Annual Report2019        

Profile

Since its founding in 1898, Mitsubishi Paper Mills has constantly sought to employ its technological strengths tocontribute to society. By developing and marketing value-added products that anticipate the needs of the next
generation, the Company has played an important role in the development of information media in Japan in the
publishing and printing industries, as well as in the development of photographic technology.
The Company manufactures and sells almost the entire range of media products and materials used in all
information recording processes, including not only paper for offset printing, and materials for printing plates as wellas printing systems, but also carbonless and thermal paper, digital photography materials, silver halide photographic
paper, and paper for inkjet printing. We are also developing businesses that take advantage of the characteristics ofpaper (e.g., household and consumer paper and packages) in addition to information recording media.
Our Imaging Division handles a lineup of products that take advantage of our film coating technologies (e.g.,
electronics industry materials), IJ transfer paper and medical related products.
Meanwhile, our Speciality Materials Division provides a lineup of products that take advantage of our non-woven fabric technologies (e.g., water treatment membrane supporting body and battery separators) and thermo
rewrite. Furthermore, we are also pouring our efforts into R&D in new business fields. We have adopted a position
suitable for accessing the global market by establishing production bases and R&D bases in Japan, Germany, China
and Mexico.

Dedicated to contributing to society by providing customers with products backed by advanced
technological capabilities, we have the following three goals as a Group Philosophy:
1. A corporate group that lives up to the trust of its customers in the world market
2. A corporate group that is always on the leading edge of technology
3. A corporate group that contributes to preserving the global environment and creating a recycling society

Contents
FINANCIAL HIGHLIGHTS (CONSOLIDATED) ............. 1
MESSAGE FROM THE PRESIDENT ............................ 2
BREAKDOWN OF OPERATIONS BY BUSINESS ........ 4
TOPICS ........................................................................ 6
OUR MILLS AND THEIR PRODUCT LINES ................. 8
FIVE-YEAR SUMMARY (CONSOLIDATED) ................. 9

CONSOLIDATED STATEMENTS OF
CHANGES IN NET ASSETS ..................................... 14
CONSOLIDATED STATEMENTS OF CASH FLOWS.......... 15
NOTES TO CONSOLIDATEDFINANCIAL STATEMENTS....................................... 16
INDEPENDENT AUDITOR’S REPORT ....................... 32

CONSOLIDATED BALANCE SHEETS........................ 10

BOARD OF DIRECTORS, EXECUTIVE OFFICERS AND
AUDIT & SUPERVISORY BOARD MEMBERS ......... 33

CONSOLIDATED STATEMENTS OF OPERATIONS .. 12

COMPANY DATA ....................................................... 34

CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME.................................... 13

Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Financial Highlights (Consolidated)
Millions of yen (1)Thousands of
U.S. dollars (1) and (2)For the years ended March 31
Net sales
Operating income (loss)
Net income attributable to owners of parent
Net income per share (in yen and dollars)
Cash dividends per share (in yen and dollars)

2019

2018

2019

¥ 203,997
(40)
351
10.04
5.00

¥201,492
1,790
3,198
93.57
5.00

$1,837,981
(362)
3,164
0.09
0.05

As of March 31
Total assets
Total net assets
Common stock
Net assets per share (in yen and dollars)¥ 232,758
67,00436,561
1,485.64¥237,379
61,07732,756
1,747.54$2,097,114
603,698
329,413
13.39

12,681
3,668

13,467
3,723

Number of shareholders
Number of employees

Notes: (1) In this annual report, Japanese yen (in millions) and U.S. dollars (in thousands) are indicated with fractions omitted.
(2) U.S. dollar amounts in this report represent translations of yen amounts at the rate of ¥110.99 = U.S.$1, as of March 31, 2019.

Net Sales

15
16
17
18
19

Operating Income(Loss)

15
16
17
18
19

(¥ Millions)(¥ Millions)

Net Income(Loss)
Attributable to
Owners of Parent(¥ Millions)

Total Net Assets(¥ Millions)

Sales
Composition

214,944
216,340
201,955
201,492
203,997
1,038

3,872
1,790

(40)

(4,272)

15
16
17
18
19

1,152
351

15
16
17
18
19

2,217
3,198

55,09451,492
56,631
61,077

Others 1.0%
Warehouse & Transportation
2.5%
Speciality Materials
7.1%

Paper & Pulp 74.9%

Imaging
14.5%

1

4,313

67,004

Message from the President
power generating business, household and consumer paper
business, etc. Both companies agreed that strengthening cooperative relationship in multiple businesses is essential for ensuring
sustainable growth, and then we concluded a capital allianceagreement. On March 29, 2019, Oji Holdings Corporation became
the largest shareholder and any other associated company holding
33% of voting rights for our company.
In FY 2019, consolidated net sales were ¥203,997 million(US$1,837 million) (up 1.2% year on year) thanks to the increase insales of subsidiaries in Europe, etc. despite the decline in domestic
demand for paper and the drop in demand for existing products of
the imaging business.
As for profits and losses, we adopted a transportation
adjustment payments system for paper, revised prices, and so on,
but could not make up for profit-decreasing factors, such as therises in prices of raw materials and fuels and the decline in sales
volume due to the weakening of domestic demand. Consequently,
we incurred a consolidated operating loss of ¥40 million (-US$0
million) and a consolidated ordinary loss of ¥914 million (-US$8
million). Profit attributable to owners of parent was ¥351 million(US$3 million), as gain on sale of investment securities was posted,
the posting of deferred tax assets reduced adjustments to corporate tax, etc.
As for non-consolidated performance, net sales were ¥115,064
million (US$1,036 million), operating loss ¥1,150 million (-US$10
million), ordinary loss ¥347 million (-US$3 million), and profit ¥1,289
million (US$11 million).

Our Goals to Address

Yukihiro Tachifuji, President & C.E.O.

[Regarding the New Mid-term Management Plan]
During the period of “the Second Mid-term Management Plan” (April
2016 to March 2019), we implemented several measures under the
key concept of “stabilizing revenue through alliances,” proceededwith the businesses of biomass power generation and household
and consumer paper in cooperation with the Oji Group, andconcluded a capital alliance agreement with Oji Holdings Corporation, in order to make the alliance more comprehensive andconstructive.
After obtaining clearances from competition authorities insideand outside Japan, we allocated new shares of our company to Oji
Holdings in accordance with the above agreement, and Oji
Holdings acquired the shares of our company from 5 companies ofthe Mitsubishi Group in March 2019. Accordingly, Oji Holdings
became the largest shareholder and any other associated company
holding 33% of voting rights of our company.
In “the New Mid-term Management Plan” (April 2019 to March
2022), the basic principle is to “strengthen and diversify thebusiness base for a new stage,” and we will try to achieve sound,sustainable growth and maximize our mid/long-term corporate value
by establishing a robust management base through the alliancewith Oji Group, making structural reforms and enriching existing
businesses and diversifying the business base by fostering new
profit pillars.

Overview of the Reporting Term
In FY 2019, there were uncertainties in the global economy, such as
the trade friction between the U.S. and China, but the Japanese
economy recovered gently, as the employment situation and theincome environment improved. In the paper and pulp industry, thebusiness environment, mainly that of the paper business, which is
the mainstay of our company, was severe, due to the structural
decline in demand caused by the digitization of information media,
the rises in prices of raw materials and fuels, etc.
In this situation, our corporate group has been working on
measures to establish and strengthen a revenue structure that will
not be affected by the external environment under the 4 fundamental policies (1) Structural reform of paper business; (2) Improving
profit base; (3) Developing new businesses; and (4) Strengthening
business foundation and financial ground that will support thegroup’s earning power based on the key concept of “stabilizing
revenue through alliances” in accordance with the Second Mid-termManagement Plan (from April 2016 to March 2019).
Meanwhile, we have formed alliances with Oji Group in biomass2one in cooperation with the Oji Group, and aim to make a profit
and stabilize revenue while reforming the business structure.
・We will implement some measures for expanding our businessand establishing a variety of new businesses in promising fields,
including the production of functional films and IJ transfer paper
based on the imaging technology, battery separators andinorganic fiber paper that have excellent quality, and barrier
paper aimed at doing away with plastics.

PeriodApril 2019 to March 2022 (3 years)

Basic Principle

Strengthening and diversifying the business base for a
new stage[CSR (Corporate Social Responsibility)]
Our corporate group recognizes that the purpose of CSR is toimprove our corporate value by winning the trust and sympathy of
stakeholders and solve problems from the aspects of the environment, society, and finance, and considers CSR as an importantmanagement issue to address in our business activities.
In FY 2019, we worked on “enhancement of activity on safety
and health,” “customer-oriented product development,” and“promoting policies to enhance employees’ performance” as themost important missions. We also strived to enrich environmentallyfriendly products, including FSC forest-certified products, which
would help attain UN Sustainable Development Goals (SDGs).
In the 155th term, we aim to keep improving our corporate value
and carry out unique CSR activities, with the two important missions:“enhancement of activity on safety and health” and “productdevelopment for coexisting with society.”

Key strategies

1 To establish a robust management base through thealliance with Oji Group

2 To make structural reforms and enrich existing
businesses

3 To diversify the business base by fostering new proﬁt
pillars[To establish a robust management base through the alliance withOji Group]
・By mutually utilizing the managerial resources and know-how of
the Oji Group and our corporate group, we will foster a firmcooperative relation in all business fields, including manufacturing, sale, procurement of raw materials, distribution, engineering,equipment investment, R&D, and back-office operation, tostreamline our business operation and reduce costs as soon as
possible and then enhance our competitiveness.
・Especially for the paper business, we will reinforce the mutual
OEM with the Oji Group, shift sales systems, reduce distribution
costs through the mutual utilization of warehouses and logistics
facilities, develop manufacturing systems for foreseeing demand,
improve production efficiency, cut down on the expenses forbuying raw materials and fuels, and so on, in order to stabilize ourrevenue.

