Note: This document has been translated from the Japanese original FOR REFERENCE PURPOSES
ONLY. In the event of any discrepancy between this translated document and the Japaneseoriginal, THE ORIGINAL SHALL PREVAIL.

Disclosures through the Internet Concerning the Convocation Noticefor the 157th Ordinary Shareholders’ Meeting(From April 1, 2021 to March 31, 2022)
Systems necessary to ensure the properness of operations
Outline of the situations of the operation of the systems necessary to ensure the properness of operations
Basic policy for controlling the management of the Company
Consolidated statements of changes in shareholders’ equity
Notes to consolidated financial statements
Statements of changes in shareholders’ equity
Notes to specific items

Mitsubishi Paper Mills Limited

Information about the above items is provided to the shareholders of Mitsubishi Paper Mills Limited (“theCompany”) by posting it on the Company’s website (https://www.mpm.co.jp/ir/general-meeting.html)
pursuant to the provisions of laws and regulations and Article 15 of the Articles of Incorporation of theCompany.

Systems necessary to ensure the properness of operations
The following is the Company’s basic policy on the system to ensure the conformity of the performance of
duties of Directors to laws and regulations and the Company’s Articles of Incorporation and the system toensure the appropriateness of the Company’s other operations and the operations of the corporate groupconsisting of the Company and its subsidiaries. (Last revised on: March 31, 2022)- Core approach to corporate governance The Company carries out corporate activities based on the corporate philosophy of the MPM Group,
including “living up to the trust of its customers in the world market,” “staying constantly on the leadingedge of technology,” and “contributing to preserving the global environment and creating a recycling society.”
With this philosophy, the Company implements corporate group management focusing on the sustainablegrowth of the MPM Group and society, raises its management transparency, and works to improve its
corporate governance.
To take specific steps towards achieving these goals, the Company has established Mitsubishi Paper Mills
Limited Basic Policies on Corporate Governance.
- Overview of corporate organization The Company has adopted the company with an Audit & Supervisory Board as its institutional design. The
Company appoints multiple independent Outside Directors and has built a system sufficiently plays the roles
required of the Board of Directors. It separates the supervisory function and executive function and has
adopted the Executive Officer system to streamline the Board of Directors, accelerate management decisionmaking, and define the responsibility for the performance of duties.
The Company has created a Nomination and Compensation Committee with an independent Outside Director
as the chairperson as an advisory body to the Board of Directors in order to ensure objectivity andtransparency of the designation and remuneration of management.
In addition to monthly meetings, the Board of Directors holds extraordinary meetings of the Board of
Directors as necessary to determine and supervise matters specified by laws and regulations and the Articles
of Incorporation and the performance of important duties.
Audit & Supervisory Board Members including Outside Audit & Supervisory Board Members haveestablished the Audit & Supervisory Board and hold meetings of the Audit & Supervisory Board on a regularbasis and as necessary.
Executive Officer and other executives hold management meetings, in principle, once a week to determine
management policies and strategies and basic business strategies in an effort to ensure prompt and optimal
decision-making, implement thorough group governance, and share important information.
In the performance of duties, the Company has adopted a business unit system to strengthen its operational
structure by assigning responsibility and delegating authority to each business unit for revenue.
The Company defines the scope of organizational responsibility according to the rules for the division ofduties and makes decisions appropriately based on its internal rules.
The Company appoints an executive responsible for sustainability to implement corporate groupmanagement focusing on sustainability and establishes a Group-wide Sustainability Promotion Committee
headed by the President. The committee coordinates the entire sustainability promotion activities (legal
compliance, risk management, human resource management, safety and health, the environment, productsafety and quality, human rights and labor, information disclosure and public relation, social contribution,and more) and establishes basic policies for sustainability promotion and yearly plans. The Board of
Directors deliberates on such policies and plans.

-1-

- Basic policy 1. System to ensure that the execution of the duties of directors and employees conforms with laws,
regulations, and the articles of incorporation
The Company has established the Code of Conduct of the Mitsubishi Paper Mills Group and Mitsubishi
Paper Mills Group Compliance Conduct Standards. The President repeatedly explains the spirit of suchstandards to the executives and employees of the Company and carries out activities to promote a deeper
understanding of corporate ethics, thereby ensuring that legal compliance is a precondition for all corporate
activities. The Company endeavors to maintain the order and safety of civil society and corporate activities
and thoroughly implements organizational crisis management.
The Compliance Committee, which operates under the control of the Legal Dept. as a secretariat, will beplaced under the Sustainability Promotion Committee. The Compliance Committee will carry out training
and educational activities to disseminate the Code of Conduct and Standards and ensure legal compliancefor penetration throughout the Group.
Executives and employees will promptly report any compliance problem discovered to a department
responsible for handling the problem through their office organization or through a hotline (controlled byInternal Audit Dept.) inside or outside the Company. The department to handle such problem will determine
measures to prevent recurrence after consultations with General Affairs & Personnel Dept., Legal Dept., orInternal Audit Dept.
The Internal Audit Dept. examines and evaluates the systems of management and operation in overallbusiness activities and the status of implementation in view of lawfulness and rationality and ensures thereliability of financial reports and raises management efficiency.
The General Affairs & Personnel Dept. is responsible for preserving the Company’s assets and manages theacquisition, use, and disposal of assets to ensure appropriate procedures taken and approval obtained.
The General Affairs & Personnel Dept. reports the overview of such compliance activities and the state ofwhistle-blowing to the Board of Directors.
2. Systems to store and manage information on the execution of duties by Directors
To manage and maintain information related to the performance of duties of Directors, the Company records
and preserves information related to their performance of duties as documents or electromagnetic informationaccording to Document Management Regulations and Information Management Regulations. The directors
and members of the Audit & Supervisory Board may inspect these documents, etc. at all times.
3. Regulations concerning the management of risk of loss and other systems
The Company considers it important to appropriately manage various risks arising from corporate activities
for the development of the Company and an increase in its corporate value.
Under the Sustainability Promotion Committee, Risk Management Committee controlled by General Affairs& Personnel Dept. is established to operate risk management of the entire Group. The Risk Management
Committee recognizes and understands risks affecting corporate management, develops systems in response
to such risks, and reports their status to the Board of Directors. Head office departments and factories
establish rules and prepare manuals to ensure appropriate operations, build advance preventive systems at
normal times, take measures to prevent recurrence when a problem has arisen, and develop a system of
promptly responding to an emergency.
4. System to ensure the efficient execution of duties by Directors
The Company establishes a consolidated basic plan as targets in its Mid-term Management Plan. Directors
in charge determine specific targets and efficient methods for achievement to be implemented by eachdepartment (including delegation of authority to Executive Officers). The Company sets key performance-2-

indicators (KPIs) in each fiscal period and manages the progress. The Board of Directors regularly evaluates
the results and promotes improvement such as the reduction or elimination of factors hindering efficiency,
thereby building a system to raise company-wide operation efficiency.
5. System to ensure the proper business operation of the Group consisting of the Company and Its
subsidiaries
According to its Subsidiary Management Regulations, the Company supervises and provides guidance to its
subsidiaries to raise the appropriateness of the Group’s subsidiary management based on a policy of placing
importance on independence and respecting the autonomous decision-making of subsidiaries.
A. System to report matters concerning the execution of duties by the directors of subsidiaries to theCompany
According to its Subsidiary Management Regulations, the Company builds a system for departments toreceive reports from subsidiaries under their management on a regular basis and as necessary and a system
requiring subsidiaries to obtain the approval of departments controlling them.
Key subsidiaries provide the Company’s executives with regular management reports.
B. Rules and other systems for managing the risk of loss at subsidiaries
The Company has its subsidiaries participate in the Risk Management Committee and coordinates theGroup’s risk management.
C. System to ensure that Directors, etc. of subsidiaries efficiently perform their duties
The Company’s departments in charge of subsidiaries supervise and provide them with guidance according
to the Subsidiary Management Regulations to achieve the basic plan set as a target in its Mid-termManagement Plan. The Company sets KPIs also for its subsidiaries and manages the progress.
D. System to ensure that subsidiaries’ Directors, etc. and employees’ performance of their duties conforms
with laws, regulations and the Articles of Incorporation
The Company has established the Code of Conduct of the Mitsubishi Paper Mills Group and Mitsubishi
Paper Mills Group Compliance Conduct Standards, has its subsidiaries participate in the Compliance
Committee, and improves the legal compliance of the Group, including the subsidiaries.
The Company provides the entire Group, including subsidiaries, with compliance training every year toensure legal compliance of the Group.
It establishes hotlines including subsidiaries as a system of direct reporting to the Company’s Internal Audit
Dept. or an external specialized company. In addition, relevant departments perform audits of subsidiaries
as necessary according to the Subsidiary Management Regulations to ensure the appropriateness of theGroup’s operations.
6. Systems to ensure that audits by Audit & Supervisory Board Members are performed effectively
The Company implements the following and builds a system of supporting the audits performed by Audit &Supervisory Board Members to ensure their effectiveness.
A. Matters concerning the system of ensuring the effectiveness of audits performed by Audit & Supervisory
Board Members
The Company holds regular meetings for Audit & Supervisory Board Members to improve their mutual
understanding with the President and Chief Executive Officer about the Company’s business issues, thedevelopment of the audit environment of the Audit & Supervisory Board Members, etc.
Audit & Supervisory Board Members, Internal Audit Dept., and accounting auditors exchange opinions toestablish effective cooperation.

