Corporate Report 2019

Mitsubishi Paper Mills Ltd.

Editorial Policy

Table of Contents

Mitsubishi Paper Mills publishes the Mitsubishi Paper Mills Corporate Report to provide stakeholders with abetter understanding of the Group's overall business activity. It provides a comprehensive accounting offinancial information that includes management measures and performance, as well as non-financial
information such as CSR activities.
In these pages, we report on the Mitsubishi Paper Mills Group's corporate value building activities, whichseek to bring about a more sustainable society.

■ ScopeIn principle, the companies included are Mitsubishi Paper Mills and its consolidated subsidiaries (20companies in Japan and 6 companies overseas), as well as its equity-method affiliates (2 companies in Japan,
1 company overseas).
Specific mention is made for companies outside the scope.

■ Reporting Period

The reporting period is fiscal 2019 (April 1, 2018 to March 31, 2019), with some content falling outside thisperiod.

■ Guidelines Referenced

ISO26000
GRI's Sustainability Reporting Standards
Environmental Reporting Guidelines (2018 Edition), Ministry of the Environment■ Issued

August 31, 2019 (Previous: August 31, 2018)■ Next Report

End of August, 2020

To Our Stakeholders
Editorial Policy ･･････････････････････････････1

Ensuring Fair Trade･･･ ･････ ･･････････ ･････ 33

Our Website ････････････････････････････ ･ ･･･ 1

Preventing Corruption ･ ･･･････････ ････････ 33

Table of Contents ････････････････････････････ 2

Disavowal of Anti-Social Elements ･･････････ 33

Message from the President ･･･････････････････3

Promoting Social Responsibility in the
Value Chain ･･ ･ ････････ ･･･ ･･････････････ 33

History of the Mitsubishi Paper Mills Group････････ 5
Main Offices and Mills ･･･････････････････････ 6
Consolidated Financial and Non-Financial
Highlights ･･ ･･････････････････････････････ 7

Environmental Management System ････････ 35

New Mid-Term Management Plan･･････････････9

Preventing Global Warming ･･･････････････ 36

Business Activities ofthe Mitsubishi Paper Mills Group

Preserving Biodiversity ･･･････････････ ････ 37

Overview of Business Segments ･･････････････15

Material Balance･･････････････････････････ 39

Printing Paper Business････････････････････15

Environmental Indicators ･･････････････ ･ ･･･ 40

Imaging Media Business ･･･････････････････17

Relationship with Employees ････････････ ･ ･･･ 41

Speciality Materials Business ･･･････････････19

Occupational Safety and Health Initiatives･･･ ･ 41

Research and Development ･･････････････････21

Promoting Good Mental and Physical Health ･･ 41

Mitsubishi Paper Mills Group CSR

Efforts to Create Comfortable Work
Environments･･････････････････ ･････ ･･ ･ 42

CSR Promotion Structure ･･ ････････････････ 23
ISO 26000 and Mitsubishi Paper Mills Group
Initiatives ･･ ････････････････････････････24
Key Issues (Material Issues) Concerning CSR
Activities ･･ ････････････････････････････ 25

Effectively Using Resources････････････ ････ 38

Furthering Diversity ･･････････････ ･ ････ ･ ･･ 42
Relationship with Customers････････････ ･ ･ ････43
Quality Control System ････････････････ ･････43
Product Safety Control System ･････････ ･ ････43
Communication with Customers ･････ ･ ･ ･･･ ･ ･ 44

Corporate Governance ･･････････････････････ 26

Encouraging the Worry-Free Use of
Our Products ･･････････････････ ･ ････ ･ ･ ･ 44

Basic Policies on Corporate Governance ･･････26

Relationship with Communities ･･･････････ ･ ･ ･ ･ 45

Corporate Governance Structure ････････････26

Communication with Community Members ････ ･ ･ 45

Annual Business Report

Board of Directors and Audit & Supervisory
Board Members ･･ ･･････････････････････ 27

Philanthropic Expenditures ･････････ ･･･ ･ ･ ･ ･48

Annual report

Outside Directors ･････････････････････ ･･･ 28■ CSR / Environment

Corporate reports, CSR reports
https://www.mpm.co.jp/eng/env/report-index.html■ Investor Relations
https://www.mpm.co.jp/eng/ir/library/annual-business-report.html
https://www.mpm.co.jp/eng/ir/library/annual-report.html■ Products and Services

https://www.mpm.co.jp/eng/products/index.html■ Research and Development

https://www.mpm.co.jp/eng/rd/index.html

1

Relationship with the Environment･･･････ ･････ 35
Chemical Substance Management･････ ･････35

The Way We See CSR ･･･ ････････････････ ･23

The Mitsubishi Paper Mills website provides a range of information on subjects that include CSR and theenvironment, investor relations, products and services, research and development, basic data on the company,and hiring.

Responsible Raw Material Procurement ･･･ ･････33

Special Feature

Mitsubishi Paper Mills Group CSR ･･･････････ ･23

Our Website

Fair Operating Practices ････････････････ ･････ 33

Board of Directors Effectiveness Assessments･･ 29<Cover photo>
Production facility at a household and consumer
paper joint venture that began business operations
this spring (Hachinohe)

Information Disclosure ･･････････････ ･ ･････30

Fiscal 2019 CSR Activities ･････････････ ･ ･ ･ ･ ･ 49
Fiscal 2020 CSR Action Plan ･･･････････ ･ ･ ･･ ･ 51
Company Profile and Corporate Data

53

Compliance････････････････････････ ･ ･････31
Risk Management ･･････････････････ ･ ･････32

2

Message from the President■ The Mitsubishi Paper Mills Group will expand and deepen its capital and businessalliances with the Oji Group, and strive to improve its corporate value and contribute

Mitsubishi Paper Mills Group Corporate Philosophy

to society in order to accelerate its development.

■ We will strive to make society more sustainable and contribute to achieving theSDGs through our paper business.

A corporate groupthat lives up to the trustof its customers
in the world market

A corporate groupthat is always
on the leading edgeof technology

Yukihiro Tachifuji

President andChief Executive Officer

立藤 幸博

3

A corporate groupthat contributes
to preserving
the global environmentand creatinga recycling society

We aim to contribute to society by pursuing the world market,
technological capabilities, and the global environment.

Aims of the Mitsubishi Paper Mills Group

Contributing through CSR Activities

Founded in 1898, Mitsubishi Paper Mills follows a philosophy centered on contributing to society through the power oftechnology. We have developed and supplied the world with high value-added products, and have contributed to our
information culture through businesses such as publishing, printing, and photography.
Both domestically and internationally, markets are currently making major structural adjustments in response to theadvance of digital information technologies. To respond to these changes in both the market and business environments,
achieve sustainable growth for the company, and improve corporate value, we formed a capital and business alliance withOji Holdings Corporation. Then in March 2019, we became an equity-method affiliated company of Oji Holdings
Corporation by conducting a capital increase by way of third-party allotment of shares. The years ahead will see us
strengthen and develop our cooperative relationship with the Oji Group to make it even more comprehensive andconstructive.
The Mitsubishi Paper Mills Group has now started the New Mid-Term Management Plan, which it will operate under for
three years from fiscal 2020. Centered on the basic principle of Strengthening and diversifying the business base for a
new stage, the plan will focus on three key strategies: 1. establish a robust management base through the alliance with
the Oji Group, 2. make structural reforms and enrich existing businesses, and 3. diversify the business base by fostering
new profit pillars.
We will expand and deepen the capital and business alliance with the Oji Group based on the financial ground we havesteadily reinforced through our first and second mid-term management plans. At the same time, we will accelerate thedevelopment of the Mitsubishi Paper Mills Group, improve corporate value, and contribute to society by strengthening anddiversifying our business base. We hope for your continued support and encouragement in the future.

The Mitsubishi Paper Mills Group's CSR activities aim to improve corporate value and solve social problems throughtrust and empathy from our stakeholders.
Recent years have seen a worldwide increase in companies leveraging the SDGs (sustainable development goals) intheir business. We were one of the first to produce and sell FSC®-certified paper, and we continue working to make society
more sustainable through our paper businesses.
In fiscal 2019 we worked on the following three things as top priority issues: Enhancing activities to ensure safety andhealth, Customer-centered product development, and Promoting various measures to improve human resource
performance. Additionally, in response to revisions to the Keidanren's Code of Conduct and new rules formulated internaland external to the company, we made sweeping revisions to the Code of Conduct of the Mitsubishi Paper Mills Groupand the Compliance Conduct Standards.
For fiscal 2020, we established Product development centered on harmony with society and Enhancing activities toensure safety and health as the two top priority issues considering the Mitsubishi Paper Mills Group's businessenvironment and conditions. Product development centered on harmony with society is an issue we will apply to
Diversifying the business base by fostering new profit pillars, one of the key strategies in the New Mid-Term Management
Plan. At the same time, with Enhancing activities to ensure safety and health, we will step up efforts based on theperception that safety and health undergird the Group's business.

FSC® C021528
4

History of the Mitsubishi Paper Mills Group
April 1898

June 1901
June 1904
February 1917
November 1917
December 1925
April 1944
August 1946
May 1949
November 1950
April 1966
April 1966
April 1972
April 1985
February 1992
January 1999

May 2002
March 2003
April 2005
November 2007
April 2008
October 2010
October 2011
July 2012
April 2014
March 2016
April 2017
March 20195

Founding of the company
Hisaya Iwasaki took over a paper milloperated by the Walsh Brothers in
Sannomiya, Kobe, and established Kobe
Paper Mill Company
Moved the mill (currently Takasago Mill) to
Takasago City in Hyogo Prefecture
The Takasago Mill just after its establishment
Changed the company's name to Mitsubishi Paper Mills Company
Constructed the Nakagawa Mill in Katsushika-ku, Tokyo
Incorporated and changed name to Mitsubishi Paper Mills, Ltd.
Moved head office from Takasago, Hyogo to Chiyoda-ku, Tokyo
Merged with Kyoto Photographic Industry Company, Ltd. and made it the Kyoto Trial Mill
(currently Kyoto Mill), to produce photographic paper
Formed Association of Mitsubishi Paper Mills labor unions
Listed in the First Section of the Tokyo Stock Exchange and Osaka Securities Exchange
Acquired all stock of a manufacturer and seller of non-wood pulp (currently Toho Tokushu Pulp
Co., Ltd)
Constructed the Hachinohe Mill in Hachinohe City, Aomori
Merged with Shirakawa Pulp Industry Ltd. and acquired the Shirakawa Mill (currently
Shirakawa Site) and the Kitakami Mill (currently Kitakami HiTec Paper Corporation)
Formed Mitsubishi Paper Sales Co., Ltd. by merging Ryosan Shokai (founded 1912) withCASIWA Co., Ltd.
Established trading subsidiary Mitsubishi Paper International Inc. in New York
Established Diamic Co., Ltd.
Acquired all stock of the Germany-based paper production company Stora Carbonless Paper
GmbH (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
Closed Nakagawa Mill
Split off the Kitakami Mill's business and established Kitakami HiTec Paper Corporation
Established Zhuhai MPM Filter, Ltd. (Zhuhai City, Guangdong Province), began filter productprocessing business in China
Acquired all stock of Tomoegawa Paper America LLC (renamed MP Juarez LLC in July 2008),
an inkjet paper finishing company based in Mexico
Merged Mitsubishi HiTec Paper Bielefeld GmbH and Mitsubishi HiTec Paper Flensburg
GmbH, establishing Mitsubishi HiTec Paper Europe GmbH
Acquired all stock of KJ SPECIALTY PAPER Co., Ltd. from KOHJIN Film & Chemicals Co.,Ltd.
Moved the head office to Sumida-ku, Tokyo
Established MPM Operation Co., Ltd., a spin-off from the Hachinohe Mill
Established joint venture with Oji Green Resources Co., Ltd. called MPM Oji Eco-Energy Co.,Ltd.
Established joint venture with Oji Nepia Co., Ltd. called MPM Oji Home Products Co., Ltd.
Issued new shares via a third-party allotment to the Oji Holdings Corporation and became an
equity-method affiliated company of the same

Main Offices and Mills■ Head Office & Branches
Head OfficeOsaka Sales Branch

2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026,
Japan (Ryogoku City Core)

1-1, Fushimimachi 2-chome, Chuo-ku, Osaka-shi,
Osaka(Sumitomo Mitsui Bank Koraibashi Building)■ Domestic R&D Facilities
Speciality Materials R&D Laboratory

Process Development Laboratory

46, Wadai, Tsukuba-shi, Ibaraki

3, Aza Maeyamanishi, Nishigo-mura, Nishi
Shirakawa-gun, Fukushima

Kyoto R&D Laboratory
1-6-6 Kaiden, Nagaokakyo-shi, Kyoto■ Domestic Production Facilities
Takasago Mill

Kitakami HiTec Paper Corp.

105 Sakaemachi, Takasagocho, Takasago-shi, Hyogo
Principal products: Carbonless paper, thermal paper,
inkjet paper, non-woven fabric, speciality paper

35, Sasanagane, Aisari-cho, Kitakami-shi, Iwate
Principal products: Photographic base paper,
sanitary paper

Kyoto MillKJ SPECIALTY PAPER Co., Ltd.

1-6-6 Kaiden, Nagaokakyo-shi, Kyoto
Principal products: Printing plate materials, photo
inkjet paper

7-1 Shimbashicho, Fuji-shi, Shizuoka
Principal products: Chemical paper (decorative
laminate base paper, impregnated decorative
sheets, base paper for wallpaper, masking tapebacking, etc.)

Hachinohe Mill

Toho Tokushu Pulp Co., Ltd.

Aza Aomoriyachi, O-aza Kawaragi, Hachinohe-shi,
Aomori
Principal products: Printing paper, white
paperboard, copier paper(Oyama Mill) 340, O-aza Mamada, Oyama-shi,
Tochigi(Kitakami Mill) 35, Sasanagane, Aisari-cho,
Kitakami-shi, Iwate
Principal products: Non-wood pulp

Shirakawa Site

MPM Oji Home Products Co., Ltd.

3, Aza Maeyamanishi, Nishigo-mura, Nishi
Shirakawa-gun, Fukushima
Principal products: Pressboard

Aza Aomoriyachi, O-aza Kawaragi, Hachinohe-shi,
Aomori
Principal products: sanitary paper■ Overseas Production Facilities
Mitsubishi HiTec Paper Europe GmbH Bielefeld Mill

Zhuhai MPM Filter, Ltd.

Niedernholz 23, D-33699 Bielefeld, Germany
Principal products: Carbonless paper, thermal
paper, inkjet paper

17 Yijing Lane Pingsha Town J, Inwan District,Zhuhai, Guangdong, China
Principal products: Various filters

Mitsubishi HiTec Paper Europe GmbH Flensburg MillMP Juarez LLC

Husumer Strasse 12 D -24941 Flensburg, Germany
Principal products: Thermal paper, inkjet paper

Ave. Valle del Cedro #1551 Paraq. Ind.
Intermex C.P. 32690 Cd. Juarez, Chih., Mexico
Principal products: Inkjet paper
6Consolidated Financial and Non-Financial Highlights
The fiscal year runs from April 1 to March 31.

