Note: This document has been translated from the Japanese original FOR REFERENCE PURPOSES
ONLY. In the event of any discrepancy between this translated document and the Japanese original, THE
ORIGINAL SHALL PREVAIL.

Matters Concerning Electronic Provision Measure for
the Convocation Notice for the 159th Ordinary Shareholders’ Meeting(From April 1, 2023 to March 31, 2024)

Systems necessary to ensure the properness of operations
Outline of the situations of the operation of the systems necessary to ensure the properness of operations
Basic policy for controlling the management of the Company
Consolidated statements of changes in shareholders’ equity
Notes to consolidated financial statements
Statements of changes in shareholders’ equity
Notes to non-consolidated financial statements

Mitsubishi Paper Mills Limited

The description of each of the items listed above in the document (document describing mattersconcerning the electronic provision measure) to be delivered to shareholders who request delivery of
documents is omitted pursuant to the provisions of laws and regulations and Article 15 of the Articles ofIncorporation of the Company.

-1-Systems necessary to ensure the properness of operations
The following is the Company’s basic policy on the system to ensure the conformity of the performance of
duties of Directors to laws and regulations and the Company’s Articles of Incorporation and the system toensure the appropriateness of the Company’s other operations and the operations of the corporate groupconsisting of the Company and its subsidiaries. (Last revised on: March 29, 2024)- Core approach to corporate governance The Company carries out corporate activities based on the corporate philosophy of the MPM Group,
including “living up to the trust of its customers in the world market,” “staying constantly on the leadingedge of technology,” and “contributing to preserving the global environment and creating a recycling
society.” With this philosophy, the Company implements corporate group management focusing on thesustainable growth of the MPM Group and society, raises its management transparency, and works to
improve its corporate governance.
To take specific steps towards achieving these goals, the Company has established Mitsubishi Paper Mills
Limited Basic Policies on Corporate Governance.
- Overview of corporate organization The Company has adopted the company with an Audit & Supervisory Board as its institutional design. The
Company has appointed three independent Outside Directors, who account for more than one-third of thetotal number of Directors, and has built a system that sufficiently plays the roles required of the Board of
Directors. It separates the supervisory function and executive function and has adopted the Executive
Officer system to streamline the Board of Directors, accelerate management decision-making, and define
the responsibility for the performance of duties.
The Company has created a Nomination and Compensation Committee with an independent Outside
Director as the chairperson as an advisory body to the Board of Directors in order to ensure objectivity andtransparency of the designation and remuneration of management.
In addition to monthly meetings, the Board of Directors holds extraordinary meetings of the Board of
Directors as necessary to determine and supervise matters specified by laws and regulations and the Articles
of Incorporation and the performance of important duties.
Audit & Supervisory Board Members including Outside Audit & Supervisory Board Members haveestablished the Audit & Supervisory Board and hold meetings of the Audit & Supervisory Board on aregular basis and as necessary.
Executive Officers and other executives hold management meetings, in principle, once a week to determine
management policies and strategies and basic business strategies in an effort to ensure prompt and optimal
decision-making, implement thorough group governance, discuss group strategies and share important
information.
In the performance of duties, the Company has adopted a business unit system to strengthen its operational
structure by assigning responsibility and delegating authority to each business unit for revenue.
The Company defines the scope of organizational responsibility according to the rules for the division ofduties and makes decisions appropriately based on its internal rules.
The Company appoints an executive responsible for sustainability to implement corporate groupmanagement focusing on sustainability and establishes a Group-wide Sustainability Promotion Committee
headed by the President. The committee coordinates the entire sustainability promotion activities (legal
compliance, risk management, human resource management, safety and health, the environment, productsafety and product quality, human rights and labor, information disclosure and public relation, social
contribution, climate change and more) and establishes basic policies for sustainability promotion andyearly plans. The Board of Directors deliberates on such policies and plans.

-2-

- Basic policy 1. System to ensure that the execution of the duties of Directors and employees conforms with laws,
regulations, and the articles of incorporation
The Company has established the Code of Conduct of the Mitsubishi Paper Mills Group and Mitsubishi
Paper Mills Group Compliance Conduct Standards. The President repeatedly explains the spirit of suchstandards to the executives and employees of the Company and carries out activities to promote a deeper
understanding of corporate ethics, thereby ensuring that legal compliance is a precondition for all corporate
activities.
The Compliance Committee, which operates under the control of the Corporate Governance Management
Dept. as a secretariat, will be placed under the Sustainability Promotion Committee. The Compliance
Committee will carry out training and educational activities to disseminate the Code of Conduct andStandards and ensure legal compliance for penetration throughout the Group.
If executives and employees discover a compliance problem, they will promptly report it to the department
responsible for handling the problem through their office organization or report it through the internal
hotline under the jurisdiction of the Internal Audit Dept. or through a more independent external hotline.
The department to handle such problem will determine measures to prevent recurrence after consultations
with Corporate Governance Management Dept., Human Resources Dept., or Internal Audit Dept.
The Internal Audit Dept. examines and evaluates the systems of management and operation in overallbusiness activities and the status of implementation in view of lawfulness and rationality and ensures thereliability of financial reports and raises management efficiency.
The General Administration Dept. is responsible for preserving the Company’s assets and manages theacquisition, use, and disposal of assets to ensure appropriate procedures taken and approval obtained.
The General Administration Dept. reports the overview of such compliance activities and the state ofwhistleblowing to the Board of Directors.
2. Systems to store and manage information on the execution of duties by Directors
To manage and maintain information related to the performance of duties of Directors, the Company records
and preserves information related to their performance of duties as documents or electromagnetic
information according to Document Management Regulations and Information Management Regulations.
Directors and Audit & Supervisory Board Members may inspect these documents, etc. at all times.
3. Regulations concerning the management of risk of loss and other systems
The Company considers it important to appropriately manage various risks arising from corporate activities
for the development of the Company and an increase in its corporate value.
Under the Sustainability Promotion Committee, Risk Management Committee controlled by General
Administration Dept. is established to operate risk management of the entire Group. The Risk Management
Committee recognizes and understands risks affecting corporate management, develops systems in
response to such risks, and reports their status to the Board of Directors. Head office departments andfactories establish rules and prepare manuals to ensure appropriate operations, build advance preventive
systems at normal times, take measures to prevent recurrence when a problem has arisen, and develop asystem of promptly responding to an emergency.
4. System to ensure the efficient execution of duties by Directors
The Company establishes a consolidated basic plan as targets in its Medium-term Management Plan.
Directors in charge determine specific targets and efficient methods for achievement to be implemented byeach department (including delegation of authority to Executive Officers). The Company sets key
performance indicators (KPIs) in each fiscal period and manages the progress. The Board of Directors
regularly evaluates the results and promotes improvement such as the reduction or elimination of factors
hindering efficiency, thereby building a system to raise company-wide operation efficiency.

-3-5. System to ensure the proper business operation of the Group consisting of the Company and its
subsidiaries
According to its Subsidiary Management Regulations, the Company supervises and provides guidance toits subsidiaries to raise the appropriateness of the Group’s subsidiary management based on a policy ofplacing importance on independence and respecting the autonomous decision-making of subsidiaries.
A. System to report matters concerning the execution of duties by Directors of subsidiaries to theCompany
According to its Subsidiary Management Regulations, the Company builds a system for departments toreceive reports from subsidiaries under their management on a regular basis and as necessary and a system
requiring subsidiaries to obtain the approval of departments controlling them.
Key subsidiaries provide the Company’s executives with regular management reports.
B. Rules and other systems for managing the risk of loss at subsidiaries
The Company has its subsidiaries participate in the Risk Management Committee and coordinates theGroup’s risk management.
C. System to ensure that Directors, etc. of subsidiaries efficiently perform their duties
The Company’s departments in charge of subsidiaries supervise and provide them with guidance according
to the Subsidiary Management Regulations to achieve the basic plan set as a target in its Medium-termManagement Plan. The Company sets KPIs also for its subsidiaries and manages the progress.
D. System to ensure that subsidiaries’ Directors, etc. and employees’ performance of their duties
conforms with laws, regulations and the Articles of Incorporation
The Company has established the Code of Conduct of the Mitsubishi Paper Mills Group and Mitsubishi
Paper Mills Group Compliance Conduct Standards, has its subsidiaries participate in the Compliance
Committee, and improves the legal compliance of the Group, including the subsidiaries.
The Company provides the entire Group, including subsidiaries, with compliance training every year toensure legal compliance of the Group.
It establishes hotlines including subsidiaries as a system of direct reporting to the Company’s Internal
Audit Dept. or an external specialized company. In addition, relevant departments perform audits ofsubsidiaries as necessary according to the Subsidiary Management Regulations to ensure theappropriateness of the Group’s operations.
6. Systems to ensure that audits by Audit & Supervisory Board Members are performed effectively
The Company implements the following and builds a system of supporting the audits performed by Audit& Supervisory Board Members to ensure their effectiveness.
A. Matters concerning the system of ensuring the effectiveness of audits performed by Audit &Supervisory Board Members
The Company holds regular meetings for Audit & Supervisory Board Members to improve their mutual
understanding with the President and Chief Executive Officer about the Company’s business issues, thedevelopment of the audit environment of the Audit & Supervisory Board Members, etc.
Audit & Supervisory Board Members, Internal Audit Dept., and accounting auditors exchange opinions
to establish effective cooperation.
The Company cooperates with the Audit & Supervisory Board Members in their performance of duties
to facilitate communication with Directors and Audit & Supervisory Board Members of subsidiaries andthe collection and exchange of information and develops an environment for cooperation with external
experts such as lawyers and certified public accountants if deemed necessary by the Audit & Supervisory
Board Members.