-3-

The Company cooperates with the Audit & Supervisory Board Members in their performance of duties tofacilitate communication with Directors of subsidiaries and the collection and exchange of information anddevelops an environment for cooperation with external experts such as lawyers and certified public
accountants if deemed necessary by the Audit & Supervisory Board Members.
B. Matters concerning employees when an Audit and Supervisory Board member requests that employees
assist with his/her duties
The Company may appoint assistants to the Audit & Supervisory Board Members, who assist the duties of
the Audit & Supervisory Board Members, and have the Internal Audit Dept. or Finance & Accounting Dept.
as assistant organizations. Audit & Supervisory Board Members may instruct employees in the Internal
Audit Dept. and Finance & Accounting Dept. as necessary.
Internal Audit Dept. performs internal audits requested by Audit & Supervisory Board Members throughconsultations with them and reports the results to the Audit & Supervisory Board.
C. Matters concerning the independence of the employees specified in B from Directors, and mattersintended to ensure the effectiveness of instructions given to such employees
The Company ensures that employees assisting the duties of Audit & Supervisory Board Members follow
the orders of the Audit & Supervisory Board Members, and that Directors, supervisors, etc. do notunreasonably limit the orders of the Audit & Supervisory Board Members given to such employees.
D. Systems related to reporting to an Audit & Supervisory Board Member- Systems of reporting to Audit & Supervisory Board Members by Directors and employees
Directors of the Company report the following to the Audit & Supervisory Board to promote the effective
performance of duties of the Audit & Supervisory Board: 1. Matters discussed or reported at management
meetings, 2. Matters that may cause significant damage to the Company, 3. Matters important for themonthly management status, 4. Important matters concerning internal audits and risk management, 5.
Serious violations of laws and regulations or the Articles of Incorporation, 6. The status and details ofreporting through hotlines (a system in which reports to external liaisons are directly sent to Audit &Supervisory Board Members), and 7. Other matters important for legal compliance.
Important decision-making documents of head office departments are delivered to Audit & Supervisory
Board Members.
- System to report to the Audit & Supervisory Board Members by Directors, etc. and employees of theCompany’s subsidiaries, and people who have received reports from them
According to the Subsidiary Management Regulations, the Company uses a system in which departmentsthat have received important reports from subsidiaries also report to Audit & Supervisory Board Members.
Subsidiaries may directly report to the Audit & Supervisory Board Members of the Company, and the
Audit & Supervisory Board Members may also directly interview subsidiaries.
E. System for ensuring that personnel who make a report under paragraph D. do not receive unfavorable
treatment due to such report
The Company clearly states in Mitsubishi Paper Mills Group Compliance Conduct Standards that the mereact of making a report would not place the reporter at any disadvantage and ensures that no reporter would
be treated unfairly by the Company and its subsidiaries.
F. Policy on treatment of expenses incurred in the performance of the duties of Audit & Supervisory Board
Members
The Company promptly handles expenses incurred in the performance of duties of Audit & Supervisory
Board Members upon receiving a request for payment.

-4-Outline of the situations of the operation of the systems to ensure the proper operation of the Company
The following outlines the operation status of the systems to ensure the appropriateness of operations
conducted during the fiscal year under review.
(Systems for the execution of duties)
During the fiscal year under review, which ended March 31, 2022, eight Directors (including two
independent Outside Directors) who make up the Board of Directors, four Audit & Supervisory Board
Members (including three Outside Audit & Supervisory Board Members) who make up the Audit &Supervisory Board, and 12 Executive Officers (including four Executive Officers concurrently holding theposition of Directors) performed their duties. A total of 12 ordinary meetings of the Board of Directors , two
extraordinary meetings of the Board of Directors, and 12 meetings of the Audit & Supervisory Board were
held in the fiscal year under review to make important decisions on the Company’s management andsupervise and audit the performance of duties.
To evaluate the effectiveness of the Board of Directors, the Company surveys and interviews all Directors
and Audit & Supervisory Board Members, discusses the results at meetings of the Board of Directors to sharethe understanding of the current condition among members, who further discuss issues identified to raise theeffectiveness of the Board of Directors.
(Compliance structure)
The Compliance Committee met twice during the fiscal year under review, primarily to develop a training
plan, ensure the implementation of the plan, communicate information about the revision of the
Whistleblower Protection Act, share information about recent examples of corporate misconduct, andconfirm the status of reports made through the hotline. The training was given to all employees, including
part-time workers and temporary employees, of the Group companies in Japan, which consisted ofcompliance education to review the basics of legal compliance of companies and internal online seminars on
basic knowledge of labor laws and personnel management, aiming to facilitate an understanding of the laws
and regulations necessary for the business operation and ensure legal compliance.
The Company also uses the intranet to provide information to promote employees’ awareness of legal
compliance on a regular basis.
(Risk management structure)
The Risk Management Committee met twice during the fiscal year under review to coordinate and implement
the Group’s risk management, including the inspection of risks in the Group associated with changes in thebusiness environment, a review of management techniques, examination of the business continuity plan
(BCP), and training on emergency responses.
The Group considers responses to climate change an important business issue and established the TCFD
response project led by the Risk Management Committee to disclose information related to climate change
in line with the proposals of the Task Force on Climate-Related Financial Disclosures (TCFD).
(Management of subsidiaries)
The Company confirmed that the relevant department provided subsidiaries with guidance and supervised
them to rationalize and improve the Group’s subsidiary management according to its Subsidiary Management
Regulations and that relevant departments audited subsidiaries to ensure appropriate operation.
(Audit & Supervisory Board Members’ audits)
Based on the audit policy and audit plan established at the beginning of the fiscal year, the Company’s Audit& Supervisory Board Members fulfilled their responsibility to establish a good corporate governance system
by attending meetings of the Board of Directors, management meetings, and other important meetings,-5-reviewing documents, conducting on-site audits at factories, subsidiaries, and other offices, holding regularmeetings with the President and Outside Directors, and interviewing department managers and representative
directors of subsidiaries. They exchanged opinions and share information with accounting auditors, Internal
Audit Dept. Finance & Accounting Dept., and auditors of subsidiaries to enhance coordination with them inan effort to raise the effectiveness and efficiency of auditing.

-6-Basic Policy for controlling the management of the Company(i) Details of the Basic Policy
The Company carries out corporate activities based on the corporate philosophy of the MPM Group, including “living
up to the trust of its customers in the world market,” “staying constantly on the leading edge of technology,” and“contributing to preserving the global environment and creating a recycling society.” The Company’s duty is tocontribute to society based on this philosophy and maximize its corporate value or the common interests of shareholders
through sustainable growth from a medium- to long-term perspective, and its principle is to be supported by people whohave become its shareholders through free market trading. However, the Company’s Basic Policy on a threat that suchcorporate value and/or the common interests of shareholders may be impaired by an individual and/or his/her group(“Hostile Bidders”) aiming to acquire shares of the Company having 20% or more of voting rights (“Controlling Shares”)
is to take measures necessary to protect and increase the Company’s corporate value and the common interests ofshareholders within the limit allowed by laws and regulations and the Articles of Incorporation by regarding such Hostile
Bidders as unqualified to have control over decisions about the financial and business policies of the Company.

(ii) Special initiatives to contribute to the realization of the Basic Policy
The Company is actively implementing measures under a new Mid-term Management Plan that started in FY2022 withthe aim of achieving achieve sound and sustainable growth of the Company and maximizing its medium- to long-term
corporate value in order to maintain the Company’s corporate value and/or the common interests of shareholders. In
addition, the Company will implement corporate group management focusing on sustainability under the Basic Policies
on Corporate Governance established in October 2015 to achieve sustainable growth for the Group and a medium- tolong-term increase in corporate value, raise business transparency for clear management, and improve its corporate
governance.

(iii) Activities to prevent decisions on the Company’s financial affairs and business policies from being
controlled by an inappropriate party in light of the Basic Policy
At the Board of Directors’ meeting held on May 27, 2019, the Company passed a resolution to continue its policy on
responses to large-scale purchases of the Company’s shares (the “Former Plan”), which had been approved byshareholders at the 151st Ordinary Shareholders’ Meeting held on June 28, 2016, as one of the activities to prevent
decisions on the Company’s financial affairs and business policies from being controlled by an inappropriate party inlight of the Basic Policy after a necessary revision (the “Plan”), which was approved by shareholders at the 154th
Ordinary Shareholders’ Meeting held on June 26, 2019. Additionally, the Company appointed the same three
Independent Committee members, Mr. Yoshihiro Kataoka, Mr. Tomohisa Shinagawa, and Mr. Somitsu Takehara, due
to the continuation of the above plan.
The overview of the Plan is provided below. For more details, please read the press release, “Notice of Partial
Amendments to the Response Policies on Large-Scale Purchases of MPM’s Shares (Takeover Defense Measures) andContinuance Thereof” dated May 27, 2019, on the Company’s website.
(URL for reference: https://www.mpm.co.jp/company/news/pdf/2019/20190527-2.pdf）

A. Objectives of this plan
The purpose of the Plan is to require the Large-Scale Purchaser to provide necessary information in advance and tohave a period of consideration and examination, thereby enabling shareholders to make an appropriate decision onwhether to accept such a large-scale purchase, enabling MPM’s Board of Directors to present its opinions on whether
to accept such proposal to shareholders or an alternative proposal in response to a recommendation from the
Independent Committee, or enabling the Board of Directors to negotiate with the Large-Scale Purchaser for the benefitof shareholders, thereby preventing decisions on the Company’s financial affairs and business policies from being
controlled by an inappropriate party in light of the Basic Policy and ensuring and raising the Company’s corporate
value or/and the common interests of shareholders.

