(Ryogoku City Core)

2-1-1, Fushimimachi, Chuo-ku, Osaka-shi, Osaka(Sumitomo Mitsui Bank Koraibashi Building)

Takasago-shi, Hyogo

Nagaokakyo-shi, Kyoto

Hachinohe-shi, Aomori■ Domestic Sales Locations

05■ Overseas Production and Sales Facilities

Mitsubishi Oji Paper Sales Co., Ltd.

Diamic Co., Ltd.

2-10-14 Ryogoku, Sumida-ku, Tokyo(Ryogoku City Core)
Offices: Osaka Office, Nagoya Office, Tohoku Office,and Kyushu OfficePrincipal business: Sale of paper, chemicals, etc.

2-10-14 Ryogoku,Sumida-ku, Tokyo(Ryogoku City Core)
Offices: Tokyo Branch, Osaka Branch, Sapporo
Office, Sendai Office, Nagoya Office, Fukuoka Office,plus five other sales offices in Japan, and one officeoverseas
Principal business: Sale of printing plate materials,
information materials and related equipment

Mitsubishi HiTec Paper Europe GmbHZhuhai MPM Filter Ltd.

(Bielefeld Mill)
Bielefeld, Germany
Principal products: Thermal paper, carbonless paper, and inkjet
paper

Zhuhai, Guangdong, China
Principal products: Various filters(Flensburg Mill)
Flensburg, Germany
Principal products: Thermal paper and inkjet paper

Mitsubishi Imaging (MPM), Inc
New York, U.S.
Principal business: Sale of paper and plate materials forphotography and printing

06

Consolidated Financial and Non-Financial Highlights
The fiscal year runs from April 1 to March 31.

Sales

Fiscal Year

2017

2018

2019

2020

2021

203,997

194,575

162,325

181,920

Operating Income

1,790

△40

1,976

△1,770△248

Ordinary Income

652

△914

2,696

△636

1,964

3,198

351

801

△2,532

1,096

6,422

5,791

7,438

Capital Investment

12,481

5,524

Cash flow situation (millions of yen):
Cash Flows from Operating Activities

12,80919,066

9,976

13,014

1,698

Cash Flows from Investing Activities△5,994△8,979△6,571△2,098△2,557

Total Assets

2,374

2,328

2,122

2,094

2,159

Outstanding Interest-bearing Debt

1,193

1,046

1,019

979

923

597

664

605

629

696

Financial Position (100 millions of yen):

Equity Capital

201,492

203,997

200,000

93.57

10.04

17.96

△56.72

24.62

Book Value per Share (BPS)

1,747.54

1,485.64

1,355.27

1,408.45

1,565.88

194,575500

50,000△1,5000△2,500

2017

2018

2019

2020

2021
（FY）

Outstanding Interest-bearing Debt
(100 millions of yen)

D/E Ratio
2.5

1,500

△0.0

1.0

△1.1

△0.1

Overseas Sales Ratio (%)

32

35

33

29

32

25.2

28.5

28.5

30.0

32.2

5.6

0.6

1.3

△4.1

1.7

2.0

1.6

1.7

1.6

1.3

12,264

10,076

11,801

7,261

8,241

Equity Ratio (%)※1

Debt-Equity Ratio (D/E Ratio) ※2
EBITDA (millions of yen)

1,019

2.0
1.6｠

979

3,723

3,668

3,676

3,579

3,384

12,506

11,886

11,036

10,822

10,352

95.5

95.9

94.9

94.6

94.2

Greenhouse Gas Emissions (1,000 tons)

1,094

1,039

960

902

906

Greenhouse Gas Emissions Emission
Intensity (tons / product tons)

1.159

1.157

1.187

(Persons)

Fossil Energy Consumption [TJ]
Industrial Waste Effective Utilization Ratio

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(%)

※1 Return on equity (ROE) = Profit attributable to owners of parent/(net assets - non-controlling interest)※2 Debt-to-equity ratio (D / E ratio) = Interest-bearing debt / equity capital※3 The number of employees is working personnel and does not include the number of temporary employees.
※4 Industrial waste effective utilization ratio = (amount generated-final disposal amount) / amount generated

1.431

1.320

2.0

1.7

2019

2020

2021
（FY）

Equity Capital(100 millions of yen)
750
696
664
629
605

597

600
550

1.6
1.5

500
450
400

0

1.0
2017

2018

2019

2020

350

2021
（FY）

Outstanding Interest-bearing Debt

2017

2018

2019

2020

2021
（FY）

D/E Ratio

Greenhouse Gas Emissions
Emissions(1,000 tons)(TJ)
14,5001,300

13,5001,200
12,506

12,5001,100

11,886

11,50011,036

10,822

10,500

1,094
1,039

1,000
10,352

9,500

960

900

902

906

2020

2021
（FY）

800

8,500

700
2017

07

2018

650

923

Non-financial information：
Number of Employees

2017

Equity Capital

Fossil Energy Consumption※3△1,770

700

1,193

△248
△636

△914

Outstanding Interest-bearing Debt and D/E Ratio

1.3

0.9

△40

△500

100,000

Management Indicators:

Return on Equity (ROE) (%)

652

150,000

500

Operating Income Margin (%)

1,964

1,500

181,920
162,325

1,000

Earnings per Share (EPS)

1,976

1,790

1,046

Per Share Information (yen):

Ordinary Income

2,696

250,000

201,492

Profit Attributable to Owners of Parent

Operating Income

3,500（millions of yen）
300,000

2,500

Profit and loss situation (millions of yen):
Sales

Operating Income and Ordinary Income(millions of yen)

2018

2019

2020

2021
（FY）

2017

2018

2019

08

Special Feature: Medium-term Management Plan (FY 2023/3 - FY 2025/3)
The changes in lifestyles caused by the novel coronavirus led to the advance of digitalization and accelerated adecline in demand for paper. In order to cope with such changes in the market, it is necessary to reform our businessstructure for strengthening our revenue base at unprecedented speed.
To do so, our corporate group set the slogan of “Creation of new Mitsubishi Paper Mills Group,” and started a
medium-term management plan (FY 2023/3 to FY 2025/3) this fiscal year.

Transforming the business portfolio
With paper demand decreasing, we will ensure the steady increase of sales and profit byintensive investment to our growing “functional materials business,” and make it our main
business segment. (Target operating income margin: 10%)
We will change our existing businesses, focusing on “paper materials business,” to stableprofit-earning infrastructure business by selection and concentration. (Target operating income
margin: 5%)

Management goals in the medium-term management plan, andour ideal stateManagement goals for FY 2025/3
Sales
Sales ratio¥195 bil.
2.5:1<Paper Materials vs Functional materials>

Destination of MPM Group-Medium, long-term aspirationSales
Sales ratio¥200 bil.
1:1<Paper materials vs Functional materials>

Operating income¥7.5 bil.
Operating income margins above 3.5%

Operating income¥15 bil.
Operating income margins
7.5%(Paper materials 2%, Functional materials 7.5%)(Paper materials 5%, Functional materials 10%)

D/E ratio

D/E ratio

1.0

We will also take an extra profit improvement measures equivalent to ¥1 bil. By FY2025/3 withsystematization etc.

0.5

[Sales ratio]
FY 2019/3(The last FY of the MM Plan before last)
1,600

1,600

1,600

1,400

1,400

1,400

1,200

1,200

1,200

1,000

Basic principles(1) Enhancement of our earning capacity by “selection and concentration” strategies and(2) Contribution to green society
In addition to the initiatives for “less-plastic” and “plastic-free” society and the sales promotion of environmentallyfriendly products that would contribute to the realization of a safe, comfortable, sustainable society, we will engage
in activities for contributing to green society, such as the initiatives to realize carbon neutrality by 2050.

(3) Organizational change to improve sustainability
We will promote the strengthening of corporate governance, observance of compliance with laws andregulations, diversity & inclusion, work style reform, etc. and reform our organizations.

3.1 : 11,000

2.8 : 1

1,000

800

800

800

600

600

600

400

Paper Functional
materials materials

200

1,625

523

‐200

Adjustment
and others

▲ 108

0

“expansion of new business”
We will invest mainly in the growing “functional materials business,” such as functional non-woven fabric,
electronics-related products, including battery separators and electronics industry materials, and industrial
speciality paper, to steadily grow sales and profit, and make it our main business segment. In the existing
businesses, focusing on the “paper materials business,” we will pursue the potential of pulp and paper materials,
seek a broad range of applications, and reform our structure by selection and concentration, to make it our stableprofit-earning infrastructure business. a mainstay business that would earn stable revenues. Through the above
efforts, we will transform our business portfolio and enhance our earning capacity.

FY 2022/3(The last FY of last MM Plan)

Sales: ¥204 bil.

400

Paper Functional
materials materials

200

1,418

502

0
‐200

400
Adjustment
and others▲ 101

Sales: ¥182 bil.

200

FY 2025/3(The last FY of this MM Plan)

1,200

2.5 : 1

FY 2022/3(The last FY of last MM Plan)

800
600
Paper Functional
materials materials

1,500

600

Adjustment
and others▲ 150

Sales: ¥195 bil.

FY 2025/3(The last FY of this MM Plan)

400

Paper Functional
materials materials

200

1,000

‐200

100

100

80

80

80

80

60

60

60

60

40

40

40

0

Paper
materials

Functional
materials

12

▲ 12

‐40

Operating income: ¥0.0 bil.

20

30

0
‐20

‐20

Functional
materials

20

‐40

Paper
materials▲ 32

Operating income: - ¥0.2 bil.

0

Paper
materials

45

30

40
20

Functional
materials

100

Paper
materials

50

0

‐20

‐20

‐40

‐40

Operating income: ¥7.5 bil.

Sales: ¥200 bil.

An increasing operating income offunctional materials to make it
the core business

100

Functional
materials

1,000

0

100

20

1:1

1,000

[Operating income]
FY 2019/3(The last FY of the MM Plan before last)

1,600

1,400

0
‐200

An increasing sales ratio offunctional materials business

Operating income: ¥15 bil.

Through the above-mentioned activities, our corporate group will contribute to the sustainable society and improve ourcorporate value.

09

10

Special Feature: Medium-term Management Plan (FY 2023/3 - FY 2025/3)〇Business expansion in electronics-related field

Concrete business strategy〇Deepening and developing of functional non-woven fabric related business

Additional ¥2 bil. sales in total of battery separator and electronics industry materials(FY2022/3 ¥1.5 bil.
FY2025/3 ¥3.5 bil.)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.)■ Battery separator business (New paper machine in operation)◇ Starting the operation of No. 13 paper machine at Takasago Mill, we will expand the scale of business for car,

■ Water treatment membrane support substrate business◇ Gain market share abroad due to increased demand in water related businesses and take competitiveenergy saving and communication equipment.

advantage of the high technology used in the production of the nonwoven fabric.
Application
to functional films by utilizing special fibers◇
Car (EV/HV)Membrane
Beforetreatment

Non-woven fabricAftertreatment

Communicationbase station

Smart meter

Mobile battery■ Electronics industry materials business based on special DFR*Wind power
generation(*DFR: Dry Film Resist)◇ With the system of high development technology acquired by extensive experience with photographic
sensitive materials, we will expand the scale of processing business of electronics-related materials as
information and communication technology advances.

■ Filter business<Metal parts processing>◇ Expansion of the total enthalpy heat exchanger business in parallel with the growth of global demand for totalheat exchangers, which can achieve ventilation for coping with COVID-19 and energy saving for conserving
the environment

Pattern formation

Metal etching

Resist stripping〇Further expansion of other functional materials business
Film-type total heat exchange element(newly developed product)

Mechanism of a total heat exchange element■ Entering new market segments of non-woven fabrics◇ Release and promotion of super heat-resistant glass fiber non-woven fabric under the concept of theresistance to fire and heat, fireproofing property, and lightness in weight
Expansionof our business domain through the entry into the (dry) melt-blown non-woven fabric market and◇the development of functional filter media, etc.

Super heat-resistant glass fiber non-woven fabric

11

Process for producing melt-blown non-woven fabricAdditional ¥5.5 bil. sales of other functional materials business such as industrial speciality
paper area by expansion of product line and new product development.

■ Sales expansion of KJ SPECIALTY PAPER Co., Ltd. andKitakami HiTec Paper Corporation new business development◇ KJ SPECIALTY PAPER Co., Ltd. will increase sales by utilizing our quality-advantage for the base paper fordecorative laminates and masking tape backing, where the foreign market demand is expected to grow.
◇ Kitakami HiTec Paper Corporation will accelerate the shift in business focus from market-shrinking imaging
field to industrial materials field by retooling and remodeling current facilities and developing new products.

Base Paper for Decorative Laminates

Masking Tape Backing

Production equipment of
Kitakami HiTec Paper Corporation

12

Special Feature: Medium-term Management Plan (FY 2023/3 - FY 2025/3)〇Strengthening the Revenue Base of Paper Materials Business～ From “paper” to “materials” ～〇Organizational Change to Promote Sustainability
Strengthening corporate governance

Explore the potential of pulp and paper materials, and open up wide-ranging applications■ Expansion of pulp business (Sales of original kraft pulp: ¥4.5 bil. in FY 2022/3¥7.5 bil. in FY 2025/3)◇ An increase in sales of pulp for external sales through product line expansion, coping with shrinking
demand for graphic paper.

■ Expansion of eco-conscious products (Sales: ¥0.5 bil. in FY 2022/3¥3 bil. in FY 2025/3)◇ Expansion of kraft paper, which is in strong and steady demand for paper bag of e-commerce andtakeout bag at restaurants etc.
◇ Expansion of barrier paper against a backdrop of the acceleration of movement toward “lessplastic” and “plastic-free” products following the enforcement of new plastic law in April 2022

Observance of compliance・Building up a system of governance meeting thePrime Market standards of TSE・Appropriate disclosure of information
・Good communication with outside directors

Workstyle reform

Promotion of sustainability
・Creation of sustainability promotion committee
・Promotion of corporate-wide activities involving a
director in charge of sustainability promotion

Diversity & inclusion[Application examples of our products]

Outer bag (barricote®)
DO Cacao Chocolate of LOTTE CO., LTD.

■ Structural change in production and sales systems◇ Optimizing production system including streamlining facilities according to energy-saving anddemand, promoting drastic systematization including reorganization of subsidiaries, and changing
to a sales policy for profitability, i.e. streamlining the brand etc.

Changing to stable profit-earning infrastructure businessby structural reform with selection and concentration〇Contribution to Green Society

・Development of personnel systems, which takes
advantage of diverse human resources
・Reallocation of human resources, which offers
flexibility with the changing external environment
・Enrichment of career advancement training<2030 Target>
Decrease in energy-related CO2 emissions by 40%
from 2013⇒ Promotion of energy saving⇒ Reduction in fossil fuel use

Increase/decrease in operating income(100 Million Yen)

Consolidated indicators Target values (FY 2025/3)

Support for the recommendations of the TCFD and information disclosure・Support for the recommendations of the TCFD, participation in TCFD Consortium
・Carrying out scenario analysis of climate-related risks
and opportunities, information disclosure based on
TCFD recommendations¥195 bil.

Operating income¥7.5 bil.

Ordinary income¥8.5 bil.

Interest-bearing liabilities¥76 bil.

-40

1.0

-80

¥7.5 bil.

-120

Actions of SDGs
・Participation in “30by30 Alliance for Biodiversity” established by Japanese
Ministry of the Environment
・Contribution to the creation of sustainable society by continuous activity of“Ecosystem Academy”

13

40
0

Target value
in each segment

Sales

OperatingincomePaper materials¥150 bil.

¥3 bil.

Functional materials¥60 bil.

¥4.5 bil.

Others¥5 bil.

¥0

Adjustment(¥20 bil.)

¥0

Total

¥195 bil.

¥7.5 bil.

<Assumptions>*FY 2025/3

Costs
+79

80

Sales

Depreciation<MPM Group Green Vision 2050>
Contribution to the Japanese government’s
long-term goal, “realization of decarbonized
and carbon neutral society by 2050, whichenables net zero greenhouse gas emissions.”

・Improvement of working efficiency, reducing working
hours by revision of human resources allocation
・Strengthening the system of occupational safety
and health・Helping employees to balance work with child andfamily care, introducing staggered working
hours/working fromhome systems
・Introduction ofshared-desk styleat the Head Office

Management Targets

D/E ratio

Carbon neutrality by 2050 and 2030 Target

・Extensive training, cultivation of corporate culture
・Improvement of the effectiveness of whistleblowing
system・Building up credibility with stakeholders

2025/3 (Target)
75

Price
+101
22/3
▲2

Raw material &energy cost
▲77 Quantity/product mix▲26<Investment plan of Medium-term three-year Management Plan>
Investment plan

¥22 bil.

(Breakdown)
Strategic investment *1¥9 bil.

Investment in maintenance and improvement ¥13 bil.
*1 With the recent energy costs hike, we are going to make

$1 = ¥125

investments in shifting energy, energy-saving, growth€1 = ¥135

strategies and transforming business portfolio.

Dubai Crude Oil⇒$85 per barrel(Breakdown) Paper materials business¥2.5 bil.

Coal price (FOB AU)⇒$200 per MT

Functional materials business¥4.5 bil.