Fiscal Year

2015

2016

2017

2018

2019

（millions of yen）

Net Sales（millions of yen）
300,000

214,944

216,340

201,955

201,492

203,997

Operating Income

1,038

3,872

4,313

1,790

△40

Ordinary Income

135

2,216

2,703

652

△914

△4,272

2,217

1,152

3,198

351

4,369

4,798

5,995

7,438

12,481Net Sales

Profit Attributable to Owners of Parent
Capital Investment

214,944

216,340

200,000

201,955

201,492

203,997

3,500
3,000

150,000

2,500
1,790

2,000
100,000

1,500

1,038

1,000
500

Cash Flows (millions of yen):

Cash Flows from Operating Activities

3,907

12,626

19,83912,80919,066

Cash Flows from Investing Activities△1,168△2,145△7,070△5,994△8,979Financial Position (100 millions of yen):
Total Assets

2,526

2,407

2,349

2,374

2,328

Outstanding Interest-bearing Debt

1,448

1,388

1,257

1,193

1,046

520

492

544

597

664

Equity Capital

0

2015

Earnings per Share (EPS)△124.96

64.85

33.72

93.57

10.04

Book Value per Share (BPS)

1,521.56

1,440.45

1,591.00

1,747.54

1,485.64

2016

2017

2018

2.8
●

D/E Ratio
3.0

2.8

2.8

●

1,800
1,600

1,448

1,388

1,257
2.3

●

1,200
1,000

2.4
1,193

●

2.2

1,046

2.0

2.0

800

0.5

1.8

2.1

0.9

△0.0

Overseas Sales Ratio (%)

31

31

30

32

35

Equity Ratio (%)

20.6

20.5

23.2

25.2

28.5

Return on Equity (ROE) (%)※2

△8.2

4.4

2.2

5.6

0.6

Debt-Equity Ratio (D/E Ratio)※3

2.8

2.8

2.3

2.0

1.6

11,993

14,534

14,767

12,264

10,076

EBITDA (millions of yen)

200

●

2015

2016

3,622

3,697

3,734

3,723

3,668

Intellectual Property Rights

1,420

1,607

1,639

1,655

1,691

※5

91

92

89

92

94

Greenhouse Gas Emissions (1,000 tons)

1,063

1,066

1,065

1,095

1,037

Greenhouse Gas Emissions Emission
Intensity (tons / product tons)

1.186

1.155

1.155

1.160

1.155

Industrial Waste Effective Utilization Ratio (％)

A one-for-10 reverse stock split of common stock went into effect October 1, 2016.
Calculations assume this reverse stock split occurred at the beginning of fiscal 2015.
※2 Return on equity (ROE) = Profit attributable to owners of parent / (net assets - non-controlling interest)※3 Debt-equity ratio = Interest-bearing debt / equity capital※4 Employees denotes full-time employees and does not include temporary workers※5 Industrial waste effective utilization ratio = (waste generated - final disposal volume) / waste generated

2017

Outstanding Interest-bearing Debt

1.6

2018
●

2019
（FY）
D/E Ratio

Intellectual Property Rights

2019
（FY）

5.6
●

●

664

5.0

2.2

600

3.0

597

●

●

544

550

ROE（%）
7.0

0.6

-1.0

520

-3.0

492

500

1.6

-5.0
450

-7.0

1,655

400

2015

-8.2
2016

2017

Equity Capital

2018

ROE

●

2019
（FY）

-9.0

Emission Intensity（tons/product tons）
1.250

Emissions（1,000 tons）
1,200

1,800

1,639

1.4

1.0

Greenhouse Gas Emissions and Emissions Intensity（Incidents）

1,607

Employees※4

650

2018

Equity Capital & ROE

4.4

●

1,700

Non-Financial Data:

2017

1.8

400

Operating Income Margin (%)

Equity Capital（100 millions of yen）
700

2016

2.6

600

Management Indicators:

2015

△500

Outstanding Interest-bearing Debt and D/E Ratio

2,000

△40

0

2019
（FY）

Outstanding Interest-bearing Debt
（100 millions of yen）
2,200

1,400

Per Share Information*1 (Yen):

7

3,872

4,000

50,000

※1

4,313

4,500
250,000

Profit and Loss (millions of yen):

Operating Income

5,000

1,691

1,180
1,160
1,140

1,600

1.186

1.200

●

1.155
●

1,120

1.155
●

1,420

1,080

1,400

1,060

●

1,063

1,066

●

1.150

1.100

1,065
1,037

1,040

1,300

1.155

1,095

1,100

1,500

1.160

1.050

1,020
1,200

2015

2016

2017

2018

2019
（FY）

1,000

2015

2016
Emissions

2017
●

2019
（FY）
Emission Intensity
2018

1.000

8

Special Feature: New Mid-Term Management Plan
Second Mid-Term Management Plan Review

Results of Initiatives for Major Themes

The Mitsubishi Paper Mills Group carried out the Second Mid-Term Management Plan, which focused on "stabilizationof profit through alliances," over the three years from FY2017 to FY2019. Centered around four main themes, i.e.,
structural reform of the printing paper business, improving the profit base, developing new businesses, and strengthening
the business foundation and financial ground that will support the Group's earning power, we built and reinforced anearnings structure not affected by the external environment.

Net sales were ¥26 billion below target due to such factors as a larger-than-expected decrease in demand in existing
businesses and delays in launching new businesses. Operating income was ¥6.5 billion under target, far below the target
level, due to a major impact from a steep rise in raw material and energy costs. However, targets were met for bothoutstanding interest-bearing debt and the debt-equity ratio.
Unit: 100 million yen

Second Mid-Term Management Plan
Period ended
March 31, 2017

Period ended
March 31, 2018

ActualTargetActualTargetActualTarget

2,163

2,200

2,020

2,250

2,015

Operating income

39

45

43

55

Ordinary income

22

25

27

Outstanding interestbearing debt

1,388

1,350

D/E ratio

2.8x

2.7x

Net sales■ Structural Reform of the Printing Paper BusinessAlong with stabilizing earning by implementing a transportation adjustment payments system, which has users pay a
portion of the increase of logistics costs, and revising printing paper prices to stabilize profit, we improved profitability in
our German business. We also suspended operation of papermaking machine No. 4 at Hachinohe Mill to build aproduction system consistent with demand trends and improve productivity.

■ Improving the Profit Base

Summary of Business Results

Period ended
March 31, 2016

（FY2020 - FY2022）

Period ended
March 31, 2019

ActualDifference

2,300

2,040

▲260

18

65

▲0

▲65

35

7

45

▲9

▲54

1,257

1,300

1,193

1,250

1,046

2.3x

2.5x

2.0x

2.3x

204
decrease
0.7
1.6x improvement

In the Imaging Media Business, we strengthened the business base through our alliance with Fujifilm for photographic
base paper and other products. Although targets were missed due to having spent time addressing base paper-related
quality issues, we expanded our alliance and made decisive forays into international markets, while at the same time
ramping up sales of existing, maturing products.
The Speciality Materials Business focused on expanding sales in the U.S., Europe, and Asia, particularly in China, andpushed steadily forward in businesses dealing in products such as water treatment membrane base substrates and othernonwoven fabrics, rewritable media, decorative laminate base paper, and tape base paper.

■ Developing New Businesses

As efforts to establish further new business for the Group, we expanded business in growth areas such as functionalfilms based on imaging technologies, digital image transfer inkjet paper for textile printing, and battery separators andinorganic fiber paper of superior quality. To cultivate the digital image transfer inkjet paper market, the Kyoto Mill broughtin functional film production equipment and KJ SPECIALTY PAPER installed papermaking machines for inorganic fiber
paper. In nonwoven fabric products, good progress was made in expanding sales of water treatment membrane basesubstrates.
And at the Hachinohe Mill, where we are setting up a joint venture business for household and consumer paper and a
joint biomass power generation business with the Oji Group, we made efforts to transform our business structure while
reinforcing our profit base.

Alliance with the Oji GroupThe Oji Holdings Corporation and Mitsubishi Paper Mills have gradually expanded the scope of their business alliance,engaging in, among other things, a business alliance in the communication paper field, a joint venture business forhousehold and consumer paper, and a joint biomass power generation business. In February 2018, we entered into a
capital alliance with the Oji Holdings Corporation to make our alliance comprehensive and constructive for further
sustainable growth for both companies. Later, after having been cleared for competition law compliance domestically andinternationally, a capital increase was effected by way of third-party allotment of shares to Oji Holdings and Oji Holdings
also acquired Mitsubishi Paper Mills shares from five Mitsubishi Group companies. This made the Oji Holdings
Corporation a major shareholder with 33% of voting rights in Mitsubishi Paper Mills, as well as our largest shareholder,
and an affiliated company. We will continue to build on and deepen our many business alliances according to the New
Mid-Term Management Plan, which we began carrying out in April 2019.

33％
2.35％
9

Percentage of MPM shares held by Oji Holdings Corporation(based on voting rights)

New equipment for functional film production (Kyoto Mill)

New papermaking machine for inorganic fiber paper (KJ SPECIALTY PAPER)Household and consumer paper joint venture (Hachinohe Mill)

Joint biomass power generation business (Hachinohe Mill)■ Strengthening the Business Foundation and Financial Ground that will Support theGroup’s Earning PowerIn addition to operational efficiency improvements, such as consolidating accounting departments and centralizing
financing within the Group, we began to deal with personnel affairs with a new operation base. We also reduced laborcosts by soliciting voluntary retirement.

10

The New Mid-Term Management Plan
In accordance with the New Mid-Term Management Plan (April 2019 - March 2022), which began in April 2019, we willbuild on and deepen our business alliances with the Oji Group. In addition to our existing alliances in the communication
paper field, and joint ventures such as in biomass power generation business and household and consumer paper
business, with cooperative efforts spanning all business fields, we will aim to achieve synergistic effects worth at least¥2.5 billion by March 31, 2022, the final year of the plan.

① Establish a robust management base through the alliance with the Oji Group■ Build on and Deepen Our Capital and Business Alliance with the Oji Group

Building on and deepening
our business alliances

Synergy worth at least ¥2.5 billion by
the final year of the plan

Biomass power generation business・New equipment investments for joint ventures

We have established working groups in all areas of the Company's business: production, sales, raw material
procurement, logistics, engineering, capital investment, R&D, and indirect divisions, and are discussing concrete plans
with the Oji Group.

・ Reduce the costs for raw materials and energy《 Basic strategies 》

Household and consumer paper business◇ Build steadfast cooperative relationships in all business fields

・ Reduce the supply and logistics costs

Communication paper field・ Reduce the chip procurement and logistics costs
・Streamline production system etc.

◇ Achieve at least ¥2.5 billion in operating income frombusiness alliances by the final fiscal year of the plan (yearending March 31, 2022)◇ Strengthen the business base by expanding businessalliances in multiple businesses and enhancing synergistic
effects◇ Reinforcing our financial ground(Outstanding interest-bearing debt of ¥100 billion or less, D/E
ratio of 1.3x)

Basic Principle and Management Targets■ Basic Principle"Strengthening and diversifying the business base for a new stage"■ Management Targets
Consolidated indicators

Targets (fiscal year ending
March 31, 2022)

Net sales（Billions of yen）
80

¥5.5 billion

Ordinary income
Outstanding interest-bearing debt
D/E ratio

Prices+53

60¥6.0 billion

Costs
+11

22/3
Target55

Raw material &energy costs▲22《Targets by Segment》
Operating income

Paper and pulp

¥164.0 billion¥2.4 billion

Imaging¥39.5 billion¥1.0 billion

Speciality materials ¥22.0 billion¥1.8 billion

Others¥15.5 billion¥0.4 billion

Adjustment- ¥21.0 billion- ¥0.1 billion

Total¥220.0 billion¥5.5 billion

R&D

Sales

All businessfieldsCapitalinvestment

Raw material
procurement

Logistics
Engineering

In the Printing Paper Business, which has been the first area to show the fruits of synergy with the Oji Group, we will

strengthen mutual OEM business with the Oji Group and transform our sales structure and aim to stabilize earnings.

《 Basic strategies 》◇ Early achievement of alliance effects with the Oji Group40

Net sales

Indirectdivisions■ Stabilizing the Profitability of the Printing Paper Business¥98.0 billion
1.3x

Production

Change in operating income
Quantity/product mix+13¥220.0 billion

Operating income

to quickly improve efficiency and achieve cost reductions, andstrengthen our competitiveness◇ Stabilize our management base and further reduce interestbearing debt through enhancements to our financial ground《 Targets 》

Synergy spanning all business fields

11

Key Strategies◇ Carry out sales strategies that prioritize earnings◇ Transform our production lineup《 Main policies 》

20◇Strengthen mutual OEM business◇ Transform the sales policies of Mitsubishi Paper Sales
0

-20

19/3
▲0
＜Assumptions＞
Exchange rate 110 JPY to 1 USD 130 JPY to 1 EUR
Crude oil price（Dubai）：65USD/BBL(which became a distributor for Oji Paper in January 2019)◇ Reduce logistics costs by using mutual warehousing andlogistics facilities and other ways
◇ Build a production system consistent with demand andimprove productivity◇ Reduce purchase costs for raw materials and energy

New products in the household and consumer paper business,
which began sales in June 201912

Domain② Make structural reforms and enrich existing businesses

Materials for the electronics industry

High chemical resistance■ Make Structural Reforms and Enrich the Imaging Media BusinessIn the Imaging Media Business, along with strengthening our business base through our alliance with Fujifilm forphotographic base paper, we are actively taking our business to international markets to enhance sales of existingproducts that are in the process of maturing.

High resolution
Allows for etching on difficult-toprocess insulating resin

Silver mesh films for large touch
panels◇ Further expand our alliance with Fujifilm

Establish
newbusinesses◇ Make active forays into international markets and thereby

secure profits from existing products that are maturing◇ Increase the volume of base paper through the alliance with

Fujifilm◇ Expand business applications for inkjet paper and boost sales
in emerging nations◇ Boost sales in Asia's flexo and screen printing markets

Digital image transfer inkjet paper
Newly-developed transfer inkjet
paper for textiles

Secure profits fromexisting products
Further expand alliances■ Make Structural Reforms and Enrich the Speciality Materials BusinessAlong with further expanding sales of nonwoven fabric products, the Speciality Materials Business will sell filter
products in China, where demand for cleaner air is on the rise, roll out rewritable media products in the ASEAN
market, and expand sales of decorative laminate base paper and tape base paper, aiming to grow the market in Asia,
Europe, and the U.S.

DomainCarbon nanotube-relatedHigh electro-conductivity

Ultrathin shielding materials witha thickness of 10 µm
High strength and high shielding
properties
Superior applicability on electronic
substrates

materials

・Gain new customers for high value-added bonded products
tailored to customer needs

・Expand sales of sublimation transfer paper(for polyester fabrics)

・Commercialize thermal transfer printing paper(for cotton and nylon fabrics)

Goals during the New Mid-Term Management Plan Period
・Roll out carbon nanotube dispersion liquids, coatings, andfilms for anti-static and heat generating applications

・Launch base material and electro-conductive nonwoven
fabrics

Recycled carbon fiber nonwoven fabrics

Proactive reuse of recycled materials
Same uniformity as virgin materials
Conductivity and shielding properties

China national standards filter evaluation device(installed at Chinese subsidiaries)③ Diversify the business base by fostering new profit pillars
The household and consumer paper joint venture and joint biomass power generation business, which were started
during the period of the Second Mid-Term Management Plan, will contribute to greater profit stability for the HachinoheMill. For this section, however, we will look at new businesses being carried out in other areas.

■ New Projects being Prepared for Commercialization (Imaging Media Business field)
The goal is to leverage Mitsubishi Paper Mills' proprietary technologies developed in the film coating field and,during the period of the New Mid-Term Management Plan, aim for commercialization of primarily materials for theelectronics industry, electro-conductive films, and digital image transfer inkjet paper.

13・Launch systems for processing advanced insulatingThin-film EM shielding materials◇ Increase sales of RO membrane, MBR membrane,

inclined-wire paper machines

Features

High heat generation《 Main policies 》◇ Quickly launch new products made with the newaccommodate custom orders

Based on Mitsubishi Paper Mills technologies in nonwoven fabrics and KJ SPECIALTY PAPER technologies, wewill undertake efforts to create businesses involving carbon nanotube-related products, EM shielding materials, andrecycled carbon fiber nonwoven fabrics.