-7-B. Procedures for taking the countermeasures based on the Plan(a) Large-scale purchases subject to the measures
The measures based on the Plan may be taken when an act corresponding to or that may correspond to the overview
or any of the following 1 through 3 has been or will be conducted.
1. Purchase of shares of the Company that makes the percentage (the percentage of shares, etc. defined in paragraph
4, Article 27-23 of the Financial Instruments and Exchange Act; the same applies hereinafter) of shares held by aspecific shareholder of the Company 20% or higher
2. Purchase of shares of the Company that makes the sum total of the percentage (the percentage of shares, etc.
defined in paragraph 8, Article 27-2 of the Financial Instruments and Exchange Act; the same applies hereinafter)of shares held by a specific shareholder of the Company and the percentage of shares held by a specially related
party of the specific shareholder of the Company 20% or higher
3. An act conducted by a specific shareholder of the Company and another shareholder of the Company, which
results in an agreement or other acts making them joint holders of the Company’s shares or an act of establishinga controlling or cooperative relationship between the two shareholders (limited to a case in which the sum totalof the percentages of shares held by the two shareholders becomes 20% or higher)(b) Request to Large-Scale Purchaser for information
The Large-Scale Purchaser must submit and provide a letter of intent and information about a large-scale purchasein advance of the start or implementation of an act of large-scale purchase.
(c) Establishment of assessment period for the Board of Directors
The Board of Directors establishes a period of up to 60 days for a purchase of all shares of the Company through atakeover bid accepting only cash (yen currency) as the consideration and up to 90 days for large-scale purchase inother forms, as the assessment period for the Board of Directors to evaluate, examine, raise opinions, develop analternative plan, and negotiate with the Large-Scale Purchaser in view of ensuring and increasing the Company’s
corporate value and/or the common interests of shareholders.
(d) Recommendation of Independent Committee and resolution of the Board of Directors
The Independent Committee recommends that the Board of Directors to take measures against a large-scale purchasewithin, in principle, five business days following the demand of the Board of Directors to the Large-Scale Purchaser
for correction if the Large-Scale Purchaser has committed a serious violation of the rules for large-scale purchase.
If, however, the Large-Scale Purchaser has complied with the rules for large-scale purchase, the Independent
Committee recommends the Board of Directors, in principle, not to take measures against the large-scale purchase.
However, the Independent Committee recommends that the Board of Directors take measures if the Large-Scale
Purchaser is deemed to have certain characteristics, such as a so-called greenmailer.
The Board of Directors decides whether to take measures and resolves other issues while respecting therecommendation of the Independent Committee to the maximum extent possible.
(e) Specific details of countermeasures
The measures against large-scale purchases taken by the Company based on the Plan will, in principle, be theallotment of share acquisition rights without contribution.

C. Feature of the Plan(a) Establishment of the Basic Policy
The Plan was adopted after the Basic Policy for the conditions of a party that controls the Company’s financial affairs
and business policy was established.
(b) Establishment of Independent Committee
The Company establishes the Independent Committee to ensure the necessity and appropriateness of the Plan. Whencalling for countermeasures, the Board of Directors must ensure the fairness of the decision and respects therecommendation of the Independent Committee to the maximum extent possible in order to eliminate any arbitrary
decision by the Board of Directors.

-8-(c) Approval for the Plan at Shareholders’ Meeting
The continuation of the anti-takeover measures under the Plan was approved by the Company’s shareholders at the154th Ordinary Shareholders’ Meeting held on June 26, 2019.

(d) Timely disclosure
The Board of Directors makes the timely and appropriate disclosure of the required information pursuant to theapplicable laws and regulations and the rules of the financial instrument exchange.

(e) Effective term of the Plan
The term of the Plan shall expire at the conclusion of the Ordinary Shareholders’ Meeting pertaining to the lastbusiness year ending within three (3) years after the conclusion of the 154th Ordinary Shareholders’ Meeting heldon June 26, 2019.
At a meeting held on May 30, 2022, the Board of Directors passed a resolution to, on condition of approval at the157th Ordinary Shareholders’ Meeting to be held on June 28, 2022, continue the Plan after partial revision and extend
the effective period to the conclusion of the Ordinary Shareholders’ Meeting for the final fiscal year ending within
three years of the conclusion of the 157th Ordinary Shareholders’ Meeting. (For details of the revised Plan, see
Proposal No. 4, "Partial Amendments to the Response Policies on Large-Scale Purchases of MPM’s Shares(Takeover Defense Measures) and Continuance Thereof" in the Notice of the 157th Ordinary General Meeting of
Shareholders.)

D. Influence on our shareholders(a) Impact of the revision of the Former Plan on shareholders
The revision of the Former Plan to the Plan has no direct and specific effect on the legal rights and economic interestsof shareholders.
(b) Impact of issuing share acquisition rights on shareholders
While the per share value of MPM’s shares held by the shareholders would be diluted when share acquisition rights
are issued without contribution as a countermeasure, the value of all shares of MPM held by the shareholders would
not be diluted. Therefore, no direct, specific impact on the legal rights and economic interests of the shareholders is
expected to occur. However, the legal rights and economic interests of those who correspond to the exceptions
specified in the Plan may be affected as a consequence of the countermeasures implemented.

(iv) Decision of the Board of Directors on the above activities and reason for the decision
The special activities contributing to the realization of the Basic Policy specified in the above section (ii) are specificmeasures for raising the corporate value of MPM and/or the common interests of shareholders, which are considered to
be precisely in line with the Basic Policy of MPM.
As stated in the paragraph A in the above section (iii), the Board of Directors of MPM believes that the Plan was adopted
for the purpose of ensuring and raising the corporate value and/or the common interests of shareholders and is in linewith the Basic Policy. The Board of Directors of MPM does not believe that the Plan will impair the corporate value of
MPM or the common interests of shareholders and will not act to maintain the positions of the executives of MPM, inparticular due to 1, the Plan will be abolished immediately if a proposal to abolish the Plan is approved at a Shareholders’Meeting, and the intentions of shareholders are prioritized in the sense that the continuation of the Plan is contingent onshareholder approval, 2, the Plan requires the establishment of an Independent Committee maintaining a high level of
independence, whose recommendation is required when taking countermeasures in all cases, and 3, the standards used
to make decisions on whether to take, not to take, or to cancel a countermeasure has been established.

-9-Consolidated statements of changes in shareholders’ equity
From April 1, 2021 to March 31, 2022
(Million yen)
Shareholders’ equity
Capital stock
Balance at the beginning of theperiodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity8,555

10,967(152)

55,932

36,561

Cumulative effects of changes inaccounting policies
Restated balance(168)
36,561

(168)

8,555

10,798(152)

55,763(2,067)

2,067

‒

1,096

1,096

Changes during period
Deficit disposition
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury stock

(0)

(75)

(75)

0

0

Net changes in items other thanshareholders’ equity‒(2,067)

3,163

(75)

1,020

36,561

6,488

13,962(228)

56,784

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at the beginning of theperiod

3,942

910

2,112

6,965

Cumulative effects of changes inaccounting policies
Restated balance

3,942

910

2,112

6,965

Non-controllinginterests

Total net assets

462,902

(0)

(169)

4

62,733

Changes during period‒

Deficit disposition
Profit attributable to owners ofparent

1,096

Purchase of treasury shares(75)

Disposal of treasury stock0

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

745

42

5,069

745

42

4,688

952

(Note) The stated amounts are rounded down to the nearest million yen.

- 10 -

5,858

0

5,859

5,069

5,858

0

6,880

7,182

12,824

5

69,613

Notes to Consolidated Financial Statements(Significant matters that form the basis for preparing consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 23
Names of major consolidated subsidiaries:

Mitsubishi Oji Paper Sales Co., Ltd.
Kitakami HiTec Paper Corporation
Diamic Co., Ltd.
KJ Specialty Paper Co., Ltd.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbHHakuryo Paper Technology KK is excluded from the scope of consolidation due to its liquidation during the fiscal year under review.
(2) Names of major non-consolidated subsidiaries:
Names of major non-consolidated subsidiaries MP Juarez, LLC.
Reason for exclusion from the scope of
consolidation

The non-consolidated subsidiaries (7 companies) have been excluded from thescope of consolidation as they are all small in size and the amounts of total assets,
net sales, profit or loss (amount corresponding to equity interest) and retained
earnings (amount corresponding to equity interest) do not materially impact theconsolidated financial statements.