-4-B. Matters concerning employees when an Audit & Supervisory Board Member requests that
employees assist with his/her duties
The Company may appoint assistants to the Audit & Supervisory Board Members, who assist the dutiesof the Audit & Supervisory Board Members, and have the Internal Audit Dept. or Finance Dept. as
assistant organizations. Audit & Supervisory Board Members may instruct employees in the Internal
Audit Dept. and Finance Dept. as necessary.
C. Matters concerning the independence of the employees specified in B from Directors, and mattersintended to ensure the effectiveness of instructions given to such employees
The Company ensures that employees assisting the duties of Audit & Supervisory Board Members follow
the orders of the Audit & Supervisory Board Members, and that Directors, supervisors, etc. do notunreasonably limit the orders of the Audit & Supervisory Board Members given to such employees.
D. Systems related to reporting to an Audit & Supervisory Board Member- Systems of reporting to Audit & Supervisory Board Members by Directors and employees
Directors of the Company report the following to Audit & Supervisory Board Members to promote theeffective performance of duties of Audit & Supervisory Board Members: 1. Matters discussed or reported
at management meetings, 2. Matters that may cause significant damage to the Company, 3. Matters
important for the monthly management status, 4. Important matters concerning internal audits and risk
management, 5. Serious violations of laws and regulations or the Articles of Incorporation, 6. The status
and details of reporting through hotlines (a system in which reports to external liaisons are directly sent
to Audit & Supervisory Board Members), and 7. Other matters important for legal compliance.
Important decision-making documents of head office departments are delivered to Audit & Supervisory
Board Members.
- System to report to the Audit & Supervisory Board Members by Directors, etc. and employees of
the Company’s subsidiaries, and people who have received reports from them
According to the Subsidiary Management Regulations, the Company uses a system in which departmentsthat have received important reports from subsidiaries also report to Audit & Supervisory Board Members.
Subsidiaries may directly report to the Audit & Supervisory Board Members of the Company, and the
Audit & Supervisory Board Members may also directly interview subsidiaries.
E. System for ensuring that personnel who make a report under paragraph D. do not receive
unfavorable treatment due to such report
The Company clearly states in Mitsubishi Paper Mills Group Compliance Conduct Standards that themere act of making a report would not place the reporter at any disadvantage and ensures that no reporter
would be treated unfairly by the Company and its subsidiaries.
F. Policy on treatment of expenses incurred in the performance of the duties of Audit & Supervisory
Board Members
The Company promptly handles expenses incurred in the performance of duties of Audit & Supervisory
Board Members upon receiving a request for payment.

-5-Outline of the situations of the operation of the systems necessary to ensure the properness ofoperations
On March 1, 2023, the Company revised the Code of Conduct of the Mitsubishi Paper Mills Group.
Recognizing that the importance of sustainability is growing, the Company has reviewed the Code of
Conduct, the action guidelines for the Group’s executives and employees, by reaffirming its priority on
safety and its emphasis on compliance.
The overview of the operation status of the system to ensure the appropriateness of operations implemented
in the fiscal year ended March 31, 2024, is as follows.
(Systems for the execution of duties)
During the fiscal year ended March 31, 2024, eight Directors (including three independent Outside
Directors) who make up the Board of Directors, four Audit & Supervisory Board Members (including two
Outside Audit & Supervisory Board Members) who make up the Audit & Supervisory Board, and 17
Executive Officers (including five Executive Officers concurrently holding the position of Directors)
performed their duties. Systems for the execution of duties were enhanced from the perspective of diversity
by selecting one female Director and one female member of the Audit & Supervisory Board. A total of 12
ordinary meetings of the Board of Directors, four extraordinary meetings of the Board of Directors, and 17
meetings of the Audit & Supervisory Board were held to make important decisions on the Company’s
management and supervise and audit the performance of duties.
With regard to matters to be discussed at Board meetings, the Company has enhanced the prior briefings
for Outside Directors and Outside Audit & Supervisory Board Members to facilitate their understanding of
the deliberations and invigorate discussions.
In addition, to evaluate the effectiveness of the Board of Directors, the Company surveys and interviews
all Directors and Audit & Supervisory Board Members and discusses the results at meetings of the Boardof Directors to share the understanding of the current condition and how to deal with issues among them inorder to raise the effectiveness of the Board of Directors.
(Compliance structure)
During the fiscal year ended March 31, 2024, the Compliance Committee met twice, primarily to develop
a training plan and confirm their implementation, confirm trends related to business and human rights andconduct a study on the relationship between the Group and human rights, consider initiatives to addresshuman rights issues, inspect the status of legal procedures, and confirm the status of reports made throughthe hotline.
Seminars for line managers and training based on the cascade method (theme: elimination of harassment)
for all employees (including part-time and dispatched employees) of the Group companies in Japan wereconducted, with line managers deploying the training to their workplaces.
Using the compliance promotion leader system, appointed promotion leaders are developing initiatives toshare information and raise compliance awareness at each workplace. In addition, the intranet is used toprovide information on a regular basis, and promotion leaders are working to elevate their skill levels.
(Risk management structure)
During the fiscal year ended March 31, 2024, the Risk Management Committee met twice to oversee andpromote activities related to the Group’s risk management, including identifying, analyzing and evaluating
risks that exist in the Group in response to changes in the business environment, formulating risk response
measures, examining the business continuity plan (BCP), and conducting training on emergency responses.
In addition, viewing responses to climate change as an important business issue, the Group examined anddisclosed climate change-related risks in a company-wide, cross-functional TCFD response project teamunder the Risk Management Committee.

-6-

(Management of subsidiaries)
The Company’s relevant department provides subsidiaries with guidance and supervises them to rationalize
and improve the Group’s subsidiary management according to its Subsidiary Management Regulations. In
the fiscal year ended March 31, 2024, the Company facilitated integration of subsidiaries (from 17 to 12companies) to strengthen the Group’s integrated management promotion system, and the relevant
departments in charge conducted audits of subsidiaries to confirm that they are managed appropriately. The
Company will continue to integrate the subsidiaries in the fiscal year ending March 31, 2025.
(Internal audits)
Internal Audit Department conducted audits of overall business activities in line with the J-SOX to confirm
that they are operated appropriately.
(Audit & Supervisory Board Members’ audits)
Full-time members of the Audit & Supervisory Board attend meetings of the Board of Directors as well as
management meetings and confirm decision-making on business execution, etc. Outside members of the
Audit & Supervisory Board attend the management briefing for outside officers (once a month in principle;
Outside Directors and Full-time members of the Audit & Supervisory Board also attend the briefing) to be
informed about the content of management meetings. In addition, opinion exchange workshops are held
periodically with Representative Directors, the accounting auditor and Outside members of the Audit &Supervisory Board in order to enhance the effectiveness of audits.
Basic policy for controlling the management of the Company
Basic policy for controlling the management of the Company(i) Details of the Basic Policy
The Group carries out corporate activities based on the corporate philosophy of the MPM Group,
including “living up to the trust of its customers in the world market,” “staying constantly on the leadingedge of technology,” and “contributing to preserving the global environment and creating a recycling
society.” The Company’s duty is to maximize its corporate value or the common interests of shareholders
through the sustainable growth of the Group and society based on this philosophy, and its principle is tobe supported by people who have become its shareholders through free market trading. However, theCompany’s Basic Policy on a threat that such corporate value and/or the common interests of shareholders
may be impaired by an individual and/or his/her group (“Hostile Bidders”) aiming to acquire shares of
the Company having 20% or more of voting rights (“Controlling Shares”) is to take measures necessary
to protect and increase the Company’s corporate value and the common interests of shareholders within
the limit allowed by laws and regulations and the Articles of Incorporation by regarding such Hostile
Bidders as unqualified to have control over decisions about the financial and business policies of theCompany.
(ii) Special initiatives to contribute to the realization of the Basic Policy
The Company is executing a new “Medium-Term Management Plan (FY2023/3-FY2025/3)” thatincorporates measures to transform its business portfolio and contribute to carbon neutrality from a
medium- to long-term perspective and is based on the future vision of the Group. It is working toward
transforming itself with the creation of a new Mitsubishi Paper Mills Group, while enhancing its corporate
value and maximizing the common interests of shareholders. Also, the Group is working on sustainability
promotion activities by establishing the Sustainability Promotion Committee and assigning a director in
charge, in order to grow sustainably by creating social values and contribute to a sustainable society
through its business. Moreover, in accordance with the Basic Policies on Corporate Governanceformulated in October 2015 (final revision in June 2022), the Company is also working to enhance thecorporate governance.