Others¥2 bil.

14

Overview of Business Segments
Functional materials business
The functional materials business globally sells a wide array of promising functional
materials, including inkjet printing paper, water treatment membrane support substrates,
highly functional filter materials, battery separators, and photosensitive films, based on avariety of characteristic core technologies, such as the high-definition image-forming
technology, the technology for producing highly functional non-woven fabric, and thetechnology for producing high-quality resist materials.

Business Results

As a result, total sales for the functional materials business increased 25.0 ％year-over-year to ¥50,430 million. Operating income increased by ¥3,580 million
Shigeharu Matsuzawa
year-over-year to ¥2,958 million.
Director, Managing
The sales of water treatment membrane support substrates, battery separators, etc.
Executive
Officer andwere healthy thanks to the growth of demand, and the sales of decorative laminate base
GeneralManagerofpaper and tape base paper increased from the previous year, due to the strong demand.
Functional
Materials
Business
Also for photographic photosensitive materials and inkjet paper, which are used mainly for
printing out images, demand recovered as the restrictions on travels and events have been eased, as the vaccination against
the novel coronavirus progressed, and we increased new clients for products in the growing electronics field. Sales and profit
grew, thanks to the increase in sales quantity and the improvement in productivity due to cost reduction.

Business Strategies
In the functional non-woven fabric-related business, we make efforts to reel in new clients for water treatment membrane
support substrates and promote the application to membrane bioreactors (MBRs) with the aim of deepening and expanding thebusiness, and promote the sales of air filters for air purifiers and total heat exchange ventilation fans, whose sales are growing
as customers became more conscious of the quality of indoor air. In order to enter new non-woven fabric fields, we concentrateon the sales promotion of super heat-resistant glass fiber non-woven fabric and the newly released (dry) melt-blown non-woven
fabric. As a measure for expanding the electronics-related business, we are increasing the production output of battery
separators with a new papermaking machine and expanding the sales of functional films, such as the photosensitive resist forelectronic industrial materials.
In the imaging-related business, we will fortify the base for existing businesses while continuously reforming our production
system, promote the sales of new products in the growing field while flexibly responding to the market trend in each country, andimprove profitability inside and outside Japan.
Regarding the activities of affiliated companies, KJ SPECIALTY PAPER Co., Ltd. will concentrate on the sales promotion of
decorative laminate base paper and tape base paper, whose overseas market is expected to grow, while Kitakami HiTec Paper
Corporation will promote the shift to the industrial material domain, by producing special-purpose release/casting paper byremodeling existing equipment.

Product introduction■ Functional non-woven fabrics■ Electronics

・Water treatment membrane・Battery separators

・Photosensitive resist

support substrates
・Industrial filters

・Resin etching system

・Air filters

・Super heat-resistant glass fiber
non-woven fabric
Air filters

Element (front) with built-in water treatment
membrane support substrates (back) and support
substrate

Dry film resist for sandblasting

Battery separators■ Speciality paper for printing out
images・Inkjet paperTwo-stage pin dot processing of ceramics■ Printing
・Laser thermal-sensitive film (TRF-IR830)

・CTP (Computer to Plate) printing plate systems
・CTP printing plates for newspaper printing

Photo/poster paper

・Digital screen mask make systems

Digital printing transfer paper
Label paper
Antibacterial/antivirus paper,etc.
・Products for photography[Mitsubishi Grace] Color paper and processing chemicals

TRF-IR830/high-definition chemical-free thermal-sensitivefilm→ Significant reduction of environmental burdens caused
by important materials for package printing, silk-screen
printing, etc. whose demand is growing■ New businesses and other new products

15

Business Topics

・Commercial tape base materials for doing away with plastics《To increase the production output of battery separators》

・Environmentally friendly base

Recently, telecommunication device-related infrastructure (5G base stations),
renewable energy (wind power generation and recharging), new energy-based
vehicles (EVs, etc.) and so on have been distributed further, so the number oforders for our separator NanoBase is increasing. In order to respond to suchdemand growth, we built a new papermaking machine (No. 13) in the Takasago
Mill, and held a completion ceremony on February 17, 2022. We will develop asystem for stable supply in promising markets, and expand our business.

・Rewritable media

materials for interior finishing
・Paper straws

・Medical/Healthcare

Pure Leaf Eco(Alcoholic disinfection solution
in paper containers)

Diamour(A cryopreservation device used for assisted reproductive
technology)16

Overview of Business Segments
Paper materials business

Product introduction

Business Results
In the domestic market, both sales quantity and amount of mainly printing paper
increased from the previous year, when demand was greatly reduced due to the
COVID-19 pandemic. In exports, both sales quantity and amount increased. In terms of
production, we have continued to adapt our production system to demand trends.
Regarding commercial pulp, both sales quantity and amount increased due to soaring
market prices caused by global distribution delays and damage from torrential rains inNorth America.
On the other hand, raw material and fuel prices soared, which had a significant impact
on costs.
As a result, the paper materials business posted the growth of sales and the decline inprofit. The outlook for the COVID-19 pandemic remains uncertain, and we are currently
requesting product price revisions for printing paper, communication paper, and white
paperboard, as raw material and fuel prices have been higher than expected due to theimpact of the situation in Ukraine and other factors.

Nobuhiro Sato
Director, Managing
Executive Officer andGeneral Manager ofPaper Materials BusinessBusiness Strategies
Under the medium-term management plan (FY 2023/3-FY 2025/3), we will work on the following structural reform based on"selection" and "concentration" in order to establish a stable revenue base as an existing business that supports our company's
foundation, and we will also pursue the potential of pulp and paper materials and develop a wide range of applications whiletransforming our product portfolio.
(1) Expansion of pulp businessIn response to declining demand for graphic paper, our company will expand sales of externally marketed pulp by expanding
its lineup of pulp products. In the fall of 2022, the pulp manufacturing facilities of Kitakami HiTec Paper Corporation (KitakamiCity, Iwate Prefecture), which previously produced only bleached kraft pulp (LBKP) made from hardwood, will be remodeled to
begin production and sales of bleached kraft pulp (NBKP) made from 100% domestic softwood.
(2) Expansion of the packaging field
In addition to bleached kraft paper, we will expand sales of bleached kraft coated paper, unbleached kraft paper, andhigh-performance paperboard by launching new products, as well as expand sales of barrier and heat-sealable barricote® tomeet the demand for "reducing and doing away with plastics" while shifting our product portfolio from "printing and information
field" to "packaging field."(3) Structural changeover of production and sales systems
We will shift to a profit-oriented sales policy by optimizing the production system to meet demand, thoroughly streamlining theorganization, and eliminating and consolidating brands.

■ Printing Paper■ Communication Paper

Used for catalogs, books, etc.

Used for copy paper, copy slips, receipts, etc.

■ Household and Consumer Paper■ Heat-resistant Pressboard

It has a reputation as a household paper with a high-class texture.

Used as an insulator for transformers.

■ barricote® and barrisherpa®

■ Bleached Kraft Paper

Barrier paper that can contribute to reducing the amount ofplastic used

Used for paper bags, shopping bags, etc.

Business Topics《Example of adoption of barricote® coated paper for
packaging in Japan》
Our company's "barricote®" coated paper for packaging has been adopted forthe outer bag of Lotte’s new brand "DO Cacao Chocolate."
Barrier property of barricote® has enabled us to fulfill our customers' request to
deliver chocolate to consumers while retaining the rich aroma of the chocolate,which is made from cacao grown in Papua New Guinea and finished with afruity raisin aroma using proprietary fermentation technology.

17

FSC®C021528 18

Research & Development
In our R&D, in addition to sophisticating existing fields and strengthening fundamental
technologies through synergies with peripheral fields, our company is actively exploring
and cultivating new fields and building future-oriented research themes. In particular, we
will focus on development that will help achieve the goals of our mid-term management
plan: "Contribution to a green society," "Deepening and expanding functional non-woven
fabric-related business," and "Expanding business in electronics-related fields.”
In addition, in the reorganization of the R&D laboratories implemented in 2021, we havecreated an operating environment that allows us to concentrate on basic research,
product development, testing on pilot machines, and use of actual machines, thereby
making it possible to speed up the development process by improving efficiency.
Furthermore, we are focusing on improving the abilities and qualities of researchers andcollaborating with external research institutions, including the Oji Group, in order to build astrong R&D system that will support our business.

Product Development Contributing to theRealization of a Green Society

Development in the electronics-related field
Battery separators
We are developing separators that are thin yet strong for use in lithium-ion batteries,
electric double-layer capacitors, and solid electrolytic capacitors used in automobiles,
telecommunications equipment, and other products. In designing separators, we are also
working to realize higher performance separators by adopting scientific and theoreticalmethods.

Kunihiro Nakagawa
Executive Officer andGeneral Manager ofResearch andDevelopment Division

Coated paper for packaging “barricote®”
We have achieved both high water vapor barrier and oxygen barrier properties forbarricote®, a coated paper for packaging developed with the aim of reducing the use of
disposable plastics, by applying many compounding and manufacturing technologies forwater-based coating on paper that have been developed for printing and communication
paper. We will continue to expand our product lineup and aim to create a world where
paper packaging materials are a common choice.
(Photo: TOKYO PACK 2021 exhibition booth →)Laser thermal-sensitive film
We have commercialized TRF-IR830, a laser thermal-sensitive film for screen printing
and flexographic plate-making. TRF-IR830 forms high-density images through athermosensitive reaction caused by laser imaging, and can output images using an
aluminum CTP platesetter. Unlike silver halide films, TRF-IR830 is a completely
process-less film that does not require chemical development, significantly reducing
environmental burdens.
(Photo: TRF-IR830 output image →)These are just a few examples of products that have already been commercialized. We
will continue to actively pursue new initiatives such as the development of variable
information label paper products that will further reduce environmental burdens.

Expanding the electronic industrial materials businesswith specialty DFR as a starting point
Based on the coating and photopolymer technologies cultivated through thedevelopment of silver halide photographic materials and printing plate materials, we aredeveloping distinctive dry film photoresists (DFR) for use in etching, electroforming,
sandblasting, and other precision photofabrication processes. We are accelerating ourentry into the electronics industry, including information and telecommunications
equipment manufacturing, by developing functions such as high resolution and highchemical resistance.
(Photo: DFR resolving 3 m →)Various Initiatives, etc.
Expansion of the pulp business
Kitakami HiTec Paper Corporation has decided to begin production of high-quality bleached kraft pulp (NBKP) 100% madefrom domestic softwood. Our company has been producing high-quality bleached kraft pulp (LBKP) 100% made from domestic
hardwood, mainly lumber from Iwate Prefecture for some time, and will continue its research to expand its pulp business beyond
paper applications, where demand is declining, by enriching its pulp product lineups.

Alliance with the Oji GroupIn research and development, we are promoting initiatives such as mutual use of analytical equipment and evaluation
facilities, new product development by utilizing the technologies of both companies, effective use of intellectual property andsharing of related information, and support for exchange in terms of production technology.

Organization of Researchand Development Division

Development of Functional Non-woven Fabrics
Membrane substrates
We are developing base materials suitable for separation membranes used in various industries such as food,
pharmaceuticals, and air purification, using special fibers with properties such as heat resistance and chemical resistance, by
utilizing our "uniform wet laid non-woven fabric manufacturing technology" acquired through the manufacturing and sale of"water treatment membrane substrate" used in reverse osmosis membranes for seawater desalination plants and water purifiers
and separation membranes for membrane bioreactor used for treating sewage and industrial effluent.

Intellectual Property Department

Product Development Department
Research andDevelopment Division

Takasago R&D Laboratory

Kyoto R&D Laboratory

Analysis GroupNew non-woven fabricTakasago R&D Laboratory staff members
measuring physical properties

By combining the wet laid non-woven papermaking technology of inorganic fibers and the coating technology of inorganic
pigment, we are developing super heat-resistant sheets, ranging from the thin non-woven type to the thick board type, forvarious applications for construction materials, automobiles, etc. In addition, we are developing functional filter materials by
combining the melt-blown dry non-woven fabric whose market we entered in FY 2021 and the wet non-woven fabric technology.

19

20

Initiatives Toward Sustainability
Message from an Executive in Charge of
Promotion of Sustainability
The new mid-term management plan, which was explained from page 9, isbased on the belief that our company's core business is to contribute to therealization of a sustainable society, a comfortable environment, and convenientand affluent lifestyles, and we will continue to enhance our contribution tosociety by responding quickly to changing social needs and further refining our"skills" in our core business.
Shigeharu SanadaSpecifically, in the area of functional products, where we will increase ourRepresentative
Director,business weight, water treatment membrane-related products that contribute toVice President & CEO
the supply of safe and secure water and filter-related products that produce
fresh and pollution-free air would realize a "comfortable environment." Electronic industrial materials, which areutilized in the microfabrication of devices such as smartphones and a variety of materials at which Japan excels,and battery separators, which help use electricity more efficiently, contribute to the creation of "convenient andaffluent lifestyles."In our Paper Materials Business, paper and the pulp that forms its base are manufactured from renewable raw
materials produced from properly managed forests, and are environmentally friendly and sustainable productsthat can replace materials derived from fossil fuels. One of our company's unique characteristics is that it strives
to make effective use of domestic forest resources, including pulp from the Kitakami Business Division, which ismade from 100% domestic timber from the Tohoku region, and will use its expertise in this area for new
applications.
And our company must not only contribute to a sustainable society, but also enhance its own sustainability. To
this end, organizational reforms, such as strengthening corporate governance and promoting human resource
management, are indispensable. We believe that the most important factor in implementing these reforms iscommunication with our various stakeholders.
Our company conducts a questionnaire targeted at its directors and audit and supervisory board members to
help them improve corporate governance, and then interviews each of them to identify issues that need to beaddressed. The Board of Directors discussed measures to address these issues and reviewed the compositionof the Board of Directors, increasing the number of outside directors with management experience in the
manufacturing industry, and greatly expanding opportunities for dialogue with outside directors. We also
revamped our personnel system, making it emphasize the challenge of taking on heavier missions and achieving
results through dialogue between superiors and subordinates. There is no finish line in the advancement ofcorporate governance. We will continue to work toward creating a new Mitsubishi Paper Mills that can enhanceand maximize its organizational capabilities.

We have launched an official channel!
In order to help our stakeholders better understand our

The Way We See Sustainability
The Mitsubishi Paper Mills Group aims to enhance its corporate value by earning the trust and appreciation of
all stakeholders, while contributing to the realization of a sustainable society by providing solutions to various
social issues. To this end, we have positioned sustainability promotion activities as one of the importantmanagement issues to be addressed in our business.
We established the Code of Conduct of the Mitsubishi Paper Mills Group as a materialization of this philosophy.
Since then, we have respected the spirit of the code and dedicated ourselves to putting it into practice.
⇨ Reference link: Code of Conduct of the Mitsubishi Paper Mills Grouphttps://www.mpm.co.jp/eng/company/kensyou.html

Organizational Governance

Timely and appropriate information disclosure

Stakeholders

Human Rights

Communication with ourcustomers

Customers

Labor Practices

Sharing of environmental datawith suppliers and customers

Suppliers

The Environment

Holding explanatory meetings forinvestors

Shareholders

Enhancement of internal
communications

Employees

Fair Operating Practices
Consumer Issues
Community Involvement
and Development

Issuing Corporate Reports, etc.

Local Communities

Provision of information via theInternet

NGOs/NPOs

Sustainability Promotion Structure
In order to promote corporate group management with an emphasis on sustainability, we have appointed a
director in charge and have established the Sustainability Promotion Committee, chaired by the President, tooversee all sustainability promotion activities (compliance, risk management, human resources management,
safety and health, environment, product safety and quality, human rights and labor, information disclosure andpublic relations, social contribution, etc.) across the entire corporate group.

Technology andEnvironment Department
Director in charge
Executive in Charge of
Promotion of Sustainability

President

Sustainability Promotion Committee
Supervising office:General Affairs & Corporate Communications Group

General Affairs &Legal Department/Personnel
Department Directors in charge
General Affairs &Legal Department
Director in charge

products and our efforts to contribute to a green society, we
have launched the "Mitsubishi Paper Mills Official Channel" andwill begin distributing videos on the channel.
We will continue to provide a variety of videos in the future, so
please stay tuned to learn more about our company's initiatives.
21

Administration organs

Dialogue with the local community

Product Quality

Responsible department:
Technology and Environmental Department

Product Safety
Product Liability (PL) Committee

Supervising office:Technology and Environmental Department

Environment
Environmental Conservation Committee

Supervising office:Technology and Environmental Department

Social Contribution

Responsible department:
General Affairs & Legal Department

Information Disclosure/Public Relations

Responsible department:
General Affairs & Legal Department

Human Rights and Labor

Responsible department:
Personnel Department

Safety & HealthCompany-wide Safety and Health Committee

Supervising office:
Personnel Department

Human Resource Management
Committee

Supervising office:
Personnel Department

Risk Management
Risk Management Committee

Supervising office:General Affairs & Legal Department

Compliance
Compliance Committee

Supervising office:General Affairs & Legal Department

Asset Protection

Responsible department:
General Affairs & Legal Department

Business Effectiveness andEfficiency Operating Audits

Responsible department:Internal Audit Department

Reliability of Financial Reporting

Responsible department:Internal Audit Department

Internal Control

Responsible department:
General Affairs & Legal Department

Internal Audit Department
Director in charge

22Initiatives Toward Sustainability
ESG/ISO 26000 and Initiatives of MPM GroupKey Issues (Material Issues) Concerning Sustainability Promotion Activities

The Mitsubishi Paper Mills Group views ISO 26000, an international standard for organizational social responsibility,
as a common indicator for promoting sustainability and promotes activities in each field. In this corporate report, we notethe following as activities being done for the “seven core subjects” and “issues” of ISO 26000.

