Second Mid-Term Management Plan
(Mid-Term Plan II.)
FY2017.03-

FY2019.03(3 years)

May 30, 2016

Contents
Summary of the First Mid-term Management Plan (Phase 2 Rolling Plan) Summary Operating Income Plan Comparison
 Main Theme Implementation Status
 Toward the Next Mid-term Management Plan

Second Mid-term Management Plan Basic Principles
 Management Targets Value Investment Plan
 Concrete Measures(1) Structural Reform of Printing Paper Business(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation and financial groundthat will support the Group’s earning power１

First Mid-Term Management Plan
(Mid-Term Plan I.)

Review
FY2012.03 - - - FY2016.03(4.5 years)2Mid-Term
Plan I.

Summary of the First Mid-term Management Plan
(Phase 2 Rolling Plan)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base

Phase 1

Phase ２ Rolling Plan

2016/3
Plan

Variance

2,163

2,300

▲137

10

39

85

▲46

1

1

22

60

▲38

1,553

1,490

1,448

1,388

1,400

achieved

3.2

2.9

2.8

2.8

2.8

2.3

4,341

4,133

3,982

3,622

3,697

－

2012/3Result2013/3Result2014/3Result2015/3Result2016/3

1,949

2,009

2,075

2,149

Operating
Income22

33

5Ordinary
Income927Term loan

1,580

D/E ratio

Employee

Sales（unit：100 Million Yen)

Result
（ａ）

（ｂ）

（ａーｂ）

(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Unachieved－

3

Mid-Term
Plan I.

Operating Income Plan Comparison

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

• Operating Income by Segment (Deviation from Target Values
for the Term Ended March 31, 2016: -4.6 billion yen)
Others: 4

Imaging
Media: 23(Unit: 100 million yen)

Pulp
&Paper:-46
Imaging
Media:+1

Speciality
Materials:-1

Others:±0

Others: 4

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures

Speciality
Materials: 9

Pulp&Paper:48-22• Price:-18• German business:-16• Raw material & energy cost: -2• Costs:+12

Imaging
Media: 24
Pulp&Paper:2(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base• Quantity/product mix:

Speciality
Materials: 10

Second Mid-term ManagementPlan• Main Items in the -4.6 billion Yen
for Pulp＆ Paper Business

March 2016 Target

March 2016 result

8.5 billion yen

3.9 billion yen(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power• Pulp & Paper Business Factor Analysis

 Multiple price revisions were made to commercial printing paper in Japan. However, it was notpossible to hit the prices we set in our original plan.
 We attempted to sell production inkjet paper overseas. However, we did not achieve the sales
volume we set in our original plan.
 Our German operation suffered a loss in response to the worsening situation in the European
market. However, we reduced personnel as well as costs, and revised prices several times. As aresult, we made it back into the black in the 4Q for the term ended March 31, 2016.
４

Mid-Term
Plan I.

First Mid-term Management Plan
Main Theme Implementation Status

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business【Phase 1】
Reconstruction

1) Win back market share in
Printing Paper Business at an earlystage2) Repay at an early stage interest
bearing debts that have rapidly
increased (30 billion yen)【Phase 2 Rolling Plan】
Strengthen Profit Base for
Growth1) To enhance the activities formaking inroads into overseas
markets(2) Improving Profit Base

Implementation Status

We vertically started-up Hachinohe Mill.

Assessment

A

We reduced our interest-bearing debts as planned.

A

Implementation Status

Assessment

We established an Overseas Sales Division to earnestly aim
for an improvement to our types of product and to offer acomplete line-up. However, we did not achieve our overseas(3) Developing New Businesses

sales targets for our high value added production IJ papers.

(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Our German operation was sluggish in response to aCdeterioration in the European market situation.
2) To promote noncommoditization

We improved the ratio of “A2” flat sheet and moved toward
communication paper. However, the actual average unit price
was lower than that in our original plan due to a fall inCdemand and the market situation.

５

Mid-Term
Plan I.

First Mid-term Management Plan
Main Theme Implementation Status

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)【Phase 2 Rolling Plan】
Strengthen Profit Base for Growth

Implementation Status

3) To inject promising products tothe niche markets

We launched the functional film and functional filter.



