August 5,2022

Summary of Consolidated Financial Results for theFirst Quarter of the Year Ending March 2023 (unaudited)
Company name:
URL:
Representative:
Contact:
Phone:(Code No.3864 Tokyo Stock Exchange)
Mitsubishi Paper Mills Limited
https://www.mpm.co.jp/
Ryuichi Kisaka, President and Chief Executive Officer
Hiroyuki Ino,General Manager, Finance & Accounting Dept.
+81-3-5600-1407(Amounts of less than one million yen are rounded down.)
1. Results for the First Quarter of the Year Ending March 31, 2023 (April 1, 2022 - June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Million yen

First Quarter of FY2022
First Quarter of FY2021
Note: Comprehensive income%Million yen

48,604 16.4
41,746
1.4
First Quarter of FY2022
First Quarter of FY2021%

Million yen%

Million yen%

668
335

99.6(557)(1,161)-(769)(1)¥(919) million¥(580) million

Profit per share

Diluted profit pershare-YenYen(12.53)(26.01)-Total assets

Net assets

Shareholders'equity ratio

Million yenMillion yen

Million yen

First Quarter of FY2022
First Quarter of FY2021(2) Consolidated Financial Condition

First Quarter of FY2022
Year ended March 2022
Note: Shareholders' equity

219,801
215,879
First Quarter of FY2022
FY2021

68,696
69,613¥68,693 million¥69,608 million

31.3
32.2

2. Dividends
End of 1Q

End of 2Q

Dividend per share
End of 3Q

End of FY

Yen

Yen

Yen

Yen

Yen

0.00

0.00

5.00

5.00

FY20210.00
FY2022
FY2022(Forecast)
0.00
Note : Revision to the forecast for dividends announced most recently … NoneAnnual3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating income%Million yen

Profit attributable toowners of parent

Ordinary income%Million yen

Full year
200,000 9.9
2,500
3,500
78.2
Note : Revision to the financial results forecast announced most recently … None%

Million yen

1,500

Earnings
per share%

36.8

Yen

33.74

4. Notes(1) Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation):
New: - (Company name);
Excluded: - (Company name)

None(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:
Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
Yes
4) Retrospective restatement:None(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):First Quarter of FY2022 44,741,433 shares
FY202144,741,433 shares2) Total number of treasury shares at the end of the period:First Quarter of FY2022
288,549 shares
FY2021
288,324 shares
3) Average number of shares during the period:First Quarter of FY2022 44,453,009 sharesFirst Quarter of FY2021 44,657,546 shares
Notes： The Company has adopted a BIP (Board Incentive Plan) trust, assuming the number of shares held by thetrust are included in the number of treasury stock of “(4) Total number of issued shares (common shares)”.
* This quarterly financial results report is exempt from quarterly review by Certified Public Accountants or an Audit Firm.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently
acquired by the Company and certain assumptions assessed to be reasonable. Actual results may differ
significantly from these forecasts due to a wide range of factors.

Contents of Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review ................................................. 2(1) Explanation of Operations Results ......................................................................................................................... 2(2) Explanation of Financial Position........................................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ....................... 3
2. Consolidated Financial Statements and Primary Notes ................................................................................................ 4(1) Consolidated Balance Sheets .................................................................................................................................. 4(2) Consolidated Statements of Income and Comprehensive Income .......................................................................... 6―1―

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operations Results
Forward-looking statements supplied below are forecasts Mitsubishi Paper Mills Limited and its consolidated subsidiaries (the“Group”) made as of the last day of the period under review.
(1) State of Operating Results
In the three months ended June 30, 2022, economic activities continued to recover to a certain extent, assisted by efforts to prevent
COVID-19’s spread consistent with those activities. Meanwhile, uncertainties remained high over matters such as steep rises in raw
material and fuel prices, as well as exchange rate fluctuations that may result from the rapid depreciation of the yen, amid concern
over the possible prolongation of the situation in Ukraine.
Looking at conditions surrounding the Group, a demand recovery was observed mainly due to the easing of restrictions on outingsand events. However, sharp rises in the prices of fuels, such as crude oil, coal and natural gas, affected the Group significantly.
Under these circumstances, the Group worked to improve productivity by to continue production systems in line with demand trends
in each business and, in term of sales, strived to revise product prices and expand sales of new products.
The Group began executing the Mid-Term Management Plan (for the fiscal year ending March 31, 2023 to the fiscal year ending
March 31, 2025) in the ongoing fiscal year, adopting “Creation of a New Mitsubishi Paper Mills Group” as a slogan.
The outline of the Mid-Term Management Plan (for the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2025)
is as follows.
(i) Strengthen our revenue base through selection and concentration strategies and expansion of new business(ii) Contribution to a green society(iii) Organizational change to improve sustainability
Consolidated net sales amounted to 48,604 million yen (up 16.4% year on year) in the first three months under review.
The consolidated operating loss came to 769 million yen (compared with an operating loss of 1 million yen in the first three monthsof the previous fiscal year), and consolidated ordinary income reached 668 million yen (compared with ordinary income of 335
million yen in the first three months of the previous fiscal year), reflecting the strong effects of steep raw material and fuel priceincreases, despite the cost-cutting effects produced by product price revisions, fixed cost reduction, carbon intensity improvement
and the like. Loss attributable to owners of parent was 557 million yen.
Operating results by segment are as follows:
In the first three months under review, the Company changed reportable segments to match its internal organization. Specifically,
the Company added the warehouse and transportation business to the paper and pulp business to create the paper materials businesssegment and set up the functional materials business segment by integrating the imaging media business with the specialty materials
business.
(Million yen)
Net sales

Paper materials
Reportable FunctionalSegments materials
Total

First Quarterof FY2021

First Quarterof FY2022

32,935

Operating income (loss)
Change (%)

First Quarterof FY2021

First Quarterof FY2022

38,82817.9(1,124)(1,811)‒

11,651

14,010

20.2

1,219

1,081(11.3)

44,587

52,83918.5

95(730)‒Change (%)

Others

1,518

1,465(3.5)

(2)

18‒

Total

46,10554,30417.8

93(712)‒Adjustment (Note)(4,359)(5,700)Total

41,746

48,604(Note) Adjustment is mainly related to internal transactions.