-7-

(iii) Activities to prevent decisions on the Company’s financial affairs and business policies from being
controlled by an inappropriate party in light of the Basic Policy
At the Board of Directors’ meeting held on May 30, 2022, the Company passed a resolution to continue
its policy on responses to large-scale purchases of the Company’s shares (the “Former Plan”), which had
been approved by shareholders at the 154th Ordinary Shareholders’ Meeting held on June 26, 2019, as
one of the activities to prevent decisions on the Company’s financial affairs and business policies frombeing controlled by an inappropriate party in light of the Basic Policy after a necessary revision (the“Plan”), which was approved by shareholders at the 157th Ordinary Shareholders’ Meeting held on June
28, 2022. Additionally, the Company appointed three Independent Committee members, Mr. Yoshihiro
Kataoka, Mr. Kazunori Shinohara, and Mr. Somitsu Takehara, due to the continuation of the above plan.
The overview of the Plan is provided below. For more details, please read the press release, “Notice ofPartial Amendments to the Response Policies on Large-Scale Purchases of MPM’s Shares (Takeover
Defense Measures) and Continuance Thereof” dated May 30, 2022, on the Company’s website.
(URL for reference: https://www.mpm.co.jp/company/news/pdf/2022/20220530-3.pdf)
A. Objectives of the Plan
The purpose of the Plan is to require the Large-Scale Purchaser to provide necessary information inadvance and to have a period of consideration and examination, thereby enabling shareholders to makean appropriate decision on whether to accept such a large-scale purchase, enabling MPM’s Board of
Directors to present its opinions on whether to accept such proposal to shareholders or an alternative
proposal in response to a recommendation from the Independent Committee, or enabling the Board of
Directors to negotiate with the Large-Scale Purchaser for the benefit of shareholders, thereby preventing
decisions on the Company’s financial affairs and business policies from being controlled by aninappropriate party in light of the Basic Policy and ensuring and raising the Company’s corporate value
or/and the common interests of shareholders.
B. Procedures for taking the countermeasures based on the Plan(a) Large-scale purchases subject to the measures
The measures based on the Plan may be taken when an act corresponding to or that may correspond tothe overview or any of the following 1 through 3 has been or will be conducted.
1. Purchase of shares of the Company that makes the percentage (the percentage of shares, etc. definedin paragraph 4, Article 27-23 of the Financial Instruments and Exchange Act; the same applies
hereinafter) of shares held by a specific shareholder of the Company 20% or higher
2. Purchase of shares of the Company that makes the sum total of the percentage (the percentage ofshares, etc. defined in paragraph 8, Article 27-2 of the Financial Instruments and Exchange Act; thesame applies hereinafter) of shares held by a specific shareholder of the Company and the percentageof shares held by a specially related party of the specific shareholder of the Company 20% or higher
3. An act conducted by a specific shareholder of the Company and another shareholder of the Company,
which results in an agreement or other acts making them joint holders of the Company’s shares or an
act of establishing a controlling or cooperative relationship between the two shareholders (limited toa case in which the sum total of the percentages of shares held by the two shareholders becomes 20%
or higher)(b) Request to Large-Scale Purchaser for information
The Large-Scale Purchaser must submit and provide a letter of intent and information about a largescale purchase in advance of the start or implementation of an act of large-scale purchase.
(c) Establishment of assessment period for the Board of Directors
The Board of Directors establishes a period of up to 60 days for a purchase of all shares of the Company
through a takeover bid accepting only cash (yen currency) as the consideration and up to 90 days forlarge-scale purchase in other forms, as the assessment period for the Board of Directors to evaluate,
examine, raise opinions, develop an alternative plan, and negotiate with the Large-Scale Purchaser in-8-view of ensuring and increasing the Company’s corporate value and/or the common interests ofshareholders.
(d) Recommendation of Independent Committee and resolution of the Board of Directors
The Independent Committee recommends that the Board of Directors to take measures against a largescale purchase within, in principle, five business days following the demand of the Board of Directors
to the Large-Scale Purchaser for correction if the Large-Scale Purchaser has committed a serious
violation of the rules for large-scale purchase.
If, however, the Large-Scale Purchaser has complied with the rules for large-scale purchase, theIndependent Committee recommends the Board of Directors, in principle, not to take measures against
the large-scale purchase. However, the Independent Committee recommends that the Board of Directors
take measures if the Large-Scale Purchaser is deemed to have certain characteristics, such as a so-calledgreenmailer.
The Board of Directors decides whether to take measures and resolves other issues while respecting therecommendation of the Independent Committee to the maximum extent possible.
(e) Resolution of a general meeting of shareholders to confirm the shareholders’ intention
If the Board of Directors has determined that it should go through procedures to confirm theshareholders’ intention when it determines whether or not to implement the countermeasure under thePlan and if the Board of Directors deems it reasonable to implement the countermeasure in the casewhere the Large-Scale Purchaser complies with the Large-Scale Purchase Rules, the Board of Directors
will convene a general meeting of shareholders to confirm the shareholders’ intention as soon as possible.
If the proposal to implement the countermeasure has been passed at the general meeting of shareholders
to confirm the shareholders’ intention, the Board of Directors will make a resolution on theimplementation of the countermeasure against the Large-Scale Purchaser. However, if the proposal to
implement the countermeasure is rejected, the countermeasure will not be implemented against theLarge-scale Purchase.
(f) Specific contents of the countermeasure
The measures against large-scale purchases taken by the Company based on the Plan will, in principle,
be the allotment of share acquisition rights without contribution.
C. Feature of the Plan(a) Establishment of the Basic Policy
The Plan was adopted after the Basic Policy for the conditions of a party that controls the Company’s
financial affairs and business policy was established.
(b) Establishment of Independent Committee
The Company establishes the Independent Committee to ensure the necessity and appropriateness of
the Plan. When calling for countermeasures, the Board of Directors must ensure the fairness of thedecision and respects the recommendation of the Independent Committee to the maximum extent
possible in order to eliminate any arbitrary decision by the Board of Directors.
(c) Approval for the Plan at Shareholders’ Meeting
The continuation of the anti-takeover measures under the Plan was approved by the Company’s
shareholders at the 157th Ordinary Shareholders’ Meeting held on June 28, 2022.
(d) Timely disclosure
The Board of Directors makes the timely and appropriate disclosure of the required information
pursuant to the applicable laws and regulations and the rules of the financial instrument exchange.
(e) Effective term of the Plan
The term of the Plan shall expire at the conclusion of the Ordinary Shareholders’ Meeting pertaining to
the last business year ending within three (3) years after the conclusion of the 157th Ordinary
Shareholders’ Meeting held on June 28, 2022.

-9-D. Influence on our shareholders(a) Impact of the revision of the Former Plan on shareholders
The revision of the Former Plan to the Plan has no direct and specific effect on the legal rights andeconomic interests of shareholders.
(b) Impact of issuing share acquisition rights on shareholders
While the per share value of MPM’s shares held by the shareholders would be diluted when shareacquisition rights are issued without contribution as a countermeasure, the value of all shares of MPM
held by the shareholders would not be diluted. Therefore, no direct, specific impact on the legal rights
and economic interests of the shareholders is expected to occur. However, the legal rights and economic
interests of those who correspond to the exceptions specified in the Plan may be affected as aconsequence of the countermeasures implemented.
(iv) Decision of the Board of Directors on the above activities and reason for the decision
The special activities contributing to the realization of the Basic Policy specified in the above section (ii)
are specific measures for raising the corporate value of MPM and/or the common interests of shareholders,which are considered to be precisely in line with the Basic Policy of MPM.
As stated in the paragraph A in the above section (iii), the Board of Directors of MPM believes that thePlan was adopted for the purpose of ensuring and raising the corporate value and/or the common interestsof shareholders and is in line with the Basic Policy. The Board of Directors of MPM does not believe that
the Plan will impair the corporate value of MPM or the common interests of shareholders and will not act
to maintain the positions of the executives of MPM, in particular due to the following: 1) the Plan will beabolished immediately if a proposal to abolish the Plan is approved at a Shareholders’ Meeting, and theintentions of shareholders are prioritized in the sense that the continuation of the Plan is contingent onshareholder approval, and in certain cases, the confirmation of the will of shareholders at the general
meeting of shareholders to confirm the shareholders’ intention is required regarding the appropriatenessof implementing countermeasures, 2) the Plan requires the establishment of an Independent Committee
maintaining a high level of independence, whose recommendation is required when taking
countermeasures in all cases, and 3) the standards used to make decisions on whether to take, not to take,or to cancel a countermeasure has been established.