SummaryOperating Income Plan Comparison

However, we did not achieve our sales plan. We significantly

Main Theme Implementation Status

exceeded our plan for RO membrane (water treatment)

Toward the Next Mid-term

supports and rewrite media. We progressed virtually as

Assessment

B

Management Plan

Second Mid-term Management
Plan

planned in regards to our battery separators (BS).
4) To implement the structuralreform of the Hachinohe Mill
(Reduce labor costs in all groupcompanies)

We reduced costs by 2.3 billion yen in two years by splitting

Basic Principles

Management Targets ValueInvestment Planby 19.5% - approx. 850 people – over four years.) WeConcrete Measuresreorganized our group companies. (We sold off Ostrichdia(1) Structural Reform of Printing
Paper Businessand dissolved Asahi Photosensitive Paper.)(2) Improving Profit Base5) Strengthen our financial
structure

off our Hachinohe Mill. We also reduced personnel. (reduced

We did not significantly improve our earning structure anddid not achieve our D/E ratio as planned. However, we(3) Developing New BusinessesAB

reduced our interest-bearing debts to the level before the(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Great East Japan Earthquake.
6) Strengthen our Imaging Mediaand Speciality Materials
Businesses (e.g. strengthen ouralliances)

We looked to strengthen our alliance with Fujifilm
Corporation. We paved the way to lead to a strengthening in
our profit base in our Second Mid-term Management Plan.

A

Our Speciality Materials Business saw an increase inoperating income by three-fold.

６

Mid-Term
Plan I.

Toward the Next Mid-termManagement Plan

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term

1

Structural reform of our Printing Paper Business is ourgreatest challenge.

2

We will strengthen our alliances centered in the Printing
Paper and Imaging Media Businesses in order to ensureprofit is not affected by the external environment.

3

We will aim to develop and harvest new businesses.

4

As the next step after reducing our interest-bearing debts totheir pre-Great East Japan Earthquake level, we willfurther strengthen our financial ground.

Management Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

７

Second Mid-Term Management Plan
(Mid-Term Plan II.)

Forecast
FY2017.03-

FY2019.03(3 years)8Mid-Term
Plan II.

Basic Principles in the Second Mid-termManagement Plan

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)
SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business••We will achieve stable earning structure not affected by the external environment
through structural reform and strengthening our alliance with Oji Group.
We will optimize our distribution and logistics systems.

2 Improving Profit Base•We will strengthen our alliance with Fujifilm Corporation to build an efficient production
system.

•We will improve the profit base business by effectively using the business superiority andpositioning of Mitsubishi Paper Mills.

3 Developing New Businesses(2) Improving Profit Base•••

(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

We will launch a biomass power generation business in collaboration with Oji Group.
We will strategically develop new businesses.
We will make careful strategic and selective investment in the focus fields.

Stabilization of profit
through AlliancesStructural Reform of Printing Paper

1 Business

Strengthening business foundation and financial groundthat will support the Group’s earning power4•

We will work on the reconstruction of business process and IT infrastructure to achieve theGroup’s business structure reform.

•

We will promote reduction of interest-bearing debts, which we have managed to reduce to the
pre-Great East Japan Earthquake level, and further strengthen the Group’s financial ground.

９Mid-Term
Plan II.

Management Target Value in the Second
Mid-term Management Plan

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term●Management Target Value

Second Mid-term Management Plan

(Unit: 100 million yen)

2016/3Result（ａ）

2017/3Plan

2018/3Plan

2019/3
Plan（ｂ）（ｂ）－（ａ）

2,163

2,200

2,250

2,300

+137

Operating
Income

39

45

55

65

+26

Ordinary
Income

22

25

35

45

+23

Term Loan

1,388

1,350

1,300

1,250

achieved

D/E ratio

2.8

2.7

2.5

2.3

unachieved

Sales

Management Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base
(3) Developing New Businesses●reference
2016/3 Result

Second Mid-term Management
Plan

USD

￥１２０．１６￥１１５

EUR￥１３２．３６

￥１２５

Dubai

４５．８＄/BBL

４５＄/BBL(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Exchangeoil

10Mid-Term
Plan II.

Management Target Value in the Second
Mid-term Management Plan .by Division

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management Plan

(Unit: 100 million yen)2016.3Result （ａ）

2017.3Plan

2018.3Plan

2019.3
Plan（ｂ）（ｂ）-（ａ）

Pulp＆Paper

1,643

1,640

1,660

1,670

+27

Imaging
Media
Speciality
Materials

418

450

470

490

+72

169

180

200

220

+51

Others

▲67

▲70

▲80

▲80

▲13

TOTAL

2,163

2,200

2,250

2,300

+137

2016.3Result （ａ）

2017.3Plan

2018.3Plan

2019.3
Plan（ｂ）（ｂ）-（ａ）(2) Improving Profit BaseOperating
Income(3) Developing New Businesses

Pulp＆Paper

2

21

23

26

+24

Imaging
Media
Speciality
Materials

24

19

21

25

+1

9

12

17

20

+11

Others

4

1

2

2

▲2

Risk（outside
factors）

-

▲8

▲8

▲8

▲8

TOTAL

39

45

55

65

+26

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Sales

11

Mid-Term
Plan II.

Investment Plan in the Second Mid-termManagement Plan

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper BusinessApproval Base (Unit: 100 million yen)
InvestmentPlan

2017/3Plan

2018/3Plan

2019/3
Plan

Total

Strategic
investment

41

24

35

100

Investment inmaintenanceandimprovement

38

42

32

112

Total

79

66

67

212

(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power• Company-wide business structure reform
Main content
of strategic
investment• Kyoto Mill: New coating machine• Takasago Mill: New non-woven fabric machine12Mid-Term
Plan II.

Basic Principles ①: Structural Reformof Printing Paper Business (1/2)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term

Basic Strategy• Build a stable earning structure not affected by theexternal environment

Management Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures

Key Challenges

Strategic expansion ofOEM

Concrete Measures• Promotion of our alliance with Oji Group centered oncommunication/specialty paper(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base• Increase in exports through OEM utilization(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Maintenance of ourfactory operating rate

• Further strengthening of industrial IJ and commercial printing paper
exports• Increase in the information/specialty paper ratio in Hachinohe Mill

13

Mid-Term
Plan II.

Basic Principles ①: Structural Reformof Printing Paper Business (2/2)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures

Key Challenges

Concrete Measures

Streamlining of the
supply chain throughintegrated managementof manufacture and sales• Streamlining of distribution through a review of the roles of our
firm/Mitsubishi Paper Sales by sales contact and by product• Streamlining of production in line with a product portfolio review• Promotion of product portfolio diversification in Mitsubishi Paper
Sales• Reduction in inventory through optimization of our distribution
systems(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Improvement in the
profitability of German
operation• Sales strategy focused on the European market where demand forthermal paper is strong• Expansion of the effect from a decrease in costs (materials, energy
and yield improvement)• Examination of alliances, etc. from a mid-to-long-term
perspective

14

Mid-Term
Plan II.

Cf. Trend of the production amountof Hachinohe Mill
Ten thousand ton／year

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

communication paper and others

100
85
80

70

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business

commercial printing paper

75

60

73
66

66

14/3

15/3

69

73

74

74

17/3

18/3

19/3

50

40

(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

20

0

09/3

10/3

11/3

12/3

13/3

First Mid-termManagement Plan
: Phase 1

16/3

First Mid-term Management Plan
:Phase 2 Rolling Plan

Second Mid-termManagement Plan

15

Mid-Term
Plan II.

Basic Principles ②: Improving Profit Base (1/2)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term

1. Strategic Strengthening of Imaging Media Business
Basic Strategy• Expansion of alliances• Expansion of existing productsManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business

Expansion of Alliances
We will further expand ouralliance with Fujifilm
Corporation to increase theproduction/supply ofphotographic materials
Base paper.

Photographic
materials
Base paper(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Expansion of Existing
Products
Graphic arts
We will develop theflexographic andmaterials
screen printing
market with TDP
products.

Ink-jetand other Digital
Imaging MediaWe will strengthen oursales capabilities throughapplication development
and enhanced productline-up in the commercial
field where demand is
expected to increase.

16Mid-Term
Plan II.

Basic Principles ②: Improving Profit Base (2/2)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business

2. Strategic Expansion of Speciality Materials Business
Basic Strategy• Further growth of non-woven fabric-related
products (water treatment and battery
separators)• Increase in sales in the Chinese, Korean and
ASEAN markets• We will set up a nonwoven fabric machinein Takasago to increase
sales.

(2) Improving Profit Base

• We will increase sales for
public/private demand in
China.
Non-wovenfabric /water treatment
and BS

Rewritemedia

Chemicalpaper (KJ)

Filters• We will launch products
and create markets in the
ASEAN region.

(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power• We will enter theEuropean tape basepaper (KJ Specialty
Paper) market for the
first time.

• We will strengthenfunctions of filter toincrease sales in East
Asia.

17

Mid-Term
Plan II.

Basic Principles ③: Developing New Businesses (1/3)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

Launch of Joint Biomass Business with Oji Group
Mitsubishi Paper
Mills



SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term• Advantageous location of oceanfront plants

Management Plan

• Power generation technology and expertiseas a paper manufacturer

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit BaseOji Green Resources
Co., Ltd.

Strengthening of theProfit Base at Our
Hachinohe Site
Start of business
Scheduled in June 2019

• Expertise in power generation business
operation and fuel procurement(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Summary: Utilization of the FIT System• Company Name: MPM Oji Eco Energy Co., Ltd. (Financing: 45% from Mitsubishi Paper
Mills and 55% from Oji Green Resources)• Location: In the premises of Hachinohe Mill of Mitsubishi Paper Mills• Production Capacity: Approx. 75,000kW (Power generation capacity)• Sales: Approx. 11 billion yen• Investment: 24 billion yen (Lease of main facilities, such as the boiler and turbine)18Mid-Term
Plan II.

Basic Principles ③: Developing New Businesses (2/3)
Field

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

Application

Operating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term[⽤途イメージ（写真）]Conductive
Film

Second Mid-term Management
Plan
Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base• Superior silver mesh film
suitable for large- sized
touchscreen devices• To expand our target market;
Taiwan, China and Korea andaccelerate the business• Excellent resistance andadhesion• Fragmented and dissolvedin stripping process• To improve the profitability of
DFR business by in-houseproduction based on its large andstable sales volume

A touchscreen device with ourconductive film

Management Plan

Activity（1） Functional Film

SummaryFeaturePhotosensitive
DFR[⽤途イメージ（写真）][⽤途イメージ（写真）]Step structure processedwith our DFR

Main strategic
investment
A new coatingmachineTargetPlace

Expand sales volume & Improve profitability by In-house Production

Kyoto Mill

(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power（2）Digital Textile Inkjet(IJ) Printing Transfer Paper

IJ
Transfer
Paper[⽤途イメージ（写真）]

Digital textile by MPM
technology• Newly developed IJ
transfer paper for cottonand silk (Natural fiber
textiles)• In addition to the existing dye
sublimation paper for polyester(Synthetic fiber); newly developed
IJ transfer paper for natural fabrics
will offer growth opportunity inthe digital textile marketplace.
19Mid-Term
Plan II.

Basic Principles ③: Developing New Businesses (3/3)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Field

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Activity

Feature(3) Expansion of New Non-woven Fabric-related Fields

EV
separators

Second Mid-term Management
PlanApplication[⽤途イメージ（写真）]• Advanced safety• Heat-resistance• Long battery life

• Provide polyester separators (NanoBaseX®) with an
inorganic coating layer that offer advanced safety forelectronic vehicles (EVs).

• Heat-resistance• Improved drying• Thin and highstrength• Expand newly separators of the paper type
(NanoBase2®) manufactured using multiple
functional fibers (e.g. fine fibrous cellulose) for
electric double layer capacitors (EDLC) that
focused on rapid charging/discharging.

Lithium-ion Battery

EDLC
separators[⽤途イメージ（写真）]Paper-type
Separator

Main Strategic
Investment
A new non-woven
fabric machine

TargetPlace

To increase non-woven fabric and battery separator sales

Takasago Mill

(4) Expansion into Other New Business Fields
CNTrelated
products[⽤途イメージ（写真）]
Sheet Coated with
CNT

• Superior electricalconductivity• High thermal
conductance• Commercialize processed products (e.g. tapes andsheets) that take advantage of capability on
CNT(carbon nano-tube) dispersion with highconcentration.

20

Mid-Term
Plan II.

Basic Principles ④: Strengthening business foundation and financial ground thatwill support the Group’s earning power (1/2)

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term

1. Strengthening of Business Foundation
We will establish business foundation to be able to flexibly respond to
management strategy on a company-wide basis.
ERP Introduction (Scheduled for 2018)

Management Plan

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures

Restructurebusiness process andIT infrastructure

Streamline production
and sales systems witha focus on the Printing
Paper Business(1) Structural Reform of Printing
Paper Business(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

Establish an
optimized businessflow across theentire group

Strengthen
profitability

21Mid-Term
Plan II.

Basic Principles ④: Strengthening business foundation and financial groundthat will support the Group’s earning power (2/2)

2. Strengthening of Financial Ground
Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-term

We will aim to continue reducing our interest bearing debts and further reduce our D/E ratio.
Term Ending March
31, 2019: Plan

138.8 billion yen

125 billion yen

2.8-fold

2.3-foldInterest bearing debts
D/E ratio

Second Mid-term Management
Plan

Management Targets ValueInvestment Plan

Concrete Measures

13.8 billion yen
reduction
0.5 improvement(X-fold)
5

2,000
1,919

1,900

(1) Structural Reform of Printing
Paper Business・・・・・ Actual ・・・・・

1,800

・・・・・ Plan

1,705

1,700

1,626

1,600

(2) Improving Profit Base
(3) Developing New Businesses

1,400

1,598

1,553
1,500 1,490

1,435

3.2

1,400 1,388
1,350

2.9

2.5

1,100

2.6

First Mid-termManagement
Plan : Phase 1

14/3

15/3

Plan

13/3

Plan

12/3

Plan

11/3

16/3

17/3

18/3

19/3

Plan

10/3

2.5 2.3

2.3
Actual

09/3

Plan

08/3

ActualPlan

07/3

Actual

06/3

2.7

2.2

1,000

3
1,250

2.8

2.5

2.1

2005/3

1,300

2.8

2.8

2.8

2.4

3.5

1,450 1,448

1,300
1,200

・・・・・
4

1,580

2.9
(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

4.5

1,616

1,530

3.5
1,500

D/E Ratio

Interest-bearing debts

Basic Principles

Improvement(100 million yen)Management Plan

Term Ended March
31, 2016: ActualFirst Mid-term Management Plan :Phase 2 Rolling Plan

2.5

2

Second Mid-termManagement Plan

*Interest bearing debts: We have reduced these to the pre-Great East Japan Earthquake level. We willcontinue to further reduce these in the future.

22Mid-Term
Plan II.

Basic Principles of the Second Mid-termManagement Plan

SummaryOperating Income Plan Comparison

Main Theme Implementation Status



Toward the Next Mid-termManagement Plan

Structural Reform of Printing Paper

1 Business

2 Improving Profit Base

Second Mid-term Management
Plan

Basic Principles

Management Targets ValueInvestment Plan

Concrete Measures(1) Structural Reform of Printing
Paper Business

3 Developing New Businesses
4

Strengthening business foundation and financial groundthat will support the Group’s earning power

Stabilization of profit
through Alliances

Summary of the First Mid-termManagement Plan
(Phase 2 Rolling Plan)(2) Improving Profit Base
(3) Developing New Businesses(4) Strengthening business foundation andfinancial ground that will support theGroup’s earning power

We will steadily implement the basic principles(1) to (4) to lead to the resumption of dividend
payments at an early stage.
23

The statements concerning expected numbers andbusiness forecasts in this document have been preparedbased on predictions of the economic environment in the
future and information available at the present point intime. The actual numbers in our financial results andperformance in the future may differ.