2015
Corporate Report

Mitsubishi Paper Mills Ltd.

Message from the President

Our Management Practices

suited to changes in the external environment.

■ We are striving to boost corporate value by
expanding distinctive CSR activities and<Printing Paper Business>leveraging environmental, social, andIn addition to expanding sales of communication paper, including the export of industrial inkjet printing paper, and also passing on
price increases as material costs skyrocket, we will continue to thoroughly reduce costs as we move toward achieving profitability.

governance (ESG) initiatives that address
challenges facing our world.

<Imaging Media Business>

We aim to further enrich existing products that are about to mature by actively conducting businesses in overseas markets whilestrengthening our business base utilizing alliances. This aim also includes expanding our business scale by accelerating ouradvance into promising fields, including functional films utilizing imaging technology.

Objectives of the Mitsubishi Paper Mills Group

The Mitsubishi Paper Mills Group is focused ontaking the technological prowess we haveaccumulated over more than 110 years of businessand putting it to use implementing on-going anddistinctive initiatives that will contribute to sustainable
development, increased corporate value, and benefits
for society. To that end, we will continue to adapt tothe ever-changing state of the world and the changes
in the environment surrounding our business. We will
embrace an approach to continue moving forward withbroad vision, passion toward manufacturing, and aspirit of challenge that will lead us to being a global
company worthy of earning the trust of stakeholders
worldwide.
Going forward, we would like to ask for the enduring
support of all our stakeholders, including shareholders,investors, and customers, as we continue to challenge
our global business growth and increase ourcontributions to a recycling-oriented society, toimprove the soundness of our financial standing, andto be a robust company.

Leveraging CSR Activities

We will expand our business by further expanding the overseas market, focusing on filter products, non-woven fabric for reverse
osmosis supports used in water processing elements, and re-writeable media and by expanding our business such as by launchingbattery separators both at home and abroad and, at the same time, we will work on establishing new businesses.

Increasing Corporate Value
Enhancing CSR Activities:"Five Basic Policies"

First Medium-term Management Plan

Kunio Suzuki,
President & C.E.O.

such, we placed priority on the following two issues:“enhancement of activities for safety and health” and“initiatives to ensure strict legal compliance.” Looking
to realize mid- to long-term growth, we will work on our
CSR activities with the following five basic policies as
its framework: 1. Strengthening our CSR managementfoundation, 2. Promoting environmental management,
3. Raising customer satisfaction levels by carefully
addressing user needs, 4. Taking further measures toprovide our employees with a pleasant working
environment, and 5. Pursuing activities that contributeto society. With the five basic policies, we plan to takesteps leading to increased corporate value throughcompliance, risk management, health and safety, theenvironment, product safety, product quality, humanrights and labor, information, and social contributions.

About This Report

In order to increase understanding of the activities ofthe Mitsubishi Paper Mills Group, we have decided to
publish this report, from this fiscal year, in a form that
integrates key financial and non-financial information.
I hope that this approach will give a clear and concise
overview of the Group's activities for increasing
corporate value, and that the report will serve as ahelpful communication tool that continues to improve
into the future.

● Increasing printing paper prices: "Five Basic Policies"● Enhance business operation in overseas markets● Increase of non-commodities● Injection of resources into niche markets for promisingproducts● Decisive structural reform of Hachinohe Mill● Reinforcement of our fragile financial standing● Strengthening our CSR management foundation● Promoting environmental management● Raising customer satisfaction levels by carefully
addressing user needs● Taking further measures to provide our employees witha pleasant working environment● Pursuing activities that contribute to society■ First Medium-term Management PlanFirst Medium-term Management Plan

（Phase 1）『Recovery』【1.5 years】
Second half of the term
Term ended March 2013
ended March 2012

Downturn of the printing paper
market due to the steep increaseof imported paper, etc.
from the fall of 2012

Coming of the digital printing
age in the U.S.

Acceleration of the shift frompaper media to electronic media『Strengthening the revenue base for growth』
Term ended March 2014

Completed

Procurement of Hachinohe
restoration funds

Completed【3 years】
Term ended March 2015

Term ended March 2016

Changes in the external environment
Consumption
tax hike

Skyrocketing of material prices
due to the yen depreciation

Increase in printing
paper prices

Continued theme
Restoration ofHachinohe Mill▲

（Phase 2）

Theme of Phase 2

3 Mitsubishi Paper Mills Corporate Report 2015 To Our Stakeholders<Speciality Materials Business>

Changes in the external environment

Getting the trust and empathy of stakeholders andconnecting it to increasing corporate value is what weunderstand to be the objective of CSR.
We will work on CSR activities that have thedistinction of being focused on things that are material
to our company, and, while aiming to pro-actively
communicate with all of our stakeholders, we will
improve them and put them into use.
In FY 2015, our top priorities on CSR activities were“redoubling efforts to eradicate unsafe practices,” and“initiatives to ensure strict legal compliance.” With
regard to products, we took steps to expand our lineup
of environment-conscious products such as FSC
forest-certified paper products and the Thermal
DigiPlate System.
In FY 2016, we announced that improving safety
results and ensuring sound compliance with related
laws and regulations are material to our business. As

To Our Stakeholders

It was with the extensive support of our many stakeholders that the Mitsubishi Paper Mills Group was able to make a swift
recovery of operations after the devastating Great East Japan Earthquake. After reconstruction, we implemented a variety ofmeasures in the Phase 2 Rolling Plan of our First Medium-term Management Plan, working from the central pillar of "Strengthening
our revenue base for growth."
This fiscal year, which is the last year of the plan, we have been working to focus our efforts and commit to selections that will
strengthen our Imaging Media Business and Speciality Materials Business, while solidifying alliances, expanding globally, andexecuting timely investment into strategic products. What follows is a description of our initiatives in each business segment.

■ We are striding towards becoming a growthcompany with a complete business strategy⇒

Increase in printing andcommunication paper prices

Enhance business operation in overseas markets
Increase of non-commodities
Injection of resources of promising products into niche markets
Decisive structural reform of Hachinohe Mill
[Reinforcement of the fragile financial standing][Selection and concentration] Improvement ofimaging and speciality materials businesses
To cement alliance, expand globally, and inject strategic products
Mitsubishi Paper Mills Corporate Report 2015 To Our Stakeholders 4

Financial Highlights (Consolidated)■ Net sales/operating income results by segment

FYE March 2011 FYE March 2012 FYE March 2013 FYE March 2014 FYE March 2015

FYE March 2013

(Billions of yen)FYE March 2014

FYE March 2016
(forecast)FYE March 2015

147th term

148th term

149th term

150th term

Printing Paper Business

157.4

161.7

165.4

174.1

Imaging Media Business

39.8

41.6

43.5

44.2

Speciality Materials Business

14.2

16.0

16.8

18.1

Other

16.5

16.0

15.1

15.1

Elimination (offsetting)

∆27.0

∆27.8

∆26.0

∆28.5

200.9

207.5

214.9

223.0

Net sales

Millions of yen

210,846

194,856

200,850

207,470

214,944

Operating income

Millions of yen

3,477

2,164

3,332

473

1,038

Net income (loss)

Millions of yen

2,116

888

2,663

62

135

Net income (loss)
per share

Millions of yen∆14,497

565

1,710

280

∆ 4,272

Outstanding interest-bearing debt

Billions of yen

143.5

158.0

155.3

149.0

144.8

Total

Shareholders’ equity

Millions of yen

48,93149,48452,52952,75952,018Printing Paper Business

2.2

∆1.8

∆1.3

0

D/E ratio(multiple)

2.9

3.2

2.9

2.8

2.8

Imaging Media Business

0.5

1.5

1.5

2.5

ROE

％

∆ 25.4

1.1

3.4

0.5

∆8.2

Speciality Materials Business

0.3

0.3

0.5

0.8

Equity capital ratio

％

19.7

17.9

19.8

20.4

20.5

Other

0.4

0.5

0.4

0.3

EBITDA

Millions of yen

15,718

11,74014,469

11,687

11,993Elimination (offsetting)

∆0.1

0

∆0.1

∆0.1

Overseas ratio(net sales)

％

25

27

30

29

31

Total

3.3

0.5

1.0

3.5

■ Shareholders’ equity and ROE■ Trends in outstanding interest-bearing debt and D/E ratio

ROE（%）

53,0005.0
0.552,52952,75951,000⇨49,0001,900
52,018

-5.0
-8.2

4.5

1,800
1,705

-10.0

1,700

1,626
1,598

-15.0

49,484
48,931

-20.0

1,500

4.0

1,616

1,580

1,530

3.5

1,553

■

-25.0

-25.4

-30.0

47,000FYE March 2011

FYE March 2012 FYE March 2013

FYE March 2014

FYE March 2015

2.9

2.9

5 Mitsubishi Paper Mills Corporate Report 2015 To Our Stakeholders

2.5

1,200
1,100
1,000

1,490

1,450

3.2

1,400

(Billionsof yen )

1,500

1,435

1,300
48,000……Result……
…Mid-term plan…
…Forecast…

2.7x

5.0

1,600
50,000⇨2.8x

D/E ratio

1,919

0.0

■

52,0002.8x

D/E ratio

Outstanding
interest-bearing debt

2,000

■

■

1.1

■

3.4

Results
Results
Outstanding [FYE March 2014] ⇨ [FYE March 2015] ⇨ [FYE March 2016]
interest-bearing debt 149.0 billion yen ⇨ 144.8 billion yen ⇨ 140.0 billion yen■

Shareholders’ equity and ROE

54,000Operatingincome2.4
2.2

March 2005

3.5
1,400
1,400

3.0

2.8

2.7

2.6

2.5

2.3

2.5

2.1

March 2007
March 2006

2.8 2.8

1,448■

Shareholders’ equity(millions of yen)

Net sales

To Our Stakeholders

146th term

March 2009
March 2008

March 2011
March 2010

March 2013
March 2012

2.0
March 2014
March 2015
March 2016
(Planned) (Result) (Planned) (Result) (Planned) (Forecast)(multiple)

Mitsubishi Paper Mills Corporate Report 2015 To Our Stakeholders 6

■ Special FeatureSpeciality Materials BusinessDriving Growth in the Global Market■ Overseas Development
Please see
Web

P12

※Production inkjet printing paper (export product) line-up『SWORD iJET4.3 Gloss / Satin / Matte』
・Innovative production inkjet printing paper. This paper iscreated with next-generation technology called “Pore-Arch
Technology, which combines the technologies of both coatedpaper for offset printing and paper for inkjet printing.