High transparency

more papermaking machines◇ Expand sales in Asia and Europe

and olefin membrane substrates◇ Begin full-scale supply of battery separators to
Beijing National Battery Technology Co., Ltd.
◇ Expand sales of decorative laminate base paper inSoutheast Asia
◇ Expand sales of tape base paper in Europe

・Expand and improve dry film resist product lineup and■ New Projects being Prepared for Commercialization(Speciality Materials Business field)《 Basic strategies 》◇ Expand sales of nonwoven fabric products and install

Goals during the New Mid-Term Management Plan Period

Electro-conductive films《 Basic strategies 》《 Main policies 》

Features・Make products such as acoustic diaphragms, heating

elements, friction materials, EM shielding materials, andreinforcing materials for CFRP

■ Plastic Replacement BusinessWe already sell barrier paper, which has the barrier properties and heat sealability needed for food packaging, andfrom September 2019 we will also begin selling the paper in Asia, including Japan.
DomainBarrier paper

Features

Goals during the New Mid-Term Management Plan Period

Achieves the barrier properties and・Roll out in Asia, including Japan
heat sealability needed for foodpackaging with just coated paper・Consider domestic production
A paper material that breaks down,
making it biodegradable and recyclable

Bleached kraft paper
Bleached kraft paper, featuring
excellent printability and suitability
for manufacturing bags

・Expand sales in Asia, including Japan・Roll out such products as barrier paper made with bleachedkraft paper for high value-added products

14Overview of Business Segments
Printing Paper BusinessBusiness Results

In the domestic market, while strong sales continued forcommunication paper, due in part to the effects of alliances,a slump in demand for printing paper gained further
momentum, resulting in a sales volume decline despite
growth in exports.
Although European subsidiaries recorded a drop in sales
volume primarily for pressure sensitive paper, sales revenue
increased on the back of price revisions and exchange rate
effects.
As a result, net sales for all paper and pulp businesses
was ¥156.78 billion, up 3% year-over-year.

Net sales for paper and pulp businesses（100 million yen）

■ Printing Paper

2,000

1,800
1,700

1,654

1,643

1,600

1,504

1,522

1,568

1,500
1,400
1,300
1,200
1,100
2015

2016

2017

2018

2019
（FY）

In the printing paper business, we have carried out a multitude of measures aimed at building a stable earnings
structure that is not affected by the external environment. This was a business strategy from the Second Mid-Term
Management Plan.
As one part of our strategy, we aim to maintain capacity utilization while putting together a production system matched
to demand at the Hachinohe Mill, our main factory. As such, although we suspended operations of the mill's papermaking
machine No. 4, we have expanded imports, furthered our alliance with the Oji Group, and built an efficient operation
structure.
Amid rising raw material and energy costs and logistics costs, we revised product prices, implemented a transportation
adjustment payments system, and reduced inventory by optimizing our logistics structure in order to increase our profit
margin. We have also worked to boost the profitability of our German business through such means as implementing
price-focused sales policies, reducing costs, and rolling out new products.
In addition to these measures, we are also looking to shift our portfolio away from printing paper and toward wrapping
paper and household and consumer paper, two areas where greater demand is expected. To this end, we are working tobuild a stable earnings structure in Japan and other countries through efforts that include beginning the production andsale of bleached kraft paper and launching a household and consumer paper joint venture with Oji Holdings Ltd.

Business Topics《Barricote, food packaging paper》
Although it is a paper material, barricote has the strong barrier
properties needed for food packaging applications. A coated paper(FSC®-certified) for food packaging, barricote is environmentally friendly
due to, among other things, its recyclability and it’s being highlybiodegradable because those are inherent properties of paper materials.
In a grade suitable for heat sealing, it is a material that does not need to be
combined with sealants such as plastic films. In September 2019 we will
launch Bag WGOM in Japan and other countries in Asia. Already being
used by major food manufacturers in Europe, Bag WGOM can be used ina wide variety of applications because of its water vapor, oxygen, and foodand mineral oil barrier properties, as well as its heat sealing compatibility
and recyclability.

15■ Communication Paper

1,900

1,000

Business Strategies

Products

FSC® C021528

Used for making catalogs, pamphlets, and books,
among other things.

Products including copier paper, slips, and receipts.

■ Pressboard■ Household and Consumer Paper

Used as insulating material around transformers, among other things.

Popular as a household and consumer paper with a high-grade texture.

■ Docodemo Paper / TouchCard■ Bleached Kraft Paper

A new business that aims to cultivate demand through a fusion of
paper and electronic media.

Used in the production of paper bags and shopping bags,
among other things.

16

Overview of Business Segments
Imaging Media BusinessBusiness Results

Domestic sales revenue dropped owing to a drop in
demand for photosensitive materials and printing platematerials.
In overseas markets, although inkjet paper enjoyed a risein demand among emerging nations and an increase inbusiness applications, a slump in demand for existingproducts led to a decline in sales revenue.
This resulted in total sales for the Imaging Media Businessof ¥35.287 billion, a 4.4% decrease year-over-year.
Operating income was ¥537 million, an ¥87 million increaseover last period's ¥449 million. Efforts to improve productivity
and reduce expenses led to an increase in profit, despite
such factors as a downturn in demand for existing products
and a rise in raw material and energy costs.

Imaging Media Business Sales（100 million yen）
600

■ Products for Printing■ Inkjet Paper Products●CTP (Computer to Plate) printing plate systems●Inkjet paper for fine art

・Silver DigiPlates (SDP)
500

435

418

400

・Thermal DigiPlates (TDP)
389

369

・Violet DigiPlates (VDP)
353●CTP printing plates fornewspaper printing

300

・PD-NEWS

200

・Silver masters (SLM)

100

・MDS-3600● Analog printing plate systems●Digital screen mask make systems●Inkjet proofing paper (for proofing)● Software

2015

2016

2017

2018

2019
（FY）

Business Strategies

The following are the three basic strategies for the Imaging Media Business.
①Further strengthen alliances: Further reinforce efforts with industry partner Fujifilm, further expand the production
and supply volume of resin coated base paper for photographic applications, improve the profits, and strengthen
competitiveness.
②Secure profits from existing products: Secure profits from existing businesses through a number of means:proactively roll out products in emerging markets such as those in Asia, where demand growth is expected tocontinue, and boost sales of existing products that are nearing maturation; expand sales of inkjet paper forcommercial applications primed for greater demand, including mini laboratories, labels, and cards; and roll out
print-related products for the flexo and screen printing market and post-print processing field.
③Establish new businesses: In response to customer requests, we are expanding on and improving our lineup offunctional films such as photosensitive resists for electronic materials and transparent conductive films for touch
panels, while also working to expand profitability through the use of the new coater in Kyoto. In addition, we willdevelop and expand sales of new products for electronics-related fields and the medical/healthcare field. We will
also supply digital textile inkjet transfer paper not only for sublimation transfer printing on polyester but also thermaltransfer printing on cotton, silk, and other natural fabrics. These are part of efforts to cultivate new customers in the
textiles industry, primarily in overseas markets.

Business Topics《Diamour, a cryopreservation device for fertilized eggs》

Introducing Diamour, a device used in vitrification
Representational image of a vitrification solution being absorbed
Fluid absorption
Automaticallyis visible(cryopreservation) of fertilized eggs in the assisted Opaque White Embryo
Embryo Vitrification
Embryoabsorbs
solution
Vitrification
Vitrification
solution
reproductive technology field. Vitrification (cryopreservation)
solution
Absorptive layer
Absorptive layer
Absorptive layer
generally involves freezing a fertilized egg after covering it ina preservative fluid known as a vitrification solution, andensuring the proper amount of fluid is used is a very difficult task. A groundbreaking product with an absorptive
layer capable of automatically adjusting the vitrification solution level to the minimum necessary, Diamour
contributes to saving time and skill-less operation. The product was also very well received when introduced at aconference of the Japan Society for Ova Research held in Hiroshima in May 2019.

17

Products

・DIALIBRE Series■ Products for Photography
・Mitsubishi Grace Color Paper MG-1000
・Color paper processing chemicals■ Resin Coated Base Paper Products●Resin coated base paper

・For photography

・For inkjet printing
・For sublimation
thermal transfer
printing● Speciality paper

・Processing basepaper
(casting paper)

Products made from photographic base paper■ New Businesses●Electronic materials

・Transparent conductive films for touch
panels・Silver nanoparticle ink
・Photosensitive resists

・Sensitizing dyes for solar cells● Rear projection screen films

・SaiVisTransparent conductive films for
touch panels

Diamour, a cryopreservation device for
fertilized eggs

Photosensitive resists

Digital textile inkjet printing transfer paper●Covers that warm, moisturize, andprovide restful sleep

・My Dome● Medical/healthcare

・Diamour, a cryopreservation device for
fertilized eggs

● Digital textile inkjet printing transfer
paper

18

Overview of Business Segments
Speciality Materials BusinessBusiness Results

In the Speciality Materials Business, we are taking proactive
steps toward new business in areas related to electronics, theenvironment, and energy conservation.
With regard to speciality materials, sales revenue increased
for water treatment membrane base substrates, battery
separators, and rewritable media.
In KJ SPECIALTY PAPER, decorative laminate base paper,
our core product, performed on par with the previous period
while revenue grew for products such as tape base paper.
As a result, total sales for the Speciality Materials Businessincreased 2.7% year-over-year to ¥17,485 million.

Speciality Materials Business Sales（100 million yen）
250

200

168

169

170

170

175

2015

2016

2017

2018

2019
（FY）

Products■ Water Treatment Membrane Base
Substrates■ Air Purification Filters

150

100

50

Business Strategies

0

For the Speciality Materials Business Unit, our strategy for the Second Mid-Term Management Plan saw us engage in,among other things, expanding the nonwoven fabric business, which includes water treatment membrane basesubstrates and battery separators, and increasing sales of filters and rewritable media products in East Asia with a focus
on China, Korea, and ASEAN nations. We also expanded sales of tape base paper in Europe.
As a result of capitalizing on strong demand in China and Europe, sales steadily increased for water treatment
membrane base substrates, which are used in the separation membranes of seawater desalination and water purificationequipment. In the battery separator products segment, products intended for use in capacitors and condensers grew
alongside growth in the IoT and communications device markets. Users continue to praise battery separators for lithium
ion batteries used in electric vehicles and stationary batteries, and we are now considering enlarging our nonwoven fabricproduction facilities.
Prompted by increasing interest by China in combating air pollution and achieving cleaner indoor air, demand for highperformance air purification filters and vehicle AC filters is rising. As such, we are looking to install new production andevaluation equipment at our Chinese subsidiaries and expand filter business.
In the KJ SPECIALTY PAPER segment, sales of washi-like tape base paper grew in Japan, the U.S., and Europe. We
also created a heat resistant inorganic sheet product, and use of carbon nano-tube-related products by customers isadvancing.
Our Speciality Materials Division is working on a number of new development projects that are in niche fields and thathave been well received in the market. We are now working toward breaking into new growth fields and rolling out new
products.

Used in water treatment element membrane base substrates
and contribute to the supply of clean water.

■ Thermal Rewrite Cards

Changeable information such as visitor names or dates,
can be rewritten.

■ Recycled Carbon Fiber Sheet

High-performance filters that satisfy China’s GB standards.

■ Carbon Nanotube (CNT)

High-concentration CNT dispersant and painting liquids with highfluidity are used in applications to prevent electrification andapplications to generate heat.

■ EM Shielding Materials

Business Topics《Battery separators》

Production and sales of electric vehicles equipped with lithium
ion batteries (LIB) have grown around the world. Battery
separators separate the anode and cathode in a battery and play
an important role in lithium-ion permeation. With their high heat
resistance, Mitsubishi Paper Mills' nonwoven fabric separators
help improve LIB safety. The high electrolyte retention ability of ourseparators also contribute to longer LIB lifespans, helping to
reduce battery waste. With these products drawing interest inJapan and internationally, we are engaging with a major battery
manufacturer in China on joint development efforts.

19

LIB / high heat-resistance,
nonwoven fabric separators

By proactively using recycled material, we have made a low-cost,highly uniform carbon fiber nonwoven fabric.

Super-thin EM shielding materials featuring strong shielding
performance20

Research and Development
In line with our ”Mitsubishi Paper Mills for High Grade and Information Media" philosophy, Mitsubishi Paper Mills
develops and manufactures products in a wide variety of fields that include imaging-related materials and speciality
materials, in addition to printing and communication paper. Along with researching paper and peripheral basic
technologies, we are combining the paper technologies we have developed over the years with silver halide
photosensitive material technologies developed in our photo and printing fields to develop advanced products for our
digital society.We are also centralizing technical capabilities honed through the development of photosensitive
materials, special materials, and other materials in order to develop printing equipment and systems as well as new
speciality materials (for the electronic materials and amenities fields).
Preserving the environment and creating a recycling society are the most important goals for the papermaking industry,
whose business base relies on an abundance of forest resources. Concern for the environment and dedication toenriching cultural life are the philosophies that guide our product development efforts.

Research and Development Expenses（ million yen）
1,200

FY 2019 R&D Expense Allocation

1,100

18%
47%

1,000

35%

900

800

■ Imaging Media Business

2015

2016

2017

2018

■ Speciality Materials Business■ Paper and Pulp Business

2019
（FY）

Intellectual Property

Intellectual property is an important asset in developing our business and boosting our competitiveness. Patents, inparticular, are what secure, maintain, and enhance the competitive strength of new products. Consequently, we submit
roughly 200 patent applications every year in Japan and abroad. As of March 31, 2019, we held 626 patents in Japanand 280 internationally. Although we have traditionally submitted mainly in Japan, the U.S., and Europe, we are now
submitting more applications to China, South Korea, Taiwan, and other countries in Asia as part of an active effort toexpand business in overseas markets.
We have also been actively applying for and registering trademarks in order to improve customer confidence for new
products.

Kyoto R&D Laboratory

Using core technologies consisting of the Group's
extensive photosensitive resin, inkjet media, and silver
halide photography technologies, this laboratory isdeveloping and commercializing a range of products
including resist films, which enjoy unique properties in theelectronics industry; micro-structure fabrication systems,
which involves wet processing of difficult-to-processinsulating materials; sensor films for touch panels; andconductor pattern-forming systems that use silver nanoparticle ink.
And in the printing field, we have developed and are now
selling a heat-sensitive digital screen-making machine thatcan print screen plates with only data from a PC, without
the need for block copy films, emulsion coating, image
development, or drying processes.

Example of conductor
pattern forming byapplying silver nanoparticle ink toa polyimide substrate

Process Development Laboratory

Paper and speciality material production technologies
and printing technologies are changing just as quickly as
customers' demands for quality. To respond to thesechanges, we use pilot plants with papermaking machines,
coaters, and calendaring equipment, and use plate making
machines and printing equipment to test prototypes andevaluate quality to quickly get end products and pipeline
products to market.
Along with developing production technologies and new
products by leveraging the Laboratory's equipment andcapabilities, we design and produce product samples tobetter convey the features of our products to customers.
Inclined Wire and Cylinder Pilot Paper Machine

A Base for Product and Technology Development

Coating Flow Analysis Business

Leveraging its accumulated nonwoven fabric production
technologies as basic technologies, the Speciality Materials R&D
Laboratory is developing base substrates for various types ofseparation membranes; separators for batteries, which arebecoming smaller and more powerful; and sheets that make fulluse of the properties of carbon fiber, which features superior
strength, electro-conductivity, and heat conductivity. The facility isalso developing cellulose and synthetic resin composites.
Additionally, advanced analysis technologies are necessary todevelop new products so our analysis group is researching andconsidering new analysis technologies on a daily basis.