With the goal of contributing to the realization of a sustainable society through its business activities, the Mitsubishi
Paper Mills Group has established the following items to satisfy the needs of society.

ESG Core subjects
G

Organizational
Governance

IssuesOrganizational Governance
1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity

Human Rights

4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social, and cultural rights
8. Fundamental principles and rights at work

Process for Defining Issues

Page mentioned
Sustainability

Pgs. 21-26

Corporate GovernancePgs. 27-34

CompliancePg. 31

Risk Management

Pg. 32

Promoting Social Responsibility in

Pg. 43the Value Chain
Responsible Raw Material Procurement Pgs. 43-44
Relationship with Employees

Pgs. 45-46

Relationship with Communities

Pgs. 49-50

We analyzed the circumstances surrounding the Mitsubishi Paper Mills Group from environmental, social, andgovernance viewpoints. We then identified issues referencing ISO 26000, GRI, the SDGs and other guidelines, andassessed efforts that are being made with respect to these issues.

■ Process 2: Establish key issues and top priority issues to satisfy the needs of society
We assigned priority to each issue based on how they impact our business and on feedback from stakeholders. We
then extracted key issues that address social needs and from among them established top priority issues based on acomprehensive consideration of our business environment and progress made in addressing key issues.

■ Process 3: Verify the appropriateness of the process

1. Employment and employment relationships
Labor Practices■ Process 1: Ascertain the circumstances surrounding the Mitsubishi Paper Mills Group2. Conditions of work and social protection

CompliancePg. 31

3. Social dialogue

Risk Management

Pg. 32

4. Health and safety at work

Relationship with Employees

Pgs. 45-46

The Sustainability Promotion Committee, a cross-organizational body, verified the appropriateness of our process fordetermining issues and established key issues and top priority issues through discussions held at meetings of the Boardof Directors.

5. Human development and training in the workplace
1. Preventing corruption

S

Fair Operating
Practice

2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain

Key Issues and Top Priority Issues in FY 2022
CompliancePg. 31

Fair Operating Practices

Pgs. 43-44

ESG/ISO 26000 core subjects
G/Organizational Governance
S/Fair Operating Practices

5. Respect for property rights
1. Fair marketing, factual and unbiased information,

Issues

2. Protecting consumers' health and safety

Special FeaturePgs. 9-14

3. Sustainable consumption

Information Disclosure

Pg. 33

4. Consumer service, support, and complaint andFair Operating Practices

Pgs. 43-44

Relationship with the Environment

Pgs. 37-42

Relationship with Customers

Pgs. 47-48

dispute resolution
5. Consumer data protection and privacy

Promoting communication with stakeholders
Expanding initiatives out to affiliated Group companies

S/ Human Rights/Labor Practices

Promoting various measures to improve human resource
E/The Environment

andDevelopment◎Initiatives for coping with climate change

2. Education and culture
4. Technology development and access
5. Wealth and income creation

Preserving Biodiversity

Pg. 39Relationship with Communities

Pgs. 49-50

Improving and enlarging our environmentally conscious
product lineup
Reducing environmental risk and impact

6. Health

S/ Consumer Issues

7. Social investment

E

Environment

2. Sustainable resource use

Response to TCFD

3. Climate change mitigation and adaptation

Responsible Raw Material Procurement Pgs. 43-44

4. Protection of the environment, biodiversity,

Relationship with the Environmentand restoration of natural habitats

23

Ensuring product safety
Ensuring product quality

1. Prevention of pollution
The

Promoting activities to prevent global warming
Promoting activities to preserve biodiversity

1. Community involvement
3. Employment creation and skills development◎Enhancing activities to ensure safety and healthperformance

7. Education and awarenessInvolvement

Establishing a risk management structure
Ensuring strict legal compliance

6. Access to essential services

Community

Ensuring the effectiveness of corporate governanceFostering a corporate culture that emphasizes complianceand fair contractual practices

Consumer

Key issues (items with an asterisk (◎)represent top priority issues)

Pgs. 35-36
Pgs. 37-42◎Product development centered on harmony with society
S/ Community Involvement andDevelopment

Promoting community support activities
Promoting cultural contribution activities
Promoting activities of the Ecosystem Academy

24

Fiscal 2021 Sustainability Promotion Activities

Fiscal 2022 Sustainability Promotion Action Plan

In fiscal 2021, we worked on the three top priority issues; “enhancing activities to ensure safety and health,” “productdevelopment centered on harmony with society” and “Ensuring product quality,” In terms of initiatives to reduce greenhouse gas
emissions and products, we worked to expand environmentally conscious products to contribute to the UN Sustainable
Development Goals (SDGs).

For fiscal 2022, we have set three priority action plans: "measures against climate change," "enhancing activities to ensure safety
and health," and "product development centered on harmony with society." In the area of “measures against climate change,” wewill disclose information in line with TCFD Recommendations; in the area of “enhancing activities to ensure safety and health,” wewill strengthen safety guidance to eliminate common accidents; and in the area of “product development centered on harmony withsociety,” we will develop products with an awareness of contributing to a green society.

ISO 26000 Core Subjects 1. Organizational Governance 2. Fair Operating Practices
Key Issues
・Ensuring the effectiveness of corporate
governance・Establishing a risk management structure・Thoroughly familiarizing employees with our
Corporate Code of Conduct and theCompliance Conduct Standards
・Ensuring strict legal compliance

Action Plan
・Ensure good governance based on the Basic Policies on Corporate
Governance・Review governance functions

・Enhance structural preparations and our risk map in the interest ofGroup management
・Discuss ways of improving simulation and training
・Improve employees' understanding of the Corporate Code of Conduct,
the Compliance Conduct Standards, and related laws and regulations
through more robust compliance education
・Build effective legal functions
・Promote a better understanding of laws applicable to our operations,and enforce compliance

・Promoting communication with stakeholders

・Further improve the IR information we provide on our website, etc.
・Disseminate information about new products, etc. (sharing information
about affiliated companies)
・Enhance and make use of the Head Office gallery

・Expanding initiatives out to affiliated Group
companies

・Enhance our corporate reports
・Step up efforts at continually promoting CSR activities

ISO 26000 Core Subjects

3. Human Rights 4. Labor Practices

Key Issues

Action Plan・Enhancing activities to ensure safety andhealth・(1) Strengthen KY (danger prediction) activities and thoroughly callattention to single-person work in case of trouble
・(2) Give guidance on safety to temporary staff thoroughly・Promoting various measures to improve
human resource performance

・Inspect systems installed for reforming workstyles and improve
operations
・Promote and standardize updated training programs

Activity Results

Evaluation

・Revised the Basic Policies on Corporate Governance in line with the June 2021 revision to the Corporate
Governance Code issued by the Tokyo Stock Exchange.
・Conducted an assessment of the effectiveness of the Board of Directors, and from this fiscal year, interviews
with directors and audit and supervisory board members were conducted to improve the effectiveness of theBoard of Directors.
・In order to accurately identify risks, the secretariat presented a method of reorganizing items to facilitate
inspection and confirmation, and committee members confirmed the new risk map.
・Conducted training on how to back up the website in the event of a loss of head office functions.
・Conducted training via safety check system notification.
・Planned and conducted compliance training for all group companies in Japan (under the theme of building
appropriate relationships with business partners/promoting awareness and understanding of businessentertainment and gift-giving guidelines) (the hybrid method using both group training and video distribution).
・Provided legal education "Basic Knowledge of Labor Management" in the form of online streaming, which was
also provided to affiliated companies.
・Compliance News published six times (lowering the age of adulthood, legal education, points to keep in mind
when drafting contracts, revision of insider trading prevention regulations, patent disputes, laws governinginternational transactions).
・Disseminated financial results briefing (video streaming and teleconference to cope with COVID-19), general
meeting of shareholders-related matters, corporate reports, financial statements, etc.
・Disseminated new products (Pure Leaf Clean and non-woven masks) related to COVID-19 and the processing
technology using plant-derived polyphenol ingredients.
・Held exhibitions related to the Ecosystem Academy and the 2022 calendar exhibition as special exhibitions,and enhanced permanent exhibitions.
・Issued Corporate Report 2021 at the end of August in an integrated report format.
・Distributed the booklet version of the Corporate Report 2021 and also provided educational training to domestic
affiliated companies via online video streaming to promote understanding of CSR among group employees as awhole.

○

Activity Results

Evaluation

・(1)Hazard prediction training based on the background of events, broadcasted safety messages on thepremises that address priority items, and strengthened reporting, consultation and communication in
emergencies, etc.
・(2)Participated in safety education at partner companies and contractors, provided guidance using casestudies of accidents, and conducted safety patrols during work start and demolition.
・Promoted company-wide deployment of a workflow system, established a telecommuting system, and used a
web conferencing system as part of efforts to reform workstyles and respond to the COVID-19 pandemic.
・Conducted online training this year under the three main themes of facilitation of meetings, presentation, andimprovement of communication skills in various training programs.

○

Materiality (Key Issues)
○
○
○

○
○

○
○
○

Key Issues

Action Plan

・Promoting activities to preserve biodiversity

・Increase the percentage of FSC -certified wood we procure®

・Conduct ecosystem studies in company-owned forests
・Take measures to address microplastic waste in the oceans

・Improving and enlarging our environmentallyconscious product lineup
・Reducing environmental risk and impact

・Promote environmentally conscious products such as FSC®-certified
paper
・Develop and roll out new environmentally conscious products・Manage environmental management goals company-wide for improving
performance
・Expand environmental evaluation activities△

・Ensuring product safety

・Enhance chemical substance management

・Enrich the activities of the Product Liability (PL)・Ensuring product quality

・Product development centered on harmony
with society

・Subcommittee Acquire Product Safety Awards
・Promote thorough adherence to ISO 9001 management and improvecustomer satisfaction (reducing complaints, etc.); continue to conduct
quality audits(1) Step up monitoring of repeat complaints(2) Review efforts to prevent data falsification (manage contractors andcontrol published data such as labels and SDS)
・While listening to customer requests, we will expand our uniqueproducts with environmentally friendly characteristics

ISO26000

1. To widely develop "functional products" from a diverse business base.
To contribute to the realization of a safe, comfortable, and sustainable society
through a variety of functional materials.
2. From paper to paper materials. We will promote new business development of
paper and pulp as sustainable materials, and contribute to global environmental
conservation and the realization of a recycling-oriented society.

Consumer Issues

3. To specify targets for the reduction of energy-derived CO2 emissions for thetarget year of fiscal 2030
4. Optimization of energy balance suitable for production volume
5. Reduction of CO2 emissions in the supply chain, etc.
6. Ensuring the effectiveness of corporate governance
7. Expanding initiatives out to affiliated Group companies
8. Establishing a risk management structure
9. Ensuring strict legal compliance
10. Fostering a corporate culture that emphasizes compliance
11. Promoting communication with stakeholders
12. Measures against climate change

The Environment

Organizational
Governance, Human
Rights, Fair Operating
Practices and theEnvironment○○

Activity Results

Evaluation

・CO2 emissions increased from last year, due to the recovery in production volume. As the emission intensity isimproving, the CO2 emissions target for the next period and the long-term vision have been determined.
・Currently seeking projects that will lead to in-house use and corporate profits. Obtained non-fossil fuelcertificates from Hachinohe, Japan, and is currently selling our products to power suppliers.
・Achieved the procurement target of FSC®-certified chips due to increased production from Australia and Chile,which have high FSC® ratios.
・Ecosystem Academy Gallery Exhibition; Conducted a survey on the ecosystem (tree planting and growth, soil
animals, wild birds, and animals) in the forest owned by Shirakawa Site.
・Started to sell barrier-coated paper of recyclable paper.
Developed water-repellent, oil-proof paperboard as base paper for paper containers as alternatives to plastic
containers.
・Started the in-house production of wrapping material made from unbleached pulp for in-house use, and we areconsidering external sales.
・Sales volume of FSC®-certified paper: 10,203 tons/month on average.

○

・Registration of environmentally friendly products (Pure Leaf series).
・The following in-house environmental targets have been set to reduce environmental risks.

○○

・CDP score (climate change: D; forest: B-).

△

Action Plan

Transparency of corporate
activities and legal compliance△

Safety and health activities andrespect for human rights○○○

Environmental preservation and
raw materials procurement

13. Enhancing activities to ensure safety and health
14. Promoting various measures to improve human resource performance

15. Promoting activities to preserve biodiversity
16. Reducing environmental risk and impact
17. Sustainable procurement of raw materials

Labor Practices andHuman Rights

The Environment andFair Operating Practices○○○

ISO 26000 Core Subjects 6. Consumer Issues
Key Issues

To contribute to a decarbonizedsociety○○

ISO 26000 Core Subjects 5. The Environment
・Promoting activities to prevent global warming ・Continue reducing CO2 emissions in our business activities andinvestigate becoming low-carbon or carbon-free in the future・Support and get involved in renewable energy projects

To establish a solid businessfoundation by accelerating
business portfolio transformation

Sustainability Strategies and Initiatives

Activity Results

Evaluation

・Reflected substances subject to the amended Enforcement Order of the Act on the Assessment of Releases ofSpecified Chemical Substances in the Environment and the Promotion of Management Improvement and the
SDS system.
・Held the meetings of Product Liability (PL) Committee and Product Liability (PL) Subcommittee to investigate theimpact on our company with regard to domestic and foreign laws and regulations, and shared information on
how to respond to such laws and regulations.
・Passed the first screening, but failed in the second screening.
・The monthly progress status of quality control initiatives is summarized and distributed as "Quality Summary ateach location" via e-mail for information sharing. Measures were taken for serious and repeated complaints, andeach site took measures to prevent reoccurrence.

○

・Worked on paper packaging materials "barricote®" and "barrisherpa®," and adopted them for primary
packaging.
・Development of kraft coated paper with improved gravure and flexographic printability and non-fluorinatedwater-repellent, oil-proof paperboard.

△○

Quality and safety of products andservices and product development

Contribution to social participationand development

18. Ensuring quality and safety of products and services
19. Improving and enlarging our environmentally conscious product lineup
20. Product development centered on harmony with society

21. Promoting community support and cultural contribution activities
22. Promoting activities of the Ecosystem Academy

Consumer Issues

Community Involvement
and Development

Most important actions△○

ISO 26000 Core Subjects 7. Community Involvement and Development
Key Issues
・Promotion of local contribution activities
・Promoting cultural contribution activities
・Promoting activities of the Ecosystem
AcademyTop priority issues

25

Action Plan
・Participation in local activities in each place and continuation of smooth
relationships with the community
・Implement ongoing support focusing on Mitsubishi and related industry
groups・Ensure these activities become established and developed as ongoingcollaborations with society

Activity Results

Evaluation

・Conducted cleaning, donated blood, provided papers and distributed braille calendars.
Donated sterilization solutions and partitions for the prevention of infectious diseases.
・Cooperated with grants to Mitsubishi-related foundations and promoted public relations activities.
Made donations to and sponsored various related groups.
・Forest environment education for local people (ranging from children to adults).
・Launched the Nishigo Paper-Making Study Group at the Nishigo Village Community Center Club.
・Implemented 21 experiential forest environment education programs for schools, local governments, etc.

(Evaluation)○○○○: Target met △: Target not met

FSC® C021528

26

Corporate Governance
Basic Policy on Corporate Governance
Mitsubishi Paper Mills’ corporate activities are based on its corporate philosophy: Live up to the trust of its customers in the world
market; Always be on the leading edge of technology; and Contribute to preserving the global environment and creating a recycling
society. Under this philosophy, the Group pursues corporate group management that values sustainable growth (sustainability) of ourcompany and society, enhances management transparency, and augments corporate governance, all to achieve the sustainablegrowth of the Group and the medium- to long-term improvement of its corporate value. We have established the Mitsubishi Paper
Mills Limited Basic Policy on Corporate Governance so that we can take concrete steps toward achieving the above, and make itavailable on our website.
⇨ Reference link: Corporate Governancehttps://www.mpm.co.jp/eng/company/governance.html

Board of Directors and Audit & Supervisory Board Members(as of September 1, 2022)

Directors

Corporate Governance Framework
Mitsubishi Paper Mills has chosen to structure itself as a company with a board of corporate auditors and the Board of Directors
elects three independent outside directors (the ratio of the number of independent outside directors is more than one-third).
Furthermore, we also divide up the oversight and executive functions, adopting an executive officer system to limit the size of theBoard of Directors, speed up decision-making on management, and define responsibilities for business execution. At special
meetings of the Board of Directors which are held as needed in addition to the regular monthly meetings, decisions are made about
and oversight provided concerning matters prescribed in laws, regulations and the Articles of Incorporation, as well as the executionof significant business.
Our Audit & Supervisory Board, which also includes outside Audit & Supervisory Board members, holds meetings periodically andas needed.
The Management Committee, consisting of executive officers and other senior management, meets once a week in principle todiscuss important matters related to the management of the Mitsubishi Paper Mills Group, as well as to ensure thorough group
governance and the sharing of group strategies and important information, thereby enabling prompt and practical business execution.
The divisional system has strengthened the execution system by giving each division responsibility for earnings and authority.
In addition, we have a Nomination and Remuneration Committee that, in the interest of maintaining objectivity and transparency inmatters concerning executive appointment and remuneration, is chaired by an independent outside director and that acts as anadvisory body to the Board of Directors.