2. Matters related to the application of the equity method(1) Number of affiliates accounted for using equity method: 3Names of major equity method companies

MPM Oji Eco Energy Co., Ltd.
Hyogo Clay Co., Ltd.
Forestal Tierra Chilena Ltda.

(2) Names, etc. of non-consolidated subsidiaries and affiliates to which the equity method does not apply
Name of major company

MP Juarez, LLC.

Reason for not applying the equity method

The profit/loss (corresponding to the equity owned by the Company), retained
earnings (corresponding to the equity owned by the Company), and other factorsof the companies (12 companies) excluded from the application of the equity
method have a negligible impact on the consolidated financial statements andlack overall significance.

(3) Matters deemed particularly important to be stated concerning the procedures for the application of equity method
The financial statements used for equity method companies having different accounting periods are based on the business years of
the respective companies.
3. Fiscal years of consolidated subsidiaries
The period-end date of the following six consolidated subsidiaries is December 31.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi Imaging (MPM), Inc.
MPE Real Estate GmbH & Co. KG
Zhuhai MPM Filter Limited
MPM Hong Kong Limited
The consolidated financial statements incorporate financial statements as of March 31 with adjustments necessary for consolidation for
significant transactions arising during the period up to the date of consolidated settlement.

- 11 -

4. Notes regarding accounting policies(1) Valuation standards and methods for important assets(i) Securities
Available-for-sale securities
Securities other than shares, etc. without market valueMarket value method (Valuation differences are reported as a component of shareholders’ equity and the cost of securities sold is
calculated using the moving average method.)
Shares, etc. without market value
Stated at cost determined by the moving-average method(ii) Derivative transaction
Stated at market value(iii) Inventories
Stated primarily at cost using the periodic average method and the moving-average method(The value in the balance sheet is calculated by the method of book value devaluation based on lowering of profitability)(2) Depreciation method for important depreciable assets(i) Property, plant and equipment (excluding leased assets)
Buildings
Straight-line method
Property, plant and equipment excluding buildings
Straight-line method The declining-balance method is used for the MPM head office and other offices and certain of its subsidiaries.
The straight-line method is applied for structures acquired from April 1, 2016.
(ii) Intangible assets (excluding leased assets)
The straight-line method is applied. Software (used in the Company) is amortized over the estimated useful life of the software(five years) in the Company.
(iii) Leased assets
Leased assets relating to finance leases wherein ownership of the leased asset does not transfer to the lessee.
The straight-line method on the assumption that the lease term is the useful life and residual value is zero.
(3) Accounting standards for significant allowances and provisions(i) Allowance for doubtful accounts
To prepare for possible losses on uncollectible receivables held as of the end of fiscal year, the Company and its domestic
subsidiaries provide allowances equal to the estimated amount of uncollectible receivables for general receivables based on
historical rates and for specific receivables, including doubtful receivables, based on consideration of their individual collectability.
Allowances for doubtful accounts at overseas subsidiaries are posted in accordance with applicable regulations of their respective
countries.
(ii) Provision for share awards
To prepare for the issuance of the Company’s shares pursuant to regulations for the stock-based compensation of Directors andExecutive Officers, the portion of the estimated amount to be paid in the consolidated fiscal year under review is posted.
(4) Accounting standards for significant revenues and expenses
The Group recognizes revenues through the following five steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.

- 12 -

Step 4: Allocate the transaction price to the separate performance obligations in the contract.
Step 5: Recognize revenue when or as the entity satisfies the performance obligations.
The principal businesses of the MPM Group include the manufacturing and sale of products in its paper and pulp business, imaging
business, and functional material business. In domestic sales, revenue is recognized when the control of products is transferred tocustomers normally upon the acceptance inspection of products performed by customers or upon the arrival of products at customers,
which is considered the fulfillment of performance obligations. However, revenue is recognized upon shipment of products if theperiod between shipping and transfer of control of products to customers is the normal period. In export sales, the Group recognizes
revenue when the risk burden is transferred to customers according to trade conditions specified by the Incoterms and other rules.
Transaction prices are calculated by subtracting sales incentives from the amount of promised consideration in contracts withcustomers.
Considerations for transactions are received within one year from the fulfillment of performance obligations and important financial
factors are not included.
With respect to chargeable subcontracting corresponding to repurchase agreements, supplied goods remaining at subcontractors as
financial transactions are recognized as inventories, and the amount equivalent to the ending inventory of supplied goods remaining
at subcontractors is recognized as liabilities related to chargeable subcontracting. A transaction in which the Company’s role in thesale of a product to a customer is that of an agent is recognized as a net amount determined by subtracting the amount paid to a third
party from the total amount of the consideration for the transaction.
(5) Other important matters for the preparation of consolidated financial statements(i) Standard for posting retirement benefit liability
To provide for employees’ retirement benefits, the amount remaining after the deduction of pension plan assets (including
retirement benefit trusts) from retirement benefit obligations based on estimated amounts as of the end of the consolidated fiscal
year is posted as a net defined benefit liability.
If the amount of pension plan assets exceeds the amount of retirement benefit obligations, the excess amount is accounted for as a
net defined benefit asset.
Prior service costs are expensed based on the straight-line method for a certain number of years (eight to 15 years) within the
average remaining years of service of employees when costs accrue from their service. Actuarial differences are expensed fromthe fiscal year following the year in which the expenses accrue, which are based on the straight-line method for a certain numberof years (eight to 15 years) within the average remaining years of service of employees when actuarial differences accrue.
Unrecognized actuarial differences and unrecognized prior service cost are posted in the remeasurement of defined benefits plans
under accumulated other comprehensive income in the section of net assets after tax effect adjustment.
(ii) Standards for translating significant foreign currency-denominated assets or liabilities into Japanese yen
Foreign currency monetary assets and liabilities are translated into yen at the year-end spot exchange rate, and translation
adjustments are accounted for as profit or loss.
Assets and liability of consolidated overseas subsidiaries are translated into Japanese yen at the exchange rates prevailing on theclosing date of the consolidated overseas subsidiaries, their revenues and expenses are translated into Japanese yen at the averageexchange rate for the period, and the resulting gains or losses are included in foreign currency translation adjustment and noncontrolling interests in the section of net assets.
(iii) Significant hedge accounting
In cases where the interest rate swaps meet the conditions for hedge accounting, special treatment is adopted. Designated hedge
accounting is applied to certain monetary receivables and payables denominated in foreign currencies hedged by forward exchange.
(iv) Application of a consolidated taxation system
The Company uses the consolidated taxation system.
(v) Application of tax effect accounting for transition from the consolidated taxation system to the group tax sharing system
The Company and certain of its domestic consolidated subsidiaries will shift from the consolidated taxation system to the grouptax sharing system in the next fiscal year. However, in relation to the transition to the group tax sharing system, which is newly- 13 -

established under the Act for Partial Revision of the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items regarding
which the non-consolidated taxation system was reviewed in line with the transition to the group tax sharing system, the Company
and certain of its domestic consolidated subsidiaries do not implement the provisions of Paragraph 44 of the Partial Amendments
to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February 16, 2018) but comply with the provisionsof the tax regulations prior to the revision with respect to amounts of deferred tax assets and deferred tax liabilities, in accordancewith the treatment stipulated in Paragraph 3 of the Practical Solution on the Treatment of Tax Effect Accounting for the Transition
from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ PITF No.39; March 31, 2020).
From the beginning of the next fiscal year, the Company will apply “Handling of Accounting and Disclosure When Applying theGroup Tax Sharing System” (Practical Issues Task Force No. 42, August 12, 2021), which specifies the handling of accounting
treatment and disclose of income taxes and local income taxes when the group tax sharing system is applied.

(Changes of accounting policy)(Adoption of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. since
the beginning of the fiscal year under review and recognizes revenue in the amount expected to be received in exchange for thepromised goods or services when control of the goods or services is transferred to the customer.
A major change resulting from this is a change in the method of treating sales incentives from selling, general and administrative
expenses to the amount determined by subtracting the estimated amount of change in a consideration for a transaction from thetransaction price. For transactions in which the Group’s role in the sale of commodities or products to the customer is that of an agent,
the Group previously recognized the total amount of the consideration received from the customer as revenue. However, the Grouphas changed to a method of recognizing revenue on a net basis deducting the amount paid to third parties from the total amount of theconsideration.
The application of the Revenue Recognition Accounting Standard follows the provisional treatment provided for in the proviso of
Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effects in case of retroactively applying the new
accounting policy to before the beginning of the fiscal year under review are adjusted in retained earnings at the beginning of the fiscal
year, and the new accounting policy is applied from this initial balance.
Notes and accounts receivable - trade, which was indicated under current assets in the consolidated balance sheets for the previous
fiscal year, is included in notes receivable - trade and accounts receivable - trade and other indicated under current liabilities is included
in contract liabilities and other from the fiscal year under review.
As a result, net sales, cost of sales, selling, general and administrative expenses, and non-operating expenses decreased 1,329 million
yen, 1,162 million yen, 207 million yen, and 9 million yen, respectively, and operating profit, ordinary profit, and profit before income
taxes increased 40 million yen, 49 million yen, and 49 million yen, respectively, in the consolidated statement of income for the fiscal
year under review in comparison to those prior to the application of the Accounting Standard for Revenue Recognition.
With cumulative impacts reflected on net assets as of the beginning of the fiscal year under review, the initial balance of retained
earnings in the consolidated statement of changes in equity decreased by 168 million yen.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company started applying the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019, hereinafter
the “Fair Value Measurement Accounting Standard”) and the implementation guidance on the Fair Value Measurement AccountingStandard from the beginning of the fiscal year under review. Accordingly, the Company will apply new accounting policies prescribedin the Fair Value Measurement Accounting Standard and the like in the future in accordance with transitional handling stipulated in
Section 19 of the same Standard and Section 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July4, 2019). The application has no impact on the consolidated financial statements.
With respect to notes on financial instruments, the Company has decided to add notes including those regarding a breakdown of thefair value of financial instruments by fair value level.