MPM CAE Center Co., Ltd. (established in April 2011)
conducts contracted research and provides consulting
services using numerical analysis techniques. It provides
services that meet users' needs through the use of coupledanalysis techniques and high speed analysis systems.
With its high level of technical expertise, the company
has long been engaged in scientifically analyzing coatings,
which are applied to base substrates, and has creatednumerical analysis (computer simulation) technology for
optimizing them. In recent years we have also begun basic
research focused on the behavior of not only liquids but
also solid particles and microfibers contained in coatings.

Speciality Materials R&D Laboratory

Example of difficultto-process insulating
material microfabricationgin t
at nleCo id i
flu
y

it
av

C

it

Sl

Analysis through magnificationof unrestricted surface beadcoating, which forms a bridge
as it flows out the slit in the coater
head toward the base substrate
3D distortion of the portion
that pools in the lip

Coating bead flow analysis for slots with microfiber linkage

Gas chromatograph/time-of-flight mass spectrometer21

22

Mitsubishi Paper Mills Group CSR
The Way We See CSR
The purpose of CSR in the Mitsubishi Paper Mills Group is to improve corporate value and address social problems byobtaining trust and empathy from everyone, and we view CSR as an important management issue in our businessactivities. We established the Code of Conduct of the Mitsubishi Paper Mills Group in 2004 as a materialization of thisphilosophy. Since then, we have respected the spirit of the code and dedicated ourselves to putting it into practice.
Corporate contributions to resolving the myriad problems faced by the global community took on further importancefollowing revision of the Code in 2007, and in November 2017, revisions were made to the Japan Business Federation'sCharter of Corporate Behavior. In light of this development and to contribute further to advancing social sustainability, we
made sweeping changes to the Code of Conduct of the Mitsubishi Paper Mills Group in November 2018.

ISO 26000 and Mitsubishi Paper Mills Group Initiatives

The Mitsubishi Paper Mills Group views ISO 26000, an international standard for social responsibility, as a common
indicator for promoting CSR. In this corporate report, we note the following as activities being done for the "seven core
subjects" and "issues" of ISO 26000.
Core subjects

IssuesOrganizational
Governance

Organizational Governance⇨ Reference site: Code of Conduct of the Mitsubishi Paper Mills Grouphttps://www.mpm.co.jp/eng/company/kensyou.html

Organizational Governance

Type of information relayed
・Communication with our customers
・Sharing of environmental data with
suppliers and customers
・Holding explanatory meetings forinvestors
・Enhancement of internal
communications
・Dialogue with the local community
・Issuing integrated reports, etc.
・Provision of information via theInternet

Compliance
Product Safety and Quality
Human Rights and Labor
Environment
Social Contribution

Stakeholders
Customers
Suppliers

Shareholders
Employees

Government

Local Communities
NGOs/NPOs

CSR Promotion Structure

To carry out the business of the Mitsubishi Paper Mills Group with an emphasis on CSR, we have nominated a CSR
director and have established a CSR committee, which is chaired by the president. The CSR Committee oversees allnine areas of the Group's CSR activities (compliance, risk management, safety and health, the environment, productsafety, product quality, human rights and labor, information, and social contribution).

Technology andEnvironment Department

CSR Director

President

CSR Committee

General Affairs& Personnel Department

General Affairs& Personnel Department

Internal Control
Internal Audit Department

23

Human Rights

Product Quality

Responsible department:
Technology & Environmental
Department

Product Safety
Product Liability(PL)Committee

Supervising office:Technology & Environmental
Department

Environment
Environmental Conservation Committee

Supervising office:Technology & Environmental
Department

Social Contribution

Responsible department:
General Affairs & Personnel
Department

Information

Responsible department:
General Affairs & Personnel
Department

Human Rights and Labor

Responsible department:
General Affairs & Personnel
Department

Safety & HealthCompany-wide Safety and Health Committee

Supervising office:General Affairs & Personnel
Department

Risk Management
Risk Management Committee

Supervising office:General Affairs & Personnel
Department

Compliance
Compliance Committee

Supervising office:Legal Department

Asset Protection

Responsible department:
General Affairs & Personnel
Department

Business Effectiveness and Efficiency
Operating Audits

Responsibleoffice:department:
Supervising
General Affairs
Internal Audit Department& Personnel Department

Reliability of Financial Reporting

Responsible department:Internal Audit Department

Labor Practices

The

Environment

1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity
4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social, and cultural rights
8. Fundamental principles and rights at work
1. Employment and employment relationships
2. Conditions of work and social protection
3. Social dialogue
4. Health and safety at work
5. Human development and training in the workplace
1. Prevention of pollution
2. Sustainable resource use
3. Climate change mitigation and adaptation
4. Protection of the environment, biodiversity andPage mentioned
Mitsubishi Paper Mills Group CSR

Pgs. 23-25

Corporate GovernancePgs. 26-32

CompliancePg. 31

Risk Management

Promoting Social Responsibility in

Pg. 32

Pg. 33the Value Chain

Responsible Raw Material Procurement Pgs. 33-34
Relationship with Employees

Pgs. 41-42

CompliancePg. 31

Relationship with Employees

Pgs. 41-42

Relationship with Communities

Risk Management

Pgs. 45-48

Pg. 32

Responsible Raw Material Procurement Pgs. 33-34
Relationship with the Environment

Pgs. 35-40

CompliancePg. 31

Information Disclosure

Pg. 30restoration of natural habitats

Fair Operating
Practices

1. Anti-corruption
2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain
5. Respect for property rights
1. Fair marketing, factual and unbiased information

Fair Operating Practices

Pgs. 33-34

and fair contractual practices

ConsumerIssuesCommunity

Involvement
andDevelopment

2. Protecting consumers' health and safety
3. Sustainable consumption
4. Consumer service, support, and complaint anddispute resolution

5. Consumer data protection and privacy
6. Access to essential services
7. Education and awareness1. Community involvement
2. Education and culture
3. Employment creation and skills development
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment

Fair Operating Practices

Relationship with the Environment

Pgs. 33-34

Pgs. 35-40

Relationship with Customers

Pgs. 43-44

Preserving Biodiversity

Pg. 37

Relationship with Communities

Pgs. 45-48

24

Mitsubishi Paper Mills Group CSR
Key Issues (Material Issues) Concerning CSR Activities

With the goal of contributing to making society more sustainable through its business activities, the Mitsubishi Paper
Mills Group has set forth the following issues toward satisfying the needs of society.

Process for Defining Issues■ Process 1 Ascertain the circumstances surrounding the Mitsubishi Paper Mills GroupWe conducted an analysis of the circumstances surrounding the Mitsubishi Paper Mills Group from environmental,social, and governance viewpoints. We then identified issues according to ISO 26000 and other guidelines, andassessed efforts that are being made with respect to these issues.

■ Process 2 Establish key issues and top priority issues to satisfy the needs of society
We assigned priority to each issue based on how they impact our business and on feedback from stakeholders. We
then extracted key issues that address social needs and from among them established top priority issues based on acomprehensive consideration of our business environment and progress made in addressing key issues.

Corporate Governance
Basic Policies on Corporate Governance

Mitsubishi Paper Mills’ corporate activities are based on its corporate philosophy: Live up to the trust of its customers in
the world market; Always be on the leading edge of technology; Contribute to preserving the global environment andcreating a recycling society. Under this philosophy, the group pursues corporate group management that values CSR,
enhances management transparency, and augments corporate governance, all to achieve the sustainable growth of thegroup and the medium- to long-term improvement of its corporate value. We have established the Basic Policy on
Corporate Governance so that we can take concrete steps toward achieving the above, and make it available on our
website.

⇨ Reference link: Corporate Governancehttps://www.mpm.co.jp/eng/company/governance.html

Corporate Governance Structure

Promoting communication with stakeholders

Mitsubishi Paper Mills has chosen to structure itself as a company with a board of corporate auditors and assigned two
independent outside directors, thereby creating a structure fulfilling the role required by the Board of Directors. We also
divide up the oversight and executive functions, adopting an executive officer system to limit the size of the Board of
Directors, speed up decision-making, and define responsibilities for business execution.
To ensure the optimal decisions are made quickly, special meetings of the Board of Directors are held as needed inaddition to the regular monthly meetings of the Board, and decisions are made about and oversight provided concerning
matters prescribed in laws and regulations, the Articles of Incorporation, as well as for the execution of significant
business. Matters concerning management policy, management strategy, and basic business strategies are discussed at
executive board meetings and management review meetings that are, in principle, held twice a month, and that arecomposed of small groups of executives and executive officers involved in the subject matter. Our Audit & Supervisory
Board, which comprises outside Audit & Supervisory Board members, holds meetings periodically and as needed.
For business execution, we have three business divisions. To strengthen our business execution structure and givethese divisions the responsibility for revenue generation and authority to make decisions, and to receive reports frombusiness sites and carry out management policy, Site Manager meetings are held every month and are attended by sitemanagers and executive officers.
In addition, we have a Nomination and Remuneration Committee that, in the interest of maintaining objectivity andtransparency in matters concerning executive appointment and remuneration, is chaired by an independent outside
director and that acts as an advisory body to the Board of Directors.

Human Rights
Labor Practices◎Enhancing activities to ensure safety and healthGeneral Meeting of Shareholders

Environment

Promoting activities to prevent global warming

Organizational GovernanceFair Operating Practices

Ensuring the effectiveness of corporate governance
Establishing a risk management structure

Thoroughly familiarizing employees with our Corporate

Code of Conduct and the Compliance Conduct Standards

Ensuring strict legal compliance

Expanding initiatives out to affiliated Group companies
Promoting various measures to improve human resource

Election and Dismissal
Audit & Supervisory Board
1 Internal、3 Outside◀

Improving and enlarging our environmentally conscious

Ensuring product quality◎Product development centered on harmony with society
Promoting community support activities

Promoting cultural contribution activities

Promoting activities of the Ecosystem Academy

25

Cooperation
Internal Audit Department
Audit

Audit

Cooperation

Accounting Auditors ◀
Auditing company ◀

ReportNomination andRemuneration Committee

Executive functions

CSR Promotion Structure

16 Executive Officers◀

Involvement in the Community
and Community Development

President and C.E.O.

Election and Dismissal

Audit
Report◀

Ensuring product safety

Board of Directors ◀
8 Internal、2 Outside ◀

Election, dismissal,and oversight

Cooperation

Reducing environmental risk and impact◀

Consumer Issues

Audit

◀

product lineup◀

Promoting activities to preserve biodiversity◀

performanceElection and Dismissal◀

Key Issues in FY 2020 （◎：Top Priority Issues）◀

ISO 26000 Core Subjects◀

Key Issues and Top Priority Issues in FY 2020◀

The CSR Committee, a cross-organizational body, verified the appropriateness of our process for determining issues
and established key issues and top priority issues through discussions held at meetings of the Board of Directors.

◀

■ Process 3 Verify the appropriateness of the process

Business Divisions and Subsidiaries

26

Corporate Governance
Board of Directors and Audit & Supervisory Board Members(as of August 31, 2019)

Directors

Outside Directors■ Somitsu Takehara, Director (Born April 1, 1952)

Career Summary
Jan. 1977 Joined Peat Marwick Mitchell & Co.
Dec. 1981 Joined Coopers & LybrandJul. 2000 General Manger, Transaction Service Division, Chuo Aoyama
Apr. 2005 Representative Director, ZECOO Partners Inc.
Nov. 2017 Director & Chairman, ZECOO Partners Inc. (to present)
Reason for election
Expertise in finance and accounting, extensive knowledge of corporate
management

Kunio Suzuki
Director, Chairman

Yukihiro Tachifuji
President andChief Executive Officer

Kanji Morioka

Director and Senior Managing
Executive Officer

Junji Harada

Director and Senior Managing
Executive Officer■ Yoshihiro Kataoka, Director (Born July 30, 1954)

Number of MPM shares held: 0
Important positions concurrently held at other companies, etc.
Representative Director, ZECOO Partners Inc.
Outside Director, CDG Co., Ltd.
Outside Audit & Supervisory Board Member, EDION Corporation
Outside Director, Genki Sushi Co., Ltd.
Outside Director, Shinmei Holdings Co., Ltd.
Concurrently Appointed Lecturer, Graduate School of Professional
Accountancy, Meiji University
Board of Directors and Audit & Supervisory Board meeting attendance (FY 2019)
Board of Directors meetings: 15 of 15

Number of MPM shares held: 0

Career Summary
Apr. 1980 Registered as an attorney-at-law (Tokyo Bar Association)
Apr. 1983 Hosoda and Kataoka Law Office
Sep. 1984 Chief, Yoshihiro Kataoka Law OfficeJun. 1990 Partner Chief, Kataoka & Kobayashi LPC (to present)

Important positions concurrently held at other companies, etc.
Partner Chief, Kataoka & Kobayashi LPC
Outside Audit & Supervisory Board Member, The Higo Bank Ltd.
Supervisor, Comforia Residential REIT, Inc.
Visiting Professor, Chuo Law School

Reason for election
Expertise in law and many years of experience in corporate legal affairs

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2019)(Position assumed on June 26, 2019)■ Hiroaki Tonooka, Audit & Supervisory Board Member (Born January 23, 1953)

Masaki Shuto

Director and Managing
Executive Officer

Naoki Okawa

Director and Managing
Executive Officer

Nobuhiro Sato
Director and Managing
Executive Officer

Kazuyoshi Ando
Director and Managing
Executive Officer

Reason for election
Expertise in finance and accounting, extensive experience in corporate
management

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2019)
Board of Directors meetings: 15 of 15, Audit &Supervisory Board meetings: 12 of 12■ Takayuki Nakazato, Audit & Supervisory Board Member (Born June 15, 1958)

Outside Director

Outside Director

Chairman, ZECOO Partners, Inc.
Certified Public Accountant

Partner Chief, Kataoka & Kobayashi LPC.
Attorney-at-law

Soumitsu Takehara

Yoshihiro Kataoka

Audit & Supervisory Board Members

Career Summary
Apr. 1982 Joined Mitsubishi Trust and Banking Corporation(currently Mitsubishi UFJ Trust and Banking Corporation)(hereinafter “MUTB”)
Jun. 2010 Executive Officer, General Manager; Corporate Management
Department, MUTB
Jun. 2012 Director and Managing Executive Officer, MUTB
Jun. 2014 Managing Executive Officer, MUTB
Jun. 2015 Senior Managing Executive Officer, MUTB
Jun. 2016 Director and President, Shinwa Building Co., Ltd. (to present)
Aug. 2016 Director and President, Ryoshin Holdings Co., Ltd.
(to present)
Reason for election
Expertise in finance and accounting, extensive experience in corporate
management

Koichi Nakayama

27

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Former Director, Deputy President,
Meiji Yasuda Life Insurance Company

President, Ryoshin Holdings Co., Ltd.

Hiroaki Tonooka

Takayuki Nakazato

Outside Audit & Supervisory
Board Member

Takeshi Kobayashi

Chairman, DBJ Capital Co., Ltd.

Career Summary
Apr. 1979 Joined Japan Development Bank (currently Development
Bank of Japan Inc.) (hereinafter “DBJ”)
Jun. 2009 Executive Officer and General Manager of Human Resources
Management Department, DBJ
Jun. 2010 Managing Executive Officer, DBJ
Jun. 2011 Standing Audit & Supervisory Board Member, DBJ
Jun. 2014 Member of the Board, Managing Executive Director, Japan
Nuclear Fuel Limited (hereinafter “JNFL”)
Jun. 2016 Managing Executive Officer, JNFL
Jul. 2018 Adviser, Research Institute of Capital Formation, DBJ
Jun. 2019 Chairman, DBJ Capital Co., Ltd. (to present)
Reason for election
Expertise in finance and accounting, great discernment of corporate
management

Number of MPM shares held: 0

Important positions concurrently held at other companies, etc.
Director and President, Ryoshin Holdings Co., Ltd.
Director and President, Shinwa Building Co., Ltd.
Outside Director, RY Insurance Service Co., Ltd.
Outside Director, Ryoei Kantei Chosa Co.,Ltd.