Bielefeld Mill (Germany)■ Overseas Net Sales Ratios by Geographical Area

Net sales(consolidated):

207,470

Consolidated
net sales ratios
14.6%
5.8%

N. America:

5.2%

Other:

3.8%

Total:

29.4%

Targets

214,944・Treated paper with excellent image density development, support for high-speed inkjet printing, and quick drying
features targeting the high volume field of Transaction (form) paper in overseas markets.
『Premier IJ-Form』

Consolidated
net sales ratios

Europe:Europe:

17.0%

Asia:

Asia:

6.1%

N. America:

N. America:

4.9%

Other:

Other:

3.1%

Total:

Total:

31.1%

Europe

14.6

Consolidated
net sales ratio:

35%

・For overseas customers who demand high quality for Transaction or Transpromo invoices, a lightly coated paper thatprovides excellent image development with both dye or pigment inks and, of course, bright whiteness and high opacity.
『Premier IJ-Book』
・Treated paper like lightweight coated paper with high brightness, high opacity, excellent image density development,
and ink absorption targeting the high-volume field of textbooks in overseas markets.

17.0%

Treated paper:
Treated paper is paper that istreated with a surface treatment
solution containing an ink-fixing
agent during the sizepress ofthe paper making process.

6.1
5.8

Asia
4.9
5.2

N. America
Other『Value IJ Transaction』

150th term
(FYE March 2015)

149th term
(FYE March 2014)

Asia:

As the market for new products, such as Inkjet Minilab paper, continues to form in overseas developed countries, markets inemerging countries are seeing expansion as well. The market for existing products, such as printing plate materials, inkjet paper,and photo paper, has largely matured in developed countries, though we are actively expanding sales and opening new markets
in emerging countries in Asia and elsewhere.

Using digital data, such as large volume, rapidly distributed digital documents, there are more and more businesses using
digital printers to produce profitable printed material. We are fully utilizing the production technology and equipment at our
Hachinohe Mill to commercializing paper for production inkjet printers as digital printers increasingly spread around the world.

for information on ouroverseas development.

U.S.A.: Mitsubishi Imaging (MPM), Inc.
Germany: Mitsubishi HiTec Paper Europe GmbH
Bielefeld Mill
Flensburg Mill
China: Zhuhai MPM Filter, Ltd.
Mexico: MP Juarez LLC

Europe:Filter products for overseas electricalappliance manufacturers

Printing Paper Business

Details are available on the Mitsubishi Paper
Mills website.
https://www.mpm.co.jp/company/eigyosyo.html

Net sales(consolidated):

Imaging Media Business

3.1
3.8

7 Mitsubishi Paper Mills Corporate Report 2015 Special FeatureSpecial Feature

The Mitsubishi Paper Mills Group operates with an eye toward future development while considering the global market as ourstage for growth. To achieve this, the Group leverages a network of five major business hubs in Japan, the U.S.A., Germany,
China, and Mexico. With this network we are able to provide customers across the globe with high-value added products andexellent services. These include Forest Stewardship Council (FSC)-certified products that are friendly to the planet, as well as
digital imaging products, speciality materials, and other products that make full use of advanced technological skill founded inreliability and proven performance.
In the global market, our production inkjet printing paper, which is particularly well-received in the U.S. and Europe, is a next
generation printing paper developed with the international market in mind using Mitsubishi Paper Mills original technology basedon the concept of imbuing offset printing paper with inkjet compatibility. In the Japan market, the spread of printing paper
compatible with high-speed production inkjet printers is still in the developmental stage, but at the same time that we establish
our position as a pioneer in this field, we will become a leading-edge company in the already expanding U.S. and European
market, too, and with a global viewpoint, will continue Mitsubishi Paper’ s challenge with our eyes firmly on the leap to the future.

Business is expanding as we sell a wealth of products to the overseas
market, including filter products, non-woven fabric for water processing film
supports, rewritable media, and battery separators.
Our forecasts see our overseas net sales ratio, which stood at 43% in FY
2012, rising to approximately 50% in FY 2016.

150th term results
149th term results
Various applications for production inkjet printing paper

Mitsubishi Paper Mills Corporate Report 2015 Special Feature 8

■ Special Feature

Hachinohe Topics

Construction began on Mitsubishi Paper Mills’ Hachinohe Mill in December 1964, as the first company invited by the New
Industrial City Hachinohe and operations commenced in January 1967. Afterwards, the mill grew to be one of Japan’ s largest
integrated pulp and paper plants, expanding the scale of its facilities in step with the growth of the domestic market.
However, with declining domestic demand, imported paper, and tougher competition with other domestic manufacturers, thepaper industry is in very difficult circumstances. The Hachinohe Mill recognized the necessity to surmount these hurdles andstrengthen its competitiveness in order to increase its presence into the future and contribute to the local community. In April
2014, the Hachinohe Mill and its on-site subsidiaries restructured their business to become MPM Operation Co., Ltd. The
restructuring not only consolidated operations, it also improved the speed of decision making, and boosted motivation making it
possible to not only flexibly develop new products and uncover new business opportunities, but also to more promptly respond to
customer needs and changing circumstances both domestically and overseas.
At MPM Operation Co., Ltd, with the increasingly important global market as our target, we are aiming to bolster and expand
exports of paper compatible with high-speed production inkjet printers which are continuing to spread overseas. We are striving
to boost our cooperation with the local communities in Aomori prefecture and Hachinohe city so that we can be a company
closely tied to the region. We will continue to contribute to the economic vitality of these communities and grow and develop
alongside them as we make strides from Hachinohe to the world and toward the future.

■ Developing Thin Paperboard

The Hachinohe Mill: Launching toward the Future〜 New product development & uncovering new businesses 〜

In recent years, demand has been increasing for paperboard,
particularly thin paperboard, used for compact packaging andtake-out containers growing in volume in the fast-food andconvenience store industries.
To respond to this demand, we have leveraged our expertise inpaperboard and developed Mitsubishi Pure Plate, which ispaperboard with exceptional processability and thinness.
Special Feature■ Assessing the Reuse of Incinerator Ash, etc.
As we look into the reuse of paper processing sludge, fly ash,and other substances emitted by our mills, we have developed aType 1 Improved Soil (artificial backfill) called, Reglobe HB-05S,with 70% or more recycled ingredients.
Special Feature

The product has acquired Eco Mark certification (No.
14131006) for fulfilling environmental standards for controlling
water and soil contamination and air pollution from dioxin asenacted through the Soil Contamination Countermeasures Act.
Reglobe HB-05S artiﬁcial backﬁll■ Assessing Opportunities in AgribusinessAs our mainstay printing paper business contracts, we are considering opportunities in agribusiness (strawberry cultivation) as
a possible new area of business leveraging our mills' energy and equipment.
In April 2014, we have started a project to verify the feasibility of the idea with a plastic greenhouse growing Natsu Akari
summer and autumn strawberries. The on-site greenhouse uses energy and waste products produced by our mill, including
steam used for temperature control, electricity used for lighting, and materials used for the floors and planters.
Going forward, we plan to closely assess the potential of this agribusiness as we expand its scale and carry out additional tests
at MPM Operation Co., Ltd.

MPM Operation Co., Ltd.
The company's symbol
incorporates "M," for Mitsubishi
Paper, designed in the shape of two
people. The image is intended toconvey connections between people(personal circles) giving rise to theletter "M," representing cooperationand harmony.
The corporate symbol

9 Mitsubishi Paper Mills Corporate Report 2015 Special Feature

Mitsubishi Paper Mills Corporate Report 2015 Special Feature 10

Mitsubishi Paper Mills Group Business Development
Mitsubishi Paper Mills Group History
April, 1898

Mitsubishi Paper Mills Group Overseas Development

Overseas sales ratio 31％

Hisaya Iwasaki purchased a paper milloperated by the Walsh Brothers in what is
now Sannomiya, Kobe, and formed Kobe

Paper Mill Company to start the production
and sale of paper

Mitsubishi HiTec Paper Europe GmbH (Germany)*Hisaya Iwasaki:
Eldest son of Yataro Iwasaki, the founder of Mitsubishi.
He served as the president of Mitsubishi Goshi Kaisha,

Mitsubishi Imaging (MPM), Inc. (U.S.)The Takasago Mill was established soon after
the company's founding

to the growth of the Group's business.

June 1901
June 1904

February 1917

November 1917
December 1925
April 1944

Moved the mill (now Takasago Mill) to Takasago City in Hyogo Prefecture
Constructed Nakagawa Mill in Katsushika-ku, Tokyo

Incorporated and changed name to Mitsubishi Paper Mills, Ltd.

Moved head office from Takasago, Hyogo to Yurakucho in Chiyoda-ku, Tokyo

Merged with Kyoto Photographic Industry Company, Ltd. in Nagaokakyo City, Kyoto

April 1966

Constructed the Hachinohe Mill in Hachinohe City, Aomori Prefecture

April 1985

August 1989

January 1999

May 2002
March 2003
April 2005

November 2007
October 2010
October 2011
July 2012

April 2014

Forestal Tierra Chilena Ltda. (Chile)

Prefecture to form the present Kyoto MillWas listed in the First Section of the Tokyo Stock Exchange and Osaka Securities

April 1972

MP Juarez LLC (Mexico)

Changed the company's name to Mitsubishi Paper Mills Company

May 1949

April 1966

Zhuhai MPM Filter, Ltd.(China)

Mitsubishi Paper Mills Group
Business Development

founded Kirin Brewery Co., Ltd., and otherwise contributed

Zhuhai MPM Filter, Ltd.

Exchange

Established in November 2007, Zhuhai MPM Filter, Ltd.
(Zhuhai City, Guangdong Province) is the Group's firstwholly-owned subsidiary to be established in China.
Since January 2009, the company has been primarily
engaged in the manufacture and sale of filter products.