Representative Director, President& CEO

Representative Director, Vice
President & CEO

Director, Managing Executive
Officer

Director, Managing Executive
Officer

In charge of Energy Business
Office and Technology andEnvironment Department

In charge of Management
Planning Department, Accounting
Department, Personnel
Department, General Affairs &Legal Department, Shirakawa
Site, Overseas Business
Management Division, Raw
Material Department, and Internal
Audit Department.
Executive in Charge of Promotionof Sustainability

In charge of Paper Materials
Division. General Manager ofPaper Materials Division.
Director and President of
Mitsubishi Oji Paper Sales Co.,Ltd.

In charge of Functional Materials
Division, Research andDevelopment Division and thebusiness in Germany.
Assistant manager in charge of
Kitakami Business Division.
General Manager of Functional
Materials Division.

General Meeting of Shareholders

Director, Senior Corporate Adviser

Outside Director

Outside Director

Outside Director

Director and Chairman of
ZECOO Partners Inc.
Certified public accountant

Partner Chief of Kataoka &Kobayashi LPC
Attorney-at-law

Former Representative Director
and Vice President of NH Foods
Ltd.

◀

Election, Dismissal,
and OversightPresident and C.E.O.

Soumitsu Takehara

Nobuhiro Sato

Yoshihiro Kataoka

Shigeharu Matsuzawa

Mitsunori Shinohara

◀
◀

Audit
ReportAccounting Auditors
Auditing company

ReportNomination andRemuneration Committee

Cooperation◀
◀

Audit & Supervisory Board Members◀

Executive functions
16 Executive Officers

◀

Audit

Audit

◀

Internal Audit Department◀

Cooperation◀

◀

Cooperation

Election and Dismissal

Shigeharu Sanada◀

◀
Board of Directors
5 Internal, 3 Outside

◀

Audit

◀

Audit & Supervisory Board
1 Internal, 2 Outside

Kunio Suzuki

Election and Dismissal◀

Election and Dismissal

Ryuichi Kisaka

Business Divisions and Subsidiaries

27

Sustainability Promotion StructureStanding Audit & Supervisory
Board Member

Koichi Nakayama

Outside Audit & Supervisory Board
MemberOutside Audit & Supervisory Board
MemberFormer Director and Executive
Vice President of Meiji Yasuda
Life Insurance Company

Representative Director andPresident of Mitsubishi UFJ TrustBusiness Co., Ltd.

Hiroaki Tonooka

Satoshi Takizawa

28

Corporate GovernanceOutside Directors

Assessments of the Board of Directors Effectiveness■ Somitsu Takehara, Director (Born on April 1, 1952)

Number of MPM shares held: 0

Career Summary
January 1977 Joined Peat Marwick Mitchell & Co.
December 1981 Joined Coopers & LybrandJuly 2000 General Manger, Transaction Service Division, Chuo Aoyama
April 2005 Representative Director, ZECOO Partners Inc.
November 2017 Director & Chairman, ZECOO Partners Inc. (to present)
Reason for election
Expertise in finance and accounting, extensive knowledge of corporate
management

Important positions concurrently held at other companies, etc.
Director & Chairman, ZECOO Partners Inc.
Outside Director, Genki Sushi Co., Ltd. (since June 2015)
Outside Director, SHINMEI Holdings Co., Ltd. (since October 2018)
Outside Audit & Supervisory Board Member, TBS Holdings, Inc.
(since June 2020)
Board of Directors meeting attendance (FY 2021)
Board of Directors meetings: 13 of 14■ Yoshihiro Kataoka, Director (Born on July 30, 1954)

Number of MPM shares held: 0

Career Summary
April 1980 Registered as an attorney-at-law (Tokyo Bar Association)
April 1983 Hosoda and Kataoka Law Office
September 1984 Chief, Yoshihiro Kataoka Law Office
June 1990 Partner Chief, Kataoka & Kobayashi LPC (to present)
Reason for election
Expertise in law and many years of experience in corporate legal affairs

Important positions concurrently held at other companies, etc.
Partner Chief, Kataoka & Kobayashi LPC
Visiting Professor, Chuo Law School (since April 2007)
Outside Director, The Higo Bank Ltd. (since June 2011)
Board of Directors meeting attendance (FY 2021)
Board of Directors meetings: 14 of 14■ Mitsunori Shinohara, Director (Born on September 25, 1954)
Career Summary
April 1979 NH Foods Ltd. (hereinafter “NH”)
April 2010 Executive Officer, and Head of Corporate Planning Department, GroupManagement Division, NH.
April 2012 Executive Officer, and Head of Management and Supervision
Department of Meat Business Division, NH.
April 2014 Executive Officer, Head of Management and Supervision Departmentof Meat Business Division and Chief of Business Planning Office, NH.
April 2015 Executive Officer and Head of Affiliated Companies Division, NH.
June 2015 Director, Executive Officer, and Head of Affiliated Companies Division,
NH.
April 2016 Director, Managing Executive Officer, and Head of AffiliatedCompanies Division, NH.
April 2017 Representative Director and Vice President in charge of Reform of theBusiness Structure of the Corporate Group, NH.
April 2018 Representative Director and Vice President in charge of Reform of theStructure of the Corporate Group, NH.
April 2019 Director, NH.
June 2019 Resigned

Number of MPM shares held: 0
Important positions concurrently held at other companies, etc.
Holds no important positions at other companies(1) Date of Analysis and Evaluation of the Board of Directors’ Effectiveness in FY2021
January 7, 2022 - January 17, 2022: Questionnaire conductedFebruary 28, 2022: Discussions held at Board of Directors meeting(2) Questionnaire Topics
a. Composition of the Board of Directors
c. Functions of the Board of Directors

b. Operation of the Board of Directors
d. Other proposals for Improvements(3) Analysis and Evaluation of FY2021 Board of Directors’ Effectiveness-Summary of Resultsa. Composition of the Board of Directors
It can be considered that the number of members, the knowledge and experience of each member, and theskills of the members generally maintain an appropriate structure for the functioning of the Board of Directors.
On the other hand, issues were raised regarding the internal/external ratio and the need to improve the diversityof the board members, and it was confirmed that continued consideration is needed regarding the appointmentof 1/3 or more of independent outside directors＊, the formulation of a plan to train female managers for theappointment of female directors, and the invitation of female directors from outside our company.
＊
Our company has already conducted appointment so that the ratio of outside directors would be 1/3 orhigher at the General Meeting of Shareholders on June 28, 2022.

Reason for election
Extensive experience in marketing, sales and management planning forbusinesses including overseas businessb. Operation of the Board of Directors■ Hiroaki Tonooka, Audit & Supervisory Board Member (Born on January 23, 1953) Number of MPM shares held: 0
Career Summary
April 1976 Joined Meiji Life Insurance Company (currently Meiji Yasuda Life
Insurance Company) (hereinafter “MY”)
July 2005 Director, General Manager; Group Market Planning & Research
Department, MY
December 2005 Director, MY
April 2006 Director, Managing Executive Officer, MY
July 2006 Managing Executive Officer, MY
April 2008 Senior Managing Executive Officer, MY
July 2012 Director, Deputy President, MY
April 2016 Director, MY
June 2016 Adviser, MY
July 2016 Director, The Kitasato Institute (to present)

Important positions concurrently held at other companies, etc.
Director and Councilor, The Kitasato InstituteCouncilor, Japan College of Social Work (since May 2022)

Reason for election
Expertise in finance and accounting, extensive experience in corporate
management

Board of Directors meeting attendance (FY 2021)
Board of Directors meetings: 14 of 14, Audit & Supervisory Board
meetings: 12 of 12

The frequency of meetings, the time required, agenda operation, discussions, and tracing of items to beresolved are generally appropriate and contribute to improving the quality of deliberations. In order to further
invigorate discussions and improve the quality of deliberations, it is necessary to share information acrossdivisions, enhance opportunities for information sharing outside the Board of Directors meetings by holding
various briefings and round-table discussions from the executive side, and further accelerate the timing of theprovision of materials.

c. Functions of the Board of Director■ Satoshi Takizawa, Audit & Supervisory Board Member (Born on June 21, 1961)

29

The Board of Directors conducts a questionnaire for Directors and Audit & Supervisory Board members to analyze andevaluate the effectiveness of the Board of Directors as a whole. The results of the questionnaire are then discussed at
the Board of Directors.
An outline of the questionnaire and results is provided below. In addition to sharing the current understanding, the Boardof Directors will identify and discuss issues to make future improvements and continually work to improve its effectiveness.

Number of MPM shares held: 0

Career Summary
April 1984 Joined Mitsubishi Trust and Banking Corporation (currently Mitsubishi
UFJ Trust and Banking Corporation) (hereinafter “MUFJ TBC”)
June 2010 Executive Officer and head of Financial Planning Section of Mitsubishi
UFJ Financial Group, Inc. and an Executive Officer of MUFJ TBC
June 2012 Executive Officer and head of Management Planning Section of MUFJ
TBC
June 2013 Managing Executive Officer, MUFJ TBC
June 2016 Director, Senior Managing Executive Officer, MUFJ TBC
June 2019 Representative Director and President of Mitsubishi UFJ TrustBusiness Co., Ltd. (to present)

Important positions concurrently held at other companies, etc.
Representative Director and President of Mitsubishi UFJ TrustBusiness Co., Ltd.

Reason for election
Expertise in finance and accounting, great discernment of corporate management

Board of Directors meeting attendance (FY 2021)
Board of Directors meetings: 10 of 10, Audit & Supervisory Board
meetings: 8 of 8

Constructive discussions are held on the direction to be taken in the mid-to-long term and management
strategies, and the monitoring of business execution is functioning adequately.
The improvement of governance related to directors' remuneration, one of the issues addressed in theprevious fiscal year, has been improved through the introduction of a performance-based share-based
payment plan in June 2021. On the other hand, the following items are expected to be improved in order topromote portfolio transformation and performance improvement.
・Ongoing discussions on management strategies that incorporate internal and external knowledge
・Extensive discussions on sustainability initiatives with an awareness of SDGs and ESG
・To formulate a human resource development plan, including diversification, and provide feedback to
management on employee engagement, including group companies.

d. Other Proposals for Improvements
In addition to the above, recommendations were also made regarding more elaborate dialogue andexplanations to shareholders and investors, and the nature of communication between outside directors andoutside executives.

30

Corporate GovernanceTraining Regarding Laws, Regulations, Etc. Related to Business Operations

Message from an Outside Director
Our company has been unable to improve its performance over the long term due tothe decline in demand for printing paper against the backdrop of the advance of digitaltechnology in its mainstay Printing Paper Business. Under these circumstances, theBoard of Directors has been discussing building a profit-generating system based on themarket-oriented mindset of "making things that sell well" instead of the conventional
product-oriented mindset of "if we make good products, they will sell well." However,during the period of the previous mid-term management plan, the changes in theeconomic environment were beyond the scope of the expected reduction in demand,
Soumitsu Takehara fluctuations in raw material and fuel prices, and price revisions. Thus, due to the impact
Outside Directorof the economic environment changes, especially with the spread of the novel
coronavirus and soaring raw material and fuel prices, our company could not achieve its
targeted performance.
Our company entered into a capital and business alliance with Oji Holdings Corporation and achieved thesynergies expected to some extent during the period of the previous mid-term management plan. However, we
needed to strengthen the alliance further to respond to the rapid changes in the external economic environment.
Therefore, in the new fiscal year, we invited several executives from Oji Holdings Corporation, including thepresident. We hope the performance will recover under the new management system and business plan.
Under the new mid-term management plan, we will reorganize the Printing Paper Business into the Paper
Materials Business to establish a system for producing and selling products with higher profit margins. Moreover,
we aim to further develop the Functional Materials Business, which has been growing steadily in the former
mid-term management plan, and transform it over the long term into an establishment that accounts for more thanhalf of our profits. To that end, strengthening development and sales and expanding the lineup of functional
products are challenges to be addressed in the future.
Since I was appointed an outside director, I have focused mainly on how I can contribute to improving corporate
value by making changes to this company that has such a long history and acted to protect the interests ofminority shareholders other than Oji Holdings, which represent approximately two-thirds of our company's shares.
I would like to continue to play a role in governance by providing appropriate advice and proposals.

In order to foster the knowledge of laws and regulations on business operations and legal mind, we regularly holdin-company seminars on legal affairs while inviting experts, including lawyers. In the fiscal 2021, workstyle reformreceived some attention. Thus, we focused on labor-management in response to the situation, such as the enforcementof the law against workplace bullying. With the cooperation of a professional lawyer, we created a video seminar tailoredfor our company and shared it widely within our group, not only in the Personnel Department, but also with people
involved in labor management in the companies and departments, to systematize basic affairs and deepen theirunderstanding.
Contents: "Basic Knowledge of Labor Management" 1. Working time management 2. Handling holidays and vacations
3. Recognizing workplace bullying
Lecturer: Takeo Okazeri, Attorney General, Takai Okazeri Law Firm

Corporate Ethics Hotline, an Internal Whistleblowing System
Mitsubishi Paper Mills has an internal whistleblowing system that is available to all employees working in the Mitsubishi
Paper Mills Group in Japan. The Whistleblower Protection Act has been revised recently, and we are developing
regulations to respond to this. The whistle-blowing status is checked at the regularly held meeting of the Compliance
Committee, and reported to the Board of Directors.

Risk Management
To maintain and improve corporate value, it is important to properly manage a range of risks that arise in the course ofbusiness activities. In our Group, the Risk Management Committee, which is supervised by the General Affairs & Legal
Department, oversees Group-wide risk management efforts based on the sustainability promotion structure. Divisions atcompany headquarters, committees, and business sites are working on a variety of measures to strengthen risk
management, including the establishment of various rules and manuals for responding to relevant risks, development ofprevention systems and drills, and formulation of recurrence prevention measures when problems occur.

Risk identification Risk analysis Risk assessment

Communication and Discussion
Sustainability Promotion Committee

Code of Conduct of the Mitsubishi Paper Mills GroupOur basic concept for compliance has been formulated and upheld as “theCode of Conduct of the Mitsubishi Paper Mills Group.” In order to realize thephilosophy of the code, we gave shape to each item and formulated “theMitsubishi Paper Mills Group Compliance Conduct Standards.” This applies
to all executives and employees of the Mitsubishi Paper Mills Group, andserves as a guideline for daily activities.
⇨ Reference link: Code of Conduct
https://www.mpm.co.jp/eng/company/gaiyo.html

31Disclosure of risk information
Annual securities reports

Each company and each department
Risk of legal violation

Declining domestic demand andfalling market prices

Compliance Committee

Rising cost of raw materials

Risks to safety and health

Capital investment

Company-wide Safety and HealthCommittee

Exchange rate volatility▼▼

Risk of business environment volatility▼

In order to remain a corporate group that can earn the trust of society and live up to its expectations, the Mitsubishi
Paper Mills Group makes efforts to foster a corporate culture focused on compliance and enhance the awareness of
executives and employees.

Monitoring and Reviews
Risk Management Committee

Risks of product safety▼

Compliance

Risk response

Product Liability (PL) Committee▼

Risks to the environment

Environmental Conservation
Committee

Rising interest rates
Disasters
COVID-19 pandemic risk
Regulations and litigation
Other contingencies

Improving Our Risk Map
Code of Conduct of the Mitsubishi Paper Mills
Group pocket card

The Risk Management Committee analyzes the impact of these risks ascertained by our company and the frequency
with which they occur to build our risk map, and it regularly identifies and analyzes risks to improve the effectiveness of
our risk management.

32Corporate GovernanceCommunication

Building a Crisis Management System■ IR Information Website

The Mitsubishi Paper Mills Group formulated “the Mitsubishi Paper Mills Group’s Crisis
Management Manual” to respond quickly in fulfilling its corporate social responsibility and

An investor relations page can be found on the Mitsubishi Paper Mills

maintaining social credibility in the event of an accident or disaster that brings serious harm to

website. Information is disseminated in a timely manner on this page,

people or equipment, or impacts surrounding communities. In addition, to construct an effective

which provides primarily earnings highlights, an IR calendar, an IR libraryrisk management system, we regularly conduct various drills and operation tests at every(with access to annual business reports and medium-term managementbusiness site and on a scale that involves the entire company, and work to identify and resolve

plan materials), General Meeting of Shareholders presentation materials,

issues. We have run drills using the safety check system installed at the Company ’ sheadquarters in 2018 at business sites and Group companies in Japan to build a Group-widestock information, etc.
Fire drill
Takasago Mill

crisis management system. We have also been working to prevent the spread of COVID-19 by⇨ Reference link: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html■ Head Office Gallery: Paper Design Squarecombining working from home and staggered working hours.

