Note : This document has been translated from a part of the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

February 14,2024

Summary of Consolidated Financial Results for theThird Quarter of the Year Ending March 2024 (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,Deputy General Manager, Strategy Planning Division+81-3-5600-1488(Amounts of less than one million yen are rounded down.)
1. Results for the Third Quarter of the Year Ending March 31, 2024 (April 1, 2023 -December 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
First Nine Months of FY2023
First Nine Months of FY2022
Note: Comprehensive income

Million yen%

Million yen

144,669
154,522

(6.4)
17.1

2,882(1,325)

First Nine Months of FY2023
First Nine Months of FY2022%

Million yen%

Million yen%

4,332653¥437 million¥(2,880) million

563.2(45.6)(459)(4,818)-Profit per share

Diluted profit pershare

YenYen(10.51)(109.02)-Total assets

Net assets

Million yen

Million yen%

223,098
227,058

72,302
72,041¥72,277 million¥72,028 million

32.4
31.7

First Nine Months of FY2023
First Nine Months of FY2022(2) Consolidated Financial Condition

First Nine Months of FY2023
Year ended March 2023
Note: Shareholders' equity

First Nine Months of FY2023

FY2022

Shareholders'equity ratio

2. Dividends
End of 1Q

End of 2Q

Dividend per share
End of 3Q

End of FY

YenYenYen

YenYen

5.00

5.00

5.00

5.00

FY20220.00
FY20230.00
FY2023(Forecast)
Note : Revision to the forecast for dividends announced most recently … None

Annual

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% 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 (4.6)
6,000 519.6
7,500 142.7
Note : Revision to the financial results forecast announced most recently … None%

Million yen

4,000Earnings
per share%

-Yen

91.44

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: 1company (Company name) Kitakami HiTec Paper Corp.

Yes(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:
None2) 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 Nine Months of FY2023
44,741,433 shares
FY2022
44,741,433 shares2) Total number of treasury shares at the end of the period:First Nine Months of FY2023
950,579 shares
FY2022997,361 shares
3) Average number of shares during the period:First Nine Months of FY2023
43,766,386 sharesFirst Nine Months of FY2022
44,200,630 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........................................................................................................................... 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ....................... 4
2. Consolidated Financial Statements and Primary Notes................................................................................................ 5(1) Consolidated Balance Sheets .................................................................................................................................. 5(2) Consolidated Statements of Income and Comprehensive Income .......................................................................... 7―1―

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operations Results
During the nine months ended December 31, 2023, the business environment surrounding the Group continued to recover, mainly due
to the normalization of social activities and a recovery in inbound demand. Meanwhile, uncertainty remained elevated over matterssuch as the ongoing situation in Ukraine, rising tensions in the Middle East, remain high in raw material and fuel prices, and exchange
rate fluctuations.
In this environment, the Group took steps to expand new business by improving productivity and reducing costs while maintaining
product prices in sales.
In addition, the Group instituted the following initiatives in line with the basic policy of the “Medium-Term Management Plan” (forthe fiscal year ended March 31, 2023 to the fiscal year ending March 31, 2025) in order to enhance its corporate value.
(i) Strengthen our earning capacity by “selection and concentration” strategies and “expansion of new business”
The Group implemented reorganization, effective as of April 1, 2023, mainly by integrating its sales agents, the Company andsubsidiaries of Kitakami site, and subsidiaries of Hachinohe site. In addition, the Group decided on the integration of the Companyand Shin-Hokuryo Forest Products Co., Ltd., Kyoryo Chemical Co., Ltd. and Takasago Paper Processing Co., Ltd. and the integrationof subsidiaries on April 1, 2024 and the integration of the Company and KJ SPECIALTY PAPER Co., Ltd. on July 1, 2024 to reduce
fixed costs and strengthen corporate governance through organizational rationalization.
Meanwhile, the Group also completed the sale of the business of the Flensburg Mill of the Germany subsidiary on September 1,2023, executed the transfer of the thermal paper processing business, etc. of Katsumata Co., Ltd., the Company’s consolidated
subsidiary (sub-subsidiary), on October 2, 2023, and decided to transfer the sports club business operated by Ryoshi Co., Ltd., theCompany’s consolidated subsidiary, and its fixed assets (trust beneficiary interest). The Group will continue to proceed with its
organizational change to bolster profitability.
(ii) Contribution to a green society
Aiming for the sustainable growth of the Group, the the medium- to long-term enhancement of its corporate value and contribution
to society, the Group is promoting information disclosure in line with the recommendations of the TCFD (Task Force on Climaterelated Financial Disclosures) regarding both the risks and opportunities that climate change poses to its business.
With regard to its initiatives to reduce CO2 emissions, the Group participated in the GX League (GX: green transformation) toadvance the initiatives to reach the target for 2030 that the Group has pledged to achieve in order to realize a carbon-neutral society.
In terms of the sales expansion of environmentally friendly products, the Group is seeking to expand sales of kraft paper and barrier
paper, which are in strong demand for use in paper bags for mail order and take-out meals. The Group will contribute to eliminating
and reducing plastic usage and realizing a safe and comfortable sustainable society.
(iii) Organizational change to improve sustainability
In April 2023, the Group established the Mitsubishi Paper Mills Group Basic Sustainability Policy. The Group will strive to enhance
its corporate value by earning trust and support from its customers, and will seek to contribute to the realization of a sustainable
society by helping to address a range of social issues. Starting from the current fiscal year, the Group has issued an integrated reportinstead of a corporate report. The Group will update the contents of the corporate report and disclose more detailed information inorder to help all the stakeholders understand the overall activities of the Group.
Consolidated net sales amounted to 144,669 million yen (down 6.4% year on year) in the first nine months under review.
Consolidated operating income came to 2,882 million yen (compared with an operating loss of 1,325 million yen in the first ninemonths of the previous fiscal year) due mainly to product price revisions in response to raw material and fuel price revisions and cost
reductions, and consolidated ordinary income reached 4,332 million yen (compared with consolidated ordinary income of 653 million
yen in the first nine months of the previous fiscal year). However, a loss attributable to owners of parent amounted to 459 million yen
mainly due to the posting of accident related losses.
Operating results by segment are as follows:―2―