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2019)
Board of Directors meetings: 14 of 15, Audit &Supervisory Board meetings: 12 of 12■ Takeshi Kobayashi, Audit & Supervisory Board Member (Born April 11, 1955)

Standing Audit & Supervisory
Board Member

Number of MPM shares held: 0

Important positions concurrently held at other companies, etc.
Career Summary
Apr. 1976 Joined Meiji Life Insurance Company (currently Meiji Yasuda Outside Audit & Supervisory Board Member, Nippon Kayaku Co., Ltd.
Director, The Kitasato InstituteLife Insurance Company) (hereinafter “MY”)
Jul. 2005 Director, General Manager; Group Market Planning & Research
Department, MY
Dec. 2005 Director, MY
Apr. 2006 Director, Managing Executive Officer, MY
Jul. 2006 Managing Executive Officer, MY
Apr. 2008 Senior Managing Executive Officer, MY
Jul. 2012 Deputy President, MY
Apr. 2016 Director, MY
Jun. 2016 Adviser, MY

Number of MPM shares held: 0

Important positions concurrently held at other companies, etc.
Chairman, DBJ Capital Co., Ltd.
Outside Audit & Supervisory Board Member, Takagi Seiko Corporation
Outside Audit & Supervisory Board Member, Keisei Electric Railway Co., Ltd.

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2019)
Board of Directors meetings: 11 of 11, Audit &Supervisory Board: 8 of 828

Corporate Governance⇨ Reference site: Disclosure Policy
https://www.mpm.co.jp/eng/ir/disclosure/disclosure_policy.html

29

Issues in the previous effectiveness assessment have been generally addressed. However, in thisassessment, as it is important to identify inherent management issues, we understand that we will need tocarry out the PDCA cycle to make it an even more effective approach. Because of the Company's need tobreakaway from its printing paper-centric business model, the Board of Directors should discuss strategy
with an eye to what will come because of its capital and business alliance with the Oji Group, and shouldpresent a corporate vision for outside parties that encapsulates the Company's stance.

◀

d. Other Proposals for Improvements

Financial
Services
AgencyFinancial Services
Agency's website

Mitsubishi Paper Mills' website◀

Although these functions appear to be generally working appropriately, going forward we understand that
greater emphasis will be placed on discussions concerning how Mitsubishi Paper Mills will carry out its
medium- to long-term strategies now that we have formed a capital and business alliance with the Oji
Group. The Board of Directors should therefore make efforts to talk about ESG and speak with outside
parties; discuss issues from the viewpoint of corporate groups; communicate the current state of IR andShareholder Relations (SR) initiatives; solicit feedback from stakeholders such as employees, customers,
and distributors; and consider share-based compensation as medium- to long-term incentives.

Discuss and verify

Information
disclosure◀

c. Functions of the Board of Directors

◀

Media

◀

The operation of the Board of Directors is deemed generally appropriate with respect to the frequency of
meetings, time required for meetings, the proceedings, and conducting reviews. Regarding our system forproviding prepared materials and information, we currently send out materials beforehand for importantmatters and we will look into sending summaries beforehand for other matters to allow for more lively
discussion. We will also consider enhancing the quality of business performance forecasts, corporate
responses, and other future information, along with taking such measures as holding study sessions more
often for outside directors to achieve more productive discussions at Board of Director meetings.

◀

b. Operation of the Board of Directors

Directors in Charge
Site Manager(Division General Managers)(Head Office Department Managers)

Prepare documents
for disclosure
Provide information

TSE's website

Stakeholders

The composition of the current Board of Directors is deemed generally appropriate due to the presence ofindividuals with varied career histories and experience, as well as to the number of members of the Board,the balance among the members, and the knowledge and understanding that each possesses.

Information DisclosureManager

Timely disclosure

Tokyo
Stock
Exchange

Media reportinga. Composition of the Board of Directors(President and C.E.O.)

Notify of finalized
matters

Department in Charge ofInformation Disclosure

Analysis and Evaluation of FY2019 Board of Directors’ Effectiveness（3）—Summary of Results

Board of Directors

Stock exchange
information◀
General Affairs & Personnel Department /Accounting Departmentb. Operation of the Board of Directors
d. Other proposals for Improvements

Information Handling Manager

a. Composition of the Board of Directors
c. Functions of the Board of Directors

Director in Charge of the General Affairs &Personnel Department

Questionnaire Topics（2）◀

Information Disclosure System◀

December 27, 2018 - January 21, 2019 Questionnaire conducted
January 31, 2019
Discussions held at Board of Directors meeting◀

Date of Analysis and Evaluation of the Board of Directors’ Effectiveness in FY2019（1）

The Mitsubishi Paper Mills Group expresses its commitment to transparency in its business activities in the Code of
Conduct of the Mitsubishi Paper Mills Group. The Group has established and publicized its Disclosure Policy based on
this code and has declared that it will practice the timely and proper disclosure of corporate information.
We have also established Information Disclosure Regulations for ensuring that stakeholders receive an accurate,
timely, and fair disclosure of information on a continuous basis, with our General Affairs & Corporate Communications
Dept. in charge of managing these efforts. We also regularly hold public relations sessions as part of efforts to disclose
information about the Group. Furthermore, in the interest of fair disclosure, materials from financial result briefings arealso disclosed at the time meetings are held.

◀

The Board of Directors conducted a questionnaire for Directors and Audit & Supervisory Board Members to analyze
and evaluate the effectiveness of the Board of Directors as a whole. The results of the questionnaire were then discussed
at the Board of Directors. An outline of the questionnaire and results is provided below. In addition to sharing the current
understanding, the Board of Directors will identify and discuss issues to make future improvements and continually work
to improve its effectiveness.

Information Disclosure◀

Board of Directors Effectiveness Assessments

Communication■ IR Information Site

An investor relations site can be found on the Mitsubishi Paper
Mills website.
Information is disseminated using this website, which
provides, primarily, earnings highlights, an IR calendar, an IR
library (with access to annual business reports, mid-term
management plan materials, IR information, annual reports),
General Meeting of Shareholders presentation materials, andstock information.
⇨ Reference site: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html■ Head Office Gallery: Paper Design Square
We have built a gallery at the head office displaying ourprincipal products to engender a stronger affinity with Mitsubishi
Paper Mills Group products. Exhibitions are held regularly.
Location
Ryogoku City Core, 2-10-14, Ryogoku, Sumida-ku, Tokyo,
Japan
Mitsubishi Paper Mills Head Office, 11F, next to general
reception
Hours
9:00-17:00 (closed on Saturdays and Sundays, public
holidays, and designated holidays)

30

Corporate GovernanceRisk Management

ComplianceTo maintain and improve our corporate value, it is important that we properly manage a range of risks that arise in thecourse of our business activities. Using our CSR promotion structure, the Mitsubishi Paper Mills Group has expressed its
commitment to "building a risk management structure and improving its risk map as part of Group management," with theGroup's risk management efforts overseen by the Risk Management Committee. Each division and committee devises
and executes a number of measures to address risks.

■ Compliance Training

Our fiscal 2019 compliance training was held in August for all line managers in the Group. The line managers
then shared what they had learned with their teams over the following six months. To coincide with 10 years
having passed since the recycled paper falsification scandal, participants conducted workplace compliance checks
by looking back at the scandal and using checklists. A total of 3,013 employees participated in the training, andchecklist results are being shared among all executives and employees through the Compliance News newsletterand other means.

■ Legal Affairs Training

At the two legal affairs training sessions we held in fiscal 2019 for executives, line managers, and related staff,
we promoted a better understanding of laws that applied to the participants' work and communicated theimportance of compliance.

△△

Session 2: Risk Management & Emergency Response
Date: March 5, 2019
Instructor: Yoshihiro Kai, attorney at law(Anderson Mōri & Tomotsune)
Participants: 246■ Compliance News

Ten issues of Compliance News were released in fiscal 2019, providing easy-to-follow discussions about topics
such as the FY 2018 compliance training review, scams targeting companies, corporate misconduct, and revisions
to the Code of Conduct and Compliance Conduct Standards.

Corporate Ethics Hotline Internal Whistleblowing System
Mitsubishi Paper Mills has an internal whistleblowing system that is available to all employees working in the Mitsubishi
Paper Mills Group. Under the system, care is taken to ensure informants do not receive unfair treatment, such as having
points of contact both inside and outside the company. Whistleblowing cases are also reviewed at regularly-held
meetings of the Compliance Committee.

Risk response

Annual securities reports
Declining domestic demand andfalling market prices▼▼

Risk of business environment volatility
Each company and each department
Risk of legal violation
Compliance Committee
Risks to safety and healthGroup-wide Safety and HealthCommittee
Risks of product safety
Product Liability (PL) Committee
Risks to the environment
Environmental Preservation
Committee

Communication and discussion
CSR Committee

Disclosure of risk information

Market contraction
Rising cost of raw materials
Exchange rate volatility▼

Code of Conduct of the Mitsubishi Paper Mills Group pocket card

The Mitsubishi Paper Mills Group considers continued awareness programs to be essential for promoting an
understanding of the importance of compliance and for fostering a corporate culture that emphasizes good compliance.
We conduct discussion-based compliance training for all employees, which aims to raise compliance awareness in theworkplace; provide legal affairs education taught by instructors that include lawyers from a variety of specializations for
improving employees' concern for legal issues; and issue our Compliance News newsletters on a regular basis.

31

Risk assessment

Monitoring and reviews
Risk Management Committee

Activities to Promote Better Awareness of Compliance

Session 1: Personal information protection and GDPR
Date: October 1, 2018
Instructor: Takashi Nakazaki, attorney at law(Anderson Mōri & Tomotsune)
Participants: 256

Risk analysis▼

Risk identification

Capital investment▼

To ensure our actions remain in accordance with the Code of
Conduct of the Mitsubishi Paper Mills Group, the Group has laidout rules in the Mitsubishi Paper Mills Group Compliance
Conduct Standards, which are to be followed by executives,
employees, and other company-related people.
After establishing the Code in 2004, we have made revisions
to it in response to changes in our business circumstances andthe overall business environment, and also made revisions to
the Compliance Conduct Standards following sweeping
revisions to the Code of Conduct in November 2018. We arefamiliarizing all Group employees with these revisions throughmethods such as pocket cards we distribute and theCompliance News newsletter we send out.

Disasters

Rising interest rates
Regulations and litigation
Other contingencies

Improving Our Risk Map

The Mitsubishi Paper Mills Group is monitoring more than 200 risks Group-wide. We analyze the impact of these risks
and the frequency with which they occur to build our risk map, and we regularly define and analyze risks to update themap. These efforts are how we improve the effectiveness of our risk management.

Building a Crisis Management System

The Mitsubishi Paper Mills Group formulated a Crisis Management Manual to respond quickly in fulfilling its corporatesocial responsibility and maintaining social credibility in the event of an accident or disaster that could cause serious
harm to people or equipment, or impact surrounding communities. And to construct an effective risk management
system, we regularly conduct various drills and operation tests at every business site and at a scale that involves theentire company, and work to identify and resolve issues.
One improvement made was the installation of a new safety check system at the Company's headquarters in the fall of
2018. Due to the confirmed effectiveness in two safety check drills, we plan to install the system at other worksites going
forward.

Enhancing Information Management

The Group practices efficient and integrated use of information and works to manage it properly. Along withestablishing Information Management Regulations that set forth our measures for managing and protecting information
handled in our business activities, we have codified a guideline for upholding these regulations in the form of theInformation Handling Guidelines.

Creation of a Business Continuity Plan (BCP)The Mitsubishi Paper Mills Group's experience with the Hanshin-Awaji Earthquake and Great East Japan Earthquake
has impressed on it the need for strengthening emergency preparedness. We are building an effective business
continuity plan informed by our experience in recovering from profound devastation.

32

Fair Operating Practices
Ensuring Fair Trade■ FSC Forest Certification

We believe that the kind of trust, technologies, and contributions that have true value and that are essential toachieving the Group's corporate philosophy of "live up to the trust of our customers in the world market," "always be on
the leading edge of technology," and "contribute to preserving the global environment and creating a recycling society"arise from engaging in fair competition and achieving mutual growth. In the Mitsubishi Paper Mills Group Compliance
Conduct Standards we pledge to comply with related laws, and we have also established an Antimonopoly Act
Compliance Manual to promote a better understanding of, and compliance with, the Antimonopoly Act and related laws
(Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, and the Act Against Unjustifiable
Premiums and Misleading Representations) by all executives and employees. Guided by these principles, our businesspractices emphasize free and fair competition, regardless of circumstances.

FSC forest certification was established in 1993 with the goal of auditing and certifying
responsible forest management according to sound economic, environmental, and social
principles. It aims to ensure that the world's forests are kept healthy by labeling wood andwood products sourced from these forests. There are two types of FSC certification:
forest management (FM) certification and chain of custody (CoC) (processing anddistribution process management) certification. In August 2001, the Mitsubishi Paper
Mills Group became the first paper mill in Japan to acquire CoC certification.
The "Vancouver Declaration for the UN SDGs and FSC Certification" was announced
at the Forest Stewardship Council General Assembly of October 2017, which was held todrive greater support for the SDGs and FSC. Mitsubishi Paper Mills stands in solidarity
with the declaration, and signed it along with 57 other companies in Japan and othercountries.
⇨ Reference site: FSC-Certified Paper
https://www.mpm.co.jp/eng/env/fsc.html

Preventing Corruption

Mitsubishi Paper Mills' Compliance Conduct Standards prohibit business activities that may result in social decay:
entertaining or giving gifts to civil servants (including quasi-civil servants), and giving benefits to officials in foreign
governments and public organizations. As part of efforts to build fair and transparent relationships, we have alsoestablished internal rules governing all manner of contributions and donations to organizations, and we take firm action
against bribery, the provision of improper benefits, illegal political donations, and other acts that could constitute politicalor administrative collusion.

Method for Verifying Legal Compliance and Sound Management① Evidence of use of the forest certification and CoC certification systems (FSC-certified wood, controlled wood)② Evidence of methods of individual companies or organizations (controlled wood)
In 2. above, we verify that wood is controlled in accordance with Requirements for Sourcing FSC- Controlled Wood
(FSC-STD-40-005). The verification method in conformance with these requirements is described below.
◎ Collection of information concerning wood chips and pulp

Disavowal of Anti-Social Elements

・ Confirmation of the place of origin, wood type, forest management methods, etc. from traceability reports

The Mitsubishi Paper Mills Group maintains a resolute stance against anti-social elements that threaten social orderand safety. This stance is set forth in the Mitsubishi Paper Mills Group Compliance Conduct Standards, and executives,
employees, and other company-related people are made fully aware of the content of the standards. We have also
implemented an anti-social elements search system that uses an external database and that enables us to mitigate therisk of inadvertently entering into relationships with anti-social elements.

・ Confirmation of documentation certifying the place of origin (e.g. documents related to transport and sales)
・ Regularly auditing suppliers and verifying document reliability◎ Assessing risk (taking measures to mitigate risk when necessary)・ Assessing and verifying that place of origin of wood is a low risk with respect to A) through E) below
A) Illegal logging B) Violations of traditional or citizens' rights C) Threats to forest with high conservation valueD) Turning natural forests into man-made forests or using them for other purposes E) Genetically modified trees
・ Receiving audits of risk assessment results by an FSC certifying body

Promoting Social Responsibility in the Value Chain

We aim to forge business relationships of mutual prosperity based on the belief that all suppliers involved in procuring
raw material and similar operations are partners that provide us with competitive products. In order to ensure that we as
the Mitsubishi Paper Mills Group conduct ourselves responsibly and ethically, and that suppliers practice fair trade with asimilar business posture, we have established a Basic Policy for Procurement and a Policy on Forest Resource
Preservation and Nurturing, and on Wood Procurement and Products, which lay out our basic approach to raw material
procurement. We work to promote social responsibility by periodically having our suppliers, too, complete questionnaires.