Forecast

The consolidated financial performance for the following term is
forecasted to have net sales of ¥210,000 million (US$1,909 million),
operating income of ¥2,500 million (US$22 million), ordinary incomeof ¥2,500 million (US$22 million), and profit attributable to owners ofparent of ¥1,500 million (US$13 million).
The above forecast presumes 110 yen will equal 1 US dollar and
130 yen will be worth 1 euro.
The business forecast is based on our judgment and available
information at the time of creation and contains risks and uncertain
elements. It is possible that actual results and figures may differ
from the estimates according to various factors.

[To make structural reforms and enrich existing businesses]
・For the imaging business, while striving to strengthen theoperation base through the alliance with Fujifilm for photographic
materials base paper, etc., we will further enhance our existingproducts which are already maturing by actively expanding thebusiness in foreign markets.
・For the speciality materials business, we strive to expand sales in
Asia with focus on China, the U.S. and Europe and will makesteady progress in the businesses of non-woven fabric whichhandles water treatment membrane supporting body, thermo
rewrite, decorative laminate base paper and tape base paper byutilizing our own technologies.

June 2019

Yukihiro Tachifuji,
President & C.E.O.

[To diversify the business base by fostering new profit pillars]
・At Hachinohe Mill, we have launched the businesses of household and consumer paper and biomass power generation one by3

Breakdown of Operations by Business

Paper and Pulp
Business

Net sales (¥ Millions)17

150,42818

152,220

19

156,780

As for the domestic market, thanks to the effect of the alliance,

mainly pressure-sensitive paper, but sales grew due to the rises

etc. sales of communication paper have been continuouslyin unit prices through price revisions and the effects of exchange

performing well. On the other hand, demand for printing paper

rates.

further declined. Regarding exports, there has been an increase

As for commercial pulp, we promoted sales inside andin sales volume of printing paper. However, it wasn’t enough tooutside Japan to meet healthy demand, and sales volume andcover the domestic decline. In this situation, we suspended theamount increased.

operation of the paper machine No. 4 at Hachinohe Mill in

As a result, the total net sales of the paper and pulp

December 2018, adopted a transportation adjustment payments

business were ¥156,780 million (US$1,412 million), up 3.0%

system, and revised product prices from the fourth quarter, inyear on year, and we incurred an operating loss of ¥1,427 million

order to establish a manufacturing system for foreseeing(-US$12 million). Profit decreased, due to the rises in prices ofdemand and enhance productivity.

raw materials and fuels, the decline in domestic paper demand

European subsidiaries saw a decline in sales volume of

Imaging Businessand the downturn of the domestic market.

Net sales (¥ Millions)38,90817

36,90718

35,28719

As for the domestic market, the demand for platemaking

As a result, the total net sales of the imaging business werematerials and inkjet paper declined. Therefore sales decreased.

¥35,287 million (US$317 million), down 4.4% year on year, andIn the overseas market, the purposes of use of inkjet paper

operating income was ¥537 million (US$4 million). Despite thediversified and demand for it grew in emerging countries, but

decline in net sales due to the weakening of demand for existingsales amount decreased, due to the weakening of demand for

products, the rises in prices of raw materials and fuels, etc., weexisting products.

strived to boost productivity and reduce costs, and grew profit.

4

Speciality Materials
Business

Net sales (¥ Millions)17

16,95818

17,02619

17,485

As for speciality materials, we increased the sales amounts of

As a result, the total net sales of the speciality materials

water treatment membrane supporting body, battery separators,

business were ¥17,485 million (US$157 million), up 2.7% year

and thermo rewrite. As for chemical paper, the performance ofon year, and operating income was ¥653 million (US$5 million).

decorative laminate base paper, which is the mainstay product,

We promoted sales of new products, revised product prices, andwas unchanged from the previous term, but the sales amount of

reduced costs, but could not cover profit-decreasing factors,

tape base paper, etc. grew.

such as the rises in prices of raw materials and fuels.

Net sales (¥ Millions)

8,249

17

Warehouse andTransportation Business

18

8,575

19

8,333

Net sales of the transportation and warehousing business were
¥8,333 million (US$75 million), down 2.8% year on year.

Net sales (¥ Millions)

Others

17

7,993

18

8,262
6,508

19
Net sales were ¥6,508 million (US$58 million), down 21.2% year
on year, due to the decline in sales of engineering-related
subsidiaries, etc.

5Topics
Start of operation of a joint venture for household andconsumer paper
MPM Oji Home Products Co., Ltd., a joint venture between
our company and Oji Nepia Co., Ltd., completed theconstruction of equipment for household and consumer
paper inside Hachinohe Mill of our company as planned,
and started operation in April 2019.
The newly built equipment for household andconsumer paper produces about 18,000 tons of tissue
paper and toilet paper annually by utilizing theinfrastructure and pulp at Hachinohe Mill, which is an
integrated mill for paper and pulp, and our company and
Oji Nepia sell the products mainly in the Tohoku region.

6

Establishment of Ho Chi Minh Representative Office of Diamic
Diamic Co., Ltd., which is a distributor for the imaging business, established a representative office in Ho Chi Minh
City, Vietnam as the first overseas foothold. As a new measure for overseas business expansion we have beenpromoted, we will promote the sales of products of the Mitsubishi Paper Mills Group and seek new businesschances in not only Vietnam, but also other Southeast Asian countries based on this office.

Sale of filters in the Chinese market
In recent years, the interest in the indoor air environment has grown in China, and the market of “new electrical fans”
equipped with the functions of air purifiers and total heat exchangers (energy-saving ventilation fans) is expanding.
Our company handles products with excellent performance, including high-performance dust-collecting
deodorant filters, which are constituted by dust collecting parts with a low pressure loss property and special
activated carbon, and total heat exchanging elements, which include special tissue paper and have high shielding
effects for air intake and discharge. We focus on the expansion of sales in the Chinese market. We participated in
an exhibition in Beijing in May and in Shanghai in December last year, and our products were highly evaluated.

7

Our Mills and Their Product Lines

SHIRAKAWA SITE

Address:

3, Maeyamanishi, Nishigo-mura,Nishi-Shirakawa-gun,
Fukushima 961-8054
Telephone: +81-248-22-8111
Products: Transformer board

KITAKAMI HITEC PAPER CORP.

Address:

35, Sasanagane, Aisari-cho,
Kitakami-shi, Iwate 024-0051
Telephone: +81-197-67-3211
Products: Bleached kraft pulp,
Hygienic paper, Photographic
basepaper, Household products
etc.

HACHINOHE MILL
Address:

Kawaragi-Aomoriyachi,
Hachinohe-shi,
Aomori 039-1197
Telephone: +81-178-29-2111
Products: Bleached kraft pulp,
Coated printing paper,
Uncoated printing paper,White card board, Household products
etc.

KJ SPECIALTY PAPER CO., LTD.
FUJI MILL
Address:

TAKASAGO MILL
Address:

105, Sakae-machi, Takasago-cho,Takasago-shi, Hyogo 676-8677
Telephone: +81-794-42-3101
Products: Carbonless paper, Thermal paper,
Inkjet paper, Specialty paper, Non
Woven Fablics, etc.

KYOTO MILL
Address:

6-6, Kaiden 1-chome,
Nagaokakyo-shi, Kyoto 617-8666
Telephone: +81-75-951-1181
Products: Color photographic paper, Graphic arts
materials, Inkjet photo paper, etc.

Overseas

7-1, Shinbashicho, Fuji-shi,
Shizuoka 417-0004
Telephone: +81-545-52-4075
Products: Base paper for decorative
laminates, Impregnateddecorative sheet,
Base paper for wall paper,
Stencil paper

Mitsubishi HiTec Paper Europe GmbH Flensburg Mill
Address: Husumer Strasse 12 D-24941
Flensburg, Germany
Telephone: +49-461-8695-204
Products: Thermal paper, etc.
(Flensburg, Germany)

Mitsubishi HiTec Paper Europe GmbH Bielefeld Mill
Address: Niedernholz 23, D-33699 Bielefeld,
Germany
Telephone: +49-521-2091-401
Products: Carbonless paper, Thermal paper,
Inkjet paper(Bielefeld, Germany)

MP Juarez LLC
Address: Ave. Valle del Cedro #1551 Paraq. Ind Intermex
C.P. 32690 Cd. Juarez. Chih., Mexico
Telephone: +1-915-534-8230 (U.S. Head Office)Products: Inkjet paper(Juarez, Mexico)Zhuhai MPM Filter, Ltd.
Address: #17 Yijing Lane, Pingsha Town, Jinwan District,Zhuhai, Guangdong, China
Telephone: +86-756-8895033
Products: Various filters(Zhuhai, China)

8

Five-Year Summary (Consolidated)Thousands of
U.S. dollars

Millions of yen

For the years ended March 31

Net sales
Operating income (loss)
Net income (loss) attributable to owners of parent
Net income (loss) per share (in yen and dollars)
Diluted net income per share
As of March 31
Total assets
Total net assets

2019

2018

2017

2016

¥ 203,997
(40)
351
10.04
−

¥201,492
1,790
3,198
93.57
−

¥201,955
4,313
1,152
33.72
−

¥216,340
3,872
2,217
64.85
−

¥214,944
1,038(4,272)(124.96)−$1,837,981
(362)
3,164
0.09
−

¥ 232,758
67,004¥237,379
61,077¥234,891
56,631¥240,681
51,492¥252,620
55,094$2,097,114
603,698

2015

2019

Notes: (1) On October 1, 2016, the share consolidation was executed at a ratio of 1share per 10 shares.
Net income (loss) per share is calculated based on the assumption that the share consolidation was executed at the beginning of the fiscal year ended March 31,
2015.
(2) From the beginning of the current fiscal year, the Company has applied "Partial Amendments to Accounting Standard for Tax Effect Accounting"(ASBJ Statement
No.28, February 16, 2018), which has been applied to main management indicators of previous periods, retroactively.

9Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Consolidated Balance Sheets
As of March 31, 2019 and 2018
Thousands of
U.S. dollars (Note 2)

Millions of yen
2019

2018

2019

¥ 11,617¥9,744$104,671

37,6862,307

46,330
1,731

339,551
20,78639,993(175)

48,062(224)

360,338(1,580)39,81844,557
3,696

47,83743,9892,744

358,757
401,450
33,304

99,689104,316

898,184

Land
Buildings and structures
Machinery, equipment and vehicles
Construction in progress
Leased assets
Other

21,913
95,872
365,551
9,446
2,718
9,349

22,147
96,267366,704
2,310
2,847
9,794

197,438
863,791
3,293,556
85,10924,49384,240Less: Accumulated depreciation
Accumulated impairment losses

504,852(402,871)(789)

500,070(399,589)(749)

4,548,630(3,629,801)(7,113)

101,191

99,732

911,715

16,479
1,262
2,118
5,331
(54)
2,965
3,775

20,354
1,317
1,448
5,263
(68)
1,309
3,705

148,474
11,37419,08348,038(493)
26,71834,01831,87733,330287,214¥ 232,758¥237,379$2,097,114

ASSETS

Current assets:

Cash and deposits (Note 3 (12))
Receivables:
Trade notes and accounts (Note 10)
Other
Less: Allowance for doubtful accounts
Inventories
Other
Total current assets

Non-current assets:
Property, plant and equipment (Note 4):

Net property, plant and equipment

Investments and other assets:
Investment securities (Notes 4, 10 and 11)
Investments in unconsolidated subsidiaries and affiliated companies
Long-term loans receivable
Net defined benefit asset (Note 13)
Less: Allowance for doubtful accounts
Deferred tax assets (Note 14)
Other
Total investments and other assets
Total assets
The accompanying notes are an integral part of these financial statements.

10Thousands of
U.S. dollars (Note 2)

Millions of yen
2019

2018

2019

¥ 49,599
15,5757,000
367¥51,195
19,6333,000
375$446,885
140,331
63,0683,311

25,347
5,390
989
7,185
366
9,038

26,870
−
3,238
7,358
397
5,140

228,380
48,568
8,914
64,736
3,302
81,433

120,860

117,208

1,088,933

32,855
424
60
−
8,718
696
882
1,254

45,656
691
56
143
9,328
1,152
888
1,175

296,023
3,823
549−
78,5506,273
7,955
11,30644,89359,093

404,482¥ 165,754¥176,302$1,493,415¥36,561
9,682
13,145(150)¥32,756
6,132
12,965(148)$329,413
87,240118,441(1,353)59,24051,706

533,742

3,635
1,209
2,265

5,204
1,511
1,309

32,756
10,893
20,412

7,110

8,025

64,062

654

1,345

5,894

Total net assets¥ 67,004¥61,077$603,698

Total liabilities and net assets¥ 232,758¥237,379$2,097,114

LIABILITIES AND NET ASSETS
Current liabilities:

Short-term loans payable (Note 10)
Current portion of long-term debt (Note 10)
Commercial Paper (Note 10)
Lease obligations (Note 10)
Payables:Trade notes and accounts (Note 10)
Electronically recorded obligations (Note 10)
Other
Accrued expenses
Income taxes payable
Other
Total current liabilities

Non-current liabilities:
Long-term debt (Note 10)
Lease obligations (Note 10)
Provision for directors' retirement benefits
Reserve for loss on dissolution of employee's fundNet defined benefit liability (Note 13)
Deferred tax liabilities (Note 14)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Authorized: 90,000,000 shares at March 31, 2019
Issued: 44,741,433 shares at March 31, 2019
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

The accompanying notes are an integral part of these financial statements.

11Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Consolidated Statements of Operations
For the years ended March 31, 2019 and 2018
Thousands of
U.S. dollars (Note 2)

Millions of yen
2019

2018

2019

¥ 203,997
174,602¥201,492
169,221$1,837,981
1,573,138

29,39432,270264,842

29,43530,480265,204

(40)

1,790

(362)

622
(1,372)
168
89
497
1,562
(463)
(275)
(576)
−
(697)
(124)
(235)

560
(1,767)
175
59
138
846
1,144
(64)
(375)
(295)
−
(209)
(252)

5,610
(12,367)
1,519
804
4,484
14,077(4,175)(2,483)(5,197)−(6,281)(1,124)(2,117)

Total

(804)

(40)

(7,251)

Net income (loss) before income taxes and non-controlling interests

(845)

1,749

(7,613)252(1,567)383(1,914)

2,277(14,126)

470

3,280

4,235

118
¥ 351

81
¥3,198

1,070$3,164

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income（loss）
Other income (expenses):
Interest and dividend income
Interest expenses
Royalty income
Foreign exchange gains
Insurance income
Gain on sales of investment securities
Gain (loss) on disposal of non-current assets (Note 6)
Advisory fee
Special retirement expenses
Environmental expenses (Note 7)
Loss on disaster
Impairment loss (Note 8)
Other, net

Income taxes:
Current
Deferred (Note 14)
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent
The accompanying notes are an integral part of these financial statements.

12Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Consolidated Statements of Comprehensive Income
For the years ended March 31, 2019 and 2018
Thousands of
U.S. dollars (Note 2)

Millions of yen
2019

2018

2019

¥ 470

¥3,280$4,235(1,673)
(307)
1,052

(450)
301
2,386

(15,078)(2,772)
9,481

(15)

(24)

(140)

Total other comprehensive income
Comprehensive income

(944)
(474)

2,213
5,493

(8,510)(4,275)Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

(564)
¥ 89

5,487
¥6

(5,083)$808

Net income
Other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

YenAmounts per share:
Net income — basic (Note 3 (11))
Cash dividends applicable to the year
The accompanying notes are an integral part of these financial statements.

13

U.S. dollars (Note 2)

2019

2018

2019

¥ 10.04
5.00¥93.57
5.00

$0.09
0.05

Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Consolidated Statements of Changes in Net Assets
For the years ended March 31, 2019 and 2018

Millions of yen

Shareholders’ equity

Capitalstock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equityshares34,258,433 ¥32,756¥7,438¥8,599¥ (147) ¥48,647¥5,506

Number ofshares in
issue

Balance at April 1, 2017

Total accumulated other comprehensive income

Valuationdifference
on availablefor-salesecurities

Changes during the year:

Issurance of new shares
Dividends of surplus
Deficit disposition
Net income attributable to owners of parent
Acquisition of treasury stock(1,167)

Change in treasury shares of parent arisingfrom transactions with non-controlling shareholders

Changes during the year:
Issurance of new shares
Dividends of surplus
Deficit disposition
Net income attributable to owners of parent
Acquisition of treasury stock

(1)

(138)

Changes in items other than shareholders’ equity
Total changes during the year
Balance at March 31, 2018

1,167
3,198

−

(1,305)

4,365

34,258,433 ¥32,756¥6,132¥12,965

10,483,000

3,805

3,805

10,483,000

Balance at March 31, 201944,741,433 ¥ 36,561

3,805

3,549

¥5,736¥2,247 ¥56,631

−
−
−
3,198
(1)

−
−
−
3,198
(1)

(138)

(138)
265
265

2,325
2,325

2,289
2,289

(901)
(901)

¥ (148) ¥51,706¥5,204¥1,511¥1,309¥8,025¥1,345 ¥61,077

(170)
(1)

7,610
(170)
−
351
(1)

(255)

(255)
(1,568)(1,568)

(302)
(302)

955
955

(915)
(915)

¥ (150) ¥ 59,240¥ 3,635¥ 1,209¥ 2,265¥ 7,110

(1)

1,387
4,446

7,610
(170)
−
351
(1)

7,534

180

¥ 9,682 ¥ 13,145¥1,245 ¥ (1,015)

(302)
(302)

(255)

Changes in items other than shareholders’ equity
Total changes during the year

Total
accumulated
otherRemeasurements
comprehensive Non-controlling Total netof definedincomeassetsinterests
benefit plans

3,058

(1)

351

Change in treasury shares of parent arisingfrom transactions with non-controlling shareholders

Foreigncurrencytranslation
adjustment

(691)
(691)

(1,606)5,927¥ 654 ¥ 67,004

Thousands of U.S. dollars
Shareholders’ equity
Number ofshares in
issue

Balance at April 1, 201834,258,433 $295,128

Changes during the year:
10,483,000
Issurance of new shares
Dividends of surplus
Deficit disposition
Net income attributable to owners of parent
Acquisition of treasury stock
Change in treasury shares of parent arisingfrom transactions with non-controlling shareholders
Changes in items other than shareholders’ equity
Total changes during the year
10,483,000
Balance at March 31, 2019

Capitalstock

34,285

CapitalsurplusRetainedearnings$55,256 $116,817
34,285

Total
shareholders’equityTotal
Foreignaccumulated
currency Remeasurements
otherof defined comprehensive Non-controlling Total net
translation
adjustment benefit plansinterests
assetsincome$(1,340) $465,861$46,892$13,617

Treasuryshares(1,540)
3,164

(13)

(2,300)34,28544,741,433 $329,413

31,984

Total accumulated other comprehensive income

Valuationdifference
on available-for-salesecurities$11,801 $72,311 $12,123 $550,296

68,570(1,540)
−
3,164
(13)

68,570(1,540)
−
3,164
(13)

(2,300)1,624$87,240 $118,441

The accompanying notes are an integral part of these financial statements.