Merged with Shirakawa Pulp Industry Ltd. and acquired Shirakawa Mill and Kitakami Mill

Ryosan Shokai ( founded 1912) merged with CASIWA Co., Ltd. to form Mitsubishi Paper
Sales Co., Ltd. (now a consolidated subsidiary)

Established trading subsidiary Mitsubishi Paper International Inc. in New York
Established Mitsubishi Paper GmbH in Dusseldorf, (Germany)■ Sales by region (FYE March 2015)

Acquired stock in Germany-based paper production company Stora Carbonless Paper

EuropeGmbH (renamed Mitsubishi HiTec Paper Bielefeld GmbH in June 1999) and Stora Special
Paper GmbH (renamed Mitsubishi HiTec Paper Flensburg GmbH in June 1999)

Established Mitsubishi Paper Holding (Europe) GmbH in Düsseldorf, Germany as amanagement company for affiliate companies in Europe

Ended production of all paper products at the Nakagawa Mill36.7 billion yen

Keule, a rare species of tree

Asia

13.0 billion yen

North America

10.5 billion yen

Japan

148.1 billion yen

The primary business of Chile-based Forestal
Tierra Chilena Ltda. involves eucalyptus
plantations. The company is focused onpreserving biodiversity through efforts that include
preserving the rare Keule tree species within theforests it owns.

Other regions

Established Kitakami HiTec Paper Corp. (now a consolidated subsidiary), which took over

6.7 billion yen

the operations of the Kitakami Mill.

Began filter product processing business in China with the establishment of Zhuhai MPM
Filter, Ltd. (a wholly owned subsidiary in Zhuhai City, Guangdong Province)

Merged Mitsubishi HiTec Paper Bielefeld GmbH and Mitsubishi HiTec Paper Flensburg
GmbH, establishing Mitsubishi HiTec Paper Europe GmbH (now a consolidated subsidiary)

Acquired stock in KJ Specialty Paper Co., Ltd. (now a consolidated subsidiary) from
KOHJIN Film & Chemicals Co., Ltd.

Moved the head office to Ryogoku, Sumida-ku, Tokyo

Established MPM Operation Co., Ltd. (now a consolidated subsidiary), a spin-off of theHachinohe Mill

11 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

TopicsIn August 2014, Mitsubishi HiTec Paper Europe GmbH sponsored an event
memorializing the 800 years of history behind the city of Bielefeld, home to the
Bielefeld Mill.
At the event, universities and research institutes conducted a science festivalthat featured workshops and other events in which children participated andhad fun learning about science.
GENIALE Science Festival Bielefeld, August 2014
A chemical experiment at the memorial event (in Bielefeld)

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development 12

Mitsubishi Paper Mills Group Business Development"Using, cultivating, and invigorating forests" focusing on FSC® certification

Printing Paper Business

The Mori-smile® Project — Creating Happy and Smiling Forests(“Mori” is Japanese for “forest”)

The Mitsubishi Paper Mills Group's printing paper business covers a wide
range of printing paper used for catalogs, pamphlets, books, and otherprinted materials, as well as speciality communication paper such as copy
paper, carbonless paper for payment slips, and thermal paper for receipts.
With the reorganization of affiliated subsidiaries, the company’ s main mill,the Hachinohe Mill, was reborn in April 2014. In addition to consolidating thecompany's business operations, by working to improve production efficiency
and reduce raw fuel costs, etc., we are continuing to work on securing thefoundation for profitability as we target the global market.

Mitsubishi Paper Mill’s Hachinohe Mill was the first in Japan to receive The Forest Stewardship (FSC)
chain-of-custody (COC) certification, in August 2001, and has been providing FSC-certified paper eversince. We are also engaged in projects that "create happy and smiling forests," which we call Mori-smile
projects, for a range of services that are centered on FSC certification.

Mitsubishi Paper Mills Group
Business Development

Tsuneaki Handa
Director and Managing Executive Ofﬁcer
General Manager, Paper Div.

Vision for the Future

Demand in the domestic market, which is an important market for our Printing Paper Business, has been declining
yearly due to declining birthrates and digitalization and, because of intensified competition with both imported paper andother domestic manufacturers, the environment surrounding our Printing Paper Business gets more difficult every year.
As a result, every year has seen conditions worsen for the Printing Paper Business. These circumstances have made itnecessary to undertake fundamental structural changes in order to further grow our business.
In overseas markets, we are focused on selling both printing paper as well as paper for use with high-speed production
inkjet printers, which are seeing rising adoption in the U.S. and Europe. With our cost competitive products and a system
for supplying global markets from our Hachinohe Mill, which is located near a port that serves as a channel for exports,
we aim to be the market leader in the field of high-end production inkjet printing paper.
In Japan, alongside strengthening our alliances with other companies for mainly communication paper to respond to asluggish demand structure, in the medium- to long-term we will need to stimulate demand through a new business model.
Although recent years have seen a sudden leap in digitalization and increased adoption of electronic media, we arelooking to find new demand in areas that value the functions and convenience of paper media by combining paper media
with various digital technologies. This will certainly be a difficult task, but one that we will be working towards together withothers in the industry in order to achieve a breakthrough.
Central to building this Printing Paper Business base will be contributing to a sustainable society and preserving
biodiversity through our business activities. Efforts will continue to focus on expanding and improving our FSC-certified
paper and paper for Morino Chonai-Kai (Forest Neighborhood Association) as we work to achieve a recycling society andfirmly establish ourselves in the green paper market. After establishing a revenue base through this existing business, wewill work on creating new measures that include feed-in tariff (FIT) business in order to transform our business structure.

Sales by segment

200

174.1

180

2

165.4

This academy conducts afforestation and forest education programs
so participants can learn about preventing global warming and therole of forests in preserving biodiversity. The academy is also used totrain company employees and to conduct PR activities for customers.

3

We can provide paper products under original brands using lumber
from forests where afforestation efforts are being conducted byvarious companies. These products are a good way to support forest
revitalization.

Topics
Efforts to Make Effective Use of Thinned Forests

Since 2006, we have been working with Office Chonai-kai to promote
tree thinning and the effective use of thinned lumber as produced by theMorino Chonai-Kai (Forest Neighborhood Association). This initiative has
consumers who use "tree thinning support paper" pay for the expenseshortfall of tree thinning in the form of "tree thinning promotion costs" tohelp make tree thinning economically viable.
The project enters its 10th year this year, and will continue to be carriedout in collaboration with the Office Chonai-kai.

2Printing paper

FSC-certiﬁed paper

FSC-certified
forestNishigo-mura,
Fukushima Prefecture (107 ha)

1

FSC-certiﬁed paper
Copy paper

4

From regional "Warehouses for Paper-Producing Forests" to customer sites"Warehouses forPaper-Producing Forests"

Forest thinning
reportWood from thinning

Report of receiptof thinned lumber

Promotional Council of
Yamanashi Mori no Kami

"Forest thinningsupport paper" （an environmental NPO）
production report

Forest thinningpromotion costs

Forest thinningsupport paper

Forest thinningsupport paper
Forest thinningpromotion
costs

Certificate of contribution to forest thinningand wood from thinning usage

13 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

FSC-certified
forestIwaizumi-cho,
Iwate prefecture (570 ha)

SurveyPrinting
companiesFYE March 2014
FYE March 2016
FYE March 2013
FYE March 2015
(forecast)Hachinohe Mill

Paper distribution
companiesFYE March 2012

Original Brands Built on the “Creating
Happy and Smiling Forests” Concept

3Forest thinningpromotion
costs

100

2

FSC-Certified Forest Supporter System
to Encourage Happy and Smiling Forests

Under the FSC-Certified Forest Supporter System, consumers of
products derived from lumber help FSC-certified forests by providing
support for responsible forest management.

FSC-certified
forestEducation

Paper manufacturers

120

Tree planting

Forest thinning promotion costs

140

Learning How to Create Happy and Smiling
Forests — The Ecosystem Academy

FSC-certiﬁed materials
from abroad

Forest thinningsupport paper
Forest thinningpromotion
costs

Forest thinning supporter companies, etc.

156.2

161.7

2

Shichinohe-machi,
Aomori Prefecture (291 ha)

Forestowners’cooperative

160

157.4

FSC-Certified Paper — Creating
Happy and Smiling Forests

Purchasing FSC-certified paper ensures it was legally produced andcontributes to preserving forests and biodiversity.

4

Net sales (Billions of yen)

Although sales saw a sharp decrease forthe fiscal year ended March 2012 due tosuspension of operations at the HachinoheMill following the Great East Japan
Earthquake, production is on track to recover
to pre-earthquake levels. Sales increased
from 156.2 billion yen to 165.4 billion yen.
This owed mainly to an increase in exports
of primarily production inkjet printing paper,
which is seeing increasing adoption for
digital printers overseas, as well as toincreased sales of alliance-company
products and other communication paper,and the favorable effect of foreign exchange
for European products.

1

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

14

Imaging Media Business — Our Products

Mitsubishi Paper Mills Group Business Development

Imaging Media Business・Thermal Digiplates (TDP)・Violet Digiplates (VDP)● CTPs for newspaper printing
Printing plates
・PD-NEWS● Inkjet proofing paper (for calibration)● Analog printing plate systems● Software
・DIALIBRE series● Resin coated base paper

・Mitsubishi Grace Color Paper — MG-1000

・For photographic paper

・Color paper treatment chemicals

・For inkjet paper
・For sublimation heat transfer paper● Speciality paper
・Processing base paper (casting paper)

Resin coated base paper● Photographic paper

Mitsubishi Paper Mills Group
Business Development

・Silver Masters (SLM)

Photographic paper

Mitsubishi Paper Mills is a distinctive paper manufacturing company that offers diverse digital imaging products to customers
in the photographic and commercial printing industries. We are contributing to society through core products in every one of ourareas of business.
[Printing plate materials business] About 30 years ago, we developed and launched the silver digiplate (SDP), a CTP(Computer to Plate) that draws digital data directly onto printing plates. We were the first in the world to do this, and continue to
conduct research and development as a CTP pioneer.Recently,we launched the next generation of CTP with our Thermal
Digiplate (TDP) applying thermal paper technology, which uses paper and film, and the violet digiplate (VDP) , both of which arechemical-free products. Through such distinctive printing technologies, we will continue to remain an industry leader.
[Inkjet paper business] In 1980, we were the first company to market paper for inkjet printers. For more than 30 years, wehave been industry leaders with the rapid evolution of inkjet printers and ink and have been developing and providing a variety
of inkjet paper to satisfy a diversifying array of user needs. As the World's leading inkjet paper manufacturer, we continue tocultivate new demand in emerging markets such as Asia, while expending our Photographic technologies into inkjet
Minilab,Toner and Electrophotographic printing, in our pursuit for expanded market share and increased sales volume.
[Photographic paper business] With a decline in overall demand and competing manufacturers rapidly dropping out of themarket due to a growing trend towards digital camera usage that began in 2001, we are working to strengthen sales ofMitsubishi Brand products that capitalize on our strengths as a base paper manufacturer in Japan and abroad.
[Resin coated base paper for photographs business] Resin coated base paper is what is used to make all of these printing
plate materials, inkjet paper, and photographic paper. We will continue to enable our partners in the industry to provide a varied
lineup of products and focus on quality—a high level of smoothness and brightness—to meet their diverse needs.
[New business] Although our imaging media business enjoys a long history and is the source of many highly-competitive
products, the key to further growth is creating new business using imaging technologies that only we possess. Over the last
several years, we have launched new products in categories ranging from resist technology applicable to electronic products totransparent electro-conductive films for touch panels, projection screen films, medical device products,and sleep hoods for agood sleep, keeping warm and moisturizing in the self-breath. We are now expanding our horizons into new fields, focusing on
creating new business ideas and developing new products in information and communication technologies, healthcare andelderly care, and other industries.