We have built a gallery at the head office displaying our principal

Enhancing Information Management

products to engender a stronger affinity with the Mitsubishi Paper Mills

The Group practices efficient and integrated use of information and works to manage it properly. Along with establishing “theInformation Management Regulations” that set forth our measures for managing and protecting information handled in our

Location: Ryogoku City Core, 2-10-14, Ryogoku, Sumida-ku, Tokyo, Japanbusiness activities, we have codified a guideline for upholding these regulations in the form of “the Information Handling
Guidelines.”

Group products in addition to regularly held planned exhibitions.
Mitsubishi Paper Mills Head Office, 11F, next to general reception
Hours: 9:00-17:00 (closed on Saturdays, Sundays, public holidays, anddesignated holidays)

Creation of a Business Continuity Plan (BCP)The Mitsubishi Paper Mills Group’s experience with the Hanshin-Awaji Earthquake and Great East Japan Earthquake has
impressed on it the need for strengthening emergency preparedness. We are building an effective business continuity plan

Message from an Outside Audit & Supervisory Board Member
What is required from companies has changed dramatically in recent years. For example,

informed by our experience in recovering from profound devastation.

companies are expected to aim to improve corporate value, considering their contribution not
only to shareholders, but also to various stakeholders including its employees, customers,
business partners, and society, as well as environmental protection. This is only natural,

Information Disclosure/Public Relations

considering that companies are social entities.
On the other hand, the environment surrounding the paper and pulp industry is becoming

The Mitsubishi Paper Mills Group expresses its commitment to transparency in its business activities in the Code of Conduct of
the Mitsubishi Paper Mills Group. The Group has established and publicized its Disclosure Policy based on this code and has
declared that it will practice the timely and proper disclosure of corporate information. We have also established the Information
Disclosure Regulations for ensuring that stakeholders receive an accurate, timely, and fair disclosure of information on acontinuous basis, with our General Affairs & Corporate Communications Group in charge of managing these efforts. It also
regularly holds public relations sessions and manages the disclosure of information about the Group. Furthermore, in the interestof fair disclosure, materials from financial result briefings are also disclosed at the time meetings are held.
⇨ Reference link: Disclosure Policy
https://www.mpm.co.jp/eng/ir/disclosure/disclosure_policy.html

Information Disclosure Systemcoronavirus crisis has further aggravated this trend. In addition, the business suffered a direct
hit due to the rise in raw material and fuel prices in the previous fiscal year, which was
accelerated by Russia's invasion into Ukraine, and the depreciation of yen, resulting in theposting of an operating loss for the second consecutive term.
Under these circumstances, our company has formulated and announced a three-year

medium-term management plan starting this fiscal year. The plan is aimed at (1) strengthen our earning capacity by“selection and concentration” strategies and “expansion of new business,” (2) contribution to green society, and (3)organizational change to improve sustainability. These goals are in line with what is required from companies these days.

◀

Financial
Services
Agency◀

◀

Information
disclosure

Financial Services
Agency's website

the plan, are sales of 195 billion yen, an operating income of 7.5 billion yen, and an ordinary income of 8.5 billion yen.

Mitsubishi Paper Mills' website and other means

Stakeholders

Media

concentrating investment in the growing functional materials business. The targets for the end of fiscal 2024, the final year of

◀

◀

Tokyo
Stock
Exchangebusiness portfolio by revitalizing the existing printing paper business to become the paper materials business and◀

Timely disclosure

to achieve this, we have set a future vision from a long-term perspective. Based on this vision, we aim to transform the

TSE's website◀

Stock exchange
information◀

Media reporting◀

Department in Charge ofInformation Disclosure◀
◀

Prepare documents
for disclosure
Provide information◀
Discuss and Verify

General Affairs & Legal Department /Accounting Department

Directors in Charge
Site Manager(Division General Managers)(Head Office Department Managers)

Information Handling Manager

Notify of finalized
matters(President and C.E.O.)

Information DisclosureManager

Hiroaki Tonooka
Outside Audit &Supervisory
Board Member

However, needless to say, the most important thing for our company now is (1) to strengthen our earning capacity. In order
Director in Charge of the General Affairs &Legal Department

Board of Directors

increasingly severe. The demand for paper has declined due to digitization, and the novel

Although we chose the Prime Market after the reclassification of the Tokyo Stock Exchange's market sections, we did notreach the market capitalization standards for tradable shares. Our company formulated this medium-term management plan
to fulfill this goal. Achieving this goal is our responsibility to stakeholders and society, which we must achieve at all costs.
It has been six years since I was first elected as an outside Audit & Supervisory Board member of the company. I believethat our company's strength lies in its steady corporate culture. Still, to carry out this plan, we need to have drastic efficiency
in moving faster than ever before and in determining what we will do by when and how far we will go in this quarter, andwhat we have to change to be able to do so, if we cannot achieve it. For that, revitalization of the culture is indispensable.
As of this term, expectations are increasing as the president and other management team members have changed. As an
outside Audit & Supervisory Board member, I will keep an eye on whether appropriate measures are being decided andimplemented through proper processes, especially from an external perspective and a stakeholder perspective.

33

34

Response to TCFD
Support for TCFD Recommendations and Information Disclosure
The Financial Stability Board established TCFD (Task Force on Climate-related Financial Disclosures) to discuss how todisclose climate-related information and the measures financial institutions should take. The global issue of climate change isconsidered a factor that will severely impact companies. Therefore, climate change has become a risk and an opportunity forbusiness activities in the medium-long term. Thus, it is becoming necessary for companies to incorporate the impact of climatechange into their management strategies to achieve sustainable growth.
In April 2022, the Mitsubishi Paper Mills Group announced its support for the TCFD Recommendations and joined the TCFD
Consortium. To achieve sustainable growth, increase corporate value over the medium- to long-term, and contribute to society,we will disclose information based on the TCFD Recommendations regarding the risks and opportunities that climate change
poses to our business.

Mitsubishi Paper Mills (MPM) Scenario Analysis Results
Table 1 Implementation of scenario analysis and strategies and countermeasures against risks
Category

Technologies

Transitionrisks● Governance● Risk management

・We identify risks related to climate change from items recognized by the Risk Management Committee within the
Sustainability Promotion Committee. The TCFD project teams also manage climate change-related risks.

● Strategies

・ We have established measures for the risks and opportunities identified by the TCFD project teams.
・ We joined the 30 by 30 Alliance for Biodiversity established by the Ministry of the Environment. We also offer opportunities
for experiential education about biodiversity and the blessings of forests by utilizing the Ecosystem Academy incompany-owned forests.

● Conducting scenario analysis

・ In order for humans and the earth to coexist, it is necessary to limit the increase in the average global temperature to lessthan 1.5°C above pre-industrial levels to curb the severe impacts of climate change.
・ For the scenario set in this analysis, we referred to the IEA's WEO SDS (Sustainable Development Scenario) and theexternal scenarios presented by the Intergovernmental Panel on Climate Change (IPCC). Scenarios in a carbon-neutral
world where social systems transition to climate change mitigation so as not to emit greenhouse gases pose moresignificant transition risks. As for the scenario of a world highly impacted by climate change, it requires adaptation to face
the fury of nature, where physical risk is more significant.
・ We believe we can increase our resilience against future risks by taking measures to deal with transition and physical risks
in multiple scenarios of the future world. In addition, even in a harsh world with transition and physical risks, we believe
adopting countermeasures for both can reduce them. We will also seize the listed opportunities and promote futurebusiness expansion.

35

・Cost of transition to low-carbon
technologies

Physicalrisk

・Increasing energy costs due to the introduction of renewableenergy and equipment upgrades

Large

Large

・Declining demand for products and services that use fossil fuels
・Increasing consumer interest in
low-carbon products and services ・Impact on sales due to focusing on carbon emissions in theenvironmental performance index
・Augmentation of raw material and・Instability in the supply of chips for raw materials and various
fuel costs
raw materials and fuel, and price increase
・Changes in the external financial
・Withdrawal of investments, termination of loans, and difficulty inenvironment
raising funds in companies that use fossil fuels

Large・Difficulty in raising funds due to changes in the assessment ofcompanies' attitudes toward climate change
・Loss of opportunities to receive orders, deterioration of social
credibility, avoidance of transactions, loss of human resources
due to assessments such as having inadequate measures against
climate change

Large・Negative feedback from
Evaluation
stakeholders

・Suspension of business activities due to damage or destructionof in-house equipment and disaster (e.g. employees unable tocome to work)
・Aggravation and increase of
extreme weather events such as ・Functional deterioration of water supply, electricity, port facilities,
Short term
typhoons, floods, and heat waves
and suspension of infrastructure services(acute) ・Temperature rise, changes in・Suspension of material and product delivery due to disruption of
precipitation, etc.
the distribution network (supply chain)・Suppliers of raw materials and fuel are damaged, resulting inprocurement difficulties and supply interruptions.

・Rising average temperature andsea level
Long-term(chronic) ・Changes in precipitation andweather patterns

・Difficulties in procurement due to deterioration of tree growth,
deterioration in quality, decrease in yield, forest fires at
suppliers, etc.
・Decrease of available water due to seawater intrusion, increased
water turbidity, decreased river flow, water intake restrictions, etc.
・Increasing risk of flooding due to rising sea levels (earthquakes,
tsunamis, storm surges, high waves) and salt damage
・Conversion from afforestation to farmland due to food shortages
and its increased necessity and expansion

Small

Small

Strategies and countermeasures

Small

・Reducing coal dependency by maximizing the use ofrenewable energy
・Promotion of energy conservation in manufacturing anddistribution processes
・Investing in the energy transition
・Relying on multiple vendors of raw materials and fuels,
decentralization of procurement sources, and reviewing
supply chains

Mediumto large

Small・Curbing energy costs by actively adopting the latest
energy-saving equipment and technologies

Mediumto large

・Promoting the resources recycling business model andforest conservation further
・Dissemination of information on the implementation status ofsustainable forest management and sustainableprocurement policies
Small・Relying on multiple vendors of raw materials and fuels,
decentralization of procurement sources, and reviewing
supply chains
・Disclosure of information related to climate change risks,
costs, etc.

Mediumto large

Small

Mediumto large

Small toMediumSmall toMedium・Dissemination of product information that can contribute toclimate change mitigation and adaptation
・Proactive disclosure of information to stakeholders

・Implementation of measures to prevent similar disasters
through the establishment of a system to deal with natural
disasters and horizontal dissemination of disaster information
・Stabilization of procurement through diversification of raw
material suppliers and means of transportation
Large
・Formulation, implementation, and operation of preventive
measures against predictable wind and flood damage, suchas strengthening buildings
・Countermeasures against salt damage and water damage
in manufacturing facilities
・Stabilization of procurement through diversification of raw
material suppliers and means of transportation
・Mitigating the impact of storm surges through land
Largereclamation led by local governments
・Improving water intake and purification equipment andwater-saving technologies

Table 2 Strategies and measures for opportunities
Category● Indicators and goals

・ We have formulated the Mitsubishi Paper Mills Group Environment Vision 2050, in which our company aims to becomecarbon neutral by 2050.
・ In fiscal 2020, energy-derived CO 2 emissions in Japan were 792,000 tons. By fiscal 2030, we aim to reduceenergy-derived CO2 emissions in Japan by 40% from fiscal 2013 level to 568,000 tons or less.
・ The domestic emissions of greenhouse gases in fiscal 2020, including CO2, for SCOPE 1+2 is 902,000 tons. By fiscal
2030, we aim to reduce emissions by 36% from fiscal 2013 level to 681,000 tons or less. In the future, we will consider
measures for SCOPE 3.
・ Our company owns about 2,000 ha of forests, mainly in the Tohoku region. We will continue to improve domestic timber's
self-sufficiency rate and conserve forests by actively using timber from Northern Tohoku.

Risk assessment
1.5°C
2°C
4°C

Risk details (impact on MPM)

・Increasing costs due to increases in carbon taxes and dues,
・Enhancing regulations on GHG
introducing emissions trading schemes, etc.
emissions, limiting emissions
・Cost increases due to energy source conversion
Policies ・Energy source conversion
・Legal restrictions on various raw materials and fuels, restrictions
and・Changes in legal regulations andon production and sales due to changes in environmental
legislation
environmental regulation limits forregulation limits, a difficulty in substituting said raw materials andvarious raw materials and fuels
fuels, a lack of substitutes, shortage of alternative fuels to coal,increase in procurement costs

Market・ We recognize that climate change is one of our most important business challenges, so the Board of Directors will discussand decide on basic policies and important matters related to climate change. In addition, an executive in charge ofpromotion of sustainability will discuss the risks and opportunities and report them to the Board of Directors at least once ayear.
・ We have launched company-wide TCFD project teams that include an executive in charge of promotion of sustainability.
・ We have established the Sustainability Promotion Committee to oversee the sustainability promotion activities of the entire
Mitsubishi Paper Mills Group and manage the progress of the TCFD project teams under the Risk Management
Committee, which is under its umbrella.
・ Management Committee and the Board of Directors make investment decisions related to decarbonization.

Risk item

Resource
efficiency

Opportunity item

Understanding of the business environment(MPM opportunities)

Strategies and countermeasures

・Sales promotion of water treatment membrane support substrates
used for reverse osmosis membranes (RO membranes) that
contribute to securing safe and secure water (seawater
desalination, etc.)
・Increasing demand for clean water under various
Entering the fields of liquid filtration for beverages, industrial・
environmental conditions
・Effective use of resources
water, oil, etc. using liquid filter materials
・Increasing need for securing drinking water and・Reducing water usage and・Sales promotion of total heat exchange elements and dust
efficient ventilation
consumption and securing watercollection filters that contribute to air optimization
・Increasing demand for textiles that do not require
・Act on Promotion of Plastic
・Expanding waterless textile printing business using sublimation
water
Resource Recycling (Enforced intransfer paper
April 2022)
・Timber collection base in the Tohoku region,
・Strengthening the development and sales expansion of paper
which is rich in forest resources
products in line with demand for plastic waste reduction
・Stable procurement of resources and reduction of procurement
costs by promoting the use of domestic materials

・Expanding the use of renewable energy for heat and electricity
・Contributing to a decarbonized society
・Balancing energy costs and reduction of environmental impact
by utilizing biomass, waste materials, RPF, etc.
Energy ・Expanding the use of renewable ・Electrification advances and various types ofbatteries are becoming widespreadresources
energy・Development and sales of various battery separators
・Activating biomass power generation
・Expanding external sales of fuel chips and increasing power
generation income
・Promotion of sales and popularization of FSC®-certified paper・Promotion of sales and popularization of barricote®, bleached・Changes in consumer
・Addressing social issues by providing sustainable
and unbleached kraft paper, paperboard, etc.
preferences (ethical consumption) materials
Opportunity
・Enhancing sales of filters (increasing sales of ventilation fans, air
Products ・Development of new products
・Adopting measures to prevent the spread of
purifiers, air conditioners, etc.)
and services and services through innovation
infection, etc.
・Elimination of plastics and access ・Shifting from plastics, etc. to carbon-neutral pulp, ・Improving sales of masks, disinfectants, etc.
to new markets
etc.
・Product development of paper pulp materials that can replacefossil-derived containers and packaging
・Examining the use of the carbon credit system associated with・Carbon credit trading market
・Ownership of company-owned forests in Japan
forests' ability to absorb CO2
Market・Domestic forest conservation
・Using domestic timber from the Tohoku region
・Promoting the improvement of the self-sufficiency rate of wood
through forest utilizationand forest conservation by using domestic wood・Promoting the use of raw materials that have received
・Securing forest resources that produce
international forest certifications
・Utilization of more forest
carbon-neutral materials
・Promoting forest conservation, procuring resources fromresources
properly managed forests, disseminating information on the・Climate change mitigation through absorption of
Resilience・Substitution and diversification of CO2 by forests
Ecosystem Academy, etc.
resources
・Using black liquor energy
・Reducing the impact of soaring fuel costs by using black liquor
energyExternal market growth
1.5°C

2°C

4°C

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FSC®C021528 36

Relationship with the Environment
The Mitsubishi Paper Mills Group intends to make an active contribution to the creation of a sustainable society. To
this end, the Group will not only strive to prevent global warming and preserve biodiversity, but also to earn the trust of allits stakeholders through the sustainable use of forest resources and through efforts to develop environmentally friendly
production technologies and products. This commitment is set forth in our Environmental Charter, formulated in April
1993 to guide our distinctive business activities, which leverage the Group’s lines of business.
⇨ Reference link: Environmental Charter
https://www.mpm.co.jp/eng/env/timber.html

Environmental Charter
1. Fundamental Principles

The Mitsubishi Paper Mills Group intends to make an active contribution to the protection of the global
environment and the creation of a recycling society. To this end, the Group will not only strive to help prevent
global warming and preserve biodiversity, but also to earn the trust of all its stakeholders through the sustainable
use of forest resources.