14(2,300)67,880(14,135)(14,135)(2,723)(2,723)$(1,353) $533,742$32,756$10,893(13)(8,248)(8,248)(6,229) (14,477)(6,229) 53,402$20,412 $64,062$5,894 $603,698

8,610
8,610

Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2019 and 2018

Thousands of
U.S. dollars (Note 2)

Millions of yen
2019

2018

2019

¥ (845)
10,116
697
124
632
238
4
(622)
1,372
(1,562)463
8,533(1,469)4,190(1,795)¥1,74910,474
−
209
(149)
312
(9)
(560)
1,767
(846)
(1,144)(29)(1,935)
2,041
2,710

$(7,613)
91,151
6,281
1,124
5,697
2,151
41
(5,610)12,367(14,077)
4,175
76,888(13,236)
37,757(16,178)

Sub-total

20,08014,589180,918

Net cash provided by (used in) operating activities

19,066

12,809171,784(10,223)
12
(22)
2,633
−
(1,035)14(359)(7,822)
1,872
(25)
1,136
(0)
(902)
23
(276)

(92,112)112(200)
23,729−(9,328)132(3,237)(8,979)(5,994)(80,903)(1,370)4,000
2,775(19,618)
(374)
7,610
−
(1)
(170)
(112)

1
3,000
7,740
(17,441)
(362)
−
48
(1)
−
(237)

(12,346)
36,03925,002(176,760)(3,370)68,570−(13)(1,540)(1,016)

(922)

(854)

(8,312)

Net cash provided by (used in) financing activities(8,185)(8,107)(73,747)

IV Effect of exchange rate change on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period

(28)
1,873
9,744

196
(1,096)
10,840(255)
16,877
87,794¥ 11,617¥9,744$104,671

I Cash flows from operating activities:
Net income (loss) before income taxes and non-controlling interests
Depreciation
Loss on disaster
Impairment loss (Note 8)
Decrease (increase) in net defined benefit asset (Note 13)
Increase (decrease) in net defined benefit liability (Note 13)
Increase (decrease) in provision for directors' retirement benefits
Interest and dividend income
Interest expense
Loss (gain) on sales of short-term and long-term investment securities
Loss (gain) on disposal of non-current assets (Note 6)
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net

−
(84)
619
(1,378)(171)

Payments for business restructuring cost
Payments for loss on disaster
Interest and dividend income received
Interest expenses paid
Income taxes paid
II Cash flows from investing activities:
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities
III Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial paper
Proceeds from long-term debt
Repayments of long-term debt
Repayments of lease obligations
Proceeds from issuance of shares
Proceeds from share issuance to non-controlling shareholders
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling shareholders
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation

VII Cash and cash equivalents at end of period (Note 3 (12))
The accompanying notes are an integral part of these financial statements.

15

(131)
−
566
(1,771)
(442)

−
(760)
5,583
(12,416)(1,540)Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
1. Basis of Presenting the Consolidated Financial Statements
The accompanying consolidated financial statements of Mitsubishi Paper Mills Limited (the “Company”) and its subsidiaries areprepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to applicationand disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments and Exchange Law of Japan.
Certain items presented in the consolidated financial statements submitted to the Director of Kanto Finance Bureau (a regional
branch organization of the Ministry of Finance in Japan) have been reclassified for the convenience of readers outside Japan.

2. United States Dollar Amounts
The Company maintains its accounting records in yen. The dollar amounts included in the accompanying consolidated financial
statements and notes thereto represent the arithmetical results of translating yen to dollars on the basis of ¥110.99 = U.S.$1, theexchange rate prevailing as of March 31, 2019. The inclusion of such U.S. dollar amounts is solely for convenience and is notintended to imply that yen amounts have been or could be readily converted, realized or settled in U.S. dollars at that rate or any
other rate.

3. Summary of Significant Accounting Policies(1) Scope of consolidation

The Company had 33 subsidiaries as of March 31, 2019 (33 as of March 31, 2018). The accompanying consolidated financial
statements include the accounts of the Company and 26 (26 for 2018) of its subsidiaries for the year ended March 31, 2019
(together, hereinafter referred to as the “Companies”).
The accounts of the remaining 7 (7 for 2018) unconsolidated subsidiaries for the year ended March 31, 2019 have been
excluded from consolidation since the aggregate amounts of these subsidiaries in terms of combined assets, net sales, retained
earnings and net income were immaterial in relation to those of the consolidated financial statements of the Companies.
The fiscal year end of Mitsubishi Paper Holding (Europe) GmbH and other 5 (5 for 2018) consolidated subsidiaries is December 31. For the purpose of preparing the consolidated financial statements, the Company used their financial statements as of theirrespective fiscal year end. The Company made adjustments for the purpose of consolidation as necessary for the materialtransactions that occurred between such fiscal year-end dates and the consolidated account closing date.

(2) Consolidation and elimination

For the purposes of preparing the accompanying consolidated financial statements, all significant intercompany transactions,account balances and unrealized profits among the Companies have been eliminated.
Elimination of investments in shares of consolidated subsidiaries, together with the underlying equity in net assets of such
subsidiaries, has been made to include equity in net income of subsidiaries subsequent to the respective dates of acquisition in the
consolidated statements of income. Any difference between the cost of an investment in a subsidiary and the amount of underlying
equity in net assets of the subsidiary, unless specifically identified and reclassified to the applicable accounts from which the value
originates, is treated as goodwill or negative goodwill. Goodwill and negative goodwill (only incurred before March 31, 2010) areamortized over five years on a straight line basis.
Assets and liabilities of subsidiaries are remeasured based on their fair value at the date of acquisition of control of thesubsidiaries.

(3) Investments in unconsolidated subsidiaries and affiliates

The Company had 10 affiliates as of March 31, 2019 (10 for 2018). 3 affiliated companies were accounted for by the equity method.
However, the remaining 7 (7 for 2018) subsidiaries and 7 (7 for 2018) affiliates did not have a material effect on net income andretained earnings in the accompanying consolidated financial statements and, therefore, these investments have been carried atcost.

(4) Financial instruments(i) Derivatives

All derivatives are stated at fair value, with changes in fair value included in net income or loss for the year in which they arise,
except for those that are designated as “hedging instruments.”(ii) Securities
Securities other than equity securities issued by subsidiaries and affiliates are classified into three categories: trading,held-to-maturity or other securities. Marketable securities classified as other securities are carried at fair value with changes in

16

unrealized holding gain or loss, net of the applicable income taxes, included directly in net assets. Non-marketable securities
classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
(iii) Hedge Accounting
Unrealized gains or losses arising from changes in fair value of derivative financial instruments designated as “hedging
instruments” are carried as an asset or a liability until the losses or gains on the hedged items or transactions are recognized.
In accordance with the exceptional measure under the Japanese Accounting Standard for Foreign Currency Translations, theCompanies do not record certain forward exchange contracts at market value but translate the underlying foreign currency
denominated assets or liabilities using the contractual rate under these contracts as long as such contracts meet the criteria for
applying hedge accounting under the Japanese Accounting Standard for Financial Instruments.
Furthermore, in accordance with the special measure under the Accounting Standard for Financial Instruments, the Companies do not record certain interest rate swap arrangements at market value but charge or credit net cash flows arising from theswap arrangements to interest arising from the hedged borrowings, as long as these arrangements meet the specific criteria under
the standard.
(5) Inventories

Finished products, merchandise and work in process are primarily stated at lower of cost or market, cost being determined by theweighted average method and other inventories are stated at lower of cost or market, cost being determined by the moving
average method.

(6) Property, plant and equipment

Depreciation of buildings (excluding for leased assets) is computed by the straight-line method. Depreciation of other property,
plant and equipment (excluding for leased assets) is mainly computed by the straight-line method, but in part, thedeclining-balance method is used at the head office of the Company and certain consolidated subsidiaries. However, depreciationof structures acquired after April 1, 2016 is computed by the straight-line method.
Estimated useful lives of assets used in computing depreciation are as follows:
Buildings and structures...................... 31 to 47 years
Machinery and equipment............................ 12 years
Leased assets under finance lease agreements of the Company and its domestic consolidated subsidiaries, which do not
stipulate the transfer ownership of the leased assets to the lessee, are depreciated principally over the lease term by thestraight-line method with no residual value except for the following transactions.

(7) Allowance for doubtful accounts

The Company and the domestic consolidated subsidiaries provide the allowance for doubtful accounts based on the bad debt loss
ratio derived from their own loss history plus the amount of uncollectible receivables estimated on an individual basis.
Overseas consolidated subsidiaries provide the allowance for doubtful accounts based on methods prescribed by their respective
countries’ regulations.

(8) Accounting method for retirement benefits(i) Method of attributing the projected benefits to periods of service
As for the calculation of retirement benefit obligation, the benefit formula basis is used for including estimated retirement benefits ina period till the end of this consolidated fiscal year. Some consolidated subsidiaries adopt the simplified method for calculating theliabilities and costs for retirement benefits, while defining the term-end privately necessary payment for retirement benefits asretirement benefit obligation for the lump-sum severance pay plan, and defining the actuarial obligation in the latest pension financecalculation as retirement benefit obligation for the corporate pension plan.
(ii) Amortization of unrecognized prior service cost
Unrecognized prior service cost is amortized on a straight-line basis over a term that does not exceed the average remaining
service period of the employees who are expected to receive benefits under the plans (9 to 15 years).
(iii) Amortization of unrecognized net actuarial gain or loss
Unrecognized net actuarial gains or losses are amortized from the year following the year in which such gains or losses arerecognized on a straight-line basis over a term that does not exceed the average remaining service period of the employees whoare expected to receive benefits under the plans (9 to 15 years).

(9) Reserve for loss on dissolution of employee pension fund

The Company and certain domestic consolidated subsidiaries reserve for loss on dissolution of employee pension fund.

17

(10) Translation of foreign currency financial statements (accounts of overseas subsidiaries and affiliates)

The financial statements of overseas consolidated subsidiaries are translated into Japanese yen at the exchange rates prevailing at
the respective balance sheet dates of those subsidiaries for assets and liabilities, and at the historical exchange rate for capital
accounts and retained earnings. All income and expense accounts are translated at the average rates of exchange during the fiscal
year of those subsidiaries. The resulting translation adjustments are included in net assets.