・Silver Digiplates (SDP)

Inkjet proofing paper

Vision for the Future

Printing plate materials

Shinpei Yamada
Executive Ofﬁcer
General Manager, Imaging Media Div.

Products made from photographic
base paper● Electronic material-related products
・Transparent electro-conductive

Sales by segment

60

films for touch panels
・Silver nanoparticle ink

50

40

39.2

39.8

41.6

43.5

44.2

30

20

10
0

New businessNet sales (Billions of yen)

As demand slows for traditional printing paper indeveloped nations in both the photographic andprinting industries, we are moving into emerging
markets and—partly because of a weaker yen—
are achieving increased sales and profits acrossall divisions. Targets laid out for the fiscal year
ending March, 2016, the final year of themedium-term management plan, put net sales at
43.0 billion yen and operating profit at 2.3 billion
yen. However, net sales came to 43.5 billion yen
for the fiscal year ended March 2015, achieving
the target one year early. Operating profit for the
fiscal year ending March 2016 is also forecasted
to exceed the target at 2.5 billion yen.

● Photographic inkjet paper (individual use)

● CTP（Computer to Plate）
Printing plate systems

To answer the needs of our customers, our Imaging Media Division offers a wide
range of products from photographic paper and inkjet paper to resin coated basepaper for photographic technologies, as well as digital printing plates and related
equipment, materials, and software. With the goal of developing our business, weare strengthening our alliances with industry partners to expand and improve ourbusiness base and are taking an enterprising approach to expending business inoverseas markets and new regions in order to expand sales of existing products.
We are also speeding up efforts to gain traction in growth industries with new
products such as functional films utilizing our core imaging technologies.

・Photosensitive resists
・Sensitizing dyes for solar cells● Rear projection Screen films

New Resist layer Formation system

Silver nanoparticle ink

my dome

DiaEkur

・SaiVis● Sleep hoods for a good sleep,
keeping warm and moisturizing inthe self-breath・my dome● Medical device

FYE March 2012
FYE March 2014
FYE March 2016
FYE March 2013
FYE March 2015
(forecast)

15 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

・DiaEkur(indwelling needle fixing tape)

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

16

Speciality Materials Business — Our Products

Mitsubishi Paper Mills Group Business Development

Speciality Materials Business【Battery separators】【Water treatment elements】

Our Speciality Materials Division consists of the Head Office Business
Division, which handles products made with non-woven materials such asfilters, non-woven fabric, and battery separators, in addition to speciality
materials including rewritable media and heat storage materials; KJ
SPECIALTY PAPER Co., Ltd. which handles products including base paperfor decorative laminates, wall coverings base, and masking tape backing;and subsidiaries established in China (Zhuhai and Hong Kong). Thisbusiness handles a very large variety of products and aims to make thecompany the top manufacturer in each of the niche markets in which it
operates.

Junji Harada
Director and Managing Executive Ofﬁcer
General Manager, Speciality Materials Div

The Speciality Materials Division provides products for various growth industries such as non-woven fabrics and filters,
battery separators, rewritable media, base paper for decorative laminates, and masking tape backing, as well as forcustomer-oriented niche markets requiring highly-specialized features.
There is considerable growth potential for functional products such as reverse osmosis membranes used in lithium ion
batteries and seawater desalination systems, which are an area of strength for Japan, but more and more companies areproducing these products in China and other emerging countries. With the product development know-how and analyticalability Mitsubishi Paper Mills has built-up in Japan, we make products that perfectly match the desires of customers and,while carrying out direct technological exchanges with customers in various countries, provide products that meet theirneeds, such as separators for secondary batteries with superior heat resistance and RO membrane supports with highflow rates and uniformity. Exports accounted for nearly 50% of net sales for the Speciality Materials Division last year, aclear indication that its business base is rapidly globalizing.
In order to satisfy a growing industry by keeping up production volume for functional products while at the same time
speeding up the pace of new product development, we are continually deploying equipment at our Takasago Mill, ourmain mill in Japan. The mill will be investing capital into areas such as solvent coaters for rewritable media, papermaking
machines for non-woven fabrics, and coaters for separators, with plans next year to install new papermaking machines forseparators. In expectation of considerable demand growth in China, we have built production and sales facilities in Zhuhai
and Hong Kong. We have also constructed a new filter assembly line in Mexico, where more automakers are doing
business every year.
We will be adding functionality to our products in Japan, taking advantage of the country’ s sophisticated infrastructure
for product development and finishing these products at sites close to our consumers as we look to develop our businessglobally with an emphasis on speeding up our response to our customers and promoting further growth.
Leveraging products invested with distinctive functionality in growth markets such as those for lithium batteries, water
treatment, automotive parts, and rewritable display materials, our sights are set on strengthening business performance
as a force for growth at Mitsubishi Paper Mills under a business model based on capital investment and growing together
with our customers around the world.

Sales by segment

Net sales (Billions of yen)

Sales increased overall, and while
operating profit experienced a temporary
downturn, it has since gotten back on track.
We have seen particularly strong sales since
the fiscal year ended March 2013, when the
Takasago Mill deployed new papermaking
machines for making non-woven fabrics.
Sales of non-woven fabrics and battery
separators have seen dramatic growth--an
average of nearly 20% annually. With
additional new hiring and other factors atwork, this market is expected to see further
growth from the present fiscal year on.

25【Thermal rewritable cards】

These are used as insulators for batteries.

【Liquid filters】

Data such as points and expirations can be rewritten.

These are used in filtering mediums as industrial
filtering elements.

【Automotive cabin filters】【Specialty paper(base paper for decorative laminates)】

These are used to clean the air from car mounted
air conditioning systems.

These are used as surface materials for decorative
laminates and are produced by KJ SPECIALTY PAPER.

18.1

20
16.0

16.8

14.2

15

10

Reverse osmosis membrane supports are used.

Mitsubishi Paper Mills Group
Business Development

Vision for the Future

10.5

5

0

FYE March 2012

FYE March 2014
FYE March 2016
FYE March 2013
FYE March 2015
(forecast)

17 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

18

■ Coating flow analysis business

Mitsubishi Paper Mills Group Business Development

Research and Development

Since its founding, the Mitsubishi Paper Mills Group has contributed to society by offering products that made fulluse of technological skill founded in reliability and results, and suited to the times.
As a corporate group always on the leading edge of technology, we view research and development as a criticalfoundation for improving corporate value, and we will continue to enhance our technologies in our efforts to becomea corporate group that lives up to the trust of its customers in the world market.

■ The foundation of product and technology development
Tsukuba R&D Laboratory
In addition to technologies for existing products such asbattery separators and water treatment membrane
supports, which use non-woven fabrics as base materials,
the Tsukuba R&D Laboratory develops next-generation
products that include functional micropores made using
nanocellulose.
To further improve product quality, the laboratory
conducts analyses tailored to rapidly advancing analysis
technologies.

Kyoto R&D Laboratory
In Kyoto R&D Laboratory,environmentally-responsible
printing plate materials have been developed.
And also, products often used in the electronics field,
including transparent electro-conductive film for touch
screen panel,resist technology applicable to increasingly
fine electronic products, and printed electronics materials(silver nano particle inks and special media) are developed.
We would like to introduce an example of suchproduct:Metal-free sensitizing dye for the dye-sensitizedsolar cell.
It achieved the highest conversion efficiency in the world.

Process Development Laboratory
With staff certified as "printing technicians" offering
technical support to customers, this laboratory works toquickly launch products created through new technologies
it develops.
The Process Development Laboratory uses testing plants
with papermaking machines, coaters, and othertechnologies as well as plate making and printing machinesthat are as sophisticated as those of our customers. It also
creates product prototypes and evaluates quality formarketability surveys. Additionally, it creates productmodels that intuitively communicate the features andappeal of our products while developing new applications
for these products.

19 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development■ Accumulation of intellectual property
Intellectual property is an important asset in the continued
development of our business.
Patents, in particular, are what maintain and strengthen thecompetitive strength of new products. Consequently, we submit
about 200 patent requests every year in Japan and abroad.
Although we have traditionally submitted patent applications in
mainly Japan, the U.S., and Europe, recent years have seen moreof a focus on China, Korea, and other Asian nations.
We have also been actively applying for and registering
trademark in order to improve customer confidence for new
products.

Mitsubishi Paper Mills Group
Business Development

MPM CAE Center Co., Ltd. (established in April 2011)
conducts contracted research and provides consulting
services using numerical analysis technologies. Throughthe use of coupled analysis technologies and fast analysis
systems, it provides services that meet users' needs.
With its extensive technological expertise, the company
has long been engaged in scientifically elucidating
coatings, which involve applying liquids to base materials,
and has created a numerical analysis (computer
simulation) technology for optimizing the process.
In recent years, we have received many requests forcontracted research services, a fact that owes toincreased interest in numerical analysis technologies in
not only the paper and pulp industries but also advanced
fields that include electronic materials.

Patents held
(Japan)690(Overseas)

258(Group companies) 198
As of March 31, 2015

KJ Specialty Paper Co., Ltd.: About CNT (Carbon Nanotube)
Aqueous Dispersion
Using proprietary dispersion technologies, KJ
Specialty Paper creates highly-concentrated,
low-viscosity, homogeneous aqueous
dispersions from CNT that have a variety ofshapes and characteristics. Homogeneously
dispersed CNT demonstrate outstanding
performance--in terms of electrical conductivity,
heat conductivity, electromagnetic wave
shielding performance, tensile strength,etc.--that is not achievable in a flocculated
state. This gives the technology great potential
for use in such products as conductive films,
exothermic sheets, electromagnetic wave
shielding materials, electrically conductive
paints, and antistatic paints.