■ Raw Wood Procurement in Fiscal 2019

We have verified that all wood chips and wood pulp procured in fiscal 2019 came from forests that were legally
and appropriately managed.

FSC-certified wood43%

⇨ Reference site: Procurement of Raw Materials
https://www.mpm.co.jp/eng/env/timber.html
0

Responsible Raw Material Procurement

Mitsubishi Paper Mills Group conducts business with wood as a principal raw material. In the interest of responsible
wood procurement, we were one of the first organizations to acquire FSC® forest certification, and procure timber fromforests being properly managed in accordance with FSC forest certification.

※FSC: Forest Stewardship Council®

33

FSC® C021528

Countries of raw wood chip production

Types of raw wood

20

40

Controlled wood

Chile

57%

60

80

29%

100 %

0

20

Australia Other

Japan

40

80

28%

11%

60

32%

100 %

Maintaining Conformance with the Clean Wood Act※We are ensuring compliance with this act through the FSC forest certification system.
Business entities that ensure business is conducted in compliance with this law can register at third-party entities
certified by the government, and the Mitsubishi Paper Mills Group has completed this registration.
※
The Act on Promotion of Use and Distribution of Legally-Harvested Wood and Wood Products

34

Relationship with the Environment
The Mitsubishi Paper Mills Group intends to make an active contribution to
the protection of the global environment and the creation of a sustainable
society. To this end, the Group will not only strive to prevent global warming
and preserve biological diversity, but also to earn the trust of all its
stakeholders through the use of sustainable forest resources and throughefforts to develop environmentally friendly production technologies andproducts. This commitment is set forth in our Environmental Charter,
formulated in April 1993 to guide our distinctive business activities, whichleverage the Group's lines of business.
For the seventh year running, Mitsubishi Paper Mills has been given theDevelopment Bank of Japan’ s (DBJ) highest environmental rating. Thisrating reflects an acknowledgment by the DBJ that our efforts have been
"excellent advanced environmental initiatives."⇨Reference site: Environmental Charter

https://www.mpm.co.jp/eng/env/charter.html

Preventing Global Warming

Manufacturing Segment Initiatives

The Mitsubishi Paper Mills Group has the target of bringing CO2 emissions down to 920 thousand tons or less by fiscal
2021 and is working on reducing its fossil fuel-based energy and overall energy consumption. In fiscal 2019, we reduced
fossil fuel-based energy usage to 77% and CO2 emissions to 80% of their fiscal 2006 levels.
Energy consumption (TJ)

Director of Technology &the Environment

Mitsubishi Paper Mills received anenvironmentally rated loan from theDevelopment Bank of Japan (DBJ) in
March 2019 and we received thefollowing environmental rating: "excellent
advanced environmental initiatives."

Environmental Manager

Mill Environmental
Conservation Committee

Special Subcommittee（s）Environmental Management
Division

Environmental Conservation Committee
Administrative office: Technology &Environmental Department

Affiliated Company
President

Chemical Substance Management

With the aim of protecting the environment and ensuring product safety with respect to chemical substances
throughout our entire supply chain, the Mitsubishi Paper Mills Group has formulated its own Chemical SubstanceManagement Guidelines and Rules for Administration of the Chemical Substance Management Guidelines inconformance with various regulations. The guidelines take into account the impact on the environment and humanhealth, as well as social trends and other considerations. All our mills, offices, and affiliated production companies control
and handle chemical substances properly and efficiently according to these guidelines, with central oversight by theTechnology & Environmental Department at the head office. We also formulated the Mitsubishi Paper Mills Group Clean
Procurement Standards and Procedures based on these guidelines, promote green procurement and make efforts tomitigate environmental risks posed by chemical substances.

35

1,100
20,000CO2 emissions and emission intensity●

Emission intensity(tons/product tons)
1.10

1,164

1,000

10,0000

Statutory Manager

MillMill Manager

26,45730,000To realize the fundamental principles of the Environmental Charter, the Mitsubishi Paper Mills Group has acquired ISO
14001 certification for its major production facilities and is working to continuously improve the Group's environmental
performance. We have a company-wide system for ensuring the effectiveness of these efforts. The Technology &Environmental Department is in charge of these initiatives and conducts environmental audits once a year for all major
business sites as a way to check these sites' environmental performance.

President

1,200

30,525

Environmental Management System

Research Laboratory
Manager

Emissions(1,000 tons)

1.057
1.049

●

1.039

1.038

●

947

●

1.041
●

1.038

983

959

957

1.00
●
932

900

2006

■ Fossil fuels■ Renewable energy

2019 (FY)■ Purchased electricity■ Energy from waste

800

1.05

●

0.95

2006

2015

2016

Emissions

2017
●

2018

2019 (FY)

0.90

Emission intensity（Scope of statistics: Mitsubishi Paper Mills Limited, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd., and KJ SPECIALTY PAPER Co., Ltd.）

Logistics Segment Initiatives■ Eco Rail Mark Certification

Mitsubishi Paper Mills acquired Eco Rail Mark certification in October 2010,
becoming the first to do so in the paper industry. Since then, we have contributed
to global environmental preservation through the dissemination of the Eco RailMark.
Under the Eco Rail Mark system, companies or products are certified andallowed to use the Eco Rail Mark if they use a certain volume of eco-friendly rail
freight transport. Usage of the mark offers consumers a standard for making
decisions.

■ Green Management Certification

Namitsu Co., Ltd., a distribution company affiliated with the Mitsubishi Paper Mills Group, has GreenManagement Certification at its main facilities and is reducing the level of CO2 emitted by its trucks duringtransport. Ongoing efforts that include the use of start-stop systems improve fuel efficiency and reduce fuelconsumption. Aimed at reducing the environmental impact of the transport industry, Green Management
Certification is given to business entities that have been audited and certified by the Foundation for Promoting
Personal Mobility and Ecological Transportation for having reduced the environmental impact of their operations
by a certain degree in accordance with the Green Management Promotion Manual.

Initiatives for the Office and the HomeWe are taking a number of measures to reduce energy usage in office buildings,
including meticulous efforts to turn off lights. In addition, the Speciality Materials
R&D Laboratory tracks the building’ s power usage through a demand monitoring
device and equalizes power load through peak shifting.
The Mitsubishi Paper Mills Group also promotes participation in the household
environmental accounting booklet program, raising awareness for environmental
preservation by having employees monitor their household CO2 emissions.

36

Relationship with the Environment
Preserving Biodiversity

Effectively Using Resources"Forest thinningsupport paper"production report

Forest thinningsupport paper
Forest thinningpromotion
expensePrinting
companies

Paper distribution
companies

Forest thinningsupport paper

Forest thinningpromotion
expenseForest thinningpromotion
expenseMorino Chonai-kai
executive office（Office Chonai-kai,
environmental NPO）

Certificate of contribution to forest thinningand usage of wood from thinning

Morino Chonai-kai

Report of receiptof thinned wood

Forest thinningsupport paper
Forest thinningpromotion
expenseForest thinning supporter companies, etc.

Forest thinning
reportWood from thinning

Paper manufacturers

Forest thinning promotion expense

In conformance with FSC® forest certification system standards,
the Mitsubishi Paper Mills Group makes careful use of woodfeedstock produced under proper forest management, and also
works to popularize the forest certification system. At the same time,
we are engaged in a number of efforts to help forest preservationand support more prosperous local forestry and logging industries.
This includes promoting forest thinning through Morino Chonai-kai,a forest neighborhood association, which is a collaborative project
done in conjunction with Office Chonai-kai, an environmental NPO,
as well as promoting the sustainable use of second growth
hardwood produced in Iwate Prefecture.

Forestry
Associations

Forest Preservation Activities

The Mitsubishi Paper Mills Group's main mill, the Hachinohe Mill, gets energy from the black liquor produced in thepulp production process as well as from the paper sludge generated in the use of wastepaper and the papermaking
process. The black liquor is burned in recovery boilers, where heat energy and chemicals used to manufacture pulp arerecovered. The paper sludge, along with cut up tires, waste wood, and other waste materials, are used as fuel to power
waste boilers. The incinerator bottom ash produced by the waste boilers and the ash produced by coal boilers is used tomake a recycled construction material named "Reglobe" and is also recycled into cement material and raw steelmaking
material. These efforts to effectively use waste reduce final disposal volume while at the same time reducing fossil fuelusage.
Carbon fixation

Ecosystem Academy
As one member of the industry benefiting from trees, the "gifts of the forest,"
the Ecosystem Academy was opened in 2010 as a place for experiential forest
environment education to encourage greater social sustainability. The
academy aims to transmit the knowledge and experience the Group has
accumulated over the years to a diversity of people while helping to protect the
global environment. With experiential environmental education, forest surveys
and research, and information dissemination as the three core activities, theacademy is focused on establishing and advancing ongoing efforts while
carrying out activities throughout the Group in collaboration with relevant
outside groups and communities.

Properly managed forests

Waste paper■ Forest Surveys and Research

Waste tires andmaterial

Paper andpulp products

Ash recycling

CO2

EnergyPulp millprocess
Chips andwaste paper⇨ PulpWood chips

Papermaking
process
Pulp ⇨ Paper

Paper sludge
Waste boilers

Coal boilers

Recovery boilers

Chemical recovery

Summer Independent Research Course(Mizumoto Park, Tokyo)

Along with conducting surveys on vegetation, growth, and soil animals in company-owned forests, we work with
the Wild Bird Society of Japan's Shirakawa Chapter to conduct ongoing wild bird surveys and create birdwatchingareas.

■ Information Dissemination

We hold regular environmental seminars led by instructors engaged in pursuits that include forestry,
environment preservation, and teaching at universities.
At the 2018 environmental seminar, the 9th such seminar to date, Soichi Ueda (Think the Earth), Emika Kono
(FSC Japan), and Masaru Hasebe (the Development Bank of Japan) were invited to speak on the theme of"Contributions We Can Make toward Achieving the Sustainable Development Goals" and to discuss theirinvolvement in promoting social sustainability from the differing perspectives of education, forestry, and finance.

37

Local companies, etc.

Fourth tree planting event (at Seicho Forest,
company-owned forest in Murabi,
Fukushima Prefecture)■ Experiential Environmental Education

In addition to environmental education that seeks to promote agreater knowledge of ways to prevent global warming and protect
biodiversity in the interest of forest preservation, we carry out
observations, measurements, and tree planting using company-owned
forests, and provide opportunities to try papermaking and paper crafts
as a means to experience the art of manufacturing. In fiscal 2019, a
total of 1,125 participants took part in 31 sessions ranging fromenvironmental education to tree planting events in Kyoto, Tokyo,
Fukushima, Iwate, and Aomori.

Customers

FSC® C021528

Biomass fuels■ Waste Generated and Volume Effectively Reused（1,000 tons）

120
100
80
60
40
20
0

2015

■ Waste generated

2016■ Volume effectively reused

2017

2018

■ Intermediate processing volume

2019 (FY)■ Final disposal volume（Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER）

38

Relationship with the Environment
Material Balance

Mitsubishi Paper Mills Group(Domestic)

Input
Main raw materials(1,000 t)
794
381
33
41
52

Imported wood chips
Domestic wood chips
Purchased pulp
Waste paper
Inorganic pigments

1 business officeSpeciality Materials R&D
Laboratory(Crude oil equivalent, 1,000 kl)
Fossil fuels
260
Purchased electricity
47
Biomass
334
Refuse-derived fuel43

Service water

Wastewater
COD
SS

KJ SPECIALTY PAPER
Co., Ltd.

(Million tons)(t)(t)

Waste generated
Volume effectively used
Final disposal amount

126

127
0
2,768

Product sales amountCO2 emissions (1,000 t)(1,000 t)
Wastewater

932
826
260
392

(1,000 t)(1,000 Nm³)
(1,000 Nm³)
(t)

Waste

Toho Tokushu Pulp
Co., Ltd.

Reference: 2 mills in Germany
Purchased pulp
(1,000 t)(1,000 t)
Waste paper
Service water usage (1,000 t)

Atmospheric release

Released into water systems

Kitakami HiTec Paper
Corporation(Million tons)

Industrial water

Environmental Impact Data

OutputCO2 emissions
NOx emissions
SOx emissions
Soot and dust

3 mills

EnergyEnvironmental Indicators(1,000 t)

105
82
7

Paper
(1,000 t)
Photosensitive materials (Million m²)(1,000 t)
Pulp

45
2,058

127
7,504
3,621

898
18
80

Unit: kg/year (mg-TEQ/year is used for dioxins only)

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Asbestos
XyleneSilver and its water-soluble compounds
Chloroform

Cyclohexylamine

2,2-Dibromo-2-cyanoacetamide
Dioxins

Triethylamine
TolueneHydrazine

Hydroquinone

Boron and its compounds
Formaldehyde

Methylnaphthalene

Amount transferred
Sewerage
Off-site

Service water intensity
Wastewater

Atmosphere

CO2 emissions*1
NOx
SOx
Soot and dust
Water quality

Waste
Waste generated

FY 2018

FY 2019

TJ

15,131

12,285

12,506

11,886

GJ/product-tons

13.6

13.3

13.2

13.2

Million t

125

121

127

126

Tons/product-tons

117

131

134

139

Million t

-

122

127

127

1,000 t

1,164

957

983

932

1,000 Nm³

1,076

876

857

826

1,000 Nm³

247

272

264

260

t

-

459

375

392

t

7,717

7,123

7,702

7,504

t

3,417

3,723

3,660

3,621

1,000 t

120

105

114

105

1,000 tPercentage vs.
production volume

15

11

9

7

1.40%

1.23%

0.95%

0.75%

Targets（FY）

12.1 (FY2021)

920 (FY2021)

0.30% (FY2021)

Scope of statistics: Head Office, Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Speciality Materials R&D Laboratory,
Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER Co., Ltd.
Statistical method: Conforms with the Environmental Accounting Guidelines 2005 issued by the Ministry of the Environment

0

0

780

80

520

0

0

680

82

0

0

0

0

127

20,700

4,800

0

0

154

0

0

0

0

(1) Costs within business areas

210

0

789

0

7

1. Pollution control costs

243

0.00

11.13

0.00

4.00

277

1,500

0

0

0

300

15,100

0

0

7,100

333

0

0

0

0

(3) Management activity costs

336

0

0

81

0

(4) R&D costs

405

0

0

230

0

(5) Social activity costs

411

139

1

40

1,002

438

210

0

0

0

The detoxification of hardware (transistors and capacitors) containing high concentrations of PCBs is outsourced to the Japan
Environmental Storage & Safety Corporation (JESCO). All preregistered transistors and capacitors were rendered harmless.
Efforts are also under way to detoxify stabilizers containing high concentrations of PCBs, and plans call for all stabilizers to be
detoxified by the legally mandated deadline. We also plan to gradually detoxify hardware containing low concentrations of PCBs.

FY 2017

Environmental Accounting in FY 2019

0

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site

FY 2006*1 For CO2 emissions from purchased power, we use the CO2 emissions coefficient provided by the Federation of Electric Power Companies.
*2 Final disposal rate = (final disposal volume / production volume) x 100

33

PCBs

39

Service water usage

Final disposal rate*2

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER Co., Ltd.

Water

Fossil fuel energy intensity

Final disposal amountAmount of PRTR-listed Substances Emitted and Transferred in FY 2019
Emissions
Atmosphere

Fossil fuel-based energy consumption

SS

Figures from Mitsubishi HiTec Paper Europe GmbH (two mills in Germany: the Bielefeld Mill and the Flensburg Mill) are also provided as a reference
but are not included in the total for the Mitsubishi Paper Mills Group as environmental regulations differ in Germany.

Cabinet order No.

Natural resources

COD

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Speciality Materials R&D Laboratory,
Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd., KJ SPECIALTY PAPER Co., Ltd.

No. PRTR Class 1 Designated Chemical Substances

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Speciality Materials R&D Laboratory,
Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd., KJ SPECIALTY PAPER Co., Ltd.

Environmental Conservation Costs
Classification

Unit: Million yen

Principal Initiatives

Investments

Expenditures

1,000

2,226

152

1,290

2. Environmental conservation costs

Includes air pollution, water pollution, foul odor, noise, and vibration
measures
Includes domestic afforestation, energy conservation measures, etc.

795

37

3. Resource recycling costs

Includes waste measures and waste paper and other product recycling

53

899

(2) Upstream/downstream costs

Includes container and packaging recovery and recycling
Includes environmental education, environmental management
systems, and certification acquisition
Includes the development of green products
Includes greening, environmental beautification, and environmental data
disclosure
Fees for pollution-related health damage

298

363

4

63

0

0

33

28

0

51

1,335

2,731

(6) Environmental damage costs
Total

Economic Benefit of Environmental Conservation Measures
Classification

Earnings
Cost reduction

BenefitAmountBenefit of reusing recovered pallets

449

Profit from sales of materials effectively recycled

24

Cost reduction from decreased energy usage

33

Cost reduction from improved material yield
Total

Unit: Million yen

84
590

40

Relationship with Employees
Based on our Principles and Guidelines Concerning Human Rights and Labor Practices, the Mitsubishi Paper Mills
Group makes a number of efforts to continue to create comfortable and fulfilling work environments where each andevery employee can fully display his/her abilities.

Occupational Safety and Health Initiatives

The Mitsubishi Paper Mills Group views all occupational safety and health activities are activities that should be given
priority in all initiatives. Based on the Group-wide Safety and Health Management Guideline, which incorporates thefundamental principles of safety and health, which are mentioned in the Principles and Guidelines Concerning Human
Rights and Labor Practices, we carry out a number of activities as a unified corporate group.

Fiscal 2019 Activities
Our mills and offices made up lists of standard operating procedures(SOPs) that have the risk of a fatal accident, checked to see if actual
operations were being done according to the SOPs, and made revisions
where needed. Other measures include having employees take part inexperience-based training (VR training) to improve sensitivity to hazards by
actually sensing dangers, as well as activities done in conjunction with ourpartner companies.

Total hours worked annually

■

◆

1,900

1,800

●

●

◆

◆

◆

●

◆

●
◆

◆

●

◆

●
◆

◆
●

●

2010

Together with our labor union, we hold regular meetings of a specialized committee to review human resource
programs and hold labor-management discussions on creating better programs. Meetings focus on issues such as
wages, retirement benefits, annual paid leave taking, hours worked, reemployment, and work-life balance.

2,000

Lost time accident frequency rate

0.5
0.0

Regular Program Reviews Done in Conjunction with Our Labor Union(Hours/FY)
2,100

●
●
◆

We believe that achieving comfortable work environments and a good work-life balance contributes not only tohealthier, more prosperous lives for employees but also makes the company more competitive. We are undertaking a
number of initiatives out of a desire to give the Group more vitality and make it a fulfilling place to work.

●

VR training (MPM Operation)（Accident frequency rate）
1.5
1.0

Efforts to Create Comfortable Work Environments

2011

2012
●

2013

Mitsubishi Paper Mills

2014
●

2015

2016

2017

2018

Japan Paper Association (industry statistics)

2019
（FY）

※ Scope of statistics: Kyoto Mill, Shirakawa Site, MPM Operation Co., Ltd. Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER,
and each site’s Collaboration Committee

Promoting Good Mental and Physical Health

We consider employees’ health to be an important managerial asset and we are working on health management.
Working with the Mitsubishi Paper Mills Health Insurance Union, we utilize health checkup data and other information
belonging to the union to better help our employees maintain good health. Through the promotion of health management,
we aim to help raise employees' health awareness, get more of them thinking about their own health, and promote better
health maintenance to ultimately foster more vital workplaces.

Major Efforts in FY 2019① Encourage follow-up health checkups through management② Encourage employees to receive specific health guidance through home visits③ Prepare Personal Health Reports for those undergoing specific healthcheckups (employees 40 and over)(A new health service from the health insurance union)

●

2015

100

■

■

■

■

◆

◆

◆

◆

●

●

●

●

2016

Mitsubishi Paper Mills

2017
◆

2018

All Industries

Paid leave acquisition rate

（％）

2019
（FY）
■

80

●

●

◆

◆

◆

◆

2015

2016

2017

2018

●

●

60

40

Manufacturing※ All Industries’ and manufacturers’ data are from the Ministry of Health,Labour and Welfare's Monthly Labor Survey(companies with 500 employees or more; general workers only)●●

Mitsubishi Paper Mills

◆

◆

2019
（FY）
Society※ Society: From the Ministry of Health, Labour and Welfare's
General Survey on Working Conditions.

Work-Life Balance Initiatives

Mitsubishi Paper Mills has a number of programs to help employees balance work, parenting, and caregiving. For
example, in light of the "first-grade wall" problem, which refers to the difficulty of putting children in childcare untilnighttime once they enter elementary school, employees can take advantage of shortened working hours to provide
childcare until their children reach the end of first grade.

Furthering Diversity

As part of our women's empowerment initiatives, theMitsubishi Paper Mills Group is working to get more
women working at production sites. Hakuryo Paper
Technology and MPM Oji Home Products are hiring more
female manufacturing personnel and expanding theirrange of work while proceeding to build workplaces thatwill allow women to thrive in manufacturing environments.

■ Personal Health Report
These reports indicate how healthy employees are compared to others
their age and have rankings based on the deviation value of the various
health check data points.

41

Personal Health Report

MPM Oji Home Products Co., Ltd.
Female manufacturing personnel hired in FY 201942

Relationship with Customers
To provide customers with products they can feel good about using, we have established our own Product Safety
Code, and are making efforts to maintain and improve product safety.
Along with maintaining legal compliance and conducting fair marketing practices, we will continue to actively
communicate with our customers and provide products that benefit society.

『Product Safety Code』

Communication with Customers

In the Mitsubishi Paper Mills Group, the sales, R&D, production, and technology departments work as one to provide
products that satisfy customers' needs. Our technology and production personnel accompany sales staff and gather
feedback from customers as we, a corporate group that is consistently on the cutting edge of technology, make efforts tocreate products that benefit the world at large.

Mitsubishi Paper Mills believes that the role of a company in society is to provide satisfying services along withsafe and useful products to customers, and we have utilized our excellent technologies to provide safe products tosociety. From here on, too, we will steadily implement the following actions throughout the entire company tomaintain sound management and continue providing society with safe products and satisfying services that meetthe needs of the times.
(1) We will strengthen our quality control systems and product safety control systems, and will provide products
confirmed to be safe using state-of-the-art science and technology.
(2) We will work to stabilize the manufacturing process and always provide products of uniform quality.
(3) We will provide accurate and reliable information on the correct way to use products and the safety of products.

Quality Control System

To be able to quickly respond to customer
feedback and quality issues, the Group'sbusinesses are divided into sevensegments, and have built a quality control
system overseen by the president.
The key production facilities in eachbusiness segment have acquired ISO 9001
certification. In addition, quality control
administrators, who have responsibility for
and authority over quality in the businesssegment, share information with the relevantbusiness division general managers whileworking to maintain and improve the quality
control system. Furthermore, to guarantee
quality control system effectiveness, theTechnology & Environmental Department at
the head office regularly audits quality
control efforts for each business segment
and issues reports to the officer in charge.

Hachinohe Mill business segment
President

Quality control administrator: Hachinohe Mill Manager

Takasago Mill business segment
Director in Charge ofTechnology &the Environment
Printing Paper Business
Division General Manager
Imaging Division
General Manager
Speciality Materials
Division General Manager

43

Converting Technology Exhibition 2019
New speciality materials exhibit (Tokyo)

Exhibit at The 7th Filtration & Separation Asia exhibition
The 7th Filtration & Separation Asia (Shanghai)

LED/OLED & Digital Signage Show
LEDTEC ASIA 2019 (Ho Chi Minh)

Quality control administrator: Takasago Mill Manager

Kyoto Mill business segment
Quality control administrator: Kyoto Mill Manager

KHP business segment
Quality control administrator: KHP* president

Pressboard business segment

Quality control administrator: Commercial Printing &Business Communication Paper Sales
Department Manager

Speciality Materials Business segment
Quality control administrator: Speciality Materials
Division Deputy General Manager

KJ SPECIALTY PAPER segment
Quality control administrator: KJ SPECIALTY
PAPER president*KHP: Kitakami Hitec Paper Corp.

Product Safety Control System
With the goal of actively promoting
specific product safety initiatives, we haveestablished a Product Liability (PL)Subcommittee and a Product Safety
Judgment Panel under the Product Liability(PL) Committee, whose membership is
composed of individuals appointed fromevery head office division, every mill, andaffiliated companies. This committee
supports every division in their productsafety management activities.

9th Environmental Seminar
Contributions We Can Make toward Achieving the Sustainable
Development Goals (Mitsubishi Paper Mills Head Office)Encouraging the Worry-Free Use of Our Products

Product Liability (PL)Committee
Product Safety
Judgment Panel

Product safety activities◆ Legal compliance team◆ Outside party negotiationteam◆ Education team
◆ Consumer support teamProduct Liability (PL)Subcommittee◆ Product safety assurance
team

The products the Mitsubishi Paper Mills Group provides are made from raw materials proven to be safe. Along withswiftly obtaining toxicological data and information about new regulations, all departments involved — including affiliatedcompanies — share information with each other and conduct thorough safety inspections of the raw materials used. With
respect to chemical substance control, we have established Chemical Substance Management Guidelines and Green
Procurement Guidelines and strictly control everything from the raw materials we use to our products' constituent
substances. Also, not only do we ensure compliance with laws and regulations, we also meet voluntary standards set by
the industry according to product application and satisfy the demands of individual customers. We will contribute to thebetterment of society by continuing to provide eco-friendly, safe products that customers can feel safe and comfortable
about using.

44Relationship with Communities
The Mitsubishi Paper Mills Group aims to grow together with communities and has formulated its Social Contribution Direction of Activities to proactively interact with communities through its business activities. Through activities such as
those conducted by the Ecosystem Academy (see page 37), which uses forests owned by Mitsubishi Paper Mills, weundertake a number of social contribution activities that take advantage of the characteristics of each of our businesssites.

Social Contribution - Direction of Activities● Environmental protection: We will contribute to the creation of a recycling society to maintain our precious

global environment.
⇨ Our efforts to conserve the global environment are activities closely connected with our business andinclude supporting forest thinning, etc. together with NPOs and supporting FSC®-certified forests.
● Living alongside local communities: We are strengthening our social contributions rooted in local communities.
⇨ Mills and offices play key roles by actively engaging in local community activities and contributing to thedevelopment of those communities.
Supporting
volunteer activities: We support the volunteer activities of our employees.
●

Coexistence with the Community

In addition to actively participating in community events, our sites welcome and deepen our interaction with community
members through efforts that include allowing our facilities to be used free-of-charge for events.

■ Sponsorship of the Takasago Lantern
Festival

Takasago Lantern Festival 2018 was held in
September in Hyogo Prefecture's Takasago, home to
the Takasago Mill. The festival featured such things as
illuminated historical buildings, candle-lined alleys, andjazz galleries. The Uomachi Club, a Western-style
house owned by the mill, was also decorated with lights,
and visitors were treated to a jazz performance.

■ Opening up Our Cherry Trees to theGeneral Public

There is a row of cherry trees at the Kyoto Mill thatturns into a "cherry blossom tunnel" in the spring. Duringthat time every year, we open up the tunnel to thegeneral community for everyone's enjoyment. We also
take visitors’ pictures and offer a photo printing service,
which always helps make this event well received.

Communication with Community Members

As members of their communities, every business site in the Group proactively participates in local activities andfurthers communication with every community member in a variety of ways.

Dialogue with community members

In addition to providing plain language explanations of our business situation to community members, we regularly holddialogues with community members to learn their thoughts on and solicit suggestions concerning our business and learn
about community issues. We also work to stimulate local economies through our business activities.
Briefing on the State of Operations (April)■ Shirakawa Site

■ Hachinohe Mill

Environmental Monitoring Meeting (November)■ Kitakami HiTec Paper Corporation Community Gathering (November)etc.

Students’ Work Experience

Mitsubishi Paper Mills regularly takes in local students looking to experience life in the workplace. Through lectures andactual work experience in various workplaces, the students use this program as a means to gain valuable experience
wholly different from their school life. We hope the program will help them in their lives.

Students’ work experience program for middle school students(Takasago Mill)

45

Students’ work experience program for middle school students(Kyoto Mill)FSC C021528®

The Uomachi Club, all lit up (Takasago Mill)

Opening up of the "cherry blossom tunnel" to the public and photo
printing service (Kyoto Mill)

Contributing to the Community Environment■ Participation in the Nagaokakyo City
Environmental Fair

Every year in November, Nagaokakyo City—home of
the Kyoto Mill—holds its Environmental Fair as a means
to promote better environmental awareness amongresidents. To bring further excitement to the event, theKyoto Mill conducts papermaking workshops and gives
talks on the lifecycle and bounties of the forest toelementary school students and their parents and also
provides information about environmental efforts being
made by Mitsubishi Paper Mills.

Papermaking workshop at the Environmental Fair (Kyoto Mill)■ Participation in Mt. Fuji Foothills Beech
Forest Development Project

Every year, KJ SPECIALTY PAPER takes part in the
Mt. Fuji Foothills Beech Forest Development Project,
put on by the city of Fuji. For this year's event, nine
employees participated and 2,000 beech and otherbroadleaf tree saplings were planted. The Mitsubishi
Paper Mills Group will continue contributing to activities
to preserve and grow the forests around Mt. Fuji, aCultural World Heritage Site.

Participants in Mt. Fuji Foothills Beech Forest Development Project(KJ SPECIALTY PAPER)

46

Relationship with Communities
Contributing to Local Communities■ Sponsorship of Coming-of-Age Day
Event in Fukushima Ward, Osaka

Namitsu sponsored a raffle as part of theComing-of-Age Day Memorial Gathering, which washeld in January in Fukushima Ward, Osaka, where thecompany has its head office. Through efforts such asthese, we will continue strengthening relations with
community members and achieving mutual growth.

■ Support for the Heavy Rain Event ofJuly 2018

To assist in recovery efforts for people and regions
affected by the event, Diamic provided Dia CoolGear, an
instant cold pack, and other MPM products as relief
goods. We pray affected regions make a recovery as
quickly as possible.

Making Use of our Business Activities■ Support for Calligraphy Performanceat Hachinohe Higashi High School

The Hachinohe Mill regularly provides Hachinohe Higashi HighSchool's calligraphy club with the jumbo-sized paper used atcalligraphy performances. Famous as a frequent participant in the
Shodo Performance Koshien, a national calligraphy competition, thehigh school gives outstanding performances at various events in thearea. We look forward to lending our support to future calligraphy
performances by Hachinohe Higashi High School.

■ Photo Printing Service

Leveraging the technologies of Mitsubishi Paper Mills'
Imaging Media Business, we provided photo and printing
services at events held near the Kyoto Mill and the
Kitakami HiTec Paper Corporation.

■ Takenoko Festa and Garasha Matsuri (Kyoto Mill)■ Kitakami Tenshochi Sakura Festival(Kitakami HiTec Paper Corporation)

Coming-of-Age Day Memorial Gathering in Fukushima Ward

Performance piece in connection with the decommissioning ofa Hachinohe Coast Guard Office patrol boat

■ Braille Calendar

The release of the 2019 edition of the Braille Calendar
is the 23rd edition, since the first edition was released in
1997.
The calendar, which has contained food recipes inrecent years, has been well appreciated by those it has
been donated to, such as social welfare organizations
and the Japan Braille Library, as well as the visually
impaired who use the calendar.