- 14 -

(Changes in Method of Presentation)(Consolidated Statements of Income)"Insurance income" under "Extraordinary income," which was independently presented in the previous consolidated fiscal year, is
included in "Other" in the current consolidated fiscal year, since it has become insignificant in terms of amount.
In addition, "Extra retirement payments," which was included in "Other" under "Extraordinary losses" in the previous consolidated
fiscal year, is separately presented in the current consolidated fiscal year, since it has become significant in terms of amount.

(Notes to accounting estimates)
Items whose amounts are reserved in the consolidated financial reports for this consolidated fiscal year due to the accounting estimate
and that may have a major impact on the consolidated financial reports for the following consolidated fiscal year are as follows:
1. Whether recognition of Impairment loss on non-current assets is necessary(1) Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
The Hachinohe site (property, plant and equipment of 44,795 million yen) centering on MPM’s Hachinohe Mill in the paper andpulp business segment has recovered to a certain degree from a significant decrease in profit incurred in the previous fiscal year due
to COVID-19.
However, a steep rise in prices of raw materials and fuel prevented a full recovery in profitability and consecutive operating losses
were posted. Due to an indication of an impairment loss as a result, the Company has assessed the recognition of an impairment loss.
As a consequence, the total amount of undiscounted future cash flow based on future business plans was estimated to exceed thebook value of non-current assets in the asset group and consequently an impairment loss was not recognized.
(2) Information about important accounting estimates related to items identified
The Group categorizes business assets primarily in units of paper mills being production bases.
The recognition of impairment losses is assessed by comparing the book value of an asset group and the total amount of undiscounted
future cash flow based on the future business plan for that asset group. If the assessment finds that the total amount of undiscounted
future cash flow falls below the book value and an impairment loss must be recognized, the book value is reduced to the recoverable
amount (net selling price or value in use, whichever is higher) and the amount of decrease in the book value is recognized as an
impairment loss.
Due to structural changes in the demand environment, the Company assumed that demand for key products would not return to thesituation that prevailed prior to the COVID-19 pandemic and that sales volume would gradually decrease over the long run. Pricesof raw materials and fuel are surging globally due in part to the Russian invasion of Ukraine and the estimates were made on theassumption that prices would remain at a high level after a decrease to a certain extent in the latter half of FY2022.
While the estimates are based on information available at the time of preparing the consolidated financial statements, the assumption
used for the estimate is highly uncertain and an impairment loss on non-current assets may be incurred if revision becomes necessary
owing to factors such as changes in economic condition.
2. Recoverability of deferred tax assets(1) Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
Deferred tax assets (net)689 million yen(2) Information about important accounting estimates related to items identified
The Group posts deferred tax assets based on the appropriateness of company category, adequacy of future taxable income,scheduling of future reversals of temporary differences, etc. presented in the Implementation Guidance on Recoverability of.
Deferred Tax Assets (ASBJ Guidance No. 26).
Estimation of future taxable income is based on future business plans.
The quantity of mainstay products sold in the paper and pulp business was estimated on the assumption that the condition would not
return to that prior to the COVID-19 pandemic but would gradually decrease in the long run due to structural changes in the demandenvironment and that the impact of high prices raw materials and fuel would continue after some decrease in the latter half of FY2022.
The forecasts for sales volume in other businesses are based on assumptions that took into account trends in demand, economic
conditions, and other factors.
While such estimates are based on information available at the time of preparing the consolidated financial documents, the- 15 -

assumptions used for the estimation are highly uncertain and any failure to ensure stable taxable income in the future owing to factors
such as changes in economic conditions may have a significant impact on the amount of deferred tax assets in the following fiscal
year.

(Notes on changes made to accounting estimates)
The Company changed the number of years in the expense period of actuarial differences in the accounting treatment of retirement
benefits from 11 years to 10 years beginning in the fiscal year under review due to reduction of the average remaining years of serviceof employees.
As a result of this change, operating income, ordinary income and profit before income taxes each decreased 44 million yen in the fiscal
year under review.

(Additional information)(Solicitation for voluntary retirement)
At a meeting of the Board of Directors held on December 23, 2021, the Company passed a resolution to solicit voluntary retirement.
(1) Reason for solicitation for voluntary retirement
The Company faces particularly challenging circumstances due to a fall in demand for existing products and a surge in prices of raw
materials and fuel. While it is currently striving to change its business structure by building new businesses and instituting a rangeof cost cutting measures, the market for its existing businesses is likely to continue to contract in the coming years. The Company,
therefore, considers personnel rationalization inevitable and decided to solicit voluntary retirement.
(2) Outline of the solicitation for voluntary retirement(1) Applicable Company:
Mitsubishi Paper Mills Limited(2) Range of voluntary retirement: Full-time employees aged 40 years and above (excluding blue-collar workers) as of April 1, 2022.
(3) Number of applicants solicited: 60(4) Application Period:
June 1 through June 13, 2022 (tentative)(5) Date of retirement:
July 20, 2022 (plan)(6) Preferential treatment:
An additional amount will accompany the regular retirement allowance. The Company will support
any who apply for assistance in their career transition via a re-employment support company.
(3) Future Outlook
The additional retirement benefits and other expenses incurred due to the solicitation will be posted as an extraordinary loss in thenext consolidated fiscal year.
(Performance-linked stock remuneration plan)
The Company has adopted a performance-linked stock compensation plan (“the Plan|”) applicable to Directors and Executive Officers(excluding Outside Directors, non-executive directors, and non-residents of Japan; collectively. “Directors, etc.”) as a transparent andobjective executive compensation plan linked to the Company’s business performance and share value, for the purpose of facilitating
medium- to long-term improvement in corporate performance, encouraging contribution to an increase in corporate value, andpromoting profit and loss sharing with shareholders,
The accounting for the Plan is in line with the Practical Solution on Transactions of Delivering the Company’s Own Stock to employees
through trusts (ASBJ PITF No. 30, March 26, 2015).
(1) Transaction overview
The Company has adopted a framework called Board Incentive Plan trust (“BIP Trust”) as a trust for the Plan. Like Performance
Shares and Restricted Stock in Europe and North America, a BIP Trust is a system whereby shares in the Company and cash
equivalent to the conversion amount of the Company’s shares will be delivered or provided to Directors, etc. in accordance with theirrank, degree of achievement of financial targets, and other factors.

- 16 -

(2) Treasury shares remaining in the trust
The Company’s shares remaining in the trust are recorded at the book value (excluding all incidental expenses) in the section of net
assets as treasury shares in the trust. The book value and number of these treasury shares were 75 million yen and 203,600 shares,
respectively, as of March 31, 2022.
(Notes to the Consolidated Balance Sheet)
1. Collateral assets(i) Assets pledged as collateral and collateralized loans are as follows:Collateral assets
Machinery, equipment and vehicles

708 million yen

Collateralized loans
Long-term borrowings (including current portion)

708 million yen(ii) Factory foundation revolving mortgage applies to the following assets, which, however, are not secured liabilities and are therefore
not, in effect, pledged as collateral.
Buildings and structures

11,074 million yen

Machinery, equipment and vehicles

10,799 million yen

Land9,127 million yen

Others41 million yen

Total

31,042 million yen

2. Accumulated depreciation on property, plant and equipment totaled

405,353 million yen

3. Reduction entry of non-current assets

1,740 million yen

4. Liabilities on guarantee
Amount of debt guarantee for borrowings, etc. from financial institutions such as companies other than consolidated companies
Employees (property accumulation residence fund loans, etc.)

256 million yen

Other: 1 account8 million yen

Total

264 million yen

5. Retroactive obligations for securitization of receivables

1,405 million yen(Notes to consolidated statements of income)
1. Impairment losses
The Group posted an impairment loss in the asset groups below.
Location

Use

Type

Impairment losses

Tsukuba, Ibaraki

Assets to be disposed ofLand and Buildings

626 million yen

Shirakawa, Fukushima

Idle assets

Buildings, machinery and equipment, etc.

492 million yen

Nagaokakyo, Kyoto

Idle assets

Machinery and equipment, etc.

186 million yen

Hachinohe, Aomori

Idle assets

Buildings and structures, etc.

12 million yen

The book value of assets to be disposed of and idle assets was reduced to a recoverable amount and the reduced amount was recognized
as an impairment loss under extraordinary losses. The said recoverable amount is measured at the net sales value. The assets to bedisposed of were assessed based on rational selling price estimates and the book value of the idle assets was reduced to the memorandum
value.