2. Basic Policies(1) Implement measures to counter global warming(2) Protect and nurture forest resources, withappropriate care given to the preservation of
biodiversity(3) Promote the sustainable use of resources(4) Develop environmentally friendly production
technologies and products(5) Develop and fully utilize environmental
management systems(6) Promote environmental communication(7) Draw up appropriate contingency plans

Environmental Management System

Environmental
Manager

Statutory Manager

Mill

Responsible department:
Technology and Environment
Department

Mill Environmental
Conservation Committee

SpecialSubcommittee(s)Affiliated Company

Chemical Substance Management
With the aim of protecting the environment and ensuring product safety with respect to chemical substances
throughout our entire supply chain, the Mitsubishi Paper Mills Group has formulated its own Chemical SubstanceManagement Guidelines and Rules for Administration of the Chemical Substance Management Guidelines inconformance with various laws and regulations. All our mills, offices, and affiliated production companies control andhandle chemical substances according to these guidelines, with central oversight by the Technology and Environment
Department at the head office. We also formulated the Mitsubishi Paper Mills Group Green Procurement Standards andProcedures based on these guidelines, promote green procurement and make efforts to mitigate environmental risks
posed by chemical substances.

37⇨ Reference link: Mitsubishi Paper Mills Group Environment Vision 2050
https://www.mpm.co.jp/eng/env/timber.html

The Mitsubishi Paper Mills Group will endeavor to realize carbon neutrality by:・Using renewable energy and energy generated from waste to the maximum degree,・Utilizing carbon fixation technologies, and・Developing environmentally friendly products.
We will contribute to the long-term Japanese government’s goal: “To actualize a decarbonized society or carbon
neutrality by reducing greenhouse gas emissions to zero by 2050.”

Manufacturing Segment Initiatives
The Mitsubishi Paper Mills Group has the target of bringing energy-derived CO2 emissions in Japan down by 40%
from fiscal 2013 by fiscal 2030 and is working on reducing its fossil fuel-based energy and overall energy consumption.
Energy consumption (TJ)

CO2 emissions and emission
intensity

Emissions(1,000 tons)
1,400

30,525

1.256

23,011

1,200

1.051

20,0001,000
10,000

1.041
983

946

1.038
932

1.162
1.20

1.059

0.80
856

800

0

Emission
intensity(tons/product
tons)
1.60

791

797

2020

2021

600
2021

2013

(FY)

Fossil fuels

Purchased electricity

Renewable energy

Energy from waste

2017

2018

Emissions

2019

0.40
0.00
(FY)

Emission intensity(Scope of statistics: Mitsubishi Paper Mills Limited, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd. and KJ SPECIALTY PAPER Co., Ltd.)

Environmental
Management Division

Environmental Conservation
Committee

The Mitsubishi Paper Mills Group formulated “the Mitsubishi Paper Mills Group Environment Vision 2050” for the
purpose of contributing to the long-term Japanese government’s goal: “Realization of carbon neutrality by 2050.”

2005

President

Director of Technology& the Environment

Environment Vision 2050

30,000To realize the fundamental principles of the Environmental Charter, the Mitsubishi Paper Mills Group has acquired ISO
14001 certification for its major production facilities and is working to continuously improve the Group’s environmental
performance. We have a company-wide system for ensuring the effectiveness of these efforts. The Technology andEnvironment Department is in charge of these initiatives and conducts environmental audits once a year to check
environmental performance.
Research &Development Laboratory

Preventing Global Warming

Logistics Segment Initiatives
Mitsubishi Paper Mills strives to identify the amount of
CO2 emissions associated with product transportation fromthe shipper's standpoint to save energy.

■ Effect of reduction ofcross-transportation
In addition, in collaboration with Oji Paper Corporation,
we are working to reduce cross-transportation, and in
fiscal 2021, the volume of transport from the HachinoheMill in Aomori Prefecture to western Japan decreased byapproximately 11.48 million ton-km (transport to easternJapan increased by about 6.29 million ton-km). As aresult of this initiative, CO 2 emissions have been
reduced by 32 tons annually.

Emissions(1,000 tons)
40
30

CO2 emissions from product transportation

26

25

20

22
18

20

10
0

2017

2018

2019

2020

2021

(FY)

38

Relationship with the Environment
Preserving Biodiversity

Effective Use of Materials"Forest thinningsupport paper"production report

Forest thinningsupport paper

Forest thinningsupport paper

Morino Chonai-kai
executive office(Office Chonai-kai,an environmental NPO)

Forest thinningpromotion
expenseForest thinningpromotion
expensePrinting
companies

Paper distribution
companies

Forest thinningsupport paper

Forest thinningpromotion
expenseCertificate of contribution to forest thinningand usage of wood from thinning

Report of receipt ofthinned wood

Morino Chonai-kai

Forest thinningpromotion
expenseForest thinning supporter companies, etc.

Forest thinning
reportWood from thinning

Paper producing companies

Forest thinningpromotion expense

In conformance with FSC certification scheme standards, the Mitsubishi
Paper Mills Group makes careful use of wood feedstock produced underproper forest management, and also works to popularize the FSC ®
certification system. At the same time, we are engaged in a number ofefforts to help forest preservation and support more prosperous local
forestry and logging industries. This includes promoting forest thinning
through Morino Chonai-kai, a forest neighborhood association, which is acollaborative project done in conjunction with Office Chonai-kai, anenvironmental NPO, as well as promoting the sustainable use of second
growth hardwood produced in Iwate Prefecture.
®

Forestry
Associations

Forest Preservation Activities

The Mitsubishi Paper Mills Group’ s main mill, the Hachinohe Mill, gets energy from the black liquor produced in the pulp
production process as well as from the waste (paper sludge) generated in the use of wastepaper and the papermaking
process. The black liquor is burned in recovery boilers, where heat energy and chemicals used to manufacture pulp arerecovered. The paper sludge, along with cut up tires, waste wood, and other waste materials, is used as fuel for a waste
boiler. The incinerator bottom ash produced by the waste boiler and the ash produced by a coal boiler are used to make a
recycled construction material named Reglobe and are also recycled into cement material and raw steelmaking material.
These efforts to effectively use waste reduce final disposal volume while at the same time reducing fossil fuel usage.
Carbon fixation

Ecosystem Academy
As one member of the industry that benefits from the “gifts of the forest,” theEcosystem Academy provides a place for experiential forest environment
education to contribute to developing a sustainable society that will connect
people and community through experiential environmental education, forest
surveys and research, and information dissemination.
In fiscal 2021, we collaborated with Nishigo Village in Fukushima Prefecture,
Sumida City in Tokyo, and the Tokyo Metropolitan Park Association to hold aforest environment learning program to promote community participation andcontribute to sustainable regional development. These activities are concrete
efforts to participate in the 30by30 Alliance for Biodiversity promoted by the
Ministry of the Environment.

Customers

Properly managed forests

Waste paper

Local companies, etc.

Paper andpulp products

Waste tires andmaterial

Ashrecycling

CO2

Energy■ Experiential Environmental Education*
The program combines lectures, observations, measurements, tree
planting and growing using company-owned forests, and papermaking
and paper crafts as a means to experience the art of manufacturing.
Consideration is given to forest preservation, prevention of global
warming, and biodiversity based on the theme of collaboration between
nature and industry, thus contributing to the achievement of SDGs. In
fiscal 2021, while adopting a new lifestyle as a countermeasure against
the novel coronavirus crisis, we held 17 events, including study sessions
Mizumoto elementary school nature observation tour
on the forest environment and nature observation tours in Tokyo and(Mizumoto Park, Tokyo)
Fukushima Prefecture, and the total number of participants was 592.
(*) Accredited as “A Place to Experience Fukushima Prefecture” basedon the Act on Enhancing Motivation on Environmental Conservation and Promoting of Environmental Education.

■ Forest Surveys and Research

Pulp millprocess
Chips andwaste paper⇨ PulpWood chips

Papermaking
process
Pulp ⇨ Paper

Paper sludge

Waste boilers Coal boilers Recovery boilers

Chemical recovery

Biomass fuels■ Waste Generated and Volume Effectively Reused(1,000 bone dry tons)
120
100
80

We continuously engage in surveys of forest ecosystem and biodiversity, including surveys on tree growth, surveys
on animals using trail cameras, surveys on soil animals and bird surveys in cooperation with the Wild Bird Society ofJapan’s Shirakawa Chapter in company-owned forests.

■ Information Dissemination

60
40
20

We hold regular environmental seminars led by instructors from diverse fields including people involved in theforestry, paper manufacturing, finance industries, and environmental preservation, and people teaching at universities.
The 11th event in 2022 was a webinar under the theme of “Wisdom to Live in Harmony with Nature.” The lecture titled“Self-defense force life hacks” by Yuichi Aizawa (Ministry of Defense, Ground Staff Office Public Relations
Department) and the lecture titled “New relationship between forests and people: Forest bathing to organize the mind”
by Nagisa Ono (Future with Forest Association) gave an opportunity to think about the coexistence of nature andpeople and feel the harshness of nature and the vitality of the forest.
⇨ Reference link: Ecosystem Academy

0
2017

2018

Waste generated

2019

Volume effectively reused

2020

2021

Final disposal volume(FY)(Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd.
and KJ SPECIALTY PAPER Co., Ltd.)

https://www.mpm.co.jp/eng/env/timber.html

39

FSC®C021528

40

Relationship with the Environment
Environmental Indicators

Material Balance
Input
Main raw materials(1,000 t)
651
285
30
20
36

Imported wood chips
Domestic wood chips
Purchased pulp
Waste paper
Inorganic pigments

Mitsubishi Paper Mills Group(Domestic)
3 mills
1 business office

Energy (Crude oil equivalent, 1,000 kl)

Service waterIndustrial water

Kitakami HiTec Paper
Corporation

223
44
285
42

Fossil fuels
Purchased electricity
Biomass
Refuse-derived fuelKJ SPECIALTY PAPER
Co., Ltd.
Toho Tokushu Pulp
Co., Ltd.

(Million tons)
122

109
0
2,539

Environmental Impact Data

Atmospheric release

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd. andKJ SPECIALTY PAPER Co., Ltd.

CO2 emissions
NOx emissions
SOx emissions
Soot and dust

(1,000 t)(1,000 Nm³)
(1,000 Nm³)
(t)

797
738
185
253

Released into water systems
Wastewater
COD
SS(Million tons)
(t)
(t)

Waste

120
6,134
3,349

37
CO2 emissions (1,000 t)(1,000 t) 1,884
Wastewater

FY 2019

FY 2020

FY 2021

TJ

15,131

11,036

10,822

10,352

GJ/product-tons

13.6

13.6

15.9

15.1

Service water usage

Million tons

125

126

123

122

Wastewater

Million tons

-

127

123

120

Fossil fuel-based energy consumption
Fossil fuel energy intensity

Atmosphere
CO2 emissions*1

1,164

858

792

797

(1,000 t *after drying)

1,000 Nm³

1,076

835

753

738

84
78
6

SOx

1,000 Nm³

247

187

205

185

t

-

376

200

253

t

7,717

7,045

5,748

6,134

t

3,417

3,719

3,106

3,349

1,000 t1,000 t

-

166

150

140

-

9

8

8

%

-

94.9%

94.5%

94.2%

Waste generated
Volume effectively used
Final disposal amountPaper(1,000 t)
Photosensitive materials(Million m²)
Pulp(1,000 t)

618
2
69

Figures from Mitsubishi HiTec Paper Europe GmbH (two mills in Germany: the Bielefeld Mill and the Flensburg Mill) are also provided
as a reference, but are not included in the total for the Mitsubishi Paper Mills Group as environmental regulations differ in Germany.

Target (FY)Natural resources

1,000 tScope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Tsukuba R&D Laboratory, Kitakami HiTec Paper Corporation,
Toho Tokushu Pulp Co., Ltd., and KJ SPECIALTY PAPER Co., Ltd.

Soot and dust

568 (FY2030)

Water quality
COD
SS

Waste
Waste generated
Final disposal amountFinal disposal rate*2

98.4% (FY2025)*1 For CO2 emissions missions from purchased electricity, we use the CO2 emissions coefficient provided by the Federation of Electric Power Companies
of Japan.
*2 Final disposal rate = (Waste generated – Final disposal amount)/Waste generated × 100

Emission transfer amount of PRTR target substances

Environmental Accounting

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd. andKJ SPECIALTY PAPER Co., Ltd.
Unit: kg/year (mg-TEQ/year is used for dioxins only)

Scope of statistics: Head Office, Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation and
KJ SPECIALTY PAPER Co., Ltd.
Statistical method: Conforms with the Environmental Accounting Guidelines 2005 issued by the Ministry of the Environment

No.

PRTR Class 1 Designated Chemical Substances

1
2
3
4
5
6
7
8
9
10
11
12

XyleneSilver and water-soluble compound
Chloroform
Cyclohexylamine
2,2-Dibromo-2-cyanoacetamide
Dioxins
Triethylamine
TolueneHydroquinone
Boron and its compound
Formaldehyde
Methylnaphthalene

Cabinet order No.

80
82
127
154
210
243
277
300
336
405
411
438

Emissions
Atmosphere
Water
430
0
0
0
18,300
3,800
0
0
0
784
0.00
18.20
1,600
0
9,600
0
0
0
0
0
28
1
100
0

Amount transferred
Sewerage
Off-site
0
350
0
0
0
30
0
0
0
30
0.00
0.00
0
0
0
41,020
44
0
180
160
0
1,102
0
0

Environmental Conservation Costs
Classification

PCB
Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd. andKJ SPECIALTY PAPER Co., Ltd.

Efforts are underway to detoxify hardware (stabilizers) containing high concentrations of PCBs and we expect to be able todetoxify all stabilizers by the legally mandated deadline. We also plan to gradually detoxify hardware containing low
concentrations of PCBs.

Principal Initiatives

Unit: Million yen
Investments Expenditures(1) Costs within business areas
Includes air pollution, water pollution, foul odor, noise, and vibration
1. Pollution control costs
measures
2. Global environmental conservation cost Includes domestic afforestation, energy conservation measures, etc.

3. Resource recycling costs

Includes waste measures and waste paper and other product recycling(2) Upstream/downstream costs

Includes container and packaging recovery and recycling
Includes environmental education, environmental management
systems, and certification acquisition
Environmentally friendly product development, etc.
Includes greening, environmental beautification, and environmental data
disclosure
Fees for pollution-related health damage(3) Management activity costs(4) R&D costs(5) Social activity costs(6) Environmental damage costs
Total

205

1,778

11

997

119
75

1
780

269

270

2

22

0

172

28

28

3

47

507

2,317

Economic Benefit of Environmental Conservation Measures
Classification

Earnings
Cost reduction
Total

41

FY 2005

NOx

Product sales amount

Reference: 2 mills in Germany
Purchased pulp
(1,000 t)(1,000 t)
Waste paper
Service water usage (1,000 t)

OutputBenefit

Effect of reuse of recovered pallet
Profit from sales of materials effectively recycled
Cost reduction from decreased energy usage
Cost reduction from improved material yield

Unit: Million yen
Amount

327
29
57
180
593

42

Fair Operating Practices
Ensuring Fair Trade■ FSC® Certification

Believing that the Mitsubishi Paper Mills Group will be able to win really valuable trust, create
valuable technologies, and make a valuable contribution through fair and friendly competition,
we carry out business activities while putting importance on the compliance with laws andregulations. In order to deepen the understanding of the purposes and provisions of the Act on
Prohibition of Private Monopolization and Maintenance of Fair Trade (Antimonopoly Act), theAct against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors thatcomplements the Anti-Monopoly Act, and the Act against Unjustifiable Premiums andMisleading Representations, we have updated “the Antimonopoly Act Compliance Manual.”
In addition, we have endorsed the purpose of the Declaration of Partnership Building by the
Cabinet Office, the Small and Medium Enterprise Agency, and announced our participation in
the Declaration of Partnership Building portal site on March 17, 2022.
What is the Declaration of Partnership Building?
It is a declaration that we will strive to achieve the following goals.
(1) Coexistence and co-prosperity of the entire supply chain and new collaboration beyond scale and affiliation(2) Observance of desirable business practices (Promotion Standards based on the Act on the Promotion of
Subcontracting Small and Medium-sized Enterprises) between the parent company and subcontractors
We will continue to conduct fair and appropriate transactions and fulfill our responsibilities to all stakeholders.

FSC® certification was established in 1993 with the goal of auditing and certifying responsible
forest management from the economic, environmental, and social perspectives. It aims toensure that the world’ forests are kept healthy by labeling wood and wood products sourced
from these forests. There are two types of FSC ® certification: forest management (FM)certification and chain of custody (CoC) (processing and distribution process management)
certification. In August 2001, the Mitsubishi Paper Mills Group became the first paper mill inJapan to acquire CoC certification. The Vancouver Declaration for the UN SDGs and FSC ®
Certification was announced at the Forest Stewardship Council General Assembly in October
2017, which was held to drive greater support for the SDGs and FSC®. Mitsubishi Paper MillsLabel certifying FSC®
stands in solidarity with the declaration, and signed it along with 57 other companies in Japanand other countries.
⇨ Reference link: FSC®-Certified Paper

Preventing Corruption
The Mitsubishi Paper Mills Group Compliance Conduct Standards prohibit business activities that may result in social
decay: entertaining or giving gifts to civil servants and giving benefits to officials in foreign governments and publicorganizations.
We also produced new “guidelines for business entertainment and gift-giving” to tighten the regulations regarding theprovision and receipt of benefits, so that there will be no murky relationships among individuals.