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group Business Development

20

Mitsubishi Paper Mills Group CSR
The Mitsubishi Paper Mills Group engaged in dialogue with our stakeholders to select material issues for
the Group and to determine priority themes that will lead to increased corporate value.
In executing an action plan for achieving our targets, we follow the PDCA cycle in order to further raise thequality of our CSR activities.
Please see

P33-34 regarding our CSR activities.

Corporate Governance (Organizational governance)

In order to ensure the most transparent management practices, the Mitsubishi Paper Mills Group recognizes the enhancementof corporate governance as an important material issue and pursues business management with an emphasis on corporatesocial responsibility (CSR). An amendment to the Companies Act of Japan came into force in May 2015, with a Corporate
Governance Code taking effect in June of the same year. As calls for stronger group governance and more effective decision
making frameworks increase, our Group is working to build a governance structure that meets the demands of our shareholders
and other stakeholders.

Organization for Promoting CSR

Mitsubishi Paper Mills separates supervisorial andexecutive functions and has adopted an executive officer
system for the sake of streamlining our Board of Directors
and speeding up management's decision making.

The CSR Committee, chaired by the Company's President& CEO, is a cross-divisional body for gaining an overall graspof our nine CSR activity areas (compliance, risk
management, health and safety, the environment, productsafety, product quality, human rights and labor, information,and social contributions). The committee creates overall CSR
policies, formulates annual action plans, and regularly reports
and reviews the plans' content and results before the Boardof Directors.

Audit & Supervisory Board

Executive Committee

Board of Directors(Directors andOutside Directors)

Accounting Auditors(Auditing company)

President & C.E.O.
CSR Committee

Mill Managers' &Executives’ Committee

Internal Audit Department
Paper Division
Imaging Media Division
Specialty Materials Division
Mills
Head Office Divisions
Affiliated Companies■ Implementation of CSR awareness activities (from FY 2010)

All employees from domestic Group companies participate as part of efforts toward awareness andunderstanding of CSR activities.

21 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

The Mitsubishi Paper Mills Group recognizes theimportance of appropriately responding to the variety of risks
occurring in the course of our business activities, andbelieves that our response is crucial for the continuation ofbusiness and the improvement of corporate value. Based on
analysis of our business activities from a variety of angles,
we have developed a risk map and established a framework
for appropriately responding to risks.

■ Business and Other Risks
Web

Details are available on
the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/eng/company/kensyou.html■ Compliance Training
Compliance training is provided to all domestic employees.
The managers of each department or division, including ataffiliated companies, participate in training programs taught
by specialists. Those participants then carry informationback to their workplaces and share it with their employees
so that all members of the Group receive training.
In FY 2015, we carried out Worksite Inquiries using
compliance check sheets and held training sessions in a
debate/discussion format in order to deepen mutualawareness of related topics.

■ Disseminating Compliance-related News

General Meeting of Shareholders(Audit & Supervisory Board Members
and outside Audit &Supervisory Board Members )The Mitsubishi Paper Mills Group carries out managementwith an emphasis on compliance, under the assumption thatcompliance is a prerequisite for being a robust and faircompany trusted by society.
Under the Code of Conduct of the Mitsubishi Paper Mills
Group (enacted in January 2007), legal compliance isthoroughly communicated from top management to each
employee, while corporate conduct is controlled according to
the Compliance Conduct Standards stipulating matters toadhere to in the course of business.

Risk Management

Compliance news is regularly published by theCompliance Committee with the objective of improving theoverall legal mindset of all Group employees.
The content primarily covers case studies and also uses
compliance news items to help employees raise theirpersonal awareness, while leaders present the information
to workplace groups to raise general awareness at
workplaces.

■ Whistleblower (Hotline) System
The Mitsubishi Paper Mills Group has established its own
internal and external reporting system similar to awhistleblower hotline. We strive to cultivate a corporate
culture conducive to peace of mind for all employees by
providing helpful means for improving business activities
concerning the Company and each of our workplaces.

■ Legal Education
Legal education seminars are given twice a year to line
managers in Japan. Education programs carried out by the
Legal Department are taught by an attorney so that theevents can serve as opportunities for explaining complianceto social norms and for informing participants of thenecessary legal knowledge important in the course of
conducting business.

The following are the primary risks judged to have thepotential for having a serious effect on stakeholders, as
selected from the overall risks related to business, finance,and other conditions.

※Reduction in domestic demand andmarket prices
Should a significant recession occur in the domestic
market, such that domestic demand falls substantially forpaper, pulp, and photographic sensitive materials of the
Mitsubishi Paper Mills Group, there is the risk of a potential
impact on earnings and on the Group's financial standing.

※Surges in raw material prices
Prices of the principal raw materials, such as wood chips,
paper pulp, crude oil, and coal, procured by the Mitsubishi
Paper Mills Group fluctuate in relation to global supply anddemand. Consequently, any surge in the prices of thesematerials has the risk of a potential impact on earnings andon the Group's financial standing.

Mitsubishi Paper Mills Group CSR

Overview of Corporate Bodies

Compliance※Currency fluctuations
A considerable amount of our purchase of raw materials
and sales of Company products are foreign currencytransactions or are foreign currency-based yen
transactions. Although neither import nor exporttransactions command a disproportionate share of ourbusiness, there is the risk of a potential impact on earnings
and on the Group's financial standing from the effects offluctuating exchange rates.

※Capital investment
The core businesses of the Mitsubishi Paper Mills
Group—our Paper and Pulp Business, Imaging MediaBusiness, and Speciality Materials Business—span themechanical apparatus industry and the large-scale processindustry and therefore require considerable capital
investment in equipment, etc. Although large-scale capital
investment is carried out based on future demand
forecasts, changes in market direction could potentially leadto lower than expected operating rates for new machinery.
In such an event, there is the risk of a potential impact onearnings and on the Group's financial standing.

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

22

Relationship with Stakeholders

In order to increase stakeholders' understanding of the activities of the Mitsubishi Paper Mills Group, we strive to actively
communicate and engage in appropriate information disclosure.
By enhancing communication through our investor relations (IR) activities, we implement high quality initiatives for raising ourcorporate value.

Information Disclosure andCommunication

Corporate communications & IR Dept handles
information disclosure for the whole Mitsubishi
Paper Mills Group and manages and maintains our
Disclosure Policy formulated as a basic measure forexternal information disclosure.
Timely information disclosure, press releases,
and announcements about new products, etc. areposted to our website under our philosophy of fairdisclosure.
Details are available on
the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/ir/index.html

An analyst brieﬁng session※Communication with Shareholders
We incorporate visuals, audio narration, and other aids in our reports at regular General Meetings of Shareholders aspart of our efforts to better facilitate participants' understanding of the Company. In addition, in order to allow even moreshareholders to exercise voting rights, we strive to send out notices of General Meetings of Shareholders at an early dateand include English translations of meeting reports.

(as of August 31, 2015)

Board of Directors and Corporate Auditors

Executive Officers

Kunio Suzuki, President (Representative Director)

Kunio Suzuki*3, President and Chief Executive Officer

Kazuhisa Taguchi, Representative Director

Kazuhisa Taguchi*3, Senior Executive Vice President

Kanji Morioka, Director

Kanji Morioka*3, Senior Managing Executive Officer

Junji Harada, Director

Naoya Tashiro, Managing Executive Officer

Masaki Shuto, Director

Kiyoshi Maeda, Managing Executive Officer

Tsuneaki Handa, Director

Junji Harada*3, Managing Executive Officer

Naoki Okawa, Director

Masaki Shuto*3, Managing Executive Officer

Tomohisa Shinagawa*1, Director

Tsuneaki Handa*3, Managing Executive Officer

Kenji Oka, Standing Corporate Auditor

Kiyoharu Yamada, Senior Executive Officer

Yasuharu Takamatsu*2, Corporate Auditor

Yutaka Oka, Senior Executive Officer

Koji Kaihotsu*2, Corporate Auditor

Makoto Fujita, Senior Executive Officer

Tsuyoshi Inoue*2, Corporate Auditor

Nobuhiro Sato, Executive Officer
Yukihiro Tachifuji, Executive Officer*1: Tomohisa Shinagawa is an Outside Director.
*2: Yasuharu Takamatsu, Koji Kaihotsu, and Tsuyoshi Inoue
are Outside Corporate Auditors.

Shinpei Yamada, Executive Officer
Naoki Okawa*3, Executive Officer
Akira Inoue, Executive Officer

Enhancing Information Disclosure

Mitsubishi Paper Mills Group CSR

WebCompany Executives

Kenji Manabe, Executive Officer

We anticipate the needs of each group of viewers of our Mitsubishi Paper Mills website and categorize site contents in order torealize our goal of conveying information clearly and concisely. Furthermore, we have revised our English language pages andembedded a search engine.

※ About Our Investor Relations Information
We have created an IR information microsite on the Mitsubishi Paper Mills website. On the microsite, we strive to
distribute information and provide financial highlights, an IR calendar, an IR library (containing earnings reports, securities
reports, annual reports (in English), financial management presentation materials, Medium-Term Management Plans),
material for General Meetings of Shareholders, and information on company stock.

※Head Office Gallery
We have built a gallery inside our head
office to offer a more close-up view of
products made by the Mitsubishi Paper Mills
Group. In addition to permanent exhibits, wehold several other display events each year.

*3: Ofﬁcers concurrently serve as Directors.

Auditing Framework
Corporate auditors attend meetings of the Board of Directors, the Executive Committee, the Mill Managers' &Executives’ Committee, the Business Review Committee, and other important gatherings, while also conducting
business audits within the Group (including at subsidiaries) as they work to strengthen auditory functions. In
addition, corporate auditors keep sufficiently close ties with accounting auditors, including regularly receiving
reports on the results of accounting audits. Corporate auditors are also invested with the power to designate theInternal Audit Department and Accounting Department as support bodies, to order employees of thesedepartments to assist with necessary tasks, and to select employees as assistant auditors to help with auditing
tasks.