- 10 -

Consolidated statements of changes in shareholders’ equity
FY2023 Apr ‘23 - Mar ‘24(Million yen)
Shareholders’ equity

Balance at beginning of period

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total
shareholders’equity36,561

6,524

13,357(430)

56,012

Changes during period
Dividends of surplus

(223)

(223)

Profit attributable to owners ofparent

4,170

4,170

Disposal of treasury shares(0)

Purchase of treasury shares
Increase by merger

(0)

15

15

(0)

(0)

31

31

Net changes in items other thanshareholders’ equity
‒

(0)

3,978

14

3,993

36,561

6,523

17,336(416)

60,005

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of period

5,532

1,111

9,372

16,015

Noncontrollinginterests

Total net
assets13

72,041

Changes during period
Dividends of surplus(223)

Profit attributable to owners ofparent4,170

Disposal of treasury shares

15

Purchase of treasury shares(0)

Increase by merger

31

Net changes in items other thanshareholders’ equity

3,866

(347)

11,39014,910Total changes during period

3,866

(347)

11,390

Balance at end of period

9,399

763

20,763(Note) The stated amounts are rounded down to the nearest million yen.

- 11 -

9

14,91914,910918,91230,92622

90,954

Notes to consolidated financial statements(Significant matters that form the basis for preparing consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 19
Names of major consolidated subsidiaries
Mitsubishi Oji Paper Sales Co., Ltd.
KJ SPECIALTY PAPER Co., Ltd.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbHDue to mergers involving Group companies in the organizational reform carried out on April 1, 2023, fivecompanies dissolved in absorption-type mergers (Kitakami HiTec Paper Corporation, Ryoukou Co., Ltd.,
Diamic Co., Ltd., Hachinohe Paper Processing Co., Ltd. and Hachiryo Co., Ltd) were excluded from thescope of consolidation in the fiscal year under review.
(2) Names of major non-consolidated subsidiaries:
Names of major non-consolidated subsidiaries MP Juarez, LLC.
Reason for exclusion from the scope of consolidation
The non-consolidated subsidiaries (2 companies) havebeen excluded from the scope of consolidation as they are
all small in size and the amounts of total assets, net sales,
profit or loss (amount corresponding to equity interest)
and retained earnings (amount corresponding to equity
interest) do not materially impact the consolidated
financial statements.
2. Matters related to the application of the equity method(1) Number of affiliates accounted for using equity method: 3Names of major equity method companies
MPM Oji Eco Energy Co., Ltd.
Hyogo Clay Co., Ltd.
Forestal Tierra Chilena Ltda.
(2) Names, etc. of non-consolidated subsidiaries and affiliates to which the equity method does not apply
Name of major company
MP Juarez, LLC.
Reason for not applying the equity method
The profit/loss (corresponding to the equity owned by theCompany), retained earnings (corresponding to the equity
owned by the Company), and other factors of thecompanies (7 companies) excluded from the applicationof the equity method have a negligible impact on the
consolidated financial statements and lack overallsignificance.
(3) Matters deemed particularly important to be stated concerning the procedures for the application of equity
methodThe financial statements used for equity method companies having different accounting periods are based on
the business years of the respective companies.
3. Fiscal years of consolidated subsidiaries
The period-end date of the following six consolidated subsidiaries is December 31.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi Imaging (MPM), Inc.
MPE Real Estate GmbH & Co. KG
Zhuhai MPM Filter Limited
MPM Hong Kong Limited
The consolidated financial statements incorporate financial statements as of the account closing date with- 12 -

adjustments necessary for consolidation for significant transactions arising during the period up to the date of
consolidated settlement.
4. Notes regarding accounting policies(1) Valuation standards and methods for important assets(i) Securities
Available-for-sale securities
Securities other than shares, etc. without market valueMarket value method (Valuation differences are reported as a component of shareholders’ equity andthe cost of securities sold is calculated using the moving average method.)
Shares, etc. without market value
Stated at cost determined by the moving-average method(ii) Derivative transaction
Stated at market value(iii) Inventories
Stated primarily at cost using the periodic average method and the moving-average method(The value in the balance sheet is calculated by the method of book value devaluation based on loweringof profitability)(2) Depreciation method for important depreciable assets(i) Property, plant and equipment (excluding leased assets)
Buildings
Straight-line method
Property, plant and equipment excluding buildings
Straight-line method. The declining-balance method is used for the MPM head office and other offices
and certain of its subsidiaries.
The straight-line method is applied for structures acquired from April 1, 2016.
(ii) Intangible assets (excluding leased assets)
The straight-line method is applied. Software (used in the Company) is amortized over the estimated usefullife of the software (five years) in the Company.
(iii) Leased assets
Leased assets relating to finance leases wherein ownership of the leased asset does not transfer to the lessee
The straight-line method on the assumption that the lease term is the useful life and residual value is zero.
(3) Accounting standards for significant allowances and provisions(i) Allowance for doubtful accounts
To prepare for possible losses on uncollectible receivables held as of the end of fiscal year, the Company
and its domestic subsidiaries provide allowances equal to the estimated amount of uncollectible receivables
for general receivables based on historical rates and for specific receivables, including doubtful receivables,
based on consideration of their individual collectability.
Allowances for doubtful accounts at overseas subsidiaries are posted in accordance with applicableregulations of their respective countries.
(ii) Provision for share awards
To prepare for the issuance of the Company’s shares pursuant to regulations for the stock-based
compensation of Directors and Executive Officers, the portion of the estimated amount to be paid in the
consolidated fiscal year under review is posted.
(4) Accounting standards for significant revenues and expenses
The Group recognizes revenues through the following five steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.

- 13 -

Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the separate performance obligations in the contract.
Step 5: Recognize revenue when or as the entity satisfies the performance obligations.
The principal businesses of the MPM Group include the manufacturing and sale of products in its functional
materials business and sustainable fiber materials business. In domestic sales, revenue is recognized when thecontrol of products is transferred to customers normally upon the acceptance inspection of products performedby customers or upon the arrival of products at customers, which is considered the fulfillment of performanceobligations. However, revenue is recognized upon shipment of products if the period between shipping andtransfer of control of products to customers is the normal period. In export sales, the Group recognizes revenue
when the risk burden is transferred to customers according to trade conditions specified by the Incoterms andother rules.
Transaction prices are calculated by subtracting sales incentives from the amount of promised considerationin contracts with customers.
Considerations for transactions are received within one year from the fulfillment of performance obligations
and important financial factors are not included.
With respect to chargeable subcontracting corresponding to repurchase agreements, supplied goods remaining
at subcontractors as financial transactions are recognized as inventories, and the amount equivalent to theending inventory of supplied goods remaining at subcontractors is recognized as liabilities related tochargeable subcontracting. A transaction in which the Company’s role in the sale of a product to a customer
is that of an agent is recognized as a net amount determined by subtracting the amount paid to a third party
from the total amount of the consideration for the transaction.
(5) Other important matters for the preparation of consolidated financial statements(i) Standard for posting retirement benefit liability
To provide for employees’ retirement benefits, the amount remaining after the deduction of pension plan
assets (including retirement benefit trusts) from retirement benefit obligations based on estimated amounts
as of the end of the consolidated fiscal year is posted as a net defined benefit liability.
If the amount of pension plan assets exceeds the amount of retirement benefit obligations, the excess
amount is accounted for as a net defined benefit asset.
Prior service costs are expensed based on the straight-line method for a certain number of years (seven to
13 years) within the average remaining years of service of employees when costs accrue from their service.
Actuarial differences are expensed from the fiscal year following the year in which the expenses accrue,
which are based on the straight-line method for a certain number of years (seven to 13 years) within the
average remaining years of service of employees when actuarial differences accrue.
Unrecognized actuarial differences and unrecognized prior service cost are posted in the remeasurement ofdefined benefits plans under accumulated other comprehensive income in the section of net assets after tax
effect adjustment.
(ii) Standards for translating significant foreign currency-denominated assets or liabilities into Japanese yen
Foreign currency monetary assets and liabilities are translated into yen at the year-end spot exchange rate,
and translation adjustments are accounted for as profit or loss.
Assets and liability of consolidated overseas subsidiaries are translated into Japanese yen at the exchange
rates prevailing on the closing date of the consolidated overseas subsidiaries, their revenues and expenses
are translated into Japanese yen at the average exchange rate for the period, and the resulting gains or losses
are included in foreign currency translation adjustment and non-controlling interests in the section of net
assets.
(iii) Significant hedge accounting
In cases where the interest rate swaps meet the conditions for hedge accounting, special treatment is adopted.
Designated hedge accounting is applied to certain monetary receivables and payables denominated inforeign currencies hedged by forward exchange.
(iv) Application of the group tax sharing system
The Company applies the group tax sharing system.