(11) Net income or loss per share

Net income or loss per share is based on the weighted average-number of common shares outstanding less the number of treasury
stock during each year, appropriately adjusted for subsequent free distributions of common shares.

(12) Cash and cash equivalents

Cash and cash equivalents in the consolidated statements of cash flows are composed of cash on hand, bank deposits that are able
to be withdrawn on demand and short-term investments with original maturities of three months or less that are exposed to a minor
risk of fluctuation in value.
A reconciliation of cash and cash equivalents in the accompanying consolidated statements of cash flows and cash and bankdeposits in the accompanying consolidated balance sheets at March 31, 2019 and 2018 is shown below:
Thousands of
U.S. dollars

Millions of yen

Cash and bank deposits
Cash and cash equivalents

2019

2018

2019

¥ 11,617¥ 11,617¥9,744¥9,744$104,671$104,671(13) Dividends
The Companies Act of Japan (the “Law”) provides that an amount equal to 10% of the amount to be distributed as distributions ofcapital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capitalreserve and the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the common
stock amount. Such distributions can be made at any time by resolution of the shareholders, or by the Board of Directors if certain
conditions are met, however neither the capital reserve nor the legal reserve is available for distributions.
(14) Changes in presentation methods
From the beginning of the current fiscal year, the Company has applied "Partial Amendments to Accounting Standard for Tax
Effect Accounting" (ASBJ Statement No.28, February 16, 2018). Therefore, "Deferred tax assets" is included in "Investments andother assets", and "Deferred tax liabilities" is included in "Non-current liabilities." Furthermore, it is also applied to the amounts
presented for the previous fiscal year.
(15) Reclassification
Certain reclassification have been made to the prior year’s consolidated financial statements to conform to the presentation for theyear ended March 31, 2019.

18

4. Assets Pledged as Collateral
Assets pledged as collateral primarily for short-term loans, long-term debt and debentures at March 31, 2019 and 2018 were as
follows:

Thousands of
U.S. dollars

Millions of yen

Buildings and structures
Machinery and equipment
Land
Investment securities
Other

2019

2018

2019

¥ 13,974
19,215
10,4084,269
49¥14,993
23,24910,4974,676
54$125,907
173,126
93,77838,463442¥ 47,916¥53,471$431,718

5. Contingent Liabilities
As of March 31, 2019 the Companies were contingently liable for guarantees of loans, primarily of their employees and unconsolidated subsidiaries and affiliates, in the aggregate amount of ¥423 million ($3,811 thousand), and also liable for a recourse
obligation of credit securitization in the aggregate amount of ¥1,835 million ($16,540 thousand).

6. Disposal of Property, Plant and Equipment(1) Gains on disposal of property, plant and equipment

Main items under gains on disposal of property, plant and equipment were as follows:

Thousands of
U.S. dollars

Millions of yen
2018

2019

¥0
–
7

Land
Buildings and structures
Machinery and equipment¥1,049
482
13

2019

$0
–
71

(2) Losses on disposal of property, plant and equipment

Main items under gains on disposal of property, plant and equipment were as follows:

Thousands of
U.S. dollars

Millions of yen

Scrapping and removal expenses
Machinery and equipment
Land
Buildings and structures

2019

2018

2019

¥ 254
195
–
7

¥214
81
74
19

$2,2951,761–
65

7. Environmental Expenses
Previous consolidated fiscal year (April 1, 2017 – March 31, 2018)
Expenses associated with the disposal of PCB (polychlorinated biphenyl) waste

198. Impairment Loss
Consolidated fiscal year under review (April 1, 2018 – March 31, 2019)

Application
Idle assets
Idle assets
Idle assets

Location
Aomori
Aomori
Tochigi

Millions of yen

Category

Thousands of
U.S. dollars

Impairment loss
¥ 61
41
22

Land
Machinery and equipment, etc.
Land

$551
373
199

Our group’s main business assets are the factories that are used as production bases. Idle assets are grouped per individual unit.
The book values of assets to be disposed of and idle assets are reduced to recoverable values. Such loss is reported as an
impairment loss under extraordinary losses. Furthermore, the recoverable value is measured with the net sale value. Land isevaluated based on the values by real estate appraisers, and other assets are reduced their book value to the residual value.
Previous consolidated fiscal year (April 1, 2017 – March 31, 2018)

Application
Idle assets
Idle assets
Rental property
Idle assets

Millions of yen

Location

Category

Impairment loss

Ibaraki
Aomori
Osaka
Fukushima, etc.

Buildings, etc
Buildings
Land
Machinery and equipment, etc.

¥132
40
26
8

Our group’s main business assets are the factories that are used as production bases. Idle assets are grouped per individual unit.
The book values of assets to be disposed of and idle assets are reduced to recoverable values. Such loss is reported as an
impairment loss under extraordinary losses. Furthermore, the recoverable value is measured with the net sale value. Land isevaluated based on the values by real estate appraisers, and other assets are reduced their book value to the residual value.

9. Other Comprehensive Income
The following table shows reclassification adjustment for each component of other comprehensive income for the year ended
Thousands ofMarch 31, 2019:
Millions of yen
U.S. dollars
2019

2018

2019

¥ (1,036)(1,404)¥(199)(779)$(9,339)(12,652)(2,440)767¥ (1,673)

(979)
529
¥(450)(21,991)6,912$(15,078)

Foreign currency translation adjustment
Amount arising during the year

¥ (307)¥301$(2,772)

Remeasurements of defined benefit plans
Amount arising during the year
Reclassification adjustments for gains and losses included in net income

¥ 953
310

¥3,828(369)$8,588
2,797

1,263
(211)
¥ 1,052

3,459(1,072)¥2,386

11,385(1,904)$9,481

(15)

(24)

(140)

¥ (944)¥2,213$(8,510)

Net unrealized gain (loss) on available-for-sale securities
Amount arising during the year
Reclassification adjustments for gain and losses included in net income
Amount before tax effectTax effect
Total

Amount before tax effectTax effect
Total
Share of other comprehensive income of affiliates accounted for by the equity method
Amount arising during the year
Total other comprehensive income

2010. Financial Instruments(1) Summary of financial instruments(i) Policy regarding financial instruments
To carry out its capital expenditure plans to develop its paper, pulp, photosensitive material products and other manufacturing
activities, the Group raises the funds it needs principally through bank loans and issuance of corporate bonds. Temporary
surpluses are managed as short-term deposits, and temporary working capital is procured through bank loans and issuance ofcommercial paper. The Company has a policy of not entering into any speculative derivative transactions and only enters into
derivative transactions to avoid exposure to interest-rate risk on loans.
(ii) Details of financial instruments and related risk and management of risk
Trade notes and accounts receivable are exposed to the credit risk of customers. In accordance with the internal policy for credit
risk management regulations, the Group manages both the due dates and balance of such transactions by customer, and has
systems to accurately assess the credit status of its major customers at any time.
Receivables in foreign currencies originating overseas businesses are exposed to foreign exchange-rate risk. The majority ofthese risks are diminished through the use of a balance of accounts payable denominated in foreign currencies.
Investment securities are exposed to risks of changes in market prices. However, market prices of the shares held for
operational purposes are periodically reviewed.
Trade notes and accounts payable are obligations due within one year.
Short-term borrowings are raised mainly in connection with business activities, while long-term debt, corporate bonds andlease obligations related to finance lease transactions are the main means for procurement of funds needed for capital expenditures. In most cases, the repayment date is within five years from the balance sheet date. For some long-term debt with floatinginterest rates exposed to interest-rate fluctuation risk, the Company uses derivative transactions (interest-rate swaps) for hedging
purposes.
For derivative transactions, the Company uses forward exchange contracts to hedge against exchange-rate risk affecting
trade notes and accounts receivable and payable denominated in foreign currencies, and interest rate swap transactions to hedge
interest rate fluctuation risks on loans. We do not assess the effectiveness of our hedging strategies, since all derivative transactions meet the conditions for special accounting treatment for interest rate swaps.For carrying out and managing derivativetransactions, the Company adheres closely to internal policies delimiting the authority for engaging in such transactions. To reduce
credit risk in using derivatives, the Company works only with the financial institutions with good credit-ratings.
The Company is exposed to liquidity risk in its payables and borrowings. Risk-management methods including compilation ofa monthly cash flow plan are used to mitigate the risks by each Group company.
(iii) Additional notes on the fair value of financial instruments, etc.
Calculations of the fair value of financial instruments are based on their quoted market prices, as well as their reasonably estimatedfair value when the quoted market prices are not available. Since various assumptions and factors are reflected in estimating thefair value, different assumptions and factors could result in different fair value. In addition, the contract values of derivatives in Note
12. Derivatives are not necessarily indicative of the actual market risk involved in derivative transactions.

(2) Fair value of financial instruments

Book value, fair values and differences between them as of March 31, 2019 are as follows. The following table does not include
financial instruments for which the fair value is extremely difficult to determine (please refer to note below).