(Million yen)
Net sales
Nine months Nine months
ended
ended
December 31, December 31,
2022
2023
Functional materials

Operating income (loss)
Change (%)

Nine months Nine months
ended
ended
December 31, December 31,
2022
2023

Change (%)

82,03074,046(9.7)

1,852

2,648

43.0

Reportable Sustainable fiber
Segments materials

74,18872,111(2.8)(3,351)

133

‒

Total

156,219

146,158(6.4)(1,498)

2,782‒

Others

4,160

3,875

(6.8)

96

129

33.9

Total

160,379

150,033(6.5)(1,402)

2,912

‒

76

(30)

(6.4)

(1,325)

2,882

Adjustment (Note)(5,857)(5,364)

Total

154,522

144,669‒(Note) Adjustment is mainly related to internal transactions.
(Functional materials business)
In industrial materials-related products, the sales amount of water treatment base materials and rewrite media rose from the year-agelevel, but the sales amount of air filters, decorative laminate base paper, tape base paper and backing paper for wallpaper decreased
from the year-ago level.
In the imaging media-related business, revenue from inkjet paper fell below the level a year ago, reflecting a decrease of overseas
sales volume. In special dry film resists, although the sales volume of products for overseas markets increased, the sales amount ofequipment for the domestic market declined from a year ago.
In the information media-related business, revenue exceeded the level a year ago, attributable to the effect of price revisions in theprevious fiscal year, despite lower sales volume compared to a year ago.
Regarding businesses operated in Germany, both sales volume and value declined, due mainly to the impact of decreasing demandcaused by concerns about economic recession.
As a result, the functional materials business as a whole posted lower sales and higher profits.
In the industrial materials business, a key area in the Medium-Term Management Plan, the Group is advancing the water treatmentmembrane supporting body business, in which the Group is focusing on expanding sales given expected growth in global demand.
The Group is also conducting sample evaluations for new customers in Europe and the United States in the filter business, which
includes total heat exchanger elements. In the battery separators business, the Group will strive to capture automotive-related demandby further improving heat resistance.
In the imaging media-related business, the Group will work to expand sales of special dry film resists for in-vehicle related
applications, in addition to communication applications. Regarding imaging media-related product business, demand for image
output and printing is decreasing. In response, the Group will work to maintain sales volume by promoting sales in emerging
countries in Asia and expanding sales of products for labeling and industrial inkjet, while seeking to improve profitability bycontinuing to review production systems.
In the information materials business, the Group will continue to work to stabilize revenue, increase sales of high value-added
products such as FSC (Forest Stewardship Council)-certified paper products, and expand sales of thermal paper, where demand isstrong due to recovery in the flow of people.
Regarding businesses operated in Germany, the Group will try to stabilize revenue by promoting the business structural reform at
the Bielefeld Mill.
(Sustainable fiber materials business)
In the domestic market for printing paper, while sales volume decreased compared to a year ago due to a fall in demand, revenue
increased owing to the effect of price revisions in the previous fiscal year. In terms of exports, sales volume increased from the yearago level, and the sales amount also rose compared to a year ago thanks to the effect of the weaker yen, in addition to the highersales volume. At the same time, the Group has been working on a production system and inventory reduction in conformity withdemand trends.
With respect to commercial pulp, both export sales volume and value decreased as sales were suppressed due to price declines in―3―