Appointment of Outside Directors and Outside Corporate Auditors
Mitsubishi Paper Mills considers it beneficial to have a corporate leadership structure wherein a core of internalmanagers well versed in the Company's business circumstances amply includes external opinions from outside
directors in positions allowing independent judgment. We have determined the current structure of our Board of
Directors, with one outside director, to be a suitable structure.
In addition, we believe our appointed outside corporate auditor possesses sufficient knowledge and ability, andmeets the legally prescribed requirements of his position.
Paper Design Square—Mitsubishi Paper Mills Head Ofﬁce gallery (11th ﬂoor)

23 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

三 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR 24

Fair Operating Practices (※Fair Operating Practices)

In the Code of Conduct of the Mitsubishi Paper Mills Group, the Group has stipulated appropriate conduct for its executives
and employees.

Fair Competition

Fair Subcontracting Transactions

Mitsubishi Paper Mills and its subsidiaries are often in theposition of "main contractor" as defined by the Act against
Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors. In addition to internal audits, etc. to help
ensure that fair subcontracting is carried out, the Group
uses an internal newsletter to expand the knowledge andunderstanding of employees.

Preventing Corruption

To avoid business practices that may lead to corruption in
the Group, Mitsubishi Paper Mills has created Compliance
Conduct Standards stipulating that entertaining andrewarding civil servants (including vice-servants) is not
carried out, and that illegal payoffs, etc. are not made toforeign civil servants and representatives of public
corporations or organizations.

Promoting CSR in Our Supply Chain

The Mitsubishi Paper Mills Group implements responsible
and ethical conduct toward society and strives to encouragea similar approach (including legal compliance, protection of
intellectual property, protection of human rights, concern for
employees' health and safety, and concern for theenvironment), as well as fair transactions, with thecompanies that supply our raw materials, etc.

※Security Export Control

The Mitsubishi Paper Mills Group confirms that timber, wood chips, and wood pulp used for FSC®-certified products are
sourced from forests that are legally and responsibly managed.

Proof of legality

Compliance Conduct Standards (excerpts)
Article 6: Refusal to Interact with Anti-Social Forces(such as gangs)
Strive to always act with sound judgment, knowledge ofbasic laws, social common sense, and a sense of justiceso that we neither willfully nor accidentally engaged inillegal conduct or anti-social conduct.
2 . Fir m ly o p p o s e a n ti- s o c ia l fo r c e s a n d h ave no
relationships with them of any kind. When faced with anillegal demand from an anti-social force, respond in a
resolute manner and refuse to settle the matter evasively,
such as through monetary payment.
3. Refuse to utilize anti-social forces for corporate or
personal gain.
4. Conduct absolutely no transactions with anti-social
forces or business partners affiliated with anti-social forces.
Article 12: Compliance with the Antimonopoly Act
Compete fairly and freely with other companies and underno circumstances engage in cartels, bid rigging, restricting
resale prices, abusing a position of advantage, or otherconduct in violation of the Antimonopoly Act.
Article 13: Appropriate Transactions with Suppliers;
Compliance with the Subcontract Proceeds Act
1. Act with sound judgment and sincerity in transactions
with suppliers, treating them fairly and justly.
2. When selecting suppliers from multiple candidates, fairly
compare and evaluate them with criteria including quality,
price, delivery time, R&D capacity, supply stability, etc., inorder to make an optimal final decision.
3. Do not act in a way that arbitrarily benefits a specificsupplier with privileged treatment.
4. When subcontracting manufacturing or repair tasks to abusiness partner, utilize sufficient knowledge of the
Subcontract Proceeds Act so that delayed payment, etc. is
not carried out.
5. With overseas transactions in particular, finalizetransactions after confirming that the opposite party has
paid sufficient attention to preventing environmental
damage, child labor, etc.
Article 16: Entertainment and Gifts
Do not entertain or give gifts to civil servants or persons ofsimilar position.
2. When entertaining or giving a gift to a business partner,
do so within the bounds of common sense.
3. If receiving entertainment or a gift from a business
partner, do so within the bounds of common sense.
Article 17: Prohibition Against Bribing Foreign Civil
Servants
With regard to foreign government officials or
representatives of regional public organizations, do notprovide, promise, or offer illegal payoffs (monetary orotherwise) for the purpose of attaining unfair businessadvantage or as a gesture providing luxuries and/or
conveniences as part of business.

The Mitsubishi Paper Mills Group has created Security Export Control Regulations. We appropriately implement export andother controls to prevent supplying goods, technology, or weapons that may be expropriated for military use by countries or
terrorists that potentially or actually threaten Japan's or the global society's security as defined by the Foreign Exchange andForeign Trade Act.

25 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

1. Utilize forest certification or COC certification (for FSC-certified wood, FSC-controlled wood)
2. Proof provided through independent verification by individual companies, etc. (for controlled wood)
・We confirm that timber are controlled according to FSC-STD-40-005 (V2-1).

Verification required by above FSC-STD■ Confirming origin of timber■ Implementing risk assessments

・We confirm and evaluate that risks A - E (shown below) are low in the region of timber.
A) Illegal logging
B) Violation of indigenous rights and citizens' rights
C) Threats to forests with high conservation valueD) Conversion of natural forests for other land uses
E) Genetically modified tree
・The results of assessment are audited by FSC certification body.

※The FSC Forest management system
FSC was established in 1993 by environmental NGOs, forest companies, indigenous groups,etc.To promote responsible forest
management. The FSC forest management is composed of two systems, Forest Management (FM) certification and Chain of
Custody (COC) certification for processing and distribution step. The inspections and verifications are carried out by third party.
Organizations are allowed to carry the FSC logo, if they distribute certified products from FM-certified forests through a
COC-certified supply chain.
Also seeregarding FSC-COC certification system

P27

Web

Details are available
on the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/eng/env/fsc.html※Act on Promoting Green Purchasing: a law regarding procurement, etc. of eco-friendly goods
and services by countries and other entities

Mitsubishi Paper Mills Group CSR

In our corporate philosophy, the Mitsubishi Paper Mills
Group has announced goals to "live up to the trust of its
customers in the world market," "always [remain] on theleading edge of technology," and "contribute to preserving
the global environment and creating a recycling society."
With respect to all of these goals, we believe that true
reliability, valuable technology, and meaningful contributions
are all found through fair competition involving constructive
and productive rivalry.
To enable the Group to learn about the Competition Act
and to engage in appropriate conduct at our business sites,
we have revamped our Antimonopoly Act Manual. We also
strive to increase employee awareness by publishingCompliance News bimonthly. The news includes up-to-date
information such as reports on violations by international
cartels.

Responsible Procurement of Raw Materials

Mitsubishi Paper Mills supplies compliant products with an overall score of 80 or more according to a printing paper evaluation
equation under the Act on Promoting Green Purchasing.

■ Countries of wood sourced■ Types of sourced wood
FSC-certified wood(plantation)
39%

0

20

FSC-controlledwood
FSC-controlled wood(plantation)(second-growthforests)
39%
22%
40

60

80

Chile
40%

100%

0

20

Australia Other
13%
11%

40

60

Japan
36%

80

100%

We used 1.13 million tons (dry weight) of wood chips for pulp production in FY 2015. The ratio of FSC-certified chips wasapproximately 40% of our total wood chip. We also purchased approximately 13,000 tons (dry weight) of wood pulp. Of thatamount, approximately 24% was FSC-certified.

WWF Japan (The World Wildlife Fund Japan)
Receiving the Special Prize in the "Business & Biodiversity(February 19, 2015)
Katte-ni Award”
The Mitsubishi Paper Mills Group received special recognition with the “koketsu dekoji" Prize in an award program being held for the first time by WWF Japan.
The award program selects companies that contribute to preserving biodiversity
through their procurement of raw materials. The distinctive award communicatesachievements to society through assessments carried out by the WWF Japan.
Mitsubishi Paper Mills was the only company in the paper and pulp industry toreceive the award.
Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR 26

Relationship with the Environment (※The environment)

We have built an independent framework for taking
concrete action to implement our Environmental Charter's
fundamental principles and basic policies.
All of the Mitsubishi Paper Mills Group's mills and businessoffices have received ISO 14001 certification and follow
environmental management practices. The Technology &Environmental Department carries out internal
environmental audits once a year for our major mills and thedivision checks their status of environmental performance.

Energy Composition
The Company received preferential
Environmental Rating Financing in March 2016
from the Development Bank of Japan (DBJ).
Results of the rating evaluation recognized our
initiatives as being "excellent advanced
environmental initiatives."

Environmental Conservation
Committee

Research HubMill

Affiliated Company

Branch Manager

Mill Manager

President

Preservation of Biodiversity

Environmental
Management Division
Mill Environmental
Conservation Committee■ Initiatives for Forest Coservation

Special Subcommittee(s)Also seeP26

regarding FSC-COC
certification system.

The Mitsubishi Paper Mills Group conscientiously utilizes wood resources produced through responsible forest management
following FSC certification system, while also striving to disseminate understanding of the FSC certification throughout our entire
supply chain.
We support regional forest industries and the healthy production of timber through efforts centering on FSC certification,
including the Mori-Smile Project and the promotion of sustainable use of second-growth hardwood forests from Iwate
prefecture .

■ Eco System Academy
Through environmental education focusing on hands-on learning, environmental seminars, and forest surveys/research, weteach the importance of protecting forest ecosystemsand and timber. The theme for the Academy is "collaboration between
industry and nature with its many blessings." The Academy, based out of the Nishigomura Visitors' Center (in Nishishirakawa,
Fukushima prefecture), includes company-owned forests, a research laboratory, and more. In June 2014, we held a hands-on
environmental education class at Ryogoku Elementary School in Sumida ward, Tokyo, where our head office is located.

※*Exhibiting at Eco-Products 2014
We presented our environmentally conscious products along with our environmental preservation
initiatives at this product fair, where we focused on FSC-certified products and the theme of "Wisdom
for Ecology of Mitsubishi Paper Mills Group."(Held December 2014 at Tokyo Big Sight)

27 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

10,00015,000Total energy (TJ)

20,00025,00030,000■ Purchased electricity■ Non-process waste energy

1,000

◆

1,000

◆

◆

800

◆

970

928

943

600

944

400

500

200
0

2011
CO2

2012
◆

2013
2014FY
Amount produced0■ Initiatives in our Logistics Division※Approval to Carry the Eco Rail Mark(first received in October 2010, making us the first company in the paper industry to qualify)

Mitsubishi Paper Mills uses environmentally friendly rail transportation above a fixed level and actively strives to address
global environmental issues by disseminating use of the Eco-Rail Mark.