- 14 -

(Change in method of presentation)“Insurance claim income,” which was included in “Other” under “Extraordinary income” in the previous fiscal year,
is separately presented in the fiscal year under review, since it has become significant in terms of amount.
In addition, “Extra retirement payments,” which was separately stated in “Extraordinary losses” in the previous fiscal
year, is presented in “Other” in the fiscal year under review, since it has become insignificant in terms of monetaryamount.
(Notes to accounting estimates)
Items whose amounts are reserved in the consolidated financial reports for this consolidated fiscal year due to theaccounting estimate and that may have a major impact on the consolidated financial reports for the following
consolidated fiscal year are as follows:
1. Impairment loss on fixed assets(1) Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
The Company is conducting impairment tests in accordance with International Financial Reporting Standards(IFRS) on the tangible fixed assets amounting to 64.46 billion yen, which serve as the cash-generating unit for
Mitsubishi Paper Holdings (Europe) GmbH, a part of functional material business segment. This is due to asignificant deterioration in operating profit compared to the plan, resulting from a decrease in sales volume causedby the deterioration of market conditions in Europe.
The recoverable amount for the asset group was calculated, using the present value of estimated future cash flows,
and compared with book value. As a result, the present discounted value exceeded the book value and no loss on
impairment was recorded.
(2) Information about important accounting estimates related to items identified
The Group categorizes business assets primarily in units of paper mills being production bases.
The impairment test is conducted by comparing the discounted present value of estimated future cash flows
derived from the cash-generating unit with the carrying amount. If the discounted present value of estimatedfuture cash flows is lower than the book value, the difference is recognized as an impairment loss.
The estimation of future cash flows derived from the cash-generating unit is based on the next fiscal year's planand future business plans. The next fiscal year's plan assumes that sales quantities, product prices, and raw
material prices of key products will remain at current levels. The future business plan takes into account growth
rates based on market forecasts for major products in Europe, as well as a certain operating profit margin. The
discount rate used in the calculation of present value is determined by considering the Weighted Average Cost of
Capital (WACC).
While the estimates are based on information available at the time of preparing the consolidated financial
statements, the assumption used for the estimate is highly uncertain and an impairment loss on non-current assets
may be incurred if revision becomes necessary owing to factors such as changes in economic condition.
2. Recoverability of deferred tax assets(1) Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
Deferred tax liabilities (net)7,210 million yen
Deferred tax assets before offsetting deferred tax liabilities
1,827 million yen
This is mainly posted by the companies to which group tax sharing system is applied (“companies under thegroup tax sharing system”).
(2) Information about important accounting estimates related to items identified
The Group posts deferred tax assets based on the appropriateness of company category, adequacy of futuretaxable income, scheduling of future reversals of temporary differences, etc. presented in the Implementation
Guidance on Recoverability of. Deferred Tax Assets (ASBJ Guidance No. 26).
Estimates of future taxable income of companies under the group tax sharing system are based on plans for the
next fiscal year and future business plans.
The sales volume of Functional Materials Business is expected to remain stable in the future, while that of major
products in Sustainable Fiber Materials Business is projected to be affected by changes in structural demandenvironment of the domestic market.

- 15 -

The main assumptions for the next fiscal year's and future business plans are derived from a decline in demandin the domestic market for the paper materials market.The estimate for raw material and fuel prices is based on
the current market conditions.
While such estimates are based on information available at the time of preparing the consolidated financial
documents, the assumptions used for the estimation are highly uncertain and any failure to ensure stable taxable
income in the future owing to factors such as changes in economic conditions may have a significant impact on
the amount of deferred tax assets in the following fiscal year.
(Notes on changes made to accounting estimates)
For the Company and some of its domestic consolidated subsidiaries, the Company changed the number of years in
the expense period of actuarial differences in the accounting treatment of retirement benefits from 10 years to 9 years
beginning in the fiscal year under review due to the reduction of the average remaining years of service of employees.
As a result of this change, operating income, ordinary income and profit before income taxes each increased 364
million yen in the fiscal year under review.
(Additional information)(Performance-linked stock compensation plan)
The Company has adopted a performance-linked stock compensation plan (“the Plan|”) applicable to Directors andExecutive Officers (excluding Outside Directors, non-executive directors, and non-residents of Japan; collectively.
“Directors, etc.”) as a transparent and objective executive compensation plan linked to the Company’s businessperformance and share value, for the purpose of facilitating medium- to long-term improvement in corporate
performance, encouraging contribution to an increase in corporate value, and promoting profit and loss sharing withshareholders,
The accounting for the Plan is in line with the Practical Solution on Transactions of Delivering the Company’s Own
Stock to employees through trusts (ASBJ PITF No. 30, March 26, 2015).
(1) Transaction overview
The Company has adopted a framework called Board Incentive Plan trust (“BIP Trust”) as a trust for the Plan. Like
Performance Shares and Restricted Stock in Europe and North America, a BIP Trust is a system whereby shares in
the Company and cash equivalent to the conversion amount of the Company’s shares will be delivered or provided
to Directors, etc. in accordance with their rank, degree of achievement of financial targets, and other factors.
(2) Treasury shares remaining in the trust
The Company’s shares remaining in the trust are recorded at the book value (excluding all incidental expenses) in
the section of net assets as treasury shares in the trust. The book value and number of these treasury shares were
262 million yen and 863,739 shares, respectively, as of March 31, 2024.
(Transfer of non-current assets)
At the meeting of the Board of Directors held on March 29, 2024, the Company resolved to transfer fixed assets heldby Mitsubishi Oji Paper Sales Co., Ltd., a consolidated subsidiary of the Company.
(1) Overview of the consolidated subsidiary
Name

Mitsubishi Oji Paper Sales Co., Ltd.

Location

2-10-14 Ryogoku, Sumida-ku, Tokyo

Representative

Yuji Takagami, Director, President

Businesses(summary)

Sales of paper, paper products and industrial chemicals for papermaking
Sales of materials for CTP and photosensitive materials, inkjet paper, amenity and hygiene
products Sales and lending of medical equipment, health appliances, disaster prevention
equipment, etc. Others

Capital stock

600 million yen

Established

August 1, 1956

(2) Details of the assets to be transferred
Description and location of assets

Capital gain (billion yen)

Present status

Land and building with leasehold interest
2-6 Kyobashi, Chuo-ku, Tokyo

Approx. 3.9 billion yen

Office building (currently under lease)- 16 -

* The amount of capital gain is an estimated amount obtained by subtracting book value and expenses from transfer
value.
(3) Schedule for the transfer
Date of agreement

March 29, 2024

Date of transfer (plan)

October 31, 2024

(4) Outlook
Regarding the said transfer of fixed assets, the capital gain described in (2) is planned to be posted in the
consolidated financial statements for the fiscal year ending March 31, 2025.
(Notes to the consolidated balance sheet)
1. Collateral assets(i) Assets pledged as collateral and collateralized loans are as follows:Collateral assets
Machinery, equipment and vehicles
577 million yen
Collateralized loans
Long-term borrowings (including current portion)

577 million yen(ii) Factory foundation revolving mortgage applies to the following assets, which, however, are not secured
liabilities and are therefore not, in effect, pledged as collateral.
Buildings and structures
9,085 million yen
Machinery, equipment and vehicles
8,812 million yen
Land8,855 million yen
Other
41 million yen
Total
26,795 million yen
2. Accumulated depreciation on property, plant and equipment totaled
405,544 million yen
3. Reduction entry of non-current assets

3,915 million yen

4. Liabilities on guarantee
Amount of debt guarantee for borrowings, etc. from financial institutions such as companies other than consolidated
companies
Employees (property accumulation residence fund loans, etc.)
157 million yen
Other: 1 account2 million yen
Total
160 million yen
5. Contingent liability
There was a discovery of instances of partial data manipulation and failure to conduct certain inspections before
shipping heat-resistant pressboard products manufactured at our wholly owned subsidiary, Mitsubishi Paper
Engineering Co., Ltd.'s Shirakawa Mill. These incidents have the potential to impact our future financial positionand operating performance. However, as it is currently difficult to reasonably estimate the extent of the impact, as
they have not been reflected in the consolidated financial statements for the current fiscal year.
(Notes to consolidated statements of income)1. Accident-related loss
A boiler accident occurred at Hachinohe Mill on August 22, 2023 and normal operations were resumed on
December 6, 2023. The Company has recently recorded 2,687 million yen in restoration expenses as an accidentrelated loss in extraordinary losses. Insurance income of 1,571 million yen was posted as special income in relation
to the said incident.
2. Business restructuring expenses
As a result of the business structure reform of Bielefeld Mill in the German operations, restructuring costs, which- 17 -

mainly included 627 million yen in special retirement benefits, a 175 million yen inventory valuation loss and a 48
million yen impairment loss, were posted under extraordinary losses.
3. Impairment losses
The Group posted an impairment loss in the asset groups below.
Location

Use

Type

Impairment losses

Shirakawa, Fukushima

Idle assets

Buildings, structures, machinery andequipment, etc.