Disavowal of Anti-Social Elements
The Mitsubishi Paper Mills Group maintains a resolute stance against anti-social elements that threaten social orderand safety. This stance is set forth in the Mitsubishi Paper Mills Group Compliance Conduct Standards, and executives,
employees, and other company-related people are made fully aware of the content of the standards via compliancetraining. We have also implemented a search system that uses an external database and that enables us to mitigate therisk of inadvertently entering into relationships with anti-social elements.

Promoting Social Responsibility in the Value Chain
We aim to forge business relationships of mutual prosperity based on the belief that all suppliers involved in procuring
raw material and similar operations are partners in order to provide competitive products. In order to ensure that we as
the Mitsubishi Paper Mills Group conduct ourselves responsibly and ethically, and that suppliers practice fair trade with asimilar business posture, we have established a Basic Policy for Procurement and a Policy on Forest Resource
Preservation and Nurturing, and on Wood Procurement and Products, which lay out our basic approach to raw material
procurement. We work to promote social responsibility by periodically having our suppliers, too, complete questionnaires.
⇨ Reference link: Procurement of Raw Materials
https://www.mpm.co.jp/eng/env/timber.html

Responsible Raw Material Procurement

https://www.mpm.co.jp/eng/env/fsc.html

Method for Verifying Legal Compliance and Sound Management
1. Evidence of use of the forestry certification and CoC certification schemes (FSC®-certified wood, FSC® controlledwood)
2. Evidence of methods of individual companies or organizations (controlled wood)
In 2. above, we verify that wood is controlled in accordance with Requirements for Sourcing Controlled Wood
(FSC®-STD-40-005). The verification method in conformance with these requirements is described below.
◎ Collection of information concerning wood chips and pulp
・ Confirmation of the place of origin, wood type, forest management methods, etc. from traceability reports
・ Confirmation of documentation certifying the place of origin (e.g. documents related to transport and sales)
・ Regularly auditing suppliers and verifying document reliability◎ Assessing risk (taking measures to mitigate risk when necessary)・ Assessing and verifying that place of origin of wood possesses a low risk with respect to A) through E) below.
A) Illegally harvested woodB) Wood harvested in violation of traditional and human rights
C) Wood from forests in which high conservation values are threatened by management activities
D) Conversion of natural forests to forests and non-forest uses
E) Wood from forests in which genetically modified trees are planted
・ Receiving audits of risk assessment results by an FSC® certifying body

■ Raw Wood Procurement in Fiscal 2021
We have verified that all wood chips and wood pulp procured in fiscal 2021came from forests that were legally andappropriately managed.
Types of raw wood
FSC®-certified
wood

FSC® Controlled wood

Japan

Chile Australia Vietnam Other

68％

32％

12％

32％

0％

Countries of raw wood chip production

50％

100％

0％

20％

40％

21％

60％

25％

10％

80％

100％

The Mitsubishi Paper Mills Group conducts business with wood as a principal raw material. In the interest ofsustainable wood procurement, we were one of the first organizations to acquire FSC® certification*, and procure timberfrom forests being properly managed in accordance with FSC® certification.
*FSC: Forest Stewardship Council®

43

FSC® C021528

FSC® C021528 44

Relationship with Employees
Based on our Principles and Guidelines Concerning Human Rights and Labor Practices, the Mitsubishi Paper Mills Group makes anumber of efforts to continue to create comfortable and fulfilling work environments where each and every employee can fully display
his/her abilities.
⇨ Reference link: Together with Our Employees
https://www.mpm.co.jp/eng/env/timber.html

Occupational Safety and Health Initiatives
In accordance with “the Group-wide Safety and Health Management Guideline,” which includes the basic principles for safety andhealth, all of our group companies work on our activities and we established a system for management of safety and health, for the
purpose of realizing a safer and more comfortable working environment.

Group-wide Safety and Health Management Guideline[Basic principles]
While giving top priority to the safety and health of all people engaged in business activities of the Mitsubishi Paper Mills
Group, we foster a corporate culture in which employees can work without worry and actualize a disaster-free, healthy working
environment.
As an organization for leading the practice of the basic principles, the Group-wide Safety and Health Committee was established.
This committee is chaired by the president, controls and evaluates activities for safety and health, and approves group-wide plans for
managing safety and health.

Fiscal 2021 Activities
In order to improve the level of safety awareness of all employees of the Mitsubishi Paper Mills Group, we focused on the following
two measures:(1) Strengthened hazard prediction activities and alerted employees when they work alone during troubleshooting(2) Provided thorough safety guidance to temporary workers
There is a tendency for severe accidents to occur during one-person operations when trouble arises, so we installed network
cameras in some locations. We have a system that allows us to check the site in real time from a TV monitor.

Efforts to Create Comfortable Work Environments
We believe that pursuing a good work-life balance not only contributes to healthier, more prosperous lives for employees but also
makes the Company more competitive. We are implementing a number of initiatives to create comfortable work environments, withthe desire to make the Group a vibrant and fulfilling place to work.

Measures for Flexible Workstyles
We introduced a work-from-home system as a flexible way of working to match the lifestyles of each individual employee. We
commenced implementation of the system gradually, starting with our headquarters. Together with the already adopted staggered
working hours system, these systems aim to improve work-life balance and alleviate stress from commuting congestion, and are
thereby expected to also increase productivity.
In the work-from-home system, employees who are rearing a child or giving care to a family member can also use a flexible work
schedule without core working hours (they can get off work anytime), so that they are able to develop their careers while rearing achild or giving care to a family member.
Moreover, with the introduction of an undesignated desk system at the head office, it is now possible to flexibly choose a place towork according to the purpose and situation, which improves work efficiency and revitalizes communication.

Efforts for Human Resources Development (Education and Training)
We focus on fruitful personnel development, as we have adopted a personnel evaluation system that allows employees to identify
areas for improvement by looking back at their evaluations and to grow further. We have also introduced a team-type target
management system that enables employees to develop their self-management skills and work execution abilities by setting up goals
they should achieve.
In addition, we are conducting educational training to improve skills at a wide range of levels, including young, mid-career, andmanagerial employees.

Regular Program Reviews Done in Conjunction with Our Labor Union
Together with our labor union, we regularly hold meetings of a specialized committee to review human resource programs and holdlabor-management discussions on creating better programs. Meetings focus on issues such as wages, taking annual paid leave,
hours worked, reemployment, and work-life balance.

▲

2,000

■

■

◆

◆

▲

▲

1,900

■

■

◆

■

▲

◆

1,800

1,700

（％） Changes in annual leave acquisition rate
100

Total hours worked annually(Hours/FY)
2,100

2017

2018

Mitsubishi Paper Mills

2019
◆

▲

2020

All Industries

45

▲

◆

2021 (FY)■

Manufacturing※ All Industries’ and manufacturing’s data are from the Ministry of

For promoting the good mental and physical health, we are promoting the Employees Assistance Program. This assistanceprogram is composed of mainly consultation about health and mental health counselling by phone and through interview, which areavailable 24 hours a day.
In addition, to raise awareness of health management, we strive to conduct follow-up after regular health checkups, recommending
secondary examinations based on the results of regular health checkups and providing specific health guidance in cooperation withthe health insurance association (collaborative health promotion).

80

60
◆

◆

2018

2019

▲

▲

Promoting Good Mental and Physical Health▲

Health, Labour and Welfare’s Monthly Labour Survey(companies with 500 employees or more; general workers only)

40

2017

▲

Mitsubishi Paper Mills

◆

2020
◆

2021 (FY)

Society※ Source: From the Ministry of Health, Labour and Welfare’s
General Survey on Working Conditions

Measures for Empowering Women
Mitsubishi Paper Mills has a number of programs to help employees balance work, parenting, and caregiving. For example, in lightof the “first-grade wall” problem, which refers to the difficulty of putting children in childcare until nighttime once they enter elementary
school, employees can take advantage of shortened working hours to provide childcare until their children reach the end of first
grade.
In addition, we have implemented system revisions in line with revisions to the Act on Childcare Leave, Caregiver Leave, andOther Measures for the Welfare of Workers Caring for Children or Other Family Members to prevent employees from leaving theirjobs due to childbirth and childcare. We are also striving to create an environment where both men and women can balance workand childcare according to their wishes.

46

Relationship with Customers
To provide customers with products they can feel good about using, we have established our own Product Safety
Code, and are making efforts to maintain and improve product safety. Along with maintaining legal compliance andconducting fair marketing practices, we will continue to actively communicate with our customers and provide productsthat benefit society.
⇨ Reference link: Product Safety Codehttps://www.mpm.co.jp/eng/env/timber.html

Product Safety CodeCommunication with Customers
In the Mitsubishi Paper Mills Group, the sales, R&D, production, and technology departments work as one to provide
products that satisfy customers’ needs. Our technology and production personnel accompany sales staff and gather
feedback from customers as we, a corporate group that is consistently on the cutting edge of technology, make efforts tocreate products that benefit the world at large. In order to facilitate the communication with customers, we actively
participate in exhibitions.

Mitsubishi Paper Mills believes that the role of a company in society is to provide satisfying services along withsafe and useful products to customers, and we have utilized our excellent technologies to provide safe products tosociety. From here on, too, we will steadily implement the following actions throughout the entire company tomaintain sound management and continue providing society with safe products and satisfying services that meetthe needs of the times.
(1) We will strengthen our quality control systems and product safety control systems, and will provide products
confirmed to be safe using state-of-the-art science and technology.
(2) We will work to stabilize the manufacturing process and always provide products of uniform quality.
(3) We will provide accurate and reliable information on the correct way to use products and the safety of products.

Quality Control System
To be able to quickly respond to customer
feedback and quality issues, the Group’ s
President
businesses are divided into seven segments,and have built a quality control system overseenby the president.
Director of Technology& the Environment
The key production facilities in each businesssegment have acquired ISO 9001certification.
Paper Materials
In addition, quality control administrators, who
Business General Manager
have responsibility for and authority overFunctional Materials Businessquality in the business segment, share
General Manager
information with the relevant business Research and Development
Division General Manager
division general managers while working tomaintain and improve the quality control
system. Furthermore, to guarantee quality
control system effectiveness, the Technology
and Environment Department at the head
office regularly audits quality control efforts
for each business segment and issues
reports to the officer in charge.

Hachinohe Mill business segment
Quality control administrator: Hachinohe Mill Manager

47

Automotive Engineering Exposition 2021
May 26 to July 30, 2021, Online exhibition
Super heat-resistant sheet/Heat-resistant board
GWB/Heat-resistant sheet GWS/Dry film resist for
Koceran sandblast Dry film photoresist for thick copper etching(development product)

12th Fashion World Tokyo (Autumn)
Apparel, bags, shoes, accessories, OEM companies/production
factories Exhibiting at an exhibition where companies that handle
fabrics, materials, and secondary materials gather fromall over the world
https://www.fashion-tokyo.jp/live/ja-jp/lp/2021o.html
MPM digital printing transfer paper/JetDyer
Introducing Diamic’ s nylon printing business/b-side

Exhibited at page2022 (https://page.jagat.or.jp/)
Exhibited mainly with printing sensitive materials and Diamic
The new product TGAF (TRF-IR830) was displayed for the first time.

Takasago Mill business segment
Quality control administrator: Takasago Mill Manager

Kyoto Mill business segment
Quality control administrator: Kyoto Mill Manager

KHP* business segment
Quality control administrator: KHP* president

Pressboard business segment
Quality control administrator: Paper Materials Business
Deputy General Manager

KJ SPECIALTY PAPER segment
Quality control administrator: KJ SPECIALTY PAPER
president

Toho Tokushu Pulp business segment
Quality control administrator: Toho Tokushu Pulp
president

Product Safety Control System
With the goal of actively promoting specificproduct safety initiatives, we have establisheda Product Liability (PL) Subcommittee and a
Product Safety Judgment Panel under the
Product Liability (PL) Committee, whose
membership is composed of individuals
appointed from every head office division,
every mill, and affiliated companies. This
committee supports every division in theirproduct safety management activities.

N-PLUS Adding New Value to Manufacturing and Mobility
February 2 to February 4, 2022, Joint exhibition withKJ SPECIALTY PAPER
Location: Tokyo Big Sight(Exhibition content: Melt-blown non-woven fabric, superheat-resistant glass fiber non-woven fabric)*KHP: Kitakami Hitec Paper Corporation(as of August 31, 2022)

Encouraging the Worry-Free Use of Our Products

Product Liability (PL)Committee

Product Safety
Judgment Panel

Product safety activities◆Legal compliance team◆Outside party negotiationteam◆ Education team
◆ Consumer support teamProduct Liability (PL)Subcommittee◆Product safety assurance
team

The products the Mitsubishi Paper Mills Group provides are made from raw materials proven to be safe. Along withswiftly obtaining toxicological data and information about new regulations, all departments involved, including affiliatedcompanies, share information with each other and conduct thorough safety inspections of the raw materials used. With
respect to chemical substance control, we have established the Chemical Substance Management Guidelines and theGreen Procurement Guidelines and strictly control everything from the raw materials we use to our products’ constituent
substances. Also, not only do we ensure compliance with laws and regulations, we also meet voluntary standards set by
the industry according to product application and satisfy the demands of individual customers. We will contribute to thebetterment of society by continuing to provide eco-friendly, safe products that customers can feel safe and comfortable
about using.

48

Relationship with Communities
The Mitsubishi Paper Mills Group aims to grow together with communities and has formulated its Social Contribution Direction of Activities to proactively interact with communities through its business activities. Through activities such as
those conducted by the Ecosystem Academy (see page 39), which uses forests owned by Mitsubishi Paper Mills, weundertake a number of social contribution activities that take advantage of the characteristics of each of our businesssites.
⇨ Reference link: Social Contribution - Direction of Activities
https://www.mpm.co.jp/eng/env/timber.html

Social Contribution - Direction of Activities■ Community Cleanup Activities
Every one of our business sites regularly undertakes activities to beautify and clean up the surrounding areas andpromotes initiatives to develop comfortable urban environments together with local communities.
For example, Hachinohe Head Office of Mitsubishi Paper Engineering Co., Ltd. was certified as “a supporter forconserving the waterfront of the hometown in Aomori Prefecture” and registered as a “Hachinohe cleaning partner” in
October 2020. We carried out cleaning activities on the target area of Gonohe River (on both shores of 1,800m) in
October 2021. In addition, the Oyama Mill of Toho Tokushu Pulp Co., Ltd. takes part in Oyama City’s Green and Light
Adopt-a-Road Campaign and makes efforts every month to maintain and improve the environment around roads.

● Environmental protection: We will contribute to the creation of a recycling society to maintain our precious global
environment.
⇨ We will work to protect the global environment by making the most of our business activities, such assupporting the "FSC® Certified Forest" and supporting thinning in collaboration with NPOs.
● Living alongside local communities: We are strengthening our social contributions rooted in local communities.
⇨ Mills and offices play key roles by actively engaging in local community activities and contributing to thedevelopment of those communities.
● Supporting volunteer activities: We support the volunteer activities of our employees.

Communication with Community Members

Cleaning activities around Gonohe River (Hachinohe Head Office of Mitsubishi Paper Engineering Co., Ltd.)As members of their communities, every business site in the Group proactively participates in local activities andfurthers communication with every community member in a variety of ways. In fiscal 2021, major local activities werecancelled or postponed due to the coronavirus pandemic, but we implemented the following measures.

Contributing to Local Communities■ Traffic Safety Reader for Mothers and Children

Donation ceremony ofTraffic Safety Reader for Mothers and Children

The Hachinohe Mill donated 2,400 copies of the “Traffic Safety Reader
for Mothers and Children” to the Hachinohe District Traffic Safety
Association to help prevent traffic accidents among new school children.
They were distributed to new first graders at 59 elementary schools in six
municipalities: Hachinohe, Hashikami, Gonohe, Oirase, Rokunohe, andShingo. Donations have been made almost every year since 1969, and a
total of 228,960 copies have been donated. The book is easy-tounderstand and has illustrations demonstrating how to safely cross roads
where there are no pedestrian crossings, and dangers in parking lots.

■ Braille Calendars
We began producing braille calendars in 1997, and the 2022 edition
marked the 26th year of this effort. We donate them to local social
welfare groups and braille libraries mainly via our business footholds. We
use embossed braille that does not use plastics, and we use eco-friendly
FSC®-certified paper that can be recycled after use. The 2022 braillecalendar introduces “How Easy! Microwave Classic Recipes” so that you
can easily cook classic recipes in the microwave without hassle.

Green and Light Adopt-a-Road Campaign(Oyama Mill of Toho Tokushu Pulp Co., Ltd.)

Philanthropic Expenditures
Mitsubishi Paper Mills is a member of the Keidanren 1% Club and is a company which continually contributes toimproving social sustainability. Whether it’s in academics, research, or education, our aim is to be of benefit to society inmany fields.
Breakdown of Philanthropic Expenditures
Culture and arts
Regional activities andcultural preservation

4,000

Braille Calendar (2022 edition)

FSC® C021528

Environment
International exchange, etc.