21

Millions of yen
2019

Trade notes and accounts receivable
Investment securities
Available-for-sale securities
Total of assets

Trade notes and accounts payable
Electronically recorded obligations
Short-term loans payable (excluding current portion of long-term debt)
Commercial Paper
Long-term debt (including current portion of long-term debt)
Total of liabilities
Derivative transactions

Book value

Fair value

Difference¥ 37,686¥ 37,686¥−

15,82253,50915,82253,509−−25,347
5,390
49,5997,000
48,431
135,769

25,347
5,390
49,5997,000
49,041
136,380

−
−
−
−
610
610

¥−

¥−

¥−

Thousands of U.S. dollars
2019

Trade notes and accounts receivable
Investment securities
Available-for-sale securities
Total of assets
Trade notes and accounts payable
Electronically recorded obligations
Short-term loans payable (excluding current portion of long-term debt)
Commercial Paper
Long-term debt (including current portion of long-term debt)
Total of liabilities
Derivative transactions

Book value

Fair value$339,551$339,551$−

142,558
482,109228,380
48,568446,885
63,068436,355
1,223,258

142,558
482,109228,380
48,568446,885
63,068441,857
1,228,760

−
−
−
−
−
−
5,501
5,501

$−

$−

Difference$−

Millions of yen
2018

Trade notes and accounts receivable
Investment securities
Available-for-sale securities
Total of assets
Trade notes and accounts payable
Electronically recorded obligations
Short-term loans payable (excluding current portion of long-term debt)
Commercial Paper
Long-term debt (including current portion of long-term debt)
Total of liabilities
Derivative transactions

Book value

Fair value¥46,330¥46,330¥−

19,69066,02019,69066,020

−
−
−
−
−
−
860
860

26,818−51,1953,000
65,289146,302¥−

26,818−51,1953,000
66,149147,163¥−

Difference¥−(i) Trade notes and accounts receivable
Because these are settled in a short period of time, fair value approximates book value. Accordingly, fair value is recognized asbook value.
(ii) Investment securities
Fair value of investment securities is based on quoted share prices at stock exchanges, and bond prices are based on indicative
published prices in the papermaking sector.
(iii) Trade notes and accounts payable, (iv) Electronically recorded obligations
Because these are settled in a short period of time, fair value approximates book value. Accordingly, fair value is recognized asbook value.
(v) Short-term loans payable
Because these are settled in a short period of time, fair value approximates book value. Accordingly, fair value is recognized asbook value.

22

(ⅵ) Commercial Paper
Because these are settled in a short period of time, fair value approximates book value. Accordingly, fair value is recognized asbook value.
(vii) Long-term debt
The fair value of long-term debt is calculated by discounting the total principal and interest using the assumed interest rate given
equivalent new borrowings.
For long-term debt with floating interest rates, loans are subject to special settlement for interest swaps. The fair value iscalculated by discounting the total principal and interest (including interest-rate swap) using the interest rate reasonably estimatedgiven equivalent new borrowings. The amount also includes the total current portion of long-term debt of ¥15,575 million ($140,331
thousand).
(viii) Derivatives
Please see Note 12.
Unlisted equity securities (in the amount of ¥1,919 million ($17,290 thousand) on the consolidated balance sheet) are not included
in available-for-sale securities, due to the difficulty of measuring their fair value as the stock has no quoted share price and future
cash flow cannot be predicted.
Thousands of
U.S. dollars

Millions of yen

Unlisted equity securities

2019

2018

2019

¥ 1,919¥1,981$17,290

Planned repayment of debentures, long-term debt, lease obligations and other interest-bearing liabilities after the balance sheet
date (consolidated basis)
Millions of yen
2019

Short-term loans payable
Long-term debt
Lease obligations
Other interest-bearing debt
Total

Due within
1 year

1-2 years

2-3 years

3-4 years

4-5 years

Over 5 years¥ 49,599
15,575
367
7,000

¥−
13,963
118−¥−
10,798
98
−

¥−
5,882
83
−

¥−
742
60
−

¥−
1,467
63
−

¥ 72,542¥ 14,082¥ 10,897¥ 5,965¥ 803¥ 1,530

Thousands of U.S. dollars
2019

Short-term loans payable
Long-term debt
Lease obligations
Other interest-bearing debt
Total

Due within
1 year

1-2 years

2-3 years

3-4 years

4-5 years

Over 5 years$446,885
140,3313,311
63,068$−125,811
1,072−$−
97,296890−$−
53,001
748
−

$−
6,690
544
−

$−
13,223568−$653,597$126,883$98,186$53,749$7,235$13,792

Millions of yen
2018

Short-term loans payable
Long-term debt
Lease obligations
Other interest-bearing debt
Total

Due within
1 year

1-2 years

2-3 years

3-4 years

4-5 years

Over 5 years¥51,195
19,633
375
3,000

¥−
15,575354−¥−
13,60092−¥−
10,155
73
−

¥−
5,238
59
−

¥−
1,086
111
−

¥74,203¥15,930¥13,692¥10,228¥5,298¥1,19823

11. Investment Securities
The acquisition cost, carrying amount, gross unrealized holding gains and gross unrealized holding losses for securities with fairvalue by security type at March 31, 2019 and 2018 are summarized as follows:
Available-for-sale securities:
Millions of yen
2019

Acquisition

Carrying amountGross unrealized
holding gains

Gross unrealized
holding losses¥ 10,594¥ 15,822¥ 5,644¥ 416¥ 10,594

Equity securities¥ 15,822¥ 5,644¥ 416

Thousands of U.S. dollars
2019

Acquisition

Carrying amountGross unrealized
holding gains

Gross unrealized
holding losses$95,451$142,558$50,857$3,749$95,451

Equity securities$142,558$50,857$3,749Millions of yen
2018

Equity securities

Acquisition

Carrying amountGross unrealized
holding gains¥12,020¥19,690¥8,053¥12,020¥19,690¥8,053Gross unrealized
holding losses

¥384

¥384

12. Derivatives(1) Transactions not subject to hedge accounting
No applicable transactions(2) Transactions subject to hedge accounting(i) Currency-related

No applicable transactions(ii) Interest-rate related

2019

2018

Hedge accounting
methodType of derivativetransaction, etc.

Main targets of hedging

Contract value

Contract value of
instruments
due within morethan a year

Special settlement ofinterest rate swap

Interest rate swap
transactions,fixed
payments,variable
receivables

Long-term debt

¥12,210 million¥3,883 million$110,009 thousand$34,988 thousand

Special settlement ofinterest rate swap

Interest rate swap
transactions,fixed
payments,variable
receivables

Long-term debt
¥21,410 million¥12,210 million

Transactions subject to special settlement for interest rate swaps are settled as a combined sum with the long-term debt being
hedged so the fair value is included in the fair value of the long-term debt.

24

13. Retirement and Pension Plans(1) Outline of retirement benefit plan
The Company and consolidated subsidiaries adopt reserve-type and non-reserve-type defined benefit and defined contributionplans for the retirement benefits of our employees.
In the defined benefit pension plan (reserve-type), employees will receive lump-sum payments or pensions, which arecalculated based on their salaries and employment periods.
In the lump-sum retirement benefit plan (non-reserve-type), employees will receive lump-sum retirement benefits, which arecalculated based on their salaries and employment periods. The Company and some consolidated subsidiaries establish
retirement benefit trusts for the lump-sum retirement benefit plan to make it reserve-type.
In addition, additional retirement benefits may be paid, at the time of the retirement, etc. of our employees.
In the defined benefit pension and lump-sum retirement benefit plans adopted by some consolidated companies, thesimplified method is used for calculating the liabilities and costs for retirement benefits.
As for defined contribution plans, the Company and some consolidated subsidiaries establish the defined contribution
pension plan, while the other consolidated subsidiaries subscribe to Smaller Enterprise Retirement Allowance Mutual Aid System.
(2) Defined benefit plans(i) The schedule of the defined benefit obligation at 2019 and 2018, were as follows:

Thousands of
U.S. dollars

Millions of yen

Balance at the beginning of the year
Current service cost
Interest cost
Actuarial gain and loss
Retirement benefit paid
Other
Balance at the end of the year

2019

2018

2019

¥ 22,882
1,052
125
43
(1,263)(351)¥22,467
1,083
113
(264)
(1,076)557¥ 22,490$206,168
9,486
1,130
395
(11,380)(3,165)¥22,882(ii) The schedule of the pension assets at 2019 and 2018 were as follows:

Thousands of
U.S. dollars

Millions of yen

Balance at the beginning of the year
Expected return on pension assets
Actuarial gain and loss
Contributions by the employer
Retirement benefit paid
Balance at the end of the year

2019

2018

2019

¥ 19,516
14
931
53
(697)

¥16,174
14
3,703
53
(429)

$175,839
133
8,396
484
(6,283)¥ 19,819¥19,516(iii) The schedule of the net defined benefit liability for simplified method at 2019 and 2018 were as follows:
Millions of yen

Balance at the beginning of the year
Periodic benefit cost
Retirement benefit paid
Contribution to systems
Balance at the end of the year

$178,569

Thousands of
U.S. dollars

2019

2018

2019

¥ 698
105
(71)
(17)

¥649
92
(26)
(16)

$6,296
948
(644)
(153)

¥ 715

25

$202,634¥698$6,446

(iv) The reconciliation of the defined benefit obligations and pension assets to the liabilities and assets on retirement benefits
recognized in the consolidated balance sheet as of 2019 and 2018 were as follows:

Thousands of
U.S. dollars

Millions of yen

Funded defined benefit obligations
Pension assets

2019

2018

2019

¥ 15,211(20,181)¥15,145(19,872)$137,057(181,828)(4,969)8,355

Unfunded defined benefit obligations

Net amount of liabilities and assets recognizedin consolidated balance sheet

3,386

Retirement benefit liabilities
Retirement benefit asset

Net amount of liabilities and assets recognizedin consolidated balance sheet(4,727)
8,792
4,065

(44,771)
75,28230,511

8,718(5,331)

9,328(5,263)78,550(48,038)¥ 3,386¥4,065$30,511(v) The profits and losses related to retirement benefits for fiscal period ended March 31, 2019 and 2018 were as follows:
Thousands of
U.S. dollars

Millions of yen
2019

2018

2019

Current service cost
Interest cost
Expected return on pension assets
Actuarial gain and loss recognized in the year
Prior service cost recognized in the year
Periodic benefit cost in simplified method¥ 1,052
125
(14)
345
(34)
105

¥1,083
113
(14)
(334)
(34)
92

Periodic benefit costs of retirement benefit plan

$9,486
1,130
(133)
3,109
(312)
948

¥ 1,579¥906$14,228

In addition to the above, the premium severance payment has been reported as extraordinary losses of ¥576 million ($5,197 thousand), and ¥375 million
for the consolidated fiscal year ended March 31,2019 and 2018, respectively.