※Green Management Certification

Legal Manager

Environmental Charter
Details are availableWebon the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/eng/env/charter.html

5,000■ Energy from fossil fuels■ Renewable energy

Environmental Director

Environmental
Manager

FY 20160

President

Technology &Environmental Department

FY 2015

CO2 Emissions and Production Volume

1,500

Major hubs at Namitsu Co., Ltd. have acquired Green Management Certification as efforts are made to lower CO2
emissions from truck transportation. Improved fuel efficiency from continual measures such as cutting engines while idlinghas led to reduced fuel usage.
Green Management Certification is a program that recognizes companies implementing initiatives at or above a fixed
level based on the Green Management Promotion Manual and is intended to reduce the environmental burden of thetransportation industry. Inspections and registration are carried out by the Foundation for Promoting Personal Mobility andEcological Transportation (a public interest incorporated association).

■ Initiatives in Offices and Homes※Saving electricity in our office buildings

In our Offices Division, we are working to conserve electricity usedin our buildings. The graph shows the total electricity consumption in
the head office building of the Mitsubishi Paper Mills Group and thebuildings (main office and Osaka branch office) of Mitsubishi Paper
Sales Co., Ltd.

（MWh）
1,200

Mitsubishi Paper Mills Group CSR

Environmental Management System

The Mitsubishi Paper Mills Group set a CO2 emissions target of "less than 1.016 million tons by FY 2016" and we areendeavoring to reduce our CO2 emissions from energy from fossil fuels. With emissions of 0.944 million tons in FY 2015, wewere able to clear this target. Looking at our energy composition ratio, we have substantially reduced, compared to FY 2006,
the proportion of energy we use from fossil fuels. In FY 2015, we reduced CO2 emissions approximately 17% over our FY 2006
level, and were able to greatly lower energy from fossil fuels at the same time.
Amount produced (1000 t)

Mitsubishi Paper Mills' environmentallyfriendly products
Details are availableWebon the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/di/eng/index.html (and elsewhere)■ Fossil fuel reduction efforts in each production division

Amount emitted (1000 t)

The Mitsubishi Paper Mills Group aims to be a corporate group able to actively
contribute to preserving global environment and to building a recycle-oriented
society. The Group supports global warming countermeasures and thepreservation of robust biodiversity by using sustainable forest resources andsupplying environmentally conscious products as we strive to live up to the trust of
stakeholders.
The Group's environmental management has received high praise, including thehighest rating three years in a row in the DBJ Environmental Rating carried out by
the Development Bank of Japan.

Global Warming Prevention

Annual electricity usage■ Annual electricity usage

1,150
1,100
1,050
1,000

2012

2013

2014 (FY)※Participation in the household environmental accounting booklet program

We use this tool for conveniently tracking CO2 emissions as we try to reduce this category of CO2 at home.

Effectively Utilizing of Resources■ Effectively Utilizing of waste paper

For raw material at our used paper plant (the Hachinohe Mill), we primarily utilize used colored poster paper and colored craft
paper generated in the greater Tokyo area and in the areas around the mill.

■ Effectively Utilizing of secondary products

Rather than disposing of them, we recover secondary products generated through pulp and paper production and use them,for example, as fuel for our specialized boiler. This leads to reductions in our final amount of disposed waste as well as theamount of fossil fuels we use.

■ Recycling waste products as resources

Waste products generated at the Hachinohe mill are reused, primarily as raw material for cement. We are also considering
ways to reuse, as roadbed improvement material, incinerator ash from our waste product boiler.
Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR 28

Relationship with Employees (※Human rights, ※Labour practices)
Based on our Philosophy and Principle for Human Rights and Labor, Mitsubishi Paper Mills strives to maximize our employees’
full capacities in order to create a comfortable and fulfilling workplace environment.

Creating Comfortable Workplaces

In our Manual for Group Health and Safety, the Mitsubishi Paper Mills Group has stated a basic philosophy of "prioritizing healthand safety for all people involved in our business activities, creating a corporate culture conducive to anxiety-free work, andrealizing a healthy work environment without occupational accidents." These are initiatives that we will continue to push forward.

■ Occupational Health and Safety Management (FY 2015 results)※Responding to emergencies
We held regular, comprehensive disaster training drills at each worksite in the Mitsubishi Paper Mills
Group as we implemented efforts to prepare for emergencies.

※Safety Awards

Class II Safety Award

Safety Recognition Award

Quality Control Systems

We have built a quality control system that appoints the millmanager at each mill as the quality control supervisor in oursystem for swiftly addressing customer feedback andproblems related to our products.
All of Mitsubishi Paper Mills' production mills (theHachinohe Mill, the Kyoto Mill, and the Takasago Mill) as
well as our Pressboard section (in the Shirakawa site),
Kitakami HiTec Paper., KJ Specialty Paper Co., Ltd., Toho
Tokushu Pulp Co., Ltd., Mitsubishi Paper Engineering Co.,
Ltd., and Mitsubishi HiTec Paper Europe GmbH haveattained ISO 9001 certification.
Going forward, we will continue working to maintain andimprove our level of product quality.

Product Safety Control Systems

In order to proactively promote concrete measures for
product safety, we have created a Product Liability (PL)Subcommittee and Product Safety Judgment Panel under
the larger Product Liability (PL) Committee.

Product Liability (PL) Committee
Product Safety
Judgment PanelWeb

Mitsubishi Paper Mills’ Hachinohe Mill

Mitsubishi Paper Mills’ Shirakawa Office Safety Collaboration Committee
Mitsubishi Paper Mills’ Takasago Mill Health and Safety Committee■ System Inspections
We carry out regular inspections and checks in special committees with our labor union, in addition to labor-management
discussions, to create better systems for handling the number of hours worked, the utilization of paid annual leave, the utilizationof childcare and nursing care leave, employee wages, retirement stipends, retired employee rehiring programs, and other humanresources programs.

※Pursuing Work-Life Balance
We believe in not only bringing healthy and abundant lifestyles to each employee, but also in
growing into a corporate Group that fosters more productive, satisfied workers in a way that
also helps the competitiveness of the Company.

Product Liability (PL)Subcommitteel

Details are available
on the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/eng/env/community/customers.html

TopicsThe Mitsubishi Paper Mills Group
works to proactively interact withcustomers by attending exhibitions
and product briefing sessions as we
provide society with usefulvalue-added products.
A product briefing session

Receiving a Safety Award at the 54th Japan Paper & Pulp Safety and Health Conference
Top Safety Award

In order to provide customers with products they can use with peace of mind, we have formulated a Product Safety Code andcontinue to promote the improvement of product safety.
In addition, we strive to use accurate labels that will prevent misunderstandings of the quality and content of our products andservices. We are working to ensure fair marketing in compliance with laws and regulations.

Winners of the Pictorico PhotoContest 2015

Mitsubishi Paper Mills Group CSR

We pursued enhanced initiatives for inspecting our activities, including safety information exchange across divisions,collaboration committee subcommittees, and audits of our safety systems. We also announced the elimination of accidents
from unsafe behavior as a focus initiative for all employees.
We were able to reduce the rate of lost work time accidents compared to the previous fiscal year.

Relationship with Customers (※Consumer issues)

Relationship with Communities(※Community involvement and development)

The Mitsubishi Paper Mills Group strives to create vibrant workplaces around its local business sites and works to contribute tovitalizing these regions through on-going business activities.

Communication with Society

It is important to Mitsubishi Paper Mills to communicate with our
stakeholders and be actively involved as a member of the communities
where our Group has business hubs.
Web

Details are available
on the Mitsubishi Paper Mills website.
https://www.mpm.co.jp/eng/env/community※Expenditures on social contribution activities

Mitsubishi Paper Mills is a member of the Keidanren 1% Club andreports the results of our social contribution activities annually.
6,000

Expenditures on social contribution activities

A regional social event (Kitakami HiTec Paper)

Breakdown of expenditures on social
contribution activities
Other Social welfare

4,000

Earthquake
recovery

2,000

0(10,000 yen) 201131 Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR

2012

2013

2014

2015 (FY)

Regional activities/
cultural preservation
Environmental

Academics/
research/
education

Culture/arts

Mitsubishi Paper Mills Corporate Report 2015 Mitsubishi Paper Mills Group CSR 32

FY 2015 Activity Results

In FY 2015, we honed our focus toward improving safety results and ensuring sound compliance with related laws andregulations. We specifically identified “enhancement of activities for safety” and “initiatives to ensure strict legal compliance”
as priority issues and engaged in activities for raising corporate value. Additionally, we enhanced our lineup ofenvironmentally conscious products, starting with FSC®-certified paper, while also promoting the reduction of industrial waste,
the increase of regional environmental activities, and the preservation of biodiversity.

Basic Policy 1. Strengthening our CSR management foundation

Priority Issue
・ Further enhance
governance structure

・ Establish a risk
management framework
・ Thoroughly
disseminate informationon our Code of Conduct
and Compliance
Conduct Standards
・ Thoroughly ensure
strict legal compliance・ Expand initiatives out
to afﬁliated Group
companies

・ Review development of a structure thattakes into account the direction of legal
revisions taking place
・ Enhance our risk map through meetings of
the Risk Management Committee
・ Thoroughly disseminate information on our
Code of Conduct and Compliance Conduct
Standards by further enhancing complianceeducation
・ Strengthen legal functions
・ Promote understanding and strict
compliance (improve our "legal mindset") tolaws necessary in conducting business・ Establish various types of regulations(including Security Export Control
Regulations)
・ Further enhance IR information on our
website and elsewhere
・ Communicate information on new
products, etc. (including information on
afﬁliated companies)
・ Enhance and make full use of our Head
Ofﬁce Gallery
・ Further enhance our CSR Report・ Deepen information-sharing activities
through visits by the CSR Committee

Activity Results
・ Worked to fully disperse information on the integration of
our CSR promotion and internal control frameworks using
education activity and content inserted in our CSR Report,
etc.
・ Gathered information on the direction of amendments to
the Companies Act and prepared to reﬂect changes asnecessary in our CSR promotion framework.
・ Revised our risk map. Placed PHS wireless handy
phones at each site and each major afﬁliated company tohandle emergency communications
・ Carried out compliance education for all employees(facilitated by training line managers and having thosemanagers relate information back to worksites). Education
theme: compliance checks inside worksites