overseas markets.
As a result, the sustainable fiber materials business as a whole posted lower sales and higher profits.
In the domestic market, the Group continued its efforts to maintain prices from the previous year and optimize the production system
and inventory level. In addition, due to strong demand for plastic-free and reduced-plastic products against a backdrop of rising
environmental awareness, the Group is expanding sales of kraft paper and building up a track record of adopting environmentallyfriendly wrapping paper with barrier and heat sealing properties (barricote® paper). For exports, the Group will continue to focus
on the expansion of sales volume and profits in light of trends in exchange rates. In addition, the Group will aim to stabilize revenue
in the sustainable fiber materials business by seeking to maximize synergies at both Hachinohe and Kitakami Mills and reduce costs
at each factory.

(2) Explanation of Financial Position
Assets at the end of the first nine months under review amounted to 223,098 million yen, down 3,959 million yen from the end of theprevious fiscal year, mainly due to decreases in inventories and property, plant and equipment, despite increases in cash and deposits
due to the effect of the holiday at the end of month and a valuation difference on investment securities, etc.
Total liabilities came to 150,795 million yen, down 4,220 million yen from the end of the previous fiscal year, chiefly attributable todecreases in loans payable and commercial paper, despite an increase in accrued expenses.
Net assets increased 260 million yen from the end of the previous fiscal year, to 72,302 million yen, mainly reflecting the posting ofvaluation difference on available-for-sale securities.
The equity ratio was 32.4%, up 0.7 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, 2024 remain unchanged from the same forecasts announced on
November 13, 2023.

―4―

Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)First Nine Months /Assets
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, 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―5―

FY2022

FY2023

Mar 31,2023

Dec 31,2023

8,325

10,408

8,074

10,03238,47037,58525,25725,305

6,322

7,060

18,49813,299

4,166

3,448

(92)

(93)

109,024

107,047

19,703

18,62034,91831,894

20,625

20,686733

8392,274

1,944

78,25673,984

2,379

2,104

2,379

2,104

21,60524,91015,85615,129(64)(78)

37,39839,961

118,034

116,051

227,058

223,098

(Million yen)First Nine Months /Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Commercial paper
Income taxes payable
Provision for loss on transfer of business
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―6―

FY2022

FY2023

Mar 31,2023

Dce 31,2023

28,71026,421

3,485

4,82461,467

66,581

5,000

3,000

302

399

1,614

－

9,877

14,069110,457

115,296

32,60324,549

53

102

49

38

7,603

6,573

885

939

3,362

3,295

44,55935,499155,016

150,795

36,561

36,561

6,524

6,523

13,357

12,706

(430)

(416)

56,012

55,375

5,532

8,177

1,111

844

9,372

7,880

16,015

16,90213

25

72,041

72,302

227,058

223,098

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)First Nine Months /Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income(loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
Gain on sale businesses
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Accident related loss
Business restructuring costs
Loss on cancellation of contracts
Impairment losses
Loss on sale of businesses
Provision for loss on transfer of business
Extra retirement payments
Loss on tax purpose reduction entry of non-current assets
OtherTotal extraordinary losses
Profit (loss) before income taxes
Income taxes
loss
Profit attributable to non-controlling interests
loss attributable to owners of parent―7―

First Nine Months /FY2022

FY2023

Apr '22 - Dec '22

Apr '23 - Dec '23

154,522

144,669

135,801

124,523

18,72020,14520,046

17,263(1,325)

2,882

20

6556

478

557

441849

949

501

317

2,485

2,192

403

617

103

125

506

742

653

4,332

220－

690－

225

347－

4－

374

916

236

144－

2,687－

850－

443－

309－

114

3,233－

493

35

329－

11

20

4,304

4,607

(3,277)

641

1,522

1,091

(4,799)(449)

19

10(4,818)(459)

Consolidated quarterly statements of comprehensive income(Million yen)First Nine Months /loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of taxShare 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―8―

First Nine Months /FY2022

FY2023

Apr '22 - Dec '22

Apr '23 - Dec '23(4,799)

(449)

(207)

2,641

652

(268)

1,485

(1,491)

(11)

7

1,919

887

(2,880)437(2,899)426

1911