- 17 -

(Notes to the consolidated statements of changes in equity)
1. Class and number of issued sharesClass of shares
Common shares

At the beginning of the
fiscal year ended March
31, 2022

Increase‒

44,741,433

2. Dividends(1) Cash dividends paid
Not applicable.
(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year.
Not applicable.

- 18 -At the end of the fiscal
year ended March 31,
2022

Decrease‒

44,741,433

(Notes to financial instruments)
1. Matters related to the status of financial instruments(1) Policies on the use of financial instruments
The Group finances funds (primarily bank borrowings) necessary in light of its capital expenditure plans to operate, in principle,
paper and pulp business, imaging business, and functional material business. The Group uses temporary surplus funds for short-term
deposits, etc. and finances short-term working capital through bank borrowings and the issuance of commercial papers. Derivative
trading is used to avoid the risk of interest-rate fluctuations of borrowings. The Group has a policy of not engage in speculativetransactions.
(2) Description of financial instruments and associated risks, and risk management structure
Notes and accounts receivable - trade, which are operating receivables, are exposed to customers’ credit risk. The Group has
established a system of managing the due dates and the balance of receivables for each customer according to its credit management
regulations and learn the credit status of main customers at all times. Foreign currency-denominated operating receivables from theGroup’s global businesses are exposed to the risk of exchange fluctuations. Much of this risk is reduced by the balance of foreign
currency-denominated accounts payable.
Stocks that are investment securities are exposed to the risk of fluctuations in market prices. They largely consist of shares incompanies with which the Group has business relationships, whose market value is periodically checked.
Notes and accounts payable - trade and electronically recorded obligations - operating, which are operating payables, mature in lessthan one year.
Among the borrowings, short-term borrowings are collected primarily for business transactions and long-term borrowings, bonds
payable, and lease obligations in financial lease transactions are used to collect funds, in principle, for capital expenditure, andredemption dates for most of them are within five years after the settlement date. The interest rates of part of the long-term borrowings
are floating rates, which are exposed to the risk of interest-rate fluctuations. The Group hedge the risk using derivative trading(Interest rate swaps).
The purpose of interest rate swap transactions is to hedge the risk of fluctuations in interest rates on borrowings. The method ofassessing the effectiveness of hedging is omitted through the assessment of the fulfillment of requirements for interest swaps subject
to specified hedge accounting treatment. The Group follows its internal rules specifying trading authority in the operation andmanagement of derivative trading. The Group trades derivatives only with high-rated financial institutions to reduce the credit riskof its counterparts.
Operating liabilities and borrowings are exposed to liquidity risks, which the Group manages primarily by each company bypreparing monthly financing plans.
(3) Supplemental explanation about the fair values of financial instruments
The fair values of financial instruments are based on market prices, or if market prices are not available, are based on rational
valuations. Since the calculations of fair values include variable factors, fair values could change when different assumptions areused.
2. Matters related to the market prices of financial instruments, etc.
The balance sheet amount and fair value of each category of financial instruments, and the difference between them as of March 31,
2022 are shown in the table below. Stocks and others without a quoted market price are not included in the table below. (Please refer to(Note 2))
Notes to cash are omitted, and notes to deposits, notes receivable, accounts receivable, notes and accounts payable - trade, electronicallyrecorded obligations - operating, short-term borrowings, and commercial paper are omitted due to the proximity between their market
value and book value resulting from the short-term settlement of such instruments.

- 19 -

(Million yen)
Consolidated balance
sheet amount(1) Investment securities
Available-for-sale securities

Market value

Difference

14,60914,609‒Total assets(2) Long-term borrowings(including the current portion of long-term borrowings) (Note 1)

14,60914,609‒41,072

41,171

98

Total liabilities(3) Derivative transactions

41,072‒

41,171‒98‒(Note 1) The current portion of long-term loans payable (11,112 million yen on the consolidated balance sheet) is included.
(Note 2) Unlisted shares without market price (5,259 million yen on the consolidated balance sheet) are not included in (1) availablefor-sale securities under investment securities due to the absence of market prices.
3. Breakdown of financial instruments by level of market value
The market values of financial instruments are classified into the following three levels according to the observability and importanceof inputs used in the calculation of market values.
Level 1 market value: market value calculated using market prices, on an active market, of assets or liabilities whose market
calculated of the observable inputs related to the calculation of market

value isvalue

Level 2 market value: market value calculated using inputs other than the inputs used for Level 1 of the observable inputs related to thecalculation of market value
Level 3 market value: market value calculated using inputs that are not observable related to the calculation of market value
If more than one input that has a significant effect on the calculation of market value is used, the market value is classified to the levelof inputs whose priority is lowest in the calculation of market value.
(1) Financial assets and financial liabilities whose market prices are used as the value posted on the consolidated balance sheet
Classification

Market value (million yen)
Level 1

Investment securities
Available-for-sale securities
StocksTotal assets

Level 2

Level 3

Total

14,609‒‒14,60914,609‒‒14,609

‒

‒

‒

‒

‒

‒

‒

‒

Derivative transaction
Related to interest rates
Derivative transaction(2) Financial assets and financial liabilities whose market prices are not used as the value posted on the consolidated balance sheet
Classification

Market value (million yen)
Level 1Long-term borrowings(including the current portion of long-term borrowings)

Level 2‒‒

Total liabilities(Note) Explanations about assessment techniques used in the calculation of market

Level 3

Total

41,171‒

41,171

41,171‒

41,171value and inputs related to the calculation of market

value
Investment securities
Listed shares are assessed using market prices Listed shares are traded on an active market and their market prices are categorized
into level 1.
Derivative transaction
Interest swaps subject to specified hedge accounting treatment are treated as part of hedged long-term borrowings, and theirmarket prices are included in the market prices of such long-term borrowings. (See “long-term borrowings” below)- 20 -

Long-term borrowings
The market prices of floating rate long-term borrowings reflect market interest rates over a short period of time and the Group’s
credit standing does not change significantly after execution. The market prices are, therefore, considered to approximate bookvalue, which is therefore used for floating rate long-term borrowings.
The market prices of fixed rate long-term borrowings are calculated using discounted present value based on an interest rate
determined by adding the remaining period of the liabilities and credit risk to the total amount of the principal and interest.
Long-term borrowings to which interest swaps subject to specified hedge accounting treatment (see the above “derivative
trading”) apply are calculated using the total amount of the principal and interest treated together with the interest rate swaps.
These are classified to Level 2 market value.

(Notes to rental properties)
Notes to market prices, etc. of rental properties are omitted due to the low significance of such market prices.

(Notes to revenue recognition)
1. A breakdown of revenue generated from contracts with customers(Million yen)

Reportable Segments
Paper andpulp business

Imaging
media
business

Warehouse
andtransportation
business

Specialty
materials
business

Others(Note)

Total

Total

Japan
EuropeAsia
North America
Others

94,701
27,451
6,271
0
1,709

10,3132,375
2,570
11,825
474

9,277
391
5,457
205
58

5,155
‒
‒
‒
‒

119,447
30,21814,29812,031
2,242

3,502
‒
‒
‒
‒

122,949
30,21814,29812,031
2,242

Revenue from contracts
with customers

130,134

27,55815,3895,155

178,238

3,502

181,741

179

‒

‒

‒

179

‒

179

130,31327,55815,3895,155

178,418

3,502

181,920

Other revenue
Sales to external customers(Note) The category, others, is a business segment not included in reportable segments, which mainly includes the engineering business.
2. Basic information for understanding revenue from contracts with customers

The information that becomes the basis of the understanding of revenue are provided in (4) Accounting standards for significant revenues
and expenses, under 4. Notes regarding accounting policies in (Significant matters that form the basis for preparing consolidated financial
statements).
3. The information that becomes the basis of the understanding of revenue for the consolidated fiscal year under review and the next
consolidated year
(1) Balance, etc. of contract liabilities
The balance of contract liabilities of the company and its subsidiaries are omitted due to its negligible amount and the absence ofsignificant changes. Revenue recognized in the fiscal year under review from performance obligations satisfied (or partly satisfied)in previous periods is not significant.
(2) Transaction prices allocated to outstanding performance obligations

The description of transaction prices allocated to remaining performance obligations is omitted by applying a practical expedient
due to the absence of important contracts with an initially estimated term exceeding one year held by the Company or its subsidiaries.
Further, consideration from contracts with customers does not contain a significant amount not included in the transaction price.