―2―

16.4

(94)

(57)

(1)

(769)

‒(Paper materials business)
In Japan, the sales volume remained at the previous fiscal year’s level. However, the sales value increased given the positive effects
of price revisions. Both sales volume and value also increased in exports. In terms of production, the Company continued
production systems in line with demand trends.
Both sales volume and value increased in European subsidiaries.
Meanwhile, the soaring prices of raw materials and fuels heavily affected costs in Japan and Europe.
As a result, net sales for the paper materials business increased and profits for the business decreased.
Under these circumstances, the Company announced product price revisions again to deal with further cost increases attributableto factors such as raw material and fuel prices, which remained unprecedented levels, and a continued upward trend in logistics
expenses. The Company is advancing initiatives based on the revisions. Regarding commercial pulp, the Company will work tolaunch and expand the production and sales of bleached kraft pulp that exclusively uses home-grown conifers as a raw material at
Kitakami Hitec Paper Corp. while focusing on expanding the sales volume for exports, taking foreign exchange trends into
consideration.
As self-help efforts, the Company will also continue initiatives for optimizing production systems and normalizing inventory levels
according to demand trends, stepping up cooperation with the Oji Group and expanding the lineup of new materials centered on
pulp and wrapping paper in a sustained attempt to convert its product portfolio and stabilize its revenue at an early stage.
(Functional materials business)
Sales rose steadily for water treatment membrane supporting bodies, battery separators and tape base paper. However, sales fell
year on year for filters, decorative laminate base paper, backing paper for wall paper and the like.
Both the sales volume and the sales value increased for electronics-related products, reflecting the acquisition of new customers.
Sales for imaging media-related products stayed at the previous fiscal year’s level.
Meanwhile, the soaring prices of raw materials and fuels affected costs heavily.
As a result, net sales for the functional materials business rose and profits for the business fell.
The Company will keep focusing on expanding the sales of battery separators, heat-resistant non-woven fabrics, tape base paper,electronics-related products and newly launched melt-blown non-woven fabrics, in addition to acquiring users for water treatment
membrane supporting bodies and applying the bodies to membrane bio-reactors (MBRs).
The Company is continuing production system reviews for imaging media-related products and strengthening the revenue base forthose products. The Company will take initiatives for improving revenue in Japan and overseas, including efforts for expanding
sales to new customers.

(2) Explanation of Financial Position
Assets at the end of the first three months under review amounted to 219,801 million yen, up 3,922 million yen from the end of theprevious fiscal year, mainly due to increases in accounts receivable - trade and inventories.
Total liabilities came to 151,105 million yen, up 4,840 million yen from the end of the previous fiscal year, chiefly attributable to agrowth in short-term loans payable.
Net assets decreased 917 million yen from the end of the previous fiscal year, to 68,696 million yen, mainly reflecting the posting ofloss attributable to owners of parent.
The equity ratio was 31.3%, down 0.9 percentage points from the end of the previous fiscal year.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Consolidated results forecasts for the fiscal year ending March 31, 2023 remain unchanged from the same forecasts announced onMay 12, 2022.

―3―Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)First Quarter /Assets
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

FY2021

FY2022

Mar 31,2022

Jun 30,2022

9,047

―4―

6,275

7,724

8,327

33,87935,802

23,44623,503

6,487

6,572

10,857

14,198

3,969

4,920

(130)

(150)

95,282

99,45021,33520,93837,69436,457

21,276

21,789

1,638

2,750

2,646

2,597

84,59084,533

1,864

2,026

1,864

2,026

19,86819,742

14,343

14,115(70)(66)

34,14133,791

120,596

120,351

215,879

219,801

(Million yen)First Quarter /Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Commercial paper
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for share awards
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
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
Total net assets
Total liabilities and net assets

FY2021

FY2022

Mar 31,2022

Jun 30,2022

24,617―5―

24,702

3,541

3,823

56,43360,167

6,000

6,000

475

116

11,652

12,480102,720

107,290

29,96029,943

24

32

69

71

9,277

9,556

885

885

3,329

3,325

43,54543,814

146,265

151,105

36,561

36,561

6,488

6,524

13,96213,372

(228)

(228)

56,78456,229

4,688

4,463

952

993

7,182

7,006

12,824

12,46353

69,613

68,696

215,879

219,801

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)First Quarter /Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current assets
Extra retirement payments
Loss on valuation of shares of subsidiaries and associates
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
loss
Profit attributable to non-controlling interests
loss attributable to owners of parent―6―First Quarter /FY2021

FY2022

Apr '21 - Jun '21Apr '22 - Jun '22
41,746

48,60435,496

42,792

6,250

5,811

6,251

6,581

(1)

(769)

6

5

288

295

157

198

39

1,006

88

119

580

1,625

154

139

89

47

243

187

335

668

11－

292

0

0

1295

126

132－

278

77

479

646－

163

1

1,013

891

(677)

72

484

630

(1,161)(558)

01(1,161)(557)

Consolidated quarterly statements of comprehensive income(Million yen)First Quarter /loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―7―

First Quarter /FY2021

FY2022

Apr '21 - Jun '21

Apr '22 - Jun '22(1,161)

(558)

420

(225)

152

55

4

(176)

2(14)

580

(360)

(580)

(919)

(581)

(917)

0(1)