(vi) The breakdown of items in other comprehensive income for fiscal period ended March 31, 2019 and 2018 were as follows:
Thousands of
U.S. dollars

Millions of yen
2019

2018

2019

Actuarial gain and loss
Prior service cost

¥ 1,298(34)¥3,494(34)$11,697
(312)

Total

¥ 1,263¥3,459$11,385(vii) The breakdown of items in accumulated other comprehensive income for fiscal period ended March 31, 2019 and 2018 were as
follows:

Thousands of
U.S. dollars

Millions of yen
2019

2018

2019

Unrecognized actuarial gain and loss
Unrecognized prior service cost

¥ 3,333
28¥2,034
63$30,030
258

Total¥ 3,361¥2,097$30,288

26

(viii) The breakdown of pension assets by major category as of March 31, 2019 and 2018 were as follows:2019

Equities
Bonds
General account of life insurance
Other

2018

36%
39%
23%
2%

38%
37%
23%
2%

100%

100%

(ix) The items of actuarial assumptions as of fiscal period ended March 31, 2019 and 2018 were as follows:

Discount rate
Expected long-term return on plan assets

2019

2018

0.0〜2.1%
0.0〜2.1%

0.0〜2.0%
0.0〜2.0%(3) Defined contribution plan
The necessary contribution to the defined contribution plan of our company and consolidated subsidiaries is ¥351 million($3,168 thousand) and ¥359 million for the consolidated fiscal year ended March 31, 2019 and 2018, respectively.
(4) Multi-employer pension plan
As for the multi-employer pension plan (comprehensive employees' pension system) used by some consolidated subsidiaries,
its importance is not significant, and so its notes are omitted.

14. Deferred Income Taxes(1) At March 31, 2019 and 2018, significant components of deferred tax assets and liabilities were as follows:
Millions of yen

Deferred tax assets:
Accrued enterprise taxes
Accrued expenses
Net defined benefit liability
Allowance for doubtful accounts
Accumulated impairment loss of fixed assets
Unrealized gains on property, plant and equipment
Net operating loss carry forward
Other

Gross deferred tax assets
Valuation allowance for tax loss carry forward
Valuation allowance for total deductible temporary difference
Gross valuation allowance
Total deferred tax assets

Deferred tax liabilities:
Gain on securities contributed to retirement benefit trust
Return of securities contributed to retirement benefit trust
Reserve based on Special Taxation Measures Law
Unrealized gains on available-for-sale securities
Other

Total deferred tax liabilities

2019

2018

2019

¥ 69
551
2,313
33
324
135
9,918
2,325

¥77
587
2,378
75
357
175
6,231
7,713

$626
4,965
20,841
304
2,922
1,223
89,363
20,954

15,671(7,946)(2,548)(10,494)27

17,596−−(13,585)

141,201(71,594)(22,958)(94,553)

5,177

4,011

46,647(1,121)(163)(15)(1,343)(264)(1,121)(316)(16)(2,110)(289)(10,100)(1,474)(139)(12,103)(2,385)(2,908)¥ 2,269

Net deferred tax assets

Thousands of
U.S. dollars(3,854)¥156(26,203)$20,444(2) For the year ended March 31, 2019 and 2018, a reconciliation of the statutory tax rate to the effective tax rates was as follows:
2019

−
−
−
−
−
−
−

Statutory tax rate
Permanently non-deductible expenses
Permanently non-taxable income
Per capita inhabitants’ taxes
Valuation allowance
Unrealized gains (losses)
Other

Effective tax rates

−

2018

30.9%
3.1
(3.2)
3.1
(119.4)(1.5)(0.3)(87.4)%For the year ended March 31,2019, notes were omitted due to the posting of loss before income taxes and non-controlling interests.

15. Asset Retirement Obligations
Asset retirement obligations recorded in the consolidated balance sheets(1) Summary of the asset retirement obligations

The Company recognized the asset retirement obligations with regard to the obligations to remove asbestos which was used inproperty, plant and equipment.

(2) Method of calculating the amount of the asset retirement obligations

The asset retirement obligations are calculated based on the expected period of use of 12 years and at a discount rate of 1.3%,
mainly.

(3) Increase or Decrease of the amount of the asset retirement obligations
Thousands of
U.S. dollars

Millions of yen

Balance at the beginning of the year
Adjustment of the passage of time
Effect of the execution of the asset retirement obligations
Balance at the end of the year

2019

2018

2019

¥ 888
0
(6)
¥ 882

¥888
0
(0)
¥888

$8,0036(54)$7,955

16. Real Estate for Lease
The importance of the amount of real estate for lease is not significant, and so its notes are omitted.

28

17. Segment Information(1) Reportable segment information

The Company’s reportable segments are components for which discrete financial information is available and which are regularly
reviewed by the Board of Directors to determine resource allocation and evaluate business results.
The Company’s businesses are divided into segments, which handle specific products and carry out comprehensive strategy
planning in Japanese and overseas markets.
The Company consists of four reportable segments, identified by product portfolio, which are classified as the “Paper and Pulp
Segment,” the “Imaging Segment,” the “Speciality Materials Segment,” and the “Warehouse and Transportation Segment.”
The “Paper and Pulp Segment” develops writing and printing paper, premium-quality paper and pulp. The “Imaging Segment”
handles product portfolios, including photo-sensitive printing plates, inkjet paper, photographic materials. The “Speciality Materials
Segment” handles speciality and other product portfolios. The “Warehouse and Transportation Segment” handles warehousing andcarrying service.
Consolidated fiscal year under review (April 1, 2018–March 31, 2019)
Millions of yen
Reportable segments

Year ended March 31, 2019

Paper
and Pulp

ImagingSpeciality
Materials

Warehouse
andTransportation

Total¥ 5,093¥ 201,903

3,239

15,9824,414¥ (51)¥ 98

Net sales
Sales to third parties ¥ 152,860 ¥ 29,499 ¥ 14,449
Inter-segment sales and
3,919
5,787
3,035
transfers
Total sales

Segment income（loss）

Segment assets
Depreciation and amortization
Investment in equity-method
affiliates
Increase in tangible andintangible fixed assets

156,780¥ (1,427)

35,287¥ 537

17,485
¥ 653

8,333

217,886¥ 4,528123¥ 226,032
10,085¥ 184¥ 165,791 ¥ 37,987 ¥ 17,724
7,597
1,753
610

Other

Total

Adjustments

Consolidated¥−¥ 203,997

20,396 (20,396)−¥ 2,093 ¥ 203,997

6,508

224,394 (20,396)

203,997¥ 9,561 ¥ 235,593 ¥ (2,834)
133
10,218(101)¥ 232,758
10,116¥ 46¥ (87)¥ (40)

1,456

−

−

−

1,456

262

1,719

−

1,719

9,618

1,823

985

137

12,56544

12,609(127)

12,481

Adjustments

Consolidated$−$1,837,981

Thousands of U.S. dollars
Reportable segments
Year ended March 31, 2019

Net sales
Sales to third parties
Inter-segment sales andtransfers
Total sales

Segment income（loss）

Paper
and Pulp

ImagingSpeciality
Materials

Warehouse
andTransportation$1,377,248 $265,788 $130,188
35,312

1,412,561$(12,861)

52,144

317,932$4,84529,190$5,891$1,658Segment assets$1,493,755 $342,261 $159,690
68,455
15,794
5,504
Depreciation and amortization
Investment in equity-method
affiliates
13,125−−
Increase in tangible andintangible fixed assets
86,662
16,433
8,875

29

Other

Total

$45,892 $1,819,118 $18,862 $1,837,981

27,349157,537

Total

75,083

143,996

1,963,115$(465)

39,776

58,638$888

183,772 (183,772)−

2,021,753 (183,772) 1,837,981$422$(785)$(362)$40,802 $2,036,510 $86,143 $2,122,654 $(25,539) $2,097,114
90,866
1,200
92,066(915)
91,151
1,112−

13,1252,363

15,488−15,488

1,242

113,213398

113,611(1,152)

112,459

(i) The engineering business and others are included in “Other.” They are not included in the reportable segments.
(ii) Adjustments are:• Adjustments and eliminations for segment income include ¥(61) million ($(555) thousand) of elimination of inter-segment income
and loss and ¥(25) million ($(230) thousand) of corporate expenses, which are general and administrative expenses and are notallocable to the reportable segments.
• Adjustments and eliminations for segment assets include ¥14,633 million ($131,844 thousand) of corporate assets and ¥(17,468)
million ($(157,383) thousand) of elimination of inter-segment assets.
• Adjustments and eliminations for amortization of ¥(101) million ($(915) thousand) is elimination of inter-segment.
• Adjustments and eliminations for increase in tangible and intangible fixed assets include ¥(127) million ($(1,152) thousand) ofelimination of inter-segment increase in tangible and intangible fixed assets.
(iii) Segment income (loss) is adjusted with consolidated operating loss.

Previous consolidated fiscal year (April 1, 2017 – March 31, 2018)
Millions of yen
Reportable segments
Year ended March 31, 2018

Net sales
Sales to third parties
Inter-segment sales andtransfers
Total sales

Segment income

Segment assets
Depreciation and amortization
Investment in equity-method
affiliates
Increase in tangible andintangible fixed assets

Paper
and Pulp

ImagingSpeciality
Materials

Warehouse
andTransportation

Total¥148,508¥31,756¥14,090¥5,208¥199,563

2,936

3,367

¥952

¥258

3,712

5,151

152,220

36,907

17,026¥174,439
7,613¥38,784
2,089

1,554
5,292

¥98

15,166

Other

Total

Adjustments

Consolidated¥−¥201,492

21,500 (21,500)−¥1,928 ¥201,492
6,333

8,575

214,730

8,262¥17,090608¥4,607
122¥234,921
10,434¥8,207 ¥243,129 ¥(5,750) ¥237,379
138
10,572(98)
10,474

−

−

−

1,554

1,625

478

140

7,536

¥449

¥1,759¥135

222,992 (21,500) ¥201,492¥1,895¥(104)¥1,790

323

1,878

−

1,878

19

7,556

(117)

7,438

(i) The engineering business and others are included in “Other.” They are not included in the reportable segments.
(ii) Adjustments are:• Adjustments and eliminations for segment income include ¥(75) million of elimination of inter-segment income and loss and ¥(29)
million of corporate expenses, which are general and administrative expenses and are not allocable to the reportable segments.
• Adjustments and eliminations for segment assets include ¥12,664 million of corporate assets and ¥(18,414) million of eliminationof inter-segment assets.
• Adjustments and eliminations for amortization of ¥(98) million is elimination of inter-segment.
• Adjustments and eliminations for increase in tangible and intangible fixed assets include ¥(117) million of elimination of inter-segment increase in tangible and intangible fixed assets.
(iii) Segment income is adjusted with consolidated operating income.

30

(2) Geographical information(i) Net sales to third parties by countries or areas grouped according to geographical classification for the years ended March 31,
2019 and 2018 are as follows:

Thousands of
U.S. dollars

Millions of yen
2019

Japan
EuropeAsia
North America
Other

Consolidated

2019

2018

¥ 131,855
36,755
16,39015,205
3,791¥137,787
32,80913,30813,923
3,663$1,187,994
331,160
147,675
136,994
34,156¥ 203,997¥201,492$1,837,981

Net sales information above are based on customer location.
(ii) Property, plant and equipment by countries or geographical areas at March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars

Millions of yen
2019¥ 92,148
8,621
337
83

Japan
EuropeAsia
North America

Consolidated

2019

2018

$830,243
77,681
3,039
751¥89,704
9,545
370
113

¥ 101,191$911,715¥99,732(3) Impairment loss on fixed assets by reportable segments

Consolidated fiscal year under review (April 1, 2018 – March 31, 2019)
Millions of yen

Reportable segments
Year ended March 31, 2019

Impairment loss

Paper
and Pulp

ImagingSpeciality
Materials

Warehouse
andTransportation

Total

Other

Total

¥ 124

¥−

¥−

¥−

¥ 124

¥−

¥ 124

Reportable segments
Year ended March 31, 2019

Impairment loss

Paper
and Pulp$1,124

CorporateandAdjustments¥−

Consolidated¥ 124

Thousands of U.S. dollars

ImagingSpeciality
Materials

Warehouse
andTransportation

Total

Other

Total

$−

$−

$−

$1,124$−$1,124

CorporateandAdjustments$−

Consolidated$1,124Previous consolidated fiscal year (April 1, 2017 – March 31, 2018)
Reportable segments
Year ended March 31, 2018

Impairment loss

Millions of yen

Paper
and Pulp

ImagingSpeciality
Materials

Warehouse
andTransportation

Total

Other

¥47

¥1

¥−

¥26

¥76

¥−

31

Total

CorporateandAdjustments

Consolidated

¥76

¥132

¥209

Mitsubishi Paper Mills Limited and Consolidated Subsidiaries

Independent Auditor’s Report32Mitsubishi Paper Mills Limited

Board of Directors, Executive Officers and Audit & Supervisory Board Members
Managing Executive Officers

Kunio Suzuki
Director, Chairman

Masaki Shuto

Yukihiro Tachifuji

Director andSenior Managing Executive Officer

Makoto Fujita

Naoki Okawa

Nobuhiro SatoManaging Executive Officer

Shimpei Yamada

Kazuyoshi Ando

Director, Chairman

Kunio Suzuki

President and Chief Executive Officer

Yukihiro Tachifuji

Director and Senior Managing
Executive Officers

Kanji Morioka

In charge of Raw Materials &Purchasing Dept. and Internal Audit
Dept.

Junji HaradaSupervisor,Imaging Div., Energy
Business Dept.,Speciality Materials
R&D Laboratory, Product Development Dept.,Intellectual Property
Dept.,Technology & Environmental
Dept and Kitakami Div.; In charge ofSpeciality Materials Div. ; General
Manager, Speciality Materials Div.

Junji Harada

Director andSenior Managing Executive Officer

Director andManaging Executive Officer

Managing Executive Officer

Kanji Morioka

President and Chief Executive Officer

Director andManaging Executive Officer

Director andManaging Executive Officer

Director andManaging Executive Officer
Director and Managing
Executive Officers

Shimpei Yamada

Executive Officers

In charge of Imaging Div. andKitakami Div.
;General Manager, Imaging Div.
;Deputy charge of German Operations

Keiichi SatoIn charge of General Affairs &Personnel Dept., Legal Dept. andShirakawa OfficeOutside Directors

Masaya Sawada

Nobuhiro Sato

Yoshihiro Kataoka

Teiji Ota

Masaki Shuto

In charge of Finance & Accounting
Dept.

Naoki Okawa

Soumitsu Takehara

In charge of Paper Div. and German
Operations ; General Manager, Paper
Div.

Senior Executive Officers

Akira Inoue

Kazuyoshi Ando

Director and Managing Executive
Officer, Mitsubishi Paper Sales Co.,Ltd.

In charge of President’s Office;General Manager, President’s Office;Director responsible for Corporate
Social Responsibility

Koji Hayashi

President, Mitsubishi Paper Holding(Europe) GmbHManaging Executive Officers

Makoto Fujita

In charge of Energy Business Dept.,
Speciality Materials R&D Laboratory, Product Development Dept.,Intellectual Property Dept.andTechnology & Environmental Dept.
;General Manager, ProductDevelopment Dept.

President & CEO, MPM Operation
Co., Ltd.; Head, Hachinohe Mill;
Deputy General Manager, Paper
Div.;
Deputy General Manager,
Speciality Materials Div.
Head, Kyoto Mill; Deputy General
Manager, Imaging Div.

Yuji Takagami

Deputy General Manager, Imaging
Div.
General Manager, Graphic &Development Dept.

Audit & Supervisory Board Member

Koichi Nakayama

Outside Audit & Supervisory Board
President & CEO, KJ Specialty Paper MembersCo., Ltd.
Hiroaki Tonooka

Takeshi Sunakawa

33

Takayuki Nakazato
Takeshi Kobayashi(as of June 26, 2019)

Mitsubishi Paper Mills Limited

Company Data

Established:
April 1, 1898
Head Office:2-10-14, Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Telephone:+81-3-5600-1488 (Information)+81-3-5600-1481 (President’s Office)+81-3-5600-1459 (Commercial Printing & Business Communication
Paper Sales Dept. Paper Division)+81-3-5600-1460 (Home & Industry Products Sales Dept. Paper Division)+81-3-5600-1464 (Sales Administration Dept. Paper Division)+81-3-5600-1536 (International Sales Dept. Paper Division)+81-3-5600-1479 (Imaging Media Dept. Imaging Division)+81-3-5600-1475 (Graphic & Development Dept. Imaging Division)+81-3-5600-1471 (Speciality Materials Division)+81-3-5600-1453 (Raw Materials & Purchasing Dept.)
Facsimile:+81-3-5600-1489 (Information)+81-3-5600-1489 (President’s Office)+81-3-5600-1467 (Commercial Printing & Business Communication
Paper Sales Dept. Paper Division)+81-3-5600-1467 (Home & Industry Products Sales Dept. Paper Division)+81-3-5600-1469 (Sales Administration Dept. Paper Division)+81-3-5600-1539 (International Sales Dept. Paper Division)+81-3-5600-1418 (Imaging Media Dept. Imaging Division)+81-3-5600-1413 (Graphic & Development Dept. Imaging Division)+81-3-5600-1419 (Speciality Materials Division)+81-3-5600-1451 (Raw Materials & Purchasing Dept.)

Sales Branch:
Osaka

Corporate Research Center:
Speciality Materials R&D Laboratory
Kyoto R&D Laboratory
Process Development Laboratory
Mills:
Takasago
Kyoto
Hachinohe
Major Affiliates:
Domestic

Mitsubishi Paper Sales Co., Ltd.
Toho Tokushu Pulp Co., Ltd.
MPM OJI Home Products Co., Ltd.
MPM Operation Co., Ltd.
Hachinohe Paper Processing Co., Ltd.
Hachiryo Co., Ltd.
Takasago Paper Processing Co., Ltd.
Hakuryo Paper Technology Co., Ltd.
Shin-Hokuryo Forest Products Co., Ltd.
Kitakami HiTec Paper Corp.
Kyoryo Chemical Co., Ltd.
Pictorico Co., Ltd.
Diamic Co., Ltd.
Hokuryo Co., Ltd.
KJ Specialty Paper Co., Ltd.
NAMITSU Co., Ltd.
Mitsubishi Paper Engineering Co., Ltd.
Ryoko Co., Ltd.
Ryoshi Co., Ltd.
MPM CAE Center Co., Ltd.

Overseas

Mitsubishi Paper Holding (Europe) GmbH (Germany)
Mitsubishi HiTec Paper Europe GmbH (Germany)
Mitsubishi Imaging (MPM), Inc. (U.S.A.)
MP Juarez LLC (Mexico)
Zuhai MPM Filter, Ltd. (China)
MPM Hong Kong Limited

Disclaimer Regarding Forward-Looking Statements
This material contains forward-looking statements relating to thebusinesses and prospects of the Company. These statements are basedon our expectations at MAY 2019. and are subject to the risks anduncertainties that may affect our businesses, which could cause actual
results to differ materially from those anticipated.
We will not be liable for any damage or loss incurred by you arisingout of or in connection with this material.

34

2-10-4 Ryogoku, Sumida-ku,
Tokyo 130-0026, JAPANURL https://www.mpm.co.jp/