269 million yen

Asaka, Saitama

Sold assets

Land, etc.

178 million yen

Kitakami, Iwate

Idle assets

Machinery and equipment, etc.

98 million yen

Bielefeld, Germany
Idle assets
Machinery and equipment
48 million yen
Regarding idle assets and assets sold, their book value was reduced to recoverable amounts and the reduced amounts
were recognized as an impairment loss under extraordinary losses. Recoverable amounts are measured based on
their net realizable values. Idle assets are assessed by reducing the book value to the memorandum value, whileassets sold are assessed based on a reasonable estimate of the selling price, etc.
(Notes to the consolidated statements of changes in equity)
1. Class and number of issued sharesClass of shares
Common shares

At the beginning of
the fiscal year ended
March 31, 2024

Increase‒

44,741,433

At the end of the
fiscal year ended
March 31, 2024

Decrease‒

44,741,433

2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Total amount ofdividends(million yen)

Dividend pershare (yen)Record date

Effective date

May 30, 2023
Common shares
223
5.00 March 31, 2023 June 12, 2023
Board of Directors(Note) The total amount of dividends includes dividends of 4 million yen for 911,871 shares of the Company
held by the executive compensation BIP trust.
(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year.
Resolution

Class ofshares

Source ofdividends

Total amount
Dividend perof dividends
share (yen)(million yen)

Record date

Effectivedate

May 30, 2024
CommonRetained
March 31,
June 10,446
10.00
Board of Directors
sharesearnings
2024
2024(Note) The total amount of dividends includes dividends of 8 million yen for 863,739 shares of the Company
held by the executive compensation BIP trust.
(Notes to financial instruments)
1. Matters related to the status of financial instruments(1) Policies on the use of financial instruments
The Group finances funds (primarily bank borrowings) necessary in light of its capital expenditure plans tooperate, in principle, the functional materials business and the sustainable fiber materials business. The Group
uses temporary surplus funds for short-term deposits, etc. and finances short-term working capital through bankborrowings and the issuance of commercial papers. Derivative trading is used to avoid the risk of interest-ratefluctuations of borrowings. The Group has a policy of not engage in speculative transactions.
(2) Description of financial instruments and associated risks, and risk management structure
Notes and accounts receivable - trade, which are operating receivables, are exposed to customers’ credit risk. The
Group has established a system of managing the due dates and the balance of receivables for each customer
according to its credit management regulations and learn the credit status of main customers at all times. Foreign
currency-denominated operating receivables from the Group’s global businesses are exposed to the risk of
exchange fluctuations. Much of this risk is reduced by the balance of foreign currency-denominated accounts- 18 -

payable.
Stocks that are investment securities are exposed to the risk of fluctuations in market prices. They largely consistof shares in companies with which the Group has business relationships, whose market value is periodically checked.
Notes and accounts payable - trade and electronically recorded obligations - operating, which are operating
payables, mature in less than one year.
Among the borrowings, short-term borrowings are collected primarily for business transactions and long-termborrowings, bonds payable, and lease obligations in financial lease transactions are used to collect funds, inprinciple, for capital expenditure, and redemption dates for most of them are within five years after the settlement
date. The interest rates of part of the long-term borrowings are floating rates, which are exposed to the risk ofinterest-rate fluctuations. The Group hedge the risk using derivative trading (Interest rate swaps).
The purpose of interest rate swap transactions is to hedge the risk of fluctuations in interest rates on borrowings.
The method of assessing the effectiveness of hedging is omitted through the assessment of the fulfillment of
requirements for interest swaps subject to specified hedge accounting treatment. The Group follows its internal
rules specifying trading authority in the operation and management of derivative trading. The Group trades
derivatives only with high-rated financial institutions to reduce the credit risk of its counterparts.
Operating liabilities and borrowings are exposed to liquidity risks, which the Group manages primarily by eachcompany by preparing monthly financing plans.
(3) Supplemental explanation about the fair values of financial instruments
The Group factors in variables in the calculation of the fair values of financial instruments. The fair values varydepending on assumptions.
2. Matters related to the market prices of financial instruments, etc.
The balance sheet amount and fair value of each category of financial instruments, and the difference between themas of March 31, 2024 are shown in the table below. Stocks and others without a quoted market price are not includedin the table below (see Note 2 below).
Notes to cash are omitted, and notes to deposits, notes receivable, accounts receivable, notes and accounts payable- trade, electronically recorded obligations - operating, short-term borrowings, and commercial paper are omitted
due to the proximity between their market value and book value resulting from the short-term settlement of such
instruments.
(Million yen)
Consolidated balance
sheet amount(1) Investment securities
Available-for-sale securities
Total assets(2) Long-term borrowings(including the current portion of longterm borrowings) (Note 1)

Market value

Difference

19,874

19,874‒

19,874

19,874‒39,45339,312(140)

Total liabilities
39,45339,312(140)(3) Derivative transactions‒‒‒(Note 1) The current portion of long-term borrowings (17,171 million yen on the consolidated balance sheet) is
included.
(Note 2) Unlisted shares without market price (6,501 million yen on the consolidated balance sheet) are notincluded in (1) available-for-sale securities under investment securities due to the absence of market prices.
3. Breakdown of financial instruments by level of market value
The market values of financial instruments are classified into the following three levels according to theobservability and importance of inputs used in the calculation of market values.
Level 1 market value: market value calculated using market prices, on an active market, of assets or liabilities
whose market value is calculated of the observable inputs related to the calculation ofmarket value
Level 2 market value: market value calculated using inputs other than the inputs used for Level 1 of the observable
inputs related to the calculation of market value
Level 3 market value: market value calculated using inputs that are not observable related to the calculation ofmarket value- 19 -

If more than one input that has a significant effect on the calculation of market value is used, the market value isclassified to the level of inputs whose priority is lowest in the calculation of market value.
(1) Financial assets and financial liabilities whose market prices are used as the value posted on the consolidatedbalance sheet
Classification
Investment securities
Available-for-sale securities
StocksMarket value (million yen)
Level 1

Level 2

Level 3

Total

19,874‒‒

19,874

Total assets

19,874‒‒

19,874

Derivative transaction
Related to interest rates

‒

‒

‒

‒

‒

‒

‒

‒

Derivative transaction(2) Financial assets and financial liabilities whose market prices are not used as the value posted on the consolidatedbalance sheet
Classification

Market value (million yen)
Level 1Long-term loans payable (including thecurrent portion of long-term borrowings)

Level 2‒39,312

Level 3

Total‒

39,312

Total liabilities‒
39,312‒39,312(Note) Explanations about assessment techniques used in the calculation of market value and inputs related tothe calculation of market value
Investment securities
Listed shares are assessed using market prices. Listed shares are traded on an active market and theirmarket prices are categorized into level 1.
Derivative transaction
Interest swaps subject to specified hedge accounting treatment are treated as part of hedged long-termborrowings, and their market prices are included in the market prices of such long-term borrowings.
(See “long-term borrowings” below)
Long-term loans payable
The market prices of floating rate long-term borrowings reflect market interest rates over a short periodof time and the Group’s credit standing does not change significantly after execution. The market prices
are, therefore, considered to approximate book value, which is therefore used for floating rate longterm borrowings.
The market prices of fixed rate long-term borrowings are calculated using discounted present value
based on an interest rate determined by adding the remaining period of the liabilities and credit risk to
the total amount of the principal and interest.
Long-term borrowings to which interest swaps subject to specified hedge accounting treatment (see theabove “derivative transaction”) apply are calculated using the total amount of the principal and interest
treated together with the interest rate swaps.
These are classified to Level 2 market value.
(Notes on mergers and related matters)(Common control transactions, etc.)
The merger of a wholly owned subsidiary and the consolidation of subsidiary companies
On April 1, 2023, the Company conducted a group reorganization (hereinafter the “Reorganization”).
In addition, Kitakami HiTec Paper Corporation, which will disappear due to the Reorganization, falls under the
specified subsidiary.
(1) Purpose of the Reorganization- 20 -

In the fiscal year ended March 31, 2023, the Group has launched the Medium-Term Management Plan (FY2023/3FY2025/3) and is working to strengthen the management base and create a new Mitsubishi Paper Mills Group. As
one of the initiatives in this effort, the Group will reduce fixed costs through organizational rationalization andstrengthen corporate governance by merging its group subsidiaries.
(2) Overview of the Reorganization
With April 1, 2023 as the business combination date, the Reorganization described below has been implemented.
The names of the companies have not changed after the business combination.
(i) Combination of the Company and Kitakami site subsidiaries
With MPM as the company surviving the absorption-type merger and Kitakami HiTec Paper Corporation andHokuryo Industry Corporation as the companies that disappear in the absorption-type merger, an absorption-typemerger was implemented.
<Names of combined companies and description of their businesses>
Survivingcompany
Absorbed
companyNames of combined companies

Description of business

Mitsubishi Paper Mills Limited

Manufacturing, processing and sale of paper, pulp andphotosensitive materials

Kitakami HiTec Paper Corporation

Manufacturing, processing and sale of pulp, resincoated paper and sanitary products

Hokuryo Industry Corporation

Contracted manufacture and finishing of paper,
miscellaneous work(ii) Combination of sales subsidiaries
With Mitsubishi Oji Paper Sales Co., Ltd. as the company surviving the absorption-type merger and Diamic Co.,
Ltd. as the company that disappears in the absorption-type merger, an absorption-type merger was implemented.
<Names of combined companies and description of their businesses>
Names of combined companies

Description of business

Survivingcompany

Mitsubishi Oji Paper Sales Co., Ltd.