(Notes on per share information)(1) Net assets per share(2) Profit per share

1,565.88 yen
24.62 yen- 21 -

Statements of changes in shareholders’ equity
From April 1, 2021 to March 31, 2022
(Million yen)
Shareholders’ equity
Capital surplus
Capital stock

Balance at the beginning of
the period

36,561Retained earnings

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

10,161

10,161

17

Other retained
earnings
Retained earnings
brought forward(2,084)(2,067)

(74)

(74)

Cumulative effects ofchanges in accounting
policies
Restated balance

36,561

Total retained
earnings

10,161

10,16117(2,158)(2,141)(2,067)(2,067)

(17)

2,084

2,067

1,793

1,793

(0)

(0)

Changes during period
Deficit disposition
ProfitPurchase of treasury shares
Disposal of treasury stock
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period‒(2,067)(2,067)

(17)

3,877

3,860

36,561

8,094

8,094

‒

1,719

1,719

Shareholders’ equity
Treasury shares
Balance at the beginning of
the period(108)

Cumulative effects ofchanges in accounting
policies
Restated balance

Valuation and translation adjustments

Total shareholders’equityValuation difference
on available-for-salesecurities

Total valuation andtranslation
adjustments

Total net assets

44,547

2,313

2,313

46,861(74)(108)

44,473

(74)
2,313

2,313

46,786

Changes during period
Deficit disposition
Profit

‒

‒

1,793

1,793

Purchase of treasury shares

(75)

(75)

(75)

Disposal of treasury stock

0

0

0

Net changes in items otherthan shareholders’ equity

559

559

559

Total changes during period

(75)

1,718

559

559

2,277

Balance at end of period(184)

46,191

2,873

2,873

49,064(Note) The stated amounts are rounded down to the nearest million yen.

- 22 -

Notes to specific items(Notes on significant accounting policies)
1. Asset valuation standards and valuation method(1) Valuation standards and valuation methods for securities(i) Shares in subsidiary and affiliated companies
Stated at cost determined by the moving-average method(ii) Other securities
Securities other than shares, etc. without market valueMarket value method (Valuation differences are reported as a component of shareholders’ equity and the cost of securities soldis calculated using the moving average method.)
Shares, etc. without market value
Stated at cost determined by the moving-average method(2) Valuation standards and valuation methods for derivatives: Market value method(3) Valuation standards and valuation methods for inventory assets
Merchandise and finished goods: Cost method through periodic average method
Work in process:

Cost method through periodic average method

Raw materials and supplies:

Cost method determined by the moving average method.

(The value in the balance sheet is calculated by the method of book value devaluation based on lowering of profitability)
2. Depreciation method for non-current assets(1) Property, plant and equipment (excluding leased assets)
Buildings
Straight-line method
Property, plant and equipment other than buildings: Straight-line method
The declining-balance method is used for the head office and other properties. The straight-line method is applied for structuresacquired from April 1, 2016.
(2) Intangible assets
The straight-line method is applied. Software (used in the Company) is amortized over the estimated useful life of the software (fiveyears) in the Company.
(3) Leased assets
Leased assets relating to finance leases wherein ownership of the leased asset does not transfer to the lessee.
Calculated by assuming the lease term is the useful life and depreciating the remaining amount to zero using the straight-line method.
3. Standards on recognition of provisions(1) Allowance for doubtful accounts
To prepare for possible losses on uncollectible receivables held as of the end of fiscal year, the Group provides allowances equal tothe estimated amount of uncollectible general receivables based on historical rates and for specific receivables, including doubtfulreceivables, based on an examination of their individual collectability.
(2) Provision for retirement benefits
To prepare retirement benefits for employees, this provision is posted based on the estimated size of retirement benefit obligations
and pension assets (retirement benefit trusts) as of the end of the fiscal year under review.
Prior service costs are expensed based on the straight-line method for a certain number of years (10 years) within the averageremaining years of service of employees when costs accrue from their service. Actuarial differences are expensed from the business- 23 -

year following the year in which the expenses accrue, which are based on the straight-line method for a certain number of years (10years) within the average remaining years of service of employees when actuarial differences accrue.
Any amount of pension assets to be recognized at the end of the fiscal year under review in excess of the amount derived fromsubtracting unrecognized actuarial gain or loss, etc. from retirement benefit obligations is posted as prepaid pension costs ininvestments and other assets.
(3) Provision for share awards
To prepare for the issuance of shares of the Company’s stock pursuant to regulations for the stock-based compensation of Directors
and Executive Officers, the portion of the estimated amount to be paid in the business year under review is posted.
4. Accounting standards for significant revenues and expenses
The Company recognizes revenues through the following five steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the separate performance obligations in the contract.
Step 5: Recognize revenue when or as the entity satisfies the performance obligations.
The principal businesses of the Company include the manufacturing and sale of products in its paper and pulp business, imaging businessand functional material business. In domestic sales, revenue is recognized when the control of products is transferred to customers
normally upon the acceptance inspection of products performed by customers or upon the arrival of products at customers, which isconsidered the fulfillment of performance obligations. However, revenue is recognized upon shipment of products if the period between
shipping and transfer of control of products to customers is the normal period. In export sales, the Group recognizes revenue when therisk burden is transferred to customers according to trade conditions specified by the Incoterms and other rules.
Transaction prices are calculated by subtracting sales incentives from the amount of promised consideration in contracts with customers.
Considerations for transactions are received within one year from the fulfillment of performance obligations and important financial
factors are not included.
With respect to chargeable subcontracting corresponding to repurchase agreements, supplied goods remaining at subcontractors as
financial transactions are recognized as inventories, and the amount equivalent to the ending inventory of supplied goods remaining at
subcontractors is recognized as liabilities related to chargeable subcontracting.
5. Hedge accounting method
In cases where the interest rate swaps meet the conditions for hedge accounting, special treatment is adopted.
6. Accounting treatment of retirement benefits
In the financial statements, the treatment of unrecognized actuarial gain or loss and unrecognized past service cost in the balance sheet
is different from in the consolidated financial statements. In the non-consolidated balance sheet, the amount after subtracting pension
assets from the amount after adding and/or subtracting unrecognized actuarial gain or loss and unrecognized past service cost to or fromretirement benefit obligations is posted as provision for retirement benefits.
7. Application of a consolidated taxation system
The Company uses the consolidated taxation system.
8. Application of tax effect accounting for transition from the consolidated taxation system to the group tax sharing system
The Company will shift from the consolidated taxation system to the group tax sharing system in the next business year. However, in
relation to the transition to the group tax sharing system, which is newly established under the Act for Partial Revision of the Income
Tax Act and Other Acts (Act No. 8 of 2020) and the items regarding which the non-consolidated taxation system was reviewed in linewith the transition to the group tax sharing system, the Company and certain of its domestic consolidated subsidiaries do not implement
the provisions of Paragraph 44 of the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28;
February 16, 2018) but comply with the provisions of the tax regulations prior to the revision with respect to amounts of deferred tax
assets and deferred tax liabilities, in accordance with the treatment stipulated in Paragraph 3 of the Practical Solution on the Treatment- 24 -

of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ PITF No.39;
March 31, 2020).
From the beginning of the next business year, the Company will apply Handling of Accounting and Disclosure When Applying the GroupTax Sharing System (Practical Issues Task Force No. 42, August 12, 2021), which specifies the handling of accounting treatments andthe disclosure of income taxes and local income taxes when the group tax sharing system is applied.

(Changes of Accounting Policy)(Adoption of the Accounting Standard for Revenue Recognition, etc.)
The Group has decided to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc. from the beginning of the fiscal year under review and recognize
revenue from goods or services which the Group promised to provide at an amount expected to be received in exchange for the goods
or services at the time when control over the promised goods or services has been transferred to a customer.
A major change resulting from this is a change in the method of treating sales incentives from selling, general and administrative
expenses to the amount determined by subtracting the estimated amount of change in a consideration for a transaction from thetransaction price.
The application of the Revenue Recognition Accounting Standard follows the provisional treatment provided for in the proviso of
Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effects in case of retroactively applying the new
accounting policy to before the beginning of the fiscal year under review are adjusted in retained earnings at the beginning of the fiscal
year, and the new accounting policy is applied from this initial balance.
Notes and accounts receivable - trade, which were indicated under current assets, are included in notes receivable - trade and accounts
receivable - trade and advances received indicated under current liabilities are included in contract liabilities from the business year
under review.
As a result, in comparison with the statements prior to the application of the Accounting Standards for Revenue Recognition, net sales
increased 107 million yen and cost of sales and selling, general and administrative expenses decreased 45 million yen and 22 million
yen, respectively, and operating income, ordinary income, and profit before income taxes increased 39 million yen each in the statementof income for the business year under review.
The initial balance of retained earnings in the statement of changes in equity decreased 74 million yen due to the application of
cumulative effect to net assets as of the beginning of the business year under review.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019), etc. since thebeginning of the business year under review and will apply the new accounting principles set forth in the Accounting Standard for Fair
Value Measurement, etc. in the future by following the transitional treatment specified in Paragraph 19 of the Accounting Standard for
Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019). This will not affect the financial statements.
(Changes in Method of Presentation)(Statements of Income)"Provision of allowance for doubtful accounts for subsidiaries and associates," which was included in "Other" under "Extraordinary
losses" in the previous fiscal year, is separately presented in the current fiscal year, since it has become significant in terms of amount.

(Notes to accounting estimates)
Items whose amounts are reserved in the financial reports for this fiscal year due to the accounting estimate and that may have a major
impact on the financial reports for the following fiscal year are as follows:
1. Whether recognition of Impairment loss on non-current assets is necessary(1) Amounts recorded in the financial statements for the current fiscal year
Property, plant and equipment (Hachinohe Mill) 39,858 million yen
Impairment loss-

million yen(2) Information on accounting estimates
Notes are omitted due to the inclusion of the same information in Notes on changes made to accounting estimates in the table of- 25 -

Notes to Consolidated Financial Statements.
2. Deferred tax assets(1) Amounts recorded in the financial statements for the fiscal year under review
Deferred tax assets (net) 2,895 million yen(2) Information on accounting estimates
Notes are omitted due to the inclusion of the same information in Notes on changes made to accounting estimates in the table ofNotes to Consolidated Financial Statements.

