Note : This document has been translated from a part of the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original shall prevail.
May 11,2023

Summary of Consolidated Financial Results
for the Fiscal year Ended March 31, 2023 (unaudited)
Company name:
URL:
Representative:
Contact:
Phone:
General meeting of stockholders to be held:
Statutory annual report to be presented:(Code No.3864 Tokyo Stock Exchange)
Mitsubishi Paper Mills Limited
https://www.mpm.co.jp/
Ryuichi Kisaka, President and Chief Executive Officer
Hiroyuki Ino,General Manager, Accounting Department+81-3-5600-1407
June 29,2023
Start of dividend payout: June 12,2023
June 29,2023(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen

FY2022
FY2021
Note: Comprehensive income%

209,542 15.2
181,920 12.1
FY2022Million yen

%

968
(248)
¥2,628 million-

Million yen

Profit per share

Diluted profit per
share

Ratio of profit toshareholders'equity

Yen

Yen

%

FY2022(12.97)
FY202124.62
Note: Equity in earning of affiliates-

Million yen%-

Ratio of ordinary
Ratio of operating
income to total
income to net sales
assets%(0.8)
1.7¥670 million

FY2022

%

3,089
57.3
(571)
1,964
1,096
FY2021¥6,957 million

%

1.4
0.9
FY20210.5(0.1)¥1,066 million(2) Consolidated Financial Condition
Shareholders'equity ratio

Total assets

Net assets

Million yen

Million yen

227,058
215,879

72,041
69,613¥72,028 million

FY2022
FY2021
Note: Shareholders' equity

FY2022

Net assets per share

%

Yen

31.7
32.2

1,646.59
1,565.88¥69,608 million

FY2021(3) Consolidated Cash Flow
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen(2,721)
1,698(3,565)(2,557)

5,209(6,091)

8,325
9,047

FY2022
FY2021
2. Dividends

Dividend
Dividend
Total dividend
payout ratio
on net assets(Annual)End of 1Q End of 2Q End of 3Q End of FY Annual(Consolidated) (Consolidated)
Dividend per share

FY2021
FY2022
FY2023(Forecast)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

0.00
5.00
5.00

0.00
5.00
5.00

223

5.5

0.3

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales

Operating income

Million yen

First half
Full year

110,000
220,000

%

9.6
5.0

Million yen

1,000
6,000

%

519.6

Profit attributable toowners of parent

Ordinary income
Million yen

1,000
6,500

%

(33.5)
110.4

Million yen

0
4,000

Earnings
per share
%

-

Yen

0.00
91.44

4. Notes(1) Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation):
New: - (Company name);
Excluded: - (Company name)None(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:
Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
Yes
4) Retrospective restatement:None(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
FY2022
44,741,433 shares
FY202144,741,433 shares2) Total number of treasury shares at the end of the period:
FY2022997,361 shares
FY2021
288,324 shares
3) Average number of shares during the period:
FY202244,095,288 shares
FY202144,543,972 shares
Notes： The Company has adopted a BIP (Board Incentive Plan) trust, assuming the number of shares held by thetrust are included in the number of treasury stock of “(3) Total number of issued shares (common shares)”.
(Reference)
1. Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
FY2022
FY2021

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

107,191
95,82311.9
10.6(1,361)
159

-

2,086
4,589

(54.5)
-

708
1,793

(60.5)-

Profit per share

Diluted profit
per share

Yen

Yen

16.06
40.26

-

Total assets

Net assets

Million yen

Million yen

FY2022
FY2021(2) Non-consolidated Financial Condition

FY2022
FY2021
Note: Shareholders' equity

168,320
163,109
FY2022

49,78949,064¥49,789 million

Shareholders'equity ratio

Net assets per share

%

29.6
30.1
FY2021Yen

1,137.91
1,103.46¥49,064 million* This financial results report is exempt from being audited by Certified Public Accountants or an Audit Firm.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently
acquired by the Company and certain assumptions assessed to be reasonable. Actual results may differ
significantly from these forecasts due to a wide range of factors.

Contents of Attachments
1. Overview of Operating Results, etc. ............................................................................................................................ 2(1) Overview of Operating Results .............................................................................................................................. 2(2) Overview of Financial Position .............................................................................................................................. 4(3) Overview of Cash Flows ........................................................................................................................................ 4(4) Future Outlook ....................................................................................................................................................... 4(5) Basic Policy for Dividends and Dividends for the Fiscal Year under Review and the Next Fiscal Year ................ 4
2. Basic Policy for the Selection of Accounting Standards .............................................................................................. 5
3. Consolidated Financial Statements .............................................................................................................................. 6(1) Consolidated Balance Sheet ................................................................................................................................... 6(2) Consolidated Statements of Income and Comprehensive Income .......................................................................... 8(3) Consolidated Statements of Cash Flows............................................................................................................... 10―1―