Dia CoolGear instant cold pack

■ Community Cleanup Activities

Every one of our business sites regularly undertakes activities to beautify and clean up the surrounding areas andpromotes initiatives to develop comfortable urban environments together with local communities.
As examples of such activities, Namitsu cleaned up thevicinity of its head office as part of the Osaka Marathon
Clean-up Campaign, an event conducted by the Osaka City
Environment Bureau prior to the Osaka Marathon. Also,
Kitakami HiTec Paper Corporation takes part every year in
Kitakamigawa watershed cleanup activities organized by the
Iwate River and National Highway Office and otherorganizations. This was the 10th year the company has
participated.

Photo printing service at the Takenoko Festa (Kyoto Mill)

Braille Calendar (2019 edition)

Philanthropic Expenditures

Mitsubishi Paper Mills is a member of the Keidanren 1% Club and is a company which continually contributes toimproving social sustainability. Whether it's in academics, research, or education, our aim is to be of benefit to society inmany fields.

（10,000 yen）
6,000

Breakdown of Philanthropic Expenditures

Philanthropic Expenditures

Regional activities/
cultural preservation
Social welfare

4,000

Environment

Culture and arts

2,000

International exchange, etc.

Academics,
research,
education

Participants in Kitakamigawa watershed cleanup activities(Kitakami HiTec Paper Corporation)

47

Osaka Marathon Clean-up Campaign (Namitsu)

0

2014

2015

2016

2017

2018

2019
（FY）

48

Fiscal 2019 CSR Activities
In fiscal 2019, we established "enhancing activities to ensure safety and health," "promoting various measures to improve
human resource performance," and "customer-centered product development" as top priority issues, and undertook activities
aimed at improving corporate value. We also reduced industrial waste and took part in environmental preservation activities, apart of which was working to make our products more environmentally friendly through efforts such as using FSC ®-certified
paper in order to help achieve the UN's Sustainable Development Goals (SDGs).

ISO 26000 Core Subjects

1. Organizational governance

Key Issues
Action Plan
・Ensuring the effectiveness ・Ensure good governance based on the
Basic Policies on Corporate Governanceof corporate governance・Establishing a risk
management structure・Thoroughly familiarizing
employees with our
Corporate Code of
Conduct and theCompliance Conduct
Standards
・Ensuring strict legal
compliance2. Fair operating practices

Activity Results
・Held meetings of the Nomination and Remuneration
Committee, conducted outside director conferences, andprovided training for directors and audit & supervisoryboard members
・Reviewed director and audit & supervisory board member
・Review governance functions
training conducted last fiscal year, had Board of Directors
evaluate their effectiveness, and held outside director andaudit & supervisory board member meetings
・Enhance structural preparations and our risk ・Conducted semiannual risk map reviews and updated risk
assessments and evaluations
map in the interest of Group management
・Installed a new safety check system at the Company's
・Discuss ways of improving simulation andheadquarters and conducted system verification training
training
・Built a backup system for information disclosure during
emergencies and conducted live training
・Made extensive revisions to the Code of Conduct of the・Improve employees' understanding of the
Mitsubishi Paper Mills Group and the Compliance Conduct
Corporate Code of Conduct, theStandards, and are now working to ensure employees are
Compliance Conduct Standards, andinformed about and understand them.
related laws and regulations through morerobust compliance education

・Conducted legal checks and handled legal consultations
・Strengthen legal functions
・Promote a better understanding of laws and ・Conducted legal training for executives, line managers, andothersregulations applicable to our operations,and enforce compliance・Regularly issued the Compliance News newsletter as ameasure to improve employees' concern for legal issues
・Conducted fact-finding surveys on information
・Strengthen and improve systems throughmanagement at 9 affiliated companies
Group-wide implementation of Information
Management Regulations
・Conducted information management audits of the
Shirakawa Site and 2 subsidiaries
・Disseminated information that includes Second Mid-Term
・Promoting communication ・Further improve the IR information weManagement Plan progress (analyst briefing materials),
provide on our website, etc.
with stakeholders
General Meeting of Shareholders information, corporate
reports, annual reports, and earnings briefings
・Disseminated information on tradeshows (13), an
・Disseminate information about newagreement for technical cooperation, Osaka officeproducts, etc. (sharing information about
relocation, product price revisions (2), investments, etc.
affiliated companies)
・Enhance and make use of the Head Office ・Held 7 planned exhibitions and exhibited products in atimely fashion in the permanent exhibit
gallery・Issued Corporate Report 2018 in August in an integrated
・Enhance our corporate reports
report format
・Step up efforts at continually promoting CSR ・Conducted awareness raising activities using corporate
・Expanding initiatives out
reports and better familiarized Group employees with CSR
activities
to affiliated Group
policycompanies

ISO 26000 Core Subjects

Key Issues
・Enhancing activities toensure safety and health・Promoting various
measures to improve
human resource
performance

3. Human rights

4. Labor practices

Action Plan
Activity Results
・Checked for discrepancies between actuality and SOPs
・Improve efforts to eliminate seriousthat have the risk of fatal accidents and will continue
accidents
checks next fiscal year
Review standard operating procedures(SOPs) that have the risk of fatal accidents
・Appropriately assign diverse personnel and ・Reassigned personnel between consolidated groupaffiliates and otherwise made effective use of humanimprove individual performance
resources(1) Appropriately assign personnel
・Consistently hired with regard to improving personnel age
distribution
throughout the Group and hire
personnel so as to achieve the・Reviewed rank-based training and revised training programfor next fiscal year
appropriate age distribution(2) Improve training to boost skills and・Enriched correspondence training options
promote self-awarenessISO 26000 Core Subjects

Evaluation○

Key Issues
・Promoting activities toprevent global warming○

・Promoting activities topreserve biodiversity○

・Improving and enlarging
our environmentallyconscious product lineup○○

・Reducing environmental
risk and impact

5. Environment

Action Plan
・Promote CO2 emissions reductions in ourbusiness activities and employees' homes
・Support and get involved in renewableenergy projects
・Increase the percentage of FSC-certified
wood we procure・Participate in the Japan Business Initiative
For Biodiversity (JBIB)
・Promote environmentally conscious
products such as FSC-certified paper
・Develop and roll out new environmentallyconscious products
・Reduce industrial waste

・Improve environmental communication○○

Activity Results
Evaluation
・Installed new and modified equipment to reduce fossil fuel○usage
・Provide support to Hachinohe Eco-Energy Power Station○
construction project・Made active use of FSC-certified wood chips and met○
targets
biodiversity
knowledge
throughparticipationin・Deepened○
related seminars
・FSC-certified paper sales volume (Apr-Dec average)○
increased 5.3% YoY
・Sponsored and participated in FSC Forest Week organized by
FSC Japan
・Manufactured 10,790 t of product (Apr-Dec) using waste○
recycling equipment at Hachinohe
capacitors
with
high
concentrationsof
PCBs
within・Detoxified
the legally mandated deadline
・Apr-Nov total effective utilization ratio: 93.1%, final landfill△
waste ratio: 0.78%
・Worked to hold dialogues with the local community through○Environmental Monitoring Meetings at the Hachinohe Mill andother opportunities
・Participated in regional environmental conservation
organization activities○

ISO 26000 Core Subjects○

Key Issues
・Ensuring product safety○
・Ensuring product quality○○○

Evaluation

・Customer-centeredproduct development

Action Plan
Activity Results
Evaluation
・Enhance chemical substance management ・Promptly responding to legal revisions, etc.
○
・Business sites promptly reported to local governments inaccordance with PRTR Law
・Convened the PL Subcommittee six times
・Enrich the activities of the Product Liability○(PL) Subcommittee
・Changed the moistening liquid for TDP etching liquid
・Conduct inquiries into improper responses concerning quality
・Promote thorough adherence to ISO 9001○
management and improve customer
・Conduct recycled paper audits
satisfaction (reducing complaints, etc.);
continue to conduct quality audits
・Identify latent customer needs and explore ・Begin the manufacture and sale of wrapping kraft paper○
useful products and services that bring・Currently carrying out other sample workhigh customer satisfaction

ISO 26000 Core Subjects△

Key Issues
・Promoting community
support activities○

・Promoting culturalcontribution activities
・Promoting activities of the
Ecosystem Academy

Top priority issues

6. Consumer issues

7. Community involvement and development

Action Plan
Activity Results・Take part in local activities at each business ・Every business site fostered goodwill with local
communities through efforts that included participating insite and continue good relations with
events and providing paper
communities
・Made donations to and sponsored various related groups
・Implement ongoing support focusing on
and their plans
Mitsubishi and related industry groups
・Ensure these activities become established ・Conducted instructor development and skill improvement
trainingand developed as ongoing collaborations
with society
・Held experiential environmental education sessions inFukushima, Tokyo, Kyoto, and Iwate
・Held 9th Environment Seminar (at HQ), etc.
(Evaluation)○: Target met

Evaluation○○○△: Target not met

FSC® C021528
49

50

Fiscal 2020 CSR Action Plan
For fiscal 2020, we have established "enhancing activities to ensure safety and health" and "product development centered on
harmony with society" as our two top priority issues. Implementing our action plans will see us carry out the PDCA cycle toimprove the quality of our CSR activities, while at the same time faithfully incorporating feedback gained through dialogue withstakeholders as we undertake initiatives uniquely suited to the Mitsubishi Paper Mills Group.

ISO 26000 Core Subjects 1. Organizational governance 2. Fair operating practices
Key Issues

・Ensuring the effectiveness of corporate governance・Establishing a risk management structure・Thoroughly familiarizing employees with our
Corporate Code of Conduct and the Compliance
Conduct Standards
・Ensuring strict legal compliance

・Promoting communication with stakeholders

・Expanding initiatives out to affiliated Group
companies

Action Plan

・Ensure good governance based on the Basic Policies on Corporate
Governance・Review governance functions

・Enhance structural preparations and our risk map from the point ofview of Group management
・Discuss ways of improving simulation and training
・Improve employees' understanding of the Corporate Code of
Conduct, the Compliance Conduct Standards, and related laws andregulations through more robust compliance education
・Strengthen legal functions
・Promote a better understanding of laws applicable to our operations,and enforce compliance・Strengthen and improve systems through Group-wide
implementation of information management rules
・Further improve the IR information we provide on our website, etc.
・Disseminate information about new products, etc. (sharing
information about affiliated companies)
・Enhance and make use of the Head Office gallery
・Enhance our corporate reports
・Step up efforts at continually promoting CSR activities

ISO 26000 Core Subjects 3. Human rights 4. Labor practices
Key Issues

・Enhancing activities to ensure safety and health・Promoting various measures to improve humanresource performanceISO 26000 Core Subjects 5. Environment
Key Issues

・Promoting activities to prevent global warming

・Promoting activities to preserve biodiversity
・Improving and enlarging our environmentallyconscious product lineup
・Reducing environmental risk and impact

ISO 26000 Core Subjects 6. Consumer issues
Key Issues

Action Plan

・Promote CO2 emissions reductions in our business activities andemployees' homes
・Support and get involved in renewable energy projects
・Increase the percentage of FSC®ｰcertified wood we procure・Participate in the Japan Business Initiative For Biodiversity (JBIB)
・Promote environmentally conscious products such as
FSC-certified paper
・Develop and roll out new environmentally conscious products
・Reduce industrial waste
・Improve environmental communication

Action Plan・Enhance chemical substance management
・Enrich the activities of the Product Liability (PL) Subcommittee
・Ensure effective ISO 9001 management and improving customer
satisfaction (reducing complaints, etc.); continue to conduct quality
auditsAlso, step up repeat complaint monitoring and review efforts to・Ensuring product safety

・Ensuring product quality

・Product development centered on harmony withsociety

prevent data falsification (manage contractors and control data suchas labels and SDS)・In product areas with high potential, aim to develop highly-usefulproducts that reflect customer demands and that target end-users

Action Plan

・Continue efforts to eliminate serious accidents
・Review standard operating procedures that have the risk of fatal
accidents
・Foster a safety culture for preventing human errors(1) Enrich safety and health education(2) Stimulate communication
・Revise HR systems according to the state of current issue
resolution and conduct rank-based training
・Consider new training programs for skill improvement

ISO 26000 Core Subjects

Key Issues

7. Community involvement and development

・Promoting community support activities
・Promoting cultural contribution activities
・Promoting activities of the Ecosystem Academy

Action Plan

・Take part in local activities at each business site and continue good
relations with communities
・Implement ongoing support focusing on Mitsubishi and relatedindustry groups
・Ensure these activities become established and developed as
ongoing collaborations with local communities

Top priority issues

FSC® C021528

51

52

Company Profile and Corporate Data

(Stock information is current
as of March 31, 2019)

Company Name
Mitsubishi Paper Mills Limited

Consolidated Subsidiaries
20 in Japan, 6 overseas

Address
2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan

Mitsubishi Paper Sales Co., Ltd.
Kitakami Hitec Paper Corp.
Mitsubishi Paper Engineering Co., Ltd.
Ryoshi Co., Ltd.
Diamic Co., Ltd.
NAMITSU Co., Ltd.
MPM Oji Home Products Co., Ltd.
Pictorico Co., Ltd.
Shin-Hokuryo Forest Products Co., Ltd.
Toho Tokushu Pulp Co., Ltd.
Hachinohe Paper Processing Co., Ltd.
KJ SPECIALTY PAPER Co., Ltd.
Takasago Paper Processing Co., Ltd.
MPM Shared-service Co., Ltd.
Hachiryo Co., Ltd.
Ryoko Co., Ltd.
MPM Operation Co., Ltd.
Kyoryo Chemical Co., Ltd.
Hokuryo Co., Ltd.
Hakuryo Paper Technology Co., Ltd.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi Imaging (MPM), Inc.
MPM Hong Kong Limited
Zhuhai MPM Filter, Ltd.
MPE Real Estate GmbH

Representative
Yukihiro Tachifuji, President
Founded1898
Paid-in Capital
36,561 million yen
Consolidated Number of Employees
3,668
Shareholder Register Administrator
Mitsubishi UFJ Trust and Banking Corporation
Independent Auditor
Ernst & Young ShinNihon LLC
Main Business Activities
The Mitsubishi Paper Mills Group is primarily engaged
in the manufacture, processing, and sale of paper, pulp,
and photosensitive materials, and the main products
and services of each division are provided below.
［Paper and Pulp Business］
Coated and uncoated graphic papers, magazine paper,
speciality printing paper, communication paper, hygiene
paper, electrical insulation pressboard, high-quality
white paperboard, speciality white paperboard, andother speciality paper, bleached kraft pulp, andspeciality pulp
［Imaging Media Business］
Inkjet paper, photographic paper, base paper forphotographic paper, printing plate materials, platemaking systems, CTP software, and chemicals［Speciality Materials Business］
Functional paper, nonwoven fabrics, filters, rewritable
media, battery separators, and speciality materials［Warehouse and Transport Business］
Warehousing and transport-related business［Other Businesses］
Engineering operations, sports facility management,
insurance agency business, travel agency business,real estate business● Total number of authorized shares

90,000,000● Total number of outstanding shares

44,741,433● Shareholders

16,436(878 year-over-year decrease)● Composition of shareholders
March 31,
2019

19.1

1.7

March 31,
2018

31.9
30.8

March 31,
2017

31.9

7.8

45.2
2.6

26.2

20.4
20.1

12.0
11.2

34.9
34.5

20.4

11.2

34.9

1.6

0

10

20

30

40

50

60

■ Financial institutions

70

80

90

100
（%）

■ Financial instruments business operators■ Other corporations■ Foreign corporations, etc.
■ Individuals, other⇨Reference site: Corporate Profile/Business Fields
https://www.mpm.co.jp/eng/company/gaiyo.html

53⇨Reference site: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html