Sale of paper, chemicals, etc.

Absorbed
company

Diamic Co., Ltd.

Sale of printing-plate materials, etc.

(iii) Combination of Hachinohe site subsidiaries
With MPM Operation Co., Ltd. as the company surviving the absorption-type merger and Hachinohe Paper
Processing Co., Ltd. and Hachiryo Co., Ltd. as the companies that disappear in the absorption-type merger, anabsorption-type merger was implemented.
<Names of combined companies and description of their businesses>
Survivingcompany
Absorbed
companyNames of combined companies

Description of business

MPM Operation Co., Ltd.

Entrustment with operation and management of
production activities of Hachinohe Mill

Hachinohe Paper Processing Co., Ltd.

Paper trimming, grading and packaging, storage andshipment of paper products

Hachiryo Co., Ltd

Premise transport, miscellaneous work and processingof packing paper(3) Overview of accounting procedures implemented
The transactions have been processed as transactions under common control in accordance with the AccountingStandard for Business Combinations (ASBJ Statement No. 21, January 16, 2019) and the Implementation Guidanceon Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ
Guidance No. 10, January 16, 2019).
(4) Change in equity of the Company related to transaction with non-controlling shareholders(i) Main factor for change in capital surplus
Change in ownership interest due to merger(ii) Amount of decrease in capital surplus due to the transaction with non-controlling shareholders
0 million yen- 21 -

(Transfer of German operations)
At a meeting of the Board of Directors held on January 30, 2023, the Company decided to sell its business (hereinafter
the “Business”) in the Flensburg Mill of Mitsubishi HiTec Paper Europe GmbH (hereinafter “MPE”), consolidated
subsidiary in Germany. It completed the sale as of September 1.
(1) Outline of the business divestiture(i) Name of successor enterprise
Timber QCP GmbH(ii) Details of divested business
Manufacture and sale of thermal paper, inkjet paper and barrier coated paper at the Flensburg Mill of MPE(iii) Main reason for conducting business divestiture
On August 5, 2022, the Company decided to withdraw from the Business and has since been considering how to
withdraw. As a result, the Company determined that the best option would be to sell the Business to Timber QCPGmbH, and decided to proceed with the sale of the Business.
(iv) Date of business divestiture
September 1, 2023 (Germany Time)(v) Description of transaction, including legal form
MPE transferred the Business to a new company to be prepared by MPE (hereinafter the “New Company”) bymeans of an absorption-type split, and then transferred all the equity in the New Company to Timber QCP GmbH,a wholly owned subsidiary of QCP Equity GmbH, a subsidiary of Quantum Capital Partners GmbH.
(2) Outline of accounting treatment(i) Amount of gain (loss) on transfer
A loss on sale of business of 3,192 million yen was posted under extraordinary losses in the previous consolidated
fiscal year and 119 million yen in the fiscal year under review, respectively.
(ii) Appropriate book value of assets and liabilities relating to the business transferred and the major breakdown
thereofCurrent assets
3,428 million yen
Total assets

3,428 million yen

Current liabilities
Non-current liabilities

449 million yen
1,601 million yen

Total liabilities

2,050 million yen(iii) Accounting
Investments relating to the transferred business were considered to have been liquidated, and the difference
between the current price of the assets received as compensation for the transfer and the amount equivalent toshareholders’ equity for the transferred business, in addition to expenses, etc. for the business transfer, wasrecognized as transfer loss/profit.
(3) Name of the reportable segment that includes the business to be divested
Functional Materials Business(4) The estimated amount of loss/profit relating to the divested business stated in the consolidated financial statementsof the fiscal year under review
Net sales
5,297 million yen
Operating loss
802 million yen(Transfer of sports club business)
At a meeting of the Board of Directors held on September 29, 2023, the Company decided to sell the sports clubbusiness operated by Ryoshi Co., Ltd., a wholly owned subsidiary of the Company, and establish an investment truston the relevant fixed assets (real estate) and transfer beneficial rights. The transfer was completed as of March 28,
2024.
(1) Outline of the business divestiture(i) Name of successor enterprise
RENAISSANCE INC.

- 22 -

(ii) Details of divested business
Operation of fitness club and swimming school by Ryoshi Co., Ltd.
(iii) Main reason for conducting business divestiture
Based on “selection and concentration,” one of the basic policies established in the Company’s medium-term
management plan (FY2023/3 - FY2025/3), the Company decided to transfer the Business, which has a low
probability of realizing synergies with the mainstay Functional Materials Business and Sustainable Fiber
Materials Business.
(iv) Date of business divestiture
March 28, 2024(v) Description of transaction, including legal form
The Business was transferred to Renaissance Inc., while an investment trust was established on the relevant fixed
assets (real estate) and beneficial rights were transferred to a party designated by Renaissance Inc.
(2) Outline of accounting treatment(i) Amount of gain (loss) on transfer
In the fiscal year under review, gain on sales of fixed assets of 1,288 million yen and gain from business transfer
of 4 million yen were posted respectively under extraordinary profit.
(ii) Appropriate book value of assets and liabilities relating to the business transferred and the major breakdown
thereofNon-current assets: 1,225 million yen(iii) Accounting
The Company made accounting entries in accordance with the Accounting Standard for Business Divestitures(ASBJ Statement No. 7, September 13, 2013) and the Implementation Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, January 16,2019).
(3) Name of the reportable segment in which the divested business is included
Other Businesses(4) Estimated amount of profit and loss of the divested business posted in the fiscal year under review
Net sales
529 million yen
Operating loss
11 million yen(Notes to rental properties)
Notes to market prices, etc. of rental properties are omitted due to the low significance of such market prices.
(Notes to revenue recognition)
1. A breakdown of revenue generated from contracts with customers(Million yen)
Reportable Segments
Functional
Materials
Business

Sustainable
Fiber Materials
Business

Others (Note)

Total

Total

Japan
EuropeAsia
North America
Other

42,71830,600
8,588
11,9282,590

88,215‒6,372‒
1130,934
30,60014,96011,928
2,592

2,289
‒
‒
‒
‒

133,223
30,60014,96011,9282,592

Revenue from contracts
with customers

96,426

94,589191,016

2,289

193,305

‒

156

156

‒

156

Other revenue

Sales to external customers
96,426
94,746
191,172
2,289
193,462(Note) The category, others, is a business segment not included in reportable segments, which mainly includes theengineering business.

- 23 -

2. Basic information for understanding revenue from contracts with customers
The information that becomes the basis of the understanding of revenue are provided in (4) Accounting standards
for significant revenues and expenses, under 4. Notes regarding accounting policies in (Significant matters thatform the basis for preparing consolidated financial statements).
3. The information that becomes the basis of the understanding of revenue for the consolidated fiscal year underreview and the next consolidated year
(1) Balance, etc. of contract liabilities
The balance of contract liabilities of the company and its subsidiaries are omitted due to its negligible amountand the absence of significant changes. Revenue recognized in the fiscal year under review from performanceobligations satisfied (or partly satisfied) in previous periods is not significant.
(2) Transaction prices allocated to outstanding performance obligations
The description of transaction prices allocated to remaining performance obligations is omitted by applying apractical expedient due to the absence of important contracts with an initially estimated term exceeding one year
held by the Company or its subsidiaries. Further, consideration from contracts with customers does not contain asignificant amount not included in the transaction price.
(Notes on per share information)(1) Net assets per share(2) Profit per share

2,076.52 yen
95.28 yen

(Notes to significant subsequent events)(Absorption-type mergers of wholly owned subsidiaries and mergers between consolidated subsidiaries)
At a meeting of the Board of Directors held on November 13, 2023, the Company resolved to implement
organizational restructuring of the Group (the “Organizational Restructuring”). It implemented the following
Organizational Restructuring as of April 1, 2024. The effective date of the absorption-type merger with the Company
as the surviving company and KJ Specialty Paper Co., Ltd. as the absorbed company is planned to be July 1, 2024.
(1) Purpose of the Organizational Restructuring
In the medium-term management plan (FY2023/3-FY2025/3), the Group has set, and is working to establish, asolid business foundation and create a new Mitsubishi Paper Mills Group. As part of these initiatives, the Group
integrated Diamic Co., Ltd. into Mitsubishi Oji Paper Sales Co., Ltd. on April 1, 2023, and implemented a mergerof subsidiaries in the Kitakami site and the Hachinohe site, etc. This time, the Group will reduce fixed costs throughorganizational rationalization and strengthen corporate governance by merging its subsidiaries described below.
(2) Overview of the Organizational Restructuring<Absorption-type merger of wholly owned subsidiary>(i) Legal form of the business combination
It is absorption-type merger whereby the Company is the surviving company, and Shin Hokuryo Forest Products
Co., Ltd, Kyoryo Chemical Co., Ltd., Takasago Paper Processing Co., Ltd. and KJ Specialty Paper Co., Ltd. are
the absorbed companies.
(ii) Business combination date
April 1, 2024

Shin-Hokuryo Forest Products Co., Ltd., Kyoryo Chemical Co., Ltd. andTakasago Paper Processing Co., Ltd.