1. Overview of Operating Results, etc.
(1) Overview of Operating Results
During the fiscal year ended March 31, 2023, economic activities continued to recover to a certain extent, reflecting progress inefforts aimed at preventing the spread of COVID-19 while facilitating economic activities. Meanwhile, uncertainties remained highover matters such as prolongation of the situation in Ukraine and steep rises in raw material and fuel prices, as well as exchange rate
fluctuations.
Looking at the environment surrounding the Group, the Group was significantly affected by sharp increases in the prices of raw
materials and fuel such as crude oil, coal, natural gas and wood chips amid a shift toward society living with COVID-19.
In response, the Group took steps to improve productivity by adopting production systems in line with demand trends in each business.
Meanwhile, in term of sales, it strove to revise product prices and expand sales of new products.

The Group also began executing the Medium-Term Management Plan (for the fiscal year ending March 31, 2023 to the fiscal year
ending March 31, 2025) in the fiscal year under review, adopting “Creation of a New Mitsubishi Paper Mills Group” as a slogan.
The basic policy of the Medium-Term Management Plan (for the fiscal year ending March 31, 2023 to the fiscal year ending March
31, 2025) is as follows.
(i) Strengthen our revenue base through selection and concentration strategies and expansion of new business(ii) Contribution to a green society(iii) Organizational change to improve sustainability
In line with the policy of the Medium-Term Management Plan, the Group took a range of measures to advance selection andconcentration strategies. The Company decided to sell the business it operated at the Flensburg Mill of its Germany subsidiary on
January 30, 2023. Equities are expected to be transferred in the first half of FY2023. In addition, the Company reorganized some ofits group companies on April 1, 2023. To improve the efficiency of sales systems, it integrated Diamic Co., Ltd. into Mitsubishi Oji
Paper Sales Co., Ltd., thereby merging the Group’s sales agents into a single company. As a result, regardless of product areas,
Mitsubishi Oji Paper Sales Co., Ltd. will work to optimize sales on a group-wide basis as the Group’s sole sales company responsible
for the sale of the Group’s products. Moreover, by integrating the Kitakami site subsidiary and Hachinohe site subsidiary into theCompany, the Company moved forward with selection and concentration strategies and the Group’s reorganization to improve
profitability.

As a result, consolidated net sales for the fiscal year under review amounted to 209,542 million yen (up 15.2% year on year) partly
due to a revision of product prices in response to a steep rise in the prices of raw materials and fuel.
Profitability was significantly affected by surging raw material and fuel prices. Even so, thanks to the effect of cost-cutting initiatives
linked mainly to product price revisions, fixed cost reductions and the improvement of carbon intensity, consolidated operating
income came to 968 million yen (compared with consolidated operating loss of 248 million yen in the previous fiscal year),consolidated ordinary income was 3,089 million yen (compared with consolidated ordinary income of 1,964 million yen in theprevious fiscal year) due in part to foreign exchange gains, and loss attributable to owners of parent stood at 571 million yen primarily
due to a loss on sale of businesses as a result of the sale of the business operated at the Flensburg Mill of the Germany subsidiary.
Operating results by segment are as follows:
Effective from the fiscal year under review, the Company changed reportable segments to match its internal organization.
Specifically, it integrated the imaging media business and the specialty materials business to set up the functional materials business,while also adding the warehouse and transportation business to the paper and pulp business to create the sustainable fiber materials
business.

―2―

(Million yen)
Net sales

Reportable
Segments

Fiscal year
ended March
31, 2022

Fiscal year
ended March
31, 2023

Functional materials

50,249Sustainable fiber
materials
Total

Operating income (loss)
Change (%)

Fiscal year
ended March
31, 2022

Fiscal year
ended March
31, 2023

Change (%)

59,385

18.2

2,973

4,163

40.0

141,703

166,534

17.5(3,208)(3,095)‒

191,953

225,919

17.7

(235)

1,067

‒

Others

7,020

5,303

(24.5)

75

120

58.8

Total

198,973

231,222

16.2

(159)

1,187

‒

Adjustment (Note)(17,052)(21,680)

(88)

(219)

Total

181,920

209,542

(248)

968

15.2

‒

(Note) Adjustment is mainly related to internal transactions.