Social welfare

2,000

0

49

Philanthropic Expenditures(10,000 yen)
6,000

Academics, research andeducation
2017

2017

2019

2020

2021
(FY)

50

Financial Section
Business results in fiscal 2021
(From April 1, 2021 to March 31, 2022)
In the fiscal 2021, progress was made in both preventing the spread of COVID-19 and the economy, and economic
activity recovered to a certain extent. On the other hand, the turmoil in logistics due to shortages of marine transport
containers and various materials, delays in delivery, etc. did not subside, and energy and material prices soared due toheightened geopolitical risks due to the conflict between Russia and Ukraine.
In the environment surrounding our Group, demand recovered due to the easing of restrictions on going out andholding events. However, in addition to rising product delivery costs, we were greatly affected by the surge in fuel prices
such as crude oil, coal, and natural gas.
Under these circumstances, our Group worked to improve productivity by expanding and integrating production
systems according to demand trends in each business, revising product prices, and boosting sales of new products.
In regard to the “New Medium-Term Management Plan” (from fiscal 2020/3 to fiscal 2022/3), which in its final year, wehave actively engaged in the following three priority strategies:(1) Establish a robust management base through the alliance with the Oji Group;(2) Make structural reforms and enrich existing business; and(3) Diversify the business base by fostering new profit pillars,
and we progressed with the basic principle: Strengthening and diversifying the business base for a new stage.
Regarding the alliance with the Oji Group, we have transformed our business portfolio and strengthened ourmanagement foundation through capital and business alliances. For example, in October 2021, we transferred thepressboard business of our Shirakawa Site to Oji F-Tex Co., Ltd.
Consolidated sales stood at 181,920 million yen (up 12.1% year on year).
In terms of profit, despite the impact of soaring raw material and fuel prices, consolidated operating loss was 248
million yen (operating income was 1,770 million yen in the previous term) and consolidated ordinary income was 1,964
million yen (ordinary loss was 636 million yen in the previous term) due to a recovery in production and sales volume andcost reductions such as reduction of fixed costs. Profit attributable to owners of parent stood at 1,096 million yen.

Financial condition in fiscal 2021

Cash flow situation
Cash and cash equivalents at the end of this consolidated fiscal year stood at 9,047 million yen, down 6,654 million
yen from the end of the previous consolidated fiscal year due to a decrease in liquidation of receivables.

■ Cash flows from operating activities
Cash provided by operating activities decreased 11,316 million yen year on year to 1,698 million yen. The
revenues are broken down mainly into depreciation of 8,489 million yen and increase in notes and accounts
payable - trade of 6,083 million yen, while the expenses mostly consist of increase in notes and accounts
receivable - trade of 12,551 million yen due to a decrease in liquidation of receivables.

■ Cash flows from investing activities
Cash expended in investing activities was 2,557 million yen, up 459 million yen year on year. The expenses
were comprised mainly of purchase of property, plant and equipment and intangible assets of 6,255 million yen
while the revenues were due to proceeds from sales of investment securities amounting to 2,759 million yen.

■ Cash flows from financing activities
Cash expended in financing activities increased 1,578 million yen year on year to 6,091 million yen. This wascaused mainly by the commercial paper and repayment of borrowings.

Basic policy concerning distribution of profit and dividends
In regard to determination of dividends from retained earnings, etc., we view the return of profits to shareholders as animportant management subject and make it our basic policy to keep paying dividends stably while taking into
consideration the performance in respective fiscal years and internal reserves for allowing the implementation of future
management measures.
We have decided to refrain from paying term-end dividends, after comprehensively considering recent performancetrends.

(From April 1, 2021 to March 31, 2022)

51

Statuses of assets, liabilities and net assets※Basic policy concerning the selection of accounting standards

The assets as of the end of this consolidated fiscal year stood at 215,879 million yen, up 6,440 million yen from theend of the previous consolidated fiscal year, due to a rise in notes and accounts receivable - trade, and net defined
benefit asset, despite decreases in cash and deposits and property, plant and equipment.
As of the end of this consolidated fiscal year, liabilities decreased 270 million yen year on year to 146,265 million yen,
due to a reduction in interest-bearing debt, despite an increase in notes and accounts payable - trade.
Net assets increased 6,711 million yen from the end of the previous consolidated fiscal year to 69,613 million yen
owing to the posting of profit attributable to owners of parent and an increase in remeasurements of defined benefit
plans.

Taking into consideration the possibility of comparison between terms of the consolidated financial statements as wellas the possibility of comparison between companies, the policy of our Group plans to produce consolidated financial
statements using Japanese standards for the time being. Our policy is to take into account the trends of other companies
in Japan adopting IFRS, etc., and go on to respond as appropriate.

52

Financial Section
Consolidated Balance Sheets(Million yen)

As of March 31, 2021

As of March 31, 2022

Assets

As of March 31, 2021

As of March 31, 2022

Liabilities

Current assets

Current liabilities

Cash and deposits

15,701

9,047

Notes and accounts payable - trade18,577

24,617

Notes and accounts receivable - trade

28,797－

Electronically recorded obligations

3,137

3,541

Notes receivable - trade

－

7,724

Short-term loans payable

59,15056,433

Accounts receivable-trade－33,879Commercial paper

7,000

6,000

Merchandise and finished goods

23,43323,446

Lease obligations

360

380

Work in process

6,758

6,487

Accrued expenses

6,129

6,728

Raw materials and supplies

10,23010,857

Income taxes payable

361

475

Other

4,123

3,969

Contract liabilities

Allowance for doubtful accounts

△ 430

△ 130

Other

Total current assets

88,614

95,282

Non-current assets

Long-term loans payable

97,85098,523△ 74,452

Accumulated impairment loss
Buildings and structures, net

Buildings and structures
Cumulative depreciation

Machinery, equipment and vehicles

Total current liabilities

－

500

5,825

4,043

100,542

102,720

31,772

29,960Non-current liabilities

Property, plant and equipment

Lease obligations

794

586

△ 76,122

Deferred tax liabilities

469

△ 583

△ 1,065

Provision for share benefits

－

694
24

22,814

21,335

Provision for directors’ retirement benefits

54

69
9,277

358,285

357,786

Net defined benefit liability

9,664△ 316,284△ 319,028

Asset retirement obligations

884

885

Accumulated impairment loss

△ 863

△ 1,063

2,352

2,048

Machinery, equipment and vehicles, net

Cumulative depreciation

Other

41,137

37,694

Land

21,61921,276

Leased assets

3,922

4,050

△ 2,510△ 2,893

Shareholders’ equity

Leased assets, net

1,411

1,156

Construction in progress

465

1,638

9,121

8,830

△ 7,608△ 7,308

Accumulated impairment loss

△ 27

△ 32

Other, net

1,485

1,489

88,934

84,590

Cumulative depreciation

Other
Cumulative depreciation

Total property, plant and equipment
Intangible assets

Total non-current liabilities

45,99343,545

146,535

146,265

Capital stock

36,561

36,561

Capital surplus

8,555

6,488

Retained earnings

10,967

13,962

Treasury shares

△ 152

△ 228

Total shareholders’ equity

55,93256,784

3,942

4,688

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

910

952

Other

1,590

1,864

Remeasurements of defined benefit plans

2,112

7,182

Total intangible assets

1,590

1,864

Total accumulated other comprehensive income

6,965

12,824

Investments and other assets

Non-controlling interests

Investment securities

20,231

19,868Long-term loans receivable

1,665

1,215

Net defined benefit asset

4,687

10,662

Deferred tax assets

2,548

1,384

Other

1,240

1,081

Allowance for doubtful accounts

△ 74

△ 70

Total investments and other assets

30,29834,141

120,823

120,596

209,438

215,879

Total non-current assets
Total assets

53(Million yen)

Total net assets
Total liabilities and net assets

4

5

62,902

69,613

209,438

215,879

54

Financial Section
Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets(Million yen)

Fiscal year ended
March 31, 2021
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss for ship lease
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on disposal of non-current assets
Gain on sales of investment securities
Gain on business transfer
Reversal of allowance for doubtful accounts for subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investment securities
Special severance benefit
Loss on valuation of shares of subsidiaries and associates
Provision of allowance for doubtful accounts for subsidiaries and associates
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes - deferred
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Fiscal year ended March 31, 2021

Fiscal year ended
March 31, 2022

162,325
139,740
22,58424,355△ 1,770

181,920
156,151
25,76826,017
△ 248

36
505
1,196
263
489
2,492

30
531
1,066
1,038
436
3,104

733
259
365
1,359
△ 636

581
116
192
891
1,964

15
567
－
－
140
723

53
1,394
840
285
430
3,004

489
987
－
22
222
285
57
2,065
△ 1,977357
196
554△ 2,5320△ 2,532

402
1,317
779
433
395
－
85
3,414
1,554
881
△ 425
455
1,098
2
1,096

Consolidated Statements of Comprehensive Income

Balance at the beginning of the term
Cumulative effects of changes in accounting policy
Balance at the beginning of the term, reflecting changes in accounting policy
Changes during the term
Dividends from surplus
Compensation for losses
Loss attributable to owners of parent
Liquidation of consolidated subsidiaries
Acquisition of treasury shares
Disposition of treasury shares
Changes in items other than shareholders’ equity during the term, (net)Total amount of changes during the term
Balance at the end of the term

Balance at the beginning of the term
Cumulative effects of changes in accounting policy
Balance at the beginning of the term, reflecting changes in accounting policy
Changes during the term
Dividends from surplus
Compensation for losses
Loss attributable to owners of parent
Liquidation of consolidated subsidiaries
Acquisition of treasury shares
Disposition of treasury shares
Changes in items other than shareholders’ equity during the term, (net)Total amount of changes during the term
Balance at the end of the term

Capital stock

Capital surplus

36,561

8,555

13,719△ 152

36,561

8,555

13,719△ 152

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

55

1,098

2,739
△ 146
2,574
△ 40
5,126
2,594

745
40
5,070
2
5,858
6,957

2,592
1

6,954
2

Treasury shares△ 2,532
4－
36,561

Valuation difference
on available-for-sale securities
1,206

－
8,555

△ 2,751
10,967

△0

△0
△ 152

Accumulated other comprehensive income
Foreign currency Remeasurements Total accumulatedof definedtranslation
other comprehensive
benefit plansadjustment
income
1,840
1,095
△ 461

1,206

1,095

△ 185
△ 185
910

2,736
2,736
3,942

△ 461

2,574
2,574
2,112

1,840

5,125
5,125
6,965

Fiscal year ended March 31, 2022

Total shareholders’equity58,684－58,684△ 223－△ 2,532
4△0－△ 2,752
55,932
Non-controllinginterests

Total net assets

2

60,527－60,527

1
1
4

△ 223
－
△ 2,532
4
△0
－
5,126
2,374
62,9022(Million yen)
Shareholders’ equity

Capital stock
Balance at the beginning of the term
Cumulative effects of changes in accounting policy
Balance at the beginning of the term, reflecting changes in accounting policy
Changes during the term
Dividends from surplus
Compensation for losses
Profit attributable to owners of parent
Liquidation of consolidated subsidiaries
Acquisition of treasury shares
Disposition of treasury shares
Changes in items other than shareholders’ equity during the term, (net)Total amount of changes during the term
Balance at the end of the term

Fiscal year ended
March 31, 2022

△ 2,532

Retained earnings△ 223

Balance at the beginning of the term
Cumulative effects of changes in accounting policy
Balance at the beginning of the term, reflecting changes in accounting policy
Changes during the term
Dividends from surplus
Compensation for losses
Profit attributable to owners of parent
Liquidation of consolidated subsidiaries
Acquisition of treasury shares
Disposition of treasury shares
Changes in items other than shareholders’ equity during the term, (net)Total amount of changes during the term
Balance at the end of the term

Capital surplus

36,561

8,555

36,561

8,555△ 2,067－
36,561(Million yen)

Fiscal year ended
March 31, 2021

(Million yen)
Shareholders’ equity

Valuation difference
on available-for-sale securities
3,942

3,942

745
745
4,688

△ 2,0676,488

Retained earnings

10,967△ 168
10,798Treasury shares

△ 152
△ 152

55,932△ 168
55,763

△0

△ 75
0

－
－
1,096
－
△ 75
0

3,163
13,962

△ 75
△ 228

1,020
56,784

2,067
1,096

Accumulated other comprehensive income
Foreign currency Remeasurements Total accumulatedof definedtranslation
other comprehensive
benefit plansadjustment
income
910
2,112
6,965

910

42
42
952

Total shareholders’equity

2,112

5,069
5,069
7,182

6,965

5,858
5,858
12,824Non-controllinginterests

Total net assets

4△0
462,902△ 169
62,733

0
0
5

－
－
1,096
－
△ 75
0
5,859
6,880
69,61356

Financial Section

Company Profile and Corporate Data

Consolidated Statements of Cash Flow

(Million yen)

Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement benefits
Increase (decrease) in provision for share benefits
Interest and dividend income
Share of loss (profit) of entities accounted for using equity method
Foreign exchange loss (gain)
Interest expense
Loss (gain) on sales of short-term and long-term investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of fixed assets△ 1,977
9,031
987
△ 625
519
3
－
△ 542
△ 1,196
△ 259
733
△ 551
－
473
－
2,470
8,175
△ 4,193582
13,631
300
△8
771
△ 742
△ 937
13,014

1,554
8,489
1,317
281
218
14
24
△ 562
△ 1,066△ 509
581△ 1,394
779
349
△ 840
△ 12,551
96
6,083
△ 694
2,174
200
－
562
△ 584
△ 652
1,698

Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Proceeds from business transfer
Other, net
Cash flows from investing activities
Cash flows from financing activities△ 3,931
164
△ 19
897
△0
450
－
339
△ 2,098△ 6,255
116
△ 11
2,759
△0
743
840
△ 750
△ 2,557

Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period△ 3,853
3,000
12,580△ 15,663
△ 350
△ 223
△0
－
△0
△ 4,512
37
6,440
9,260
15,701△ 416△ 1,000
9,800△ 13,998
△ 398
－
△ 75
0
△1
△ 6,091296△ 6,654
15,701
9,047

Loss (gain) on business transfer
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net
Subtotal
Subsidies received
Payments for loss on disaster
Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

57

Fiscal year ended
March 31, 2022

Company Name
Mitsubishi Paper Mills Limited
Address
2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Representative
Ryuichi Kisaka, President & CEO
Founded1898
Paid-in Capital
36,561 million yen
Consolidated Number of Employees
3,384
Shareholder Register Administrator
Mitsubishi UFJ Trust and Banking Corporation
Independent Auditor
Ernst & Young ShinNihon LLC
Main Business Activities
The Mitsubishi Paper Mills Group is primarily engaged in
the manufacture, processing, and sale of paper, pulp,
functional non-woven fabric, battery separators andelectronic materials, and the main products and servicesof each division are provided below.
［Functional Materials Business］
Non-woven fabric, filters, battery separators, speciality
paper, electronic materials, inkjet paper, photographic
paper, base paper for photographic paper, printing
plate materials, printing devices, CTP software,various processing chemicals and rewritable media［Paper Materials Business］
Coated and uncoated graphic papers, magazine
paper, speciality printing paper, communication paper,hygiene paper, packing paper, electrical insulationpressboard, high-quality white paperboard, speciality
white paperboard, other speciality paper, bleachedkraft pulp, speciality pulp, and warehousing andtransport-related business［Other Businesses］
Engineering operations, sports facility management,
insurance agency business, and real estate business⇨Reference site: Corporate Profile/Business Fields
https://www.mpm.co.jp/eng/company/gaiyo.html(as of March 31, 2022)⇒(＊Numerical data as of March 31, 2022)

Main Group Companies
Mitsubishi Oji Paper Sales Co., Ltd.
Diamic Co., Ltd.
MPM Operation Co., Ltd.
MPM Oji Home Products Co., Ltd.
Mitsubishi Paper Engineering Co., Ltd.
Shin-Hokuryo Forest Products Co., Ltd.
Hachinohe Paper Processing Co., Ltd.
Hachiryo Co., Ltd.
Kitakami Hitec Paper Corp.
Hokuryo Co., Ltd.
Kyoryo Chemical Co., Ltd.
Takasago Paper Processing Co., Ltd.
Ryoko Co., Ltd.
KJ SPECIALTY PAPER Co., Ltd.
Toho Tokushu Pulp Co., Ltd.
Ryoshi Co., Ltd.
NAMITSU Co., Ltd.
MPM Oji Eco-Energy Co., Ltd. (＊Equity-method
affiliate)
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi Imaging (MPM), Inc.
MPM Hong Kong Limited
Zhuhai MPM Filter, Ltd.
● Total number of authorized shares

90,000,000● Total number of outstanding shares 44,741,433● Shareholders

15,992 (233 year-over-year decrease)● Composition of shareholders
March 31,2022

18.3 2.6

42.5

6.9

29.7

March 31,2021

18.0 2.5

43.5

7.1

28.9

March 31,2020

16.5 2.5

44.0

7.8

29.2

0

10

20

30

40

50

60

70

80

90 100（%）

Financial institutions
Financial instruments business operators
Other corporations
Foreign corporations, etc.
Individuals, other⇨Reference site: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html

58