Evaluation

・ Implemented support for legal procedures, such as legal
reviews of contracts, etc.
・ Carried out legal training (5/23, 3/11) and issued six
compliance news releases
・ Held interviews at related departments and formulated
Security Export Control Regulations○

・ Issued CSR and Annual Reports (tools of communication
with our stakeholders) containing information related toGeneral Meetings of Shareholders, analyst brieﬁngs, etc.
・ Disclosed in a timely fashion information on exhibitions
and new products (established an English website for ourindustrial inkjet printing paper)・ Held eight product display events; held productexhibitions at subsidiaries and used them as opportunities
for promoting sales
・ Urgently need to address better visual presentation anda transition to an integrated report format
・ Held opinion exchange gatherings on CSR promotion
activities with line managers○

Basic Policy 2. Promoting environmental management
Priority Issue

Action Plan

・ Promote activities for
global warming
prevention

・ Promote CO2 emission reductions in ourbusiness activities and in homes
・ Review the promotion of greater CO2
absorption using domestically owned forests
・ Follow up on changes in the Scope 3 CO2
category
・ Expand procurement rate of FSC-certiﬁedmaterials

・ Promote activities
toward preserving
biodiversity

・ Participate in the Japan Business Initiative
for Biodiversity (JBIB)・ Enhance and expand
environmentallyconscious products
・ Respond toenvironmental risks andreduce ourenvironmental burden

・ Promote environmentally conscious
products such as FSC-certiﬁed paper, etc.
・ Roll out to emerging countries our new,environmentally conscious products in our
photosensitive material business・ Reduce industrial waste
・ Promote regional environmental activities

Activity Results○○○

・ Ensure product quality
・ Improve CS reﬂectinguser needs○

Action Plan
・ Enhance chemical substancemanagement
・ Enhance activities of our Product Liability(PL) Subcommittee
・ Promote thorough adherence to ISO 9001
and boost customer satisfaction (fewer
complaints, etc.)
・ Set themes to facilitate eliciting highquality idea proposals

Priority Issue

・ Enhance activities
related to health andsafety・ Promote various
measures for improving
employee performance○△○

Evaluation○

・ Build a framework for helping employees'
career development
・ Review our employee beneﬁts and welfare
system in order to improve employee

・ 60.2% of imported wood chips purchased were
FSC-certiﬁed
Worked to achieve stable supply of FSC-certiﬁed woodchips
・ Took part in a working group and engaged in joint
research on preserving biodiversity by drafting raw material
procurement guidelines, etc.
・ Worked on PR efforts by participating in environmental
events (exhibitions), etc.
・ Launched TDP-IFL100 (thermal imagesetting ﬁlm) andshipped to Thailand and Hong Kong○

・ Improved industrial waste ﬁnal disposal rate 0.14% YoY・ Held "environment monitor" gatherings and brieﬁng
sessions covering our operations; engaged incommunication with regional parties○○

・ A client adopted a proposal we had recognized throughour internal award program

○

○
○
○

Evaluation

Activity Results

・ Under our themes of promoting independent actions
focusing on line managers, and involving all employees in
eradicating unsafe practices, we moved forward withinitiatives for auditing safety systems and conﬁrming
progress in sharing safety information between worksites.
Overall performance results declined, despite gains madein reducing serious incidents.
・ Rehire employees (after voluntary retirement) in an
optimal fashion
・ Provided information and guidance in order to thoroughlymanage working hours
・ Implemented Stage 2 of our program for fostering global
employees (1 employee seconded to Germany)
・ Encouraged use at Mitsubishi Paper Mills of an
outsourced employee beneﬁts and welfare system(implemented a campaign that delivered catalog products
and utilized surplus funds)

Priority Issue
・ Promotion of regional
contribution activities

Action Plan
・ Participate in regional activities at each of
our sites and maintain good relations in
those regions

・ Promote culturalcontribution activities

・ Implement on-going support focusing on
the Mitsubishi Group and related industry
groups・ Promote renewed activities

・ Promote activities of
the Eco System

High Priority Issues

△

○
○
○
○

Evaluation

Basic Policy 5. Promoting activities that contribute to society○○

Evaluation

Action Plan

・ Strengthen initiatives involving all
employees in efforts to eradicate unsafe
practices Initiatives for "strictly adhering to
set guidelines"
・ Strengthen initiatives toward preventing
self-inﬂicted illnesses/injuries
・ Thoroughly follow up on results of regular
health checks Promote mental healthmeasures・ Achieve optimal employee placement
across the Group overall
・ Promote work-life balance○○

Activity Results
・ Updated CAS and other controlled substance ﬁles;
promptly responded to SVHC surveys, etc.
・ Worked to ensure product safety and share industry
information, etc. without delays.
・ Reduced complaints in Q1 & Q2, prompting new, more
ambitious targets

Basic Policy 4. Taking further measures to provide our employees with a pleasant working environment○

・ Improved fossil fuel energy consumption rate (4%improvement YoY)
・ Reviewed effective use of our carbon offsetting credits
・ Proactively gathered related information and analyzed
movements in the manufacturing industry

33 Mitsubishi Paper Mills Corporate Report 2015 FY 2015 Activity Results and FY 2016 Target

Priority Issue
・ Ensure product safety

Activity Results
・ Participated in regional activities at each of our sites,
accepted visitors at our mills, and engaged in sponsorshipby donating paper, etc. Also supported independent
participation by employees by purchasing volunteer
insurance.
・ Made donations to and sponsorship of various relatedgroups and projects
・ Expanded the scope of activities, including holding
activities in the Shirakawa region (tree planting festival in
May , vegetation survey, etc.) and teaching environmental
education at Ryogoku Elementary School(Evaluation)○: target achieved

FY 2015 Activity Resultsand FY 2016 Targets

・ Promotecommunication withstakeholders

Action Plan・ Follow up on corporate governancestructure (newly establish a Legal
Department)

Basic Policy 3. Raising customer satisfaction levels by carefully addressing user needs○○○△: partial implementation○○○

Mitsubishi Paper Mills Corporate Report 2015 FY 2015 Activity Results and FY 2016 Targets 34

FY 2016 Targets

In FY 2016, we will dedicate effort toward the priority issues of “enhancing activities related to health and safety” andpursuing “initiatives to ensure strict legal compliance” in line with our on-going themes of improving safety results andensuring sound compliance with related laws and regulations, which are activities we engage in to raise corporate value.
With 20 years having passed since the Great Hanshin Awaji Earthquake, we will embrace the lesson of "not forgetting thecalamity" and estimate various business risks that could arise from injury to employees, interrupted operations, etc. At thesame time, we will proceed to formulate a Business Continuity Plan (BCP) to prepare for natural disasters, such as a major
earthquake in the Tokyo metropolitan area, or the pandemic spread of a communicable virus, etc.

Basic Policy 1. Strengthening our CSR management foundation
Priority Issue

・ Ensure the effective of corporate governance・ Establish a risk management framework

・ Thoroughly disseminate information on our Code of
Conduct and Compliance Conduct Standards

・ Review BCP formulation
・ Deepen understanding of our Code of Conduct, Compliance
Conduct Standards, and related laws and regulations by further
enhancing compliance education

・ Expand initiatives out to afﬁliated Group・ Strengthen legal functions
・ Promote understanding and strict compliance to laws necessary in
conducting business・ Formulate information management regulations
・ Further enhance IR information on our website and elsewhere
・ Communicate information on new products, etc. (including
information on afﬁliated companies)
・ Enhance and make full use of our Head Ofﬁce Gallery
・ Enhance our Corporate Report・ Accompanying amendments to the Companies Act, strengthen
efforts to expand initiatives out to subsidiaries

Basic Policy 2. Promoting environmental management

Action Plan

・ Enhance chemical substance management
・ Enhance activities of our Product Liability (PL) Subcommittee

・ Ensure product quality

・ Promote thorough adherence to ISO 9001 and boost customer
satisfaction (fewer complaints, etc.)

・ Start to roll out products based on user input andbuild optimized sales channels

・ Promote commercialization of proposed ideas and offer backup
support for business activities emphasizing customers' purchasing
processes

Basic Policy 4. Taking further measures to provide our employees with a pleasant working
Priority Issue

Action Plan・ Thoroughly promote education for employees and workers engaged
in new or unfamiliar works tasks

・ Enhance activities related to health and safety

・ Promote mental health measures accompanying amendments to theIndustrial Safety and Health Act
・ Implement checks (with follow up measures) for physical ﬁtness inorder to support and increase employee health・ Promote various measures for improving employee
performance

・ Achieve optimal employee placement across the Group overall
・ Promote work-life balance
・ Build a framework for helping employees' career development

Basic Policy 5. Promoting activities that contribute to society
Priority Issue

Action Plan

・ Promotion of regional contribution activities

・ Participate in regional activities at each of our sites and maintain
good relations in those regions

・ Promote cultural contribution activities

・ Implement on-going support focusing on the Mitsubishi Group andrelated industry groups

・ Promote activities of the Eco System Academy

・ Entrench and expand efforts in the form of on-going activities

FY 2015 Activity Resultsand FY 2016 Targets

・ Promote communication with stakeholders

Priority Issue

・ Ensure product safety

Action Plan

・ Establish a governance framework while incorporating amendments
to the Companies Act and the new Corporate Governance Code・ Inspect governance functions
・ Establish a framework from the perspective of Group management
and enhance our risk map

・ Thoroughly ensure strict legal compliance

Basic Policy 3. Raising customer satisfaction levels by carefully addressing user needs

High Priority Issues

Priority Issue

Action Plan

・ Promote activities for global warming prevention

・ Promote CO2 emission reductions in our business activities and inhomes
・ Review the promotion of greater CO2 absorption using domesticallyowned forests

・ Promote activities for biodiversity conservation
・ Enhance and expand environmentally conscious
products
・ Reduce environmental risks and our environmental
burden・ Follow up on changes in the Scope 3 CO2 category
・ Expand procurement rate of FSC®-certiﬁed materials
・ Participate in the Japan Business Initiative for Biodiversity (JBIB)・ Promote environmentally conscious products such as FSC-certiﬁedpaper, etc.
・ Develop and roll out our new, environmentally conscious products
・ Reduce industrial waste
・ Enhance environmental communication

35 Mitsubishi Paper Mills Corporate Report 2015 Corporate Profile / Corporate Data

Mitsubishi Paper Mills Corporate Report 2015 FY 2015 Activity Results and FY 2016 Targets 36