(Functional materials business)
In the functional materials business, sales of electronics-related products such as battery separators and electronics industry materials,
decorative laminate base paper, and tape base paper, among other materials, rose from the year-age level. However, sales fell year
on year for air filters, water treatment membrane supporting bodies and backing paper for wallpaper.
The Group enhanced its lineup of melt blown non-woven fabrics by launching, for example, dust collection filters with antibacterial
and antivirus functions, among other items. It also took steps to launch the Diamour, a freezing device that preserves eggs andembryos through a very rapid vitrification process.
In the imaging media-related products business, the volume of sales declined for printing and prepress materials and photographic
base paper. However, the value of sales increased year on year, reflecting the expansion of sales of inkjet paper overseas and theimpact of sales price revisions and foreign exchange rates.
As a result, the functional materials business achieved growth in both sales and profit overall due to the expansion of sales of growth
items and price revisions, despite the significant impact of surges in the prices of raw materials and fuel.
In the functional non-woven fabrics-related business, which is a priority business area in the Medium-term Management Plan, theGroup will continue to seek to expand sales of items such as heat-resistant non-woven fabrics and melt blown non-woven fabrics,
while also seeking to acquire new users of water treatment membrane supporting bodies and new applications for them for special
membranes such as food, beverages and medical care. In electronics-related products, it will focus on sales of electronics industry
materials, starting with battery separators and special dry resists for automobiles, demand for which is expected to increase. It will
strive to further expand sales of tape base paper and sterilization paper.
Regarding imaging media-related products, demand for which has been declining, the Group will work to maintain the volume ofsales by tapping into new demand such as use for labeling and industrial ink-jet printers while also seeking to improve profitability
by continuing to review production systems.

(Sustainable fiber materials business)
In the domestic market, the volume of sales, particularly that of printing paper, demand for which continues to fall, decreased. Evenso, the value of sales increased partly due to the effect of price revisions. Both sales volume and value increased to a certain extent
in exports.
With respect to commercial pulp, price revisions were made to domestic products to deal with cost increases linked to rising raw
material and fuel prices. In exports, on the other hand, both sales volume and value increased partly due to the weak yen.
Regarding businesses operated in Germany, while sales volume decreased year on year, selling prices were revised in response to
sharp rises in the prices of raw materials and fuel such as natural gas and pulp, which resulted in higher sales value.
As a result, the sustainable fiber materials business achieved growth in both sales and profit overall due to price revisions, despite―3―the significant impact of surges in the prices of raw materials and fuel.
The Group will aim to transform its product portfolio and stabilize revenue at the earliest opportunity by expanding sales of bleachedkraft paper with functions that contribute to plastic removal and enhancing the product lineup of barricote® paper. In addition, it
will seek to maintain the effect of price revisions, and continue efforts to optimize production systems and inventory levels.
Regarding businesses operated in Germany, the Group will continue its efforts to secure stable revenue. To do this, it will continue
to maintain a balance between costs and product prices and will work on cost reductions through the reestablishment of production
systems following the sale of the Flensburg Mill.

(2) Overview of Financial Position
Assets at the end of the fiscal year under review amounted to 227,058 million yen, up 11,179 million yen from the end of the previous
fiscal year, mainly due to increases in accounts receivable - trade and inventories.
Total liabilities came to 155,016 million yen, up 8,751 million yen from the end of the previous fiscal year, chiefly attributable to
growth in loans payable and notes and accounts payable - trade.
Net assets increased 2,428 million yen from the end of the previous fiscal year, to 72,041 million yen, mainly due to the posting of
an increase in remeasurements of defined benefit plans.
The equity ratio was 31.7%, down 0.5 percentage points from the end of the previous fiscal year.

(3) Overview of Cash Flows
Cash and cash equivalents at the end of the fiscal year totaled 8,325 million yen, a decrease of 721 million yen from the end of theprevious fiscal year.
(Cash flows from operating activities)
Cash used in operating activities stood at 2,721 million yen, an increase of 4,420 million yen year on year. Major inflows weredepreciation of 8,287 million yen and a 3,293 million yen increase in notes and accounts payable - trade, while a major outflow was
a 8,115 million yen increase in inventories and a 4,498 million yen increase in notes and accounts receivable - trade.
(Cash flow from investing activities)
Cash used in investing activities stood at 3,565 million yen, an increase of 1,007 million yen year on year. A major outflow was thepurchase of property, plant and equipment and intangible assets of 4,546 million yen. A major inflow was proceeds from sales ofproperty, plant and equipment and intangible assets of 717 million yen.
(Cash flows from financing activities)
Cash generated from financing activities amounted to 5,209 million yen, an increase of 11,300 million yen year on year. This was
mainly due to an increase in loans payable.

(4) Future Outlook
The consolidated results forecasts for the fiscal year ending March 31, 2024 are net sales of 220,000 million yen, operating incomeof 6,000 million yen, ordinary income of 6,500 million yen, and profit attributable to owners of parent of 4,000 million yen.
The consolidated results forecasts above are based on assumed exchange rates of 135 yen to the U.S. dollar and 145 yen to the euro.
The forecasts are based on the information currently available to the Company and include risks and uncertainties. Please note that
actual results may be different due to various factors such as subsequent changes in business environment.

(5) Basic Policy for Dividends and Dividends for the Fiscal Year under Review and the Next Fiscal Year
The Company’s basic policy regarding dividends of surplus and the like is to regard the distribution of profits to shareholders as a
key management issue and maintain stable dividends while comprehensively considering business performance in each businessyear and internal reserves necessary to prepare for future management initiatives.

―4―For the fiscal year under review, the Company plans to pay a year-end dividend of 5 yen per share after comprehensively taking into
account the policy of maintaining stable dividends as well as recent performance trends.
For the next fiscal year, the Company plans to pay a year-end dividend of 5 yen per share under the basic policy above.

2. Basic Policy for the Selection of Accounting Standards
Taking into account the comparability of consolidated financial statements between periods and companies, the Group intends to prepare
consolidated financial statements in accordance with Japanese standards in the foreseeable future.
The Group’s policy is to take appropriate actions in consideration of future trends regarding the adoption of IFRS by other domestic
companies.

―5―

Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
FY2021Mar 31,2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―6―

FY2022
Mar 31,2023

9,047
7,724
33,87923,446
6,487
10,8573,969(130)
95,282

8,325
8,074
38,47025,257
6,322
18,4984,166(92)
109,024

21,33537,694
21,276
1,156
1,638
1,489
84,59019,70334,918
20,625
1,138
733
1,135
78,256

1,864
1,864

2,379
2,379

19,8681,215
10,662
1,384
1,081
(70)
34,141
120,596
215,879

21,605765
12,035
2,132
923
(64)
37,398118,034
227,058(Million yen)
FY2021Mar 31,2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Commercial paper
Lease obligations
Accrued expenses
Income taxes payable
Contract liabilities
Provision for loss on transfer of business
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for share awards
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―7―

FY2022
Mar 31,2023

24,617
3,541
56,433
6,000
380
6,728
475
500
－
4,043
102,720

28,7103,485
61,467
5,000
509
6,597
302
371
1,614
2,399
110,457

29,960
586
694
24
69
9,277
885
2,048
43,545
146,265

32,603
596
938
53
49
7,603
885
1,827
44,559155,016

36,561
6,488
13,962(228)
56,78436,561
6,524
13,357(430)
56,012

4,688
952
7,182
12,824
5
69,613215,879

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income(loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Subsidy income
Gain on sales of investment securities
Gain on sale of businesses
Reversal of allowance for doubtful accounts for
subsidiaries and affiliates
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current assets
Impairment loss
Loss on sale of businesses
Extra retirement payments
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent―8―

FY2021
Apr '21 - Mar '22
181,920
156,151
25,76826,017(248)

FY2022
Apr '22 - Mar '23
209,542
182,288
27,253
26,285
968

30
531

27
652

1,066

670

1,038
436
3,104

983
545
2,878

581
309
891
1,964

574
182
757
3,089

53
－
1,394
840

39
347
4
－

285

－

430
3,004

35
427

402
－
1,317
－
433
779
395
85
3,414
1,554
455
1,098
2
1,096

263
329
52
3,192
651
12
－
22
4,523
(1,006)
(443)
(563)
7
(571)

Consolidated Statements of Comprehensive Income(Million yen)
FY2021
Apr '21 - Mar '22

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―9―

FY2022
Apr '22 - Mar '23
1,098

(563)

745
40
5,070

843
171
2,189

2

(12)

5,858
6,957

3,192
2,628

6,954

2,620

2

8

(3) Consolidated Statements of Cash Flow
(Million yen)
FY2021
Apr '21 - Mar '22

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for share awards
Interest and dividend income
Share of loss (profit) of entities accounted for using equity
methodForeign exchange losses (gains)
Interest expense
Loss (gain) on sales of short-term and long-term investment
securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of businesses
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net
Subtotal
Subsidies received
Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Proceeds from sale of businesses
Other, net
Net cash provided by (used in) investing activities― 10 ―FY2022
Apr '22 - Mar '23
1,554
8,489
1,317
281
218

(1,006)
8,287
52(1,520)
167

14

(19)

24
(562)

29
(679)

(1,066)

(670)

(509)
581

(573)
574

(1,394)

(4)

779
349
(840)
－
－
(12,551)
96
6,083
(694)
2,174
200
562
(584)
(652)
1,698

12
223
3,192
329
(347)
(4,498)(8,115)
3,293(1,243)(2,517)
547
680
(535)
(896)
(2,721)(6,255)(4,546)

116

717

(11)
2,759
(0)
743
840
(750)
(2,557)

(11)
12
(0)
450
－
(186)
(3,565)

(Million yen)
FY2021
Apr '21 - Mar '22

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period― 11 ―FY2022
Apr '22 - Mar '23(416)(1,000)9,800(13,998)
(398)
(75)
0
(1)
(6,091)296(6,654)
15,701

3,774(1,000)14,288(11,196)
(441)
(214)
－
(0)
5,209
213
(863)
9,047

－

142

9,047

8,325