(Notes on changes made to accounting estimates)
The Company changed the number of years in the expense period of actuarial differences in the accounting treatment of retirement
benefits from 11 years to 10 years beginning in the business year under review due to a reduction in the average remaining years ofservice of employees.
This change resulted in operating income, ordinary income, and profit before income taxes all decreasing 44 million yen each.

(Additional information)
Notes are omitted due to the inclusion of the same information in Additional Information in the Notes to Consolidated Financial
Statements table.

(Notes to balance sheet)
1. Collateral assets
Factory foundation revolving mortgage applies to the following assets, which, however, are not secured liabilities and, thus, not, in effect,
pledged as collateral.
Buildings

8,459 million yen

Structures

1,458 million yen

Machinery and equipment

10,396 million yen

Vehicles15 million yen

Tools, furniture and fixtures

41 million yen

Land8,855 million yen

Total

29,227 million yen

2. Accumulated depreciation on property, plant and equipment totaled

281,769 million yen

3. Guarantee obligations, etc.
(i) Guarantee for borrowings from financial institutions through asset-building savings system of the Company’s employees
256 million yen(ii) Guarantee for borrowings, etc. from financial institutions
Mitsubishi HiTec Paper Europe GmbH

6,096 million yen

Hachinohe Paper Processing Co., Ltd.

708 million yen

Mitsubishi Imaging (MPM), Inc.

122 million yen

Two other companies

48 million yen

Total

6,975 million yen- 26 -

4. Monetary claims and liabilities to affiliated companies
Short-term monetary claims

40,906 million yen

Long-term monetary claims

3,393 million yen

Short-term monetary obligations

6,988 million yen(Notes to statement of income)1. Transactions with subsidiaries and associates
Net sales

63,004 million yen

Cost of sales and selling, general and administrative expenses

26,164 million yen

Volume of trade arising from other than business transactions

12,686 million yen

2. Impairment losses
An Impairment loss was posted for the following asset group.
Location

Use

Type

Impairment losses

Tsukuba, Ibaraki

Assets to be disposed ofLand and Buildings

626 million yen

Shirakawa, Fukushima

Idle assets

Buildings, machinery and equipment, etc.

476 million yen

Nagaokakyo, Kyoto

Idle assets

Machinery and equipment, etc.

186 million yen

The book value of assets to be disposed of and idle assets was reduced to a recoverable amount and the reduced amount was recognized
as an impairment loss under extraordinary losses. The said recoverable amount is measured at the net sales value. The assets to bedisposed of were assessed based on rational selling price estimates and the book value of the idle assets was reduced to the memorandum
value.

(Notes on statements of changes in shareholders’ equity)
Type and number of treasury shares at the end of the business year under review
Class of shares

At the beginning of the
fiscal year ended March
31, 2022

Common shares

Increase

72,439At the end of the fiscal
year ended March 31,
2022

Decrease
204,64173

277,007(Notes) 1. The number of shares of the Company’s common stock held as treasury shares includes shares of the Company’s stock heldby the Executive Compensation BIP Trust (203,600 shares at the end of business year under review).
2. Overview of reason of change
The breakdown of the increase is as follows:
Increase due to demand for purchases of shares of less than one unit

1,041 shares

Increase in the purchase of treasury shares by the Executive Compensation
BIP Trust

203,600 shares

The breakdown of the decrease is as follows:
Decrease due to demand for increased purchase of shares of less than one unit

- 27 -

73 shares

(Notes to tax effect accounting)
1. Breakdown of key factors contributing to deferred tax assets and deferred tax liabilities
Deferred tax assets
Accrued expenses

137 million yen

Provision for retirement benefits

2,551 million yen

Accumulated impairment of non-current assets

781 million yen

Loss on valuation of investments in capital of subsidiaries and associates

5,278 million yen

Loss on valuation of shares of subsidiaries and associates

1,708 million yen

Tax losses carried forward

1,268 million yen

Others1,936 million yen

Subtotal of deferred tax assets

13,661 million yen

Valuation allowance related to tax losses carried forward-683 million yen

Valuation allowance related to deductible temporary differences-9,298 million yen

Valuation allowance subtotal-9,981 million yen

Total deferred tax assets

3,679 million yen

Deferred tax liabilities
Gain on contribution of securities to retirement benefit trust-15 million yen

Valuation difference on available-for-sale securities-652 million yen

Others-115 million yen

Total deferred tax liabilities-783 million yen

Net deferred tax assets

2,895 million yen- 28 -

(Notes to related party transactions)
1. Subsidiaries and associates
Type

Company name

Percentage ofvoting rights

Subsidiary

Relationship with related party

Content of thetransaction%

Transaction
valueMillion yen

Sale of paper, pulp,
pharmaceuticals, etc.
Sales agency for paper Lease a part of (*Note 1)
real estate Executives may holdGroup financeconcurrent positions.
transaction(*Notes 1 and 2)

Mitsubishi Oji
Direct: 99.9
Paper Sales Co.,
Indirect: ‒Ltd.

Purchase of products of Kitakami
Kitakami HiTec
Direct: 100.0 HiTec Supply of raw materials
Paper
Indirect: ‒Executives may hold concurrent
Corporation
positions.

Funding and technological assistanceDirect: ‒for business operation in Europe
Indirect: 100 Executives may hold concurrent
positions.

Million yen

51,570

16,115

4,273

Short-term
loans
receivable

4,273

Purchase ofmerchandise, etc.
(*Note 1)

11,218

Accounts
payable - trade

1,084

Supply of raw
materials(*Note 1)

7,242

Accounts
receivable other

1,136

Short-term
loans
receivable

3,179

Short-term
loans
receivable

1,665

Short-term
loans
receivable

4,743

Accounts
receivable trade

2,594Collection of funds(*Note 1)
Loans of funds(*Note 1)

3,899
3,179
1,123

Collection of funds(*Notes 1 and 4)
Loans of funds(*Notes 1 and 4)

1,129
4,743

Sale of the Company’s photosensitive Sale of paper and
Mitsubishi
materials, print sensitive materials
platemaking materials
Direct: 100.0
Imaging (MPM),
and IJ paper for North, Central, and for photographs andIndirect: ‒Inc.
South America Executives may hold printing
concurrent positions.
(*Note 1)

Associates

Balance at
end of period

Accounts
receivable tradeGroup financetransaction(*Notes 1 and 2)
Mitsubishi
HiTec Paper
Europe GmbH(*Note 3)

Item

5,514

Collection of funds(*Note 1)

816

Loans of funds(*Note 1)224

MPM OJI Home
Direct: 70.0
Products Co.,
Indirect: ‒Ltd.

Purchase of products of Kitakami
HiTec Supply of raw materials
Executives may hold concurrent
positions.

MPM Oji Eco
Direct: 45.0
Energy Co., Ltd. Indirect: ‒Loans, etc. provided by the Company
Collection of funds
Executives may hold concurrent(*Note 1)
positions.

450

Short-term
loans
receivable
Long-term
loans
receivable
Long-term
loans
receivable

466

2,178

1,215

(*Note 1) Prices and other terms of business are determined in negotiations using market prices as a reference.
(*Note 2) The transaction amount for group finances indicated is an increase or decrease between the end of the previous fiscal year and the end of thebusiness year under review.
(*Note 3) Mitsubishi HiTec Paper Europe GmbH is a subsidiary of Mitsubishi Paper Holding (Europe) GmbH.
(*Note 4) Allowance for doubtful accounts of 1,572 million is posted for loans receivable to Mitsubishi HiTec Paper Europe GmbH.
In addition, provision of an allowance for doubtful accounts of 1,572 million yen is posted in the fiscal year under review.
( Note 5) Guarantee obligations are listed in the notes to the balance sheet in the notes to specific items, and are operated under general terms of business.

2. Sister companies
Type

Company name

Percentage ofvoting rights

Relationship with related party

Content of thetransaction%
Subsidiaries OCM Fiber
Direct: 14.0
of other Trading Co., Ltd. Indirect: ‒associates
Oji F-Tex Co.,
None
Ltd.

Transaction
value

Item

Million yen
Purchase ofSale of imported chips to the Company imported chips(*Note 1)
A capital and business alliance has been Business transfer
established with the corporate group.
(*Note 2)

Balance at
end of period
Million yen

13,114

Accounts
payable - trade

‒

840

‒

‒

(*Note 1) Prices and other terms of business are determined in negotiations using market prices as a reference.
(*Note 2) The business transfer is a transaction involving a press board business (excluding the A Board business using wholly aromatic polyamide as araw material), and the consideration for the business is determined through considerations between the two companies using future estimatedrevenue as a reference.

- 29 -

(Notes to revenue recognition)
Basic information for understanding revenue from contracts with customers
Basic information for understanding revenue is provided in section, 4. Accounting standards for significant revenues and expenses in theNotes on significant accounting policies.

(Notes on per share information)(1) Net assets per share

1,103.46 yen(2）Profit per share

40.26 yen

- 30 -