July 1, 2024 (plan)
KJ SPECIALTY PAPER Co., Ltd.
(iii) Names of combined companies and description of their businesses
Names of combined companies

Description of business

Surviving
Mitsubishi Paper Mills Limited
company

Manufacturing, processing and sale of paper, pulp andphotosensitive materials

Shin-Hokuryo Forest Products Co., Ltd.
Absorbed Kyoryo Chemical Co., Ltd.
company
Takasago Paper Processing Co., Ltd.
KJ SPECIALTY PAPER Co., Ltd.

Production, purchase and sales, etc. of wood chips
Finishes of photosensitive materials and coated paper,
manufacture of sanitizer and disinfectant solution, etc.
Paper trimming, grading and packaging
Manufacturing, processing and sale of chemical paper- 24 -

(iv) Name of the company after business combination
No change<Merger between consolidated subsidiaries>(i) Legal form of the business combination
It is an absorption-type merger whereby Mitsubishi Paper Engineering Co., Ltd. is the surviving company and
Ryoko Co., Ltd. is the absorbed company.
(ii) Business combination date
April 1, 2024(iii) Names of combined companies and description of their businesses
Names of combined companies

Description of business

Surviving
Mitsubishi Paper Engineering Co., Ltd.
company
Absorbed
Ryoukou Co., Ltd.
company(iv) Name of the company after business combination
No change

Design/installation of various machine and equipment
construction
Construction industry, machine repair<Merger between consolidated subsidiaries>(i) Legal form of the business combination
It is an absorption-type merger whereby Mitsubishi Oji Paper Sales Co., Ltd. is the surviving Company and
Ryoshi Co., Ltd. is the absorbed company.
(ii) Business combination date
April 1, 2024(iii) Names of combined companies and description of their businesses
Names of combined companies

Description of business

Surviving
Mitsubishi Oji Paper Sales Co., Ltd.
company

Sale of paper, Printing plate materials, chemicals, etc.

Absorbed
RYOSHI Co., Ltd.
company

Insurance business, property leasing, management andoperation of parking lots, merchandizing, funeralbrokerage(iv) Name of the company after business combination
No change(3) Overview of accounting treatment to be taken
The Company plans to account for the Reorganization as the common control transaction under the AccountingStandard for Business Combinations (ASBJ Statement No. 21, January 16, 2019) and the Implementation Guidanceon Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ
Guidance No. 10, January 16, 2019).

- 25 -

Statements of changes in shareholders’ equity
FY2023 Apr ‘23 - Mar ‘24(Million yen)
Shareholders’ equity
Capital surplus
Capital stock

Balance at beginning of
period36,561Retained earnings
Other retained
earnings

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

8,094

8,094

‒

2,427

60

60

22

(245)

(223)

(0)

(0)

Retainedearnings brought
forward

Total retained
earnings

2,427

Changes during period
ProfitDividends of surplus
Disposal of treasury shares
Purchase of treasury shares
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

‒

‒

‒

22

(184)

(162)

36,561

8,094

8,094

22

2,242

2,265

Shareholders’ equity

Balance at beginning of
periodValuation and translation adjustments

Treasury shares

Total shareholders’equityValuation difference
on available-for-salesecurities(386)

46,697

3,092

Total valuation andtranslation
adjustments

Total net assets

3,092

49,789Changes during period
ProfitDividends of surplus

60

60

(223)

(223)

Disposal of treasury shares

15

15

15

Purchase of treasury shares

(0)

(0)

(0)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

1,396

1,396

1,396

14

(147)

1,396

1,396

1,249

(372)

46,549

4,489

4,489

51,038(Note) The stated amounts are rounded down to the nearest million yen.

- 26 -

Notes to non-consolidated financial statements(Notes on significant accounting policies)
1. Asset valuation standards and valuation method(1) Valuation standards and valuation methods for securities(i) Shares in subsidiary and affiliated companies
Stated at cost determined by the moving-average method(ii) Other securities
Securities other than shares, etc. without market valueMarket value method (Valuation differences are reported as a component of shareholders’ equity andthe cost of securities sold is calculated using the moving average method.)
Shares, etc. without market value
Stated at cost determined by the moving-average method(2) Valuation standards and valuation methods for derivatives: Market value method(3) Valuation standards and valuation methods for inventory assets
Merchandise and finished goods: Cost method through periodic average method
Work in process: Cost method through periodic average method
Raw materials and supplies: Cost method determined by the moving average method(The value in the balance sheet is calculated by the method of book value devaluation based on loweringof profitability)
2. Depreciation method for non-current assets(1) Property, plant and equipment (excluding leased assets)
Buildings
Straight-line method
Property, plant and equipment excluding buildings
Straight-line method. The declining-balance method is used for the head office and other properties. The
straight-line method is applied for structures acquired from April 1, 2016.
(2) Intangible assets
The straight-line method is applied. Software (used in the Company) is amortized over the estimated usefullife of the software (five years) in the Company.
(3) Leased assets
Leased assets relating to finance leases wherein ownership of the leased asset does not transfer to the lessee
Calculated by assuming the lease term is the useful life and depreciating the remaining amount to zerousing the straight-line method.
3. Standards on recognition of provisions(1) Allowance for doubtful accounts
To prepare for possible losses on uncollectible receivables held as of the end of fiscal year, the Company
provides allowances equal to the estimated amount of uncollectible general receivables based on historicalrates and for specific receivables, including doubtful receivables, based on an examination of theirindividual collectability.
(2) Provision for retirement benefits
To prepare retirement benefits for employees, this provision is posted based on the estimated size ofretirement benefit obligations and pension assets (retirement benefit trusts) as of the end of the fiscal year
under review.
Prior service costs are expensed based on the straight-line method for a certain number of years (9 years)
within the average remaining years of service of employees when costs accrue from their service. Actuarial
differences are expensed from the business year following the year in which the expenses accrue, which- 27 -

are based on the straight-line method for a certain number of years (9 years) within the average remaining
years of service of employees when actuarial differences accrue.
Any amount of pension assets to be recognized at the end of the fiscal year under review in excess of theamount derived from subtracting unrecognized actuarial gain or loss, etc. from retirement benefit
obligations is posted as prepaid pension costs in investments and other assets.
(3) Provision for share awards
To prepare for the issuance of shares of the Company’s stock pursuant to regulations for the stock-based
compensation of Directors and Executive Officers, the portion of the estimated amount to be paid in thebusiness year under review is posted.
4. Accounting standards for significant revenues and expenses
The Company recognizes revenues through the following five steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the separate performance obligations in the contract.
Step 5: Recognize revenue when or as the entity satisfies the performance obligations.
The principal businesses of MPM include the manufacturing and sale of products in its functional materials
business and sustainable fiber materials business. In domestic sales, revenue is recognized when the control
of products is transferred to customers normally upon the acceptance inspection of products performed bycustomers or upon the arrival of products at customers, which is considered the fulfillment of performanceobligations. However, revenue is recognized upon shipment of products if the period between shipping andtransfer of control of products to customers is the normal period. In export sales, the Group recognizes revenue
when the risk burden is transferred to customers according to trade conditions specified by the Incoterms andother rules.
Transaction prices are calculated by subtracting sales incentives from the amount of promised considerationin contracts with customers.
Considerations for transactions are received within one year from the fulfillment of performance obligations
and important financial factors are not included.
With respect to chargeable subcontracting corresponding to repurchase agreements, supplied goods remaining
at subcontractors as financial transactions are recognized as inventories, and the amount equivalent to theending inventory of supplied goods remaining at subcontractors is recognized as liabilities related tochargeable subcontracting.
5. Hedge accounting method
In cases where the interest rate swaps meet the conditions for hedge accounting, special treatment is adopted.
6. Accounting treatment of retirement benefits
In the financial statements, