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

November 13,2023

Summary of Consolidated Financial Results for theSecond 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,General Manager, Accounting Department+81-3-5600-1488(Amounts of less than one million yen are rounded down.)
1. Results for the Second Quarter of the Year Ending March 31, 2024 (April 1, 2023 -September 30, 2023)(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 Half of FY2023
First Half of FY2022
Note: Comprehensive income%

Million yen

96,703 (3.6)
100,364 16.9
First Half of FY2023
First Half of FY2022%

Million yen%

Million yen%

3,526
1,504134.5103.2

1,638(288)-

1,995(435)¥3,505 million¥(707) million

Profit per share

Diluted profit pershareYenYen

37.45(6.51)-Total assets

Net assets

Million yen

Million yen%

75,366
72,041¥75,350 million¥72,028 million

32.5
31.7

First Half of FY2023
First Half of FY2022(2) Consolidated Financial Condition

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

231,622
227,058
First Half of FY2023
FY2022

Shareholders'equity ratio

2. Dividends
End of 1Q

End of 2Q

Dividend per share
End of 3QEnd of FYYenYenYenYenYen

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 … Yes%

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 Half of FY2023
44,741,433 shares
FY2022
44,741,433 shares2) Total number of treasury shares at the end of the period:First Half of FY2023
965,686 shares
FY2022997,361 shares
3) Average number of shares during the period:First Half of FY2023
43,760,269 sharesFirst Half of FY2022
44,386,646 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
The environment surrounding the Group in the six months ended September 30, 2023 remained on a recovery track due tonormalization of social activities, etc. Meanwhile, there are uncertainty matters such as the ongoing situation in Ukraine, rising tensions
in the Middle East, steep rises in raw material and fuel prices, and exchange rate fluctuations, etc.
Under these circumstances, the Group took steps to improve productivity and ensure the stable operation of its mills, while in terms ofsales, it sought to revise product prices and expand sales of new products.
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 earing 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 subsidiaries, the Company andsubsidiaries of Kitakami site, and subsidiaries of Hachinohe site, with the aim of reducing fixed costs and enhancing corporate
governance. On September 1, 2023, the Group completed the sale of the business it operated at the Flensburg Mill of its Germany
subsidiary which was announced on January 30, 2023. Meanwhile, the Group decided to transfer the thermal paper converting
business, etc. of Katsumata Co., Ltd., the Company’s consolidated subsidiary (sub-subsidiary), and the sports club business operated
by Ryoshi Co., Ltd., the Company’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
We are proceeding with information disclosure in accordance with the recommendations of the TCFD (Task Force on Climate-related
Financial Disclosures) regarding both the risks and opportunities that climate change poses to business so that we aim for thesustainable growth and improving our corporate value over the medium to long term of our group. In efforts to reduce CO2 emissions,
the Group participated in the GX League (GX: green transformation) to advance its initiatives to reach the target for 2030 that theGroup has pledged to achieve in order to realize a carbon-neutral society.
To expand sales of environmentally friendly products, we are expanding sales of kraft paper and barrier paper, which are in strong
demand for use in paper bags for mail-order shopping, take-out meals, and other uses. We will contribute to the realization of a safe,
comfortable and sustainable society by eliminating and reducing plastic usage.
(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. Moreover, the Group established a new framework called Mitsubishi Paper
Mill’s Forest with Nissy & Kassy in September 2023. The purpose of the framework is to deepen shareholders’ understanding about
the current status of its activities to promote sustainability, in addition to its business activities to manufacture quality paper material
products based on benefits from forests, and to encourage shareholders’ involvement, by offering them opportunities for planting
trees and visiting company-owned forests.
Consolidated net sales amounted to 96,703 million yen (down 3.6% year on year) in the first six months under review.
Consolidated operating income came to 1,995 million yen (compared with an operating loss of 435 million yen in the first six monthsof the previous fiscal year) due mainly to product price revisions, and consolidated ordinary income reached 3,526 million yen(compared with consolidated ordinary income of 1,504 million yen in the first six months of the previous fiscal year) due in part toforeign exchange gains. Profit attributable to owners of parent amounted to 1,638 million yen.

―2―

Operating results by segment are as follows:(Million yen)
Net sales
Six months
Six months
ended
ended
September 30, September 30,2023
2024
Functional materials

Operating income (loss)
Change (%)

Six months
Six months
ended
ended
September 30, September 30,
2023
2024

Change (%)

53,55350,223

(6.2)

1,389

1,928

38.8

Reportable Sustainable fiber
Segments materials

47,94147,707(0.5)(1,927)

12

‒

Total

101,495

97,931

(3.5)

(538)

1,941

‒

Others

2,991

2,569

(14.1)

52

82

56.3

Total

104,487

100,500

(3.8)

(485)

2,023

‒

Adjustment (Note)(4,122)(3,797)49(28)

Total

100,364

96,703(435)

1,995

(3.6)

‒(Note) Adjustment is mainly related to internal transactions.
(Functional materials business)
In industrial materials-related products, the sales amount of battery separators and rewrite media rose from the year-age level, but thesales amount of air filters, decorative laminate base paper, tape base paper and backing paper for wallpaper decreased from the yearago level.
In the imaging media-related business, revenue from inkjet paper exceeded the level a year ago, reflecting the expansion of overseas
sales volume. Revenue from special dry film resists was lower than the level a year ago, given poor communications device sales anda downturn in the semiconductor-related market.
In the information media-related business, revenue exceeded the level a year ago, attributable to the effect of price revisions, 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 material business, which is a priority business area in the Medium-term Management Plan, the Group will focus on
the water treatment membrane supporting body business in response to increasing global demand for water business and the expansionof sales in the United States and Europe of the filter business, including total heat exchanger elements that can realize both ventilation
for preventing infectious diseases and energy conservation in response to environmental issues. At the same time, the Group will workto expand the scope of the battery separator business, for which demand is increasing in tandem with vehicle electrification and growing
communication equipment, by ensuring stable operation of a newly introduced machine dedicated to paper production.
In the imaging media-related business, the Group will work to expand sales of special dry film resists for use in communication devices
in addition to expand sales for automotive-related 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 expanding sales of products for labelingand industrial inkjet and promoting sales in developing countries in Asia, while seeking to improve profitability by continuing toreview production systems.
Regarding the information media-related business, the Group will work to stabilize earnings and to increase sales of high value-added
products such as FSC certified paper products.
On September 1, 2023, the Group completed the sale of the business it operated at the Flensburg Mill of its Germany subsidiary. Goingforward, the Group aims to secure earnings through the further business structure reform at the Bielefeld Mill.

―3―(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 implemented last year. Revenue from exports exceeded the level a year ago, partly
owing to the effect of a weak yen. The Company also continued production systems in line with demand trends.
With respect to commercial pulp, both export sales volume and value decreased as sales were suppressed due to price declines inoverseas markets.
As a result, the sustainable fiber materials business as a whole posted lower sales and higher profits.
The Group will aim to transform its product portfolio and stabilize earnings from previous year, mainly by expanding sales of kraft
paper that contributes to plastic removal and reduction, while enhancing the product lineup of barricote® paper, in addition tocontinuing its initiatives for maintaining price levels and optimizing production systems and inventory levels by further maximizing
the synergy effects of both Hachinohe and Kitakami factories. For exports, the Group will focus on the expansion of sales volume andprofits in light of trends in exchange rates.

(2) Explanation of Financial Position
Assets at the end of the first six months of the fiscal year under review amounted to 231,622 million yen, up 4,563 million yen fromthe end of the previous fiscal year, mainly attributable to an increase in cash and deposits reflecting the effect of month-ends, holidays,
etc. and rises in inventory and the valuation of investment securities, which was partly offset by decreases in property, plant andequipment, etc.
Total liabilities came to 156,255 million yen, up 1,239 million yen from the end of the previous fiscal year, chiefly due to an increasein accrued expenses, which was partly offset by decreases in notes and accounts payable – trade, etc.
Net assets increased 3,324 million yen from the end of the previous fiscal year, to 75,366 million yen, mainly reflecting an increase invaluation difference on available-for-sale securities.
The equity ratio was 32.5%, up 0.9 percentage points from the end of the previous fiscal year.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
For full-year consolidated results forecasts, please refer to the “Notice of Differences between Financial Forecasts for the First Six
Months of Fiscal Year Ending March 31, 2024 and Actual Results and Revisions to Full-Year Financial Forecasts” announced today(November 13, 2023).

―4―

Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)First Half /FY2023
Sep 30,2023

FY2022
Mar 31,2023

AssetsCurrent assets
Cash and deposits
Notes receivable - tradeAccounts 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, 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―8,325
8,07438,470
25,257
6,322
18,4984,166(92)
109,024

12,4109,420
36,92928,3796,943
15,8163,241(109)
113,031

19,70334,918
20,625733
2,274
78,256

18,97232,725
20,914941
2,096
75,650

2,379
2,379

2,269
2,269

21,60515,856(64)
37,398118,034
227,058

25,64615,088(64)
40,670118,590
231,622

(Million yen)First Half /FY2023
Sep 30,2023

FY2022
Mar 31,2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Commercial paperIncome 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 adjustmentRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―6―

28,7103,485
61,467
5,000
302
1,614
9,877
110,457

25,832
4,996
67,432
7,000
509
1,798
11,539119,108

32,603
53
49
7,603
885
3,362
44,559155,016

24,562
82
38
8,098
939
3,426
37,147156,255

36,561
6,524
13,357(430)
56,012

36,561
6,523
14,805(420)
57,469

5,532
1,111
9,372
16,015
13
72,041
227,058

8,159
813
8,907
17,8811575,366
231,622

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)First Half /FY2022
Apr '22 - Sep '22
100,364
87,391
12,973
13,409(435)

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 incomeExtraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
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
Loss on cancellation of contracts
Impairment losses
Loss on sale of businesses
Extra retirement payments
Other
Total extraordinary losses
Profit before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent―7―First Half /FY2023
Apr '23 - Sep '23
96,703
83,102
13,60011,604
1,995

11
327

7
271

363

311

1,309
295
2,307

1,262
175
2,028

288
78
367
1,504

403
94
497
3,526

8－
347
4
359

0
1－
－
2

226
329
－
－－
482
7
1,045
818
1,093
(275)
13(288)

81－
434
130
119
31
20
817
2,711
1,071
1,639
0
1,638

Consolidated quarterly statements of comprehensive income(Million yen)First Half /FY2022
Apr '22 - Sep '22Profit (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―8―First Half /FY2023
Apr '23 - Sep '23
(275)

1,639

(616)
545
(349)

2,625(299)
(464)

(11)

5(432)
(707)

1,866
3,505

(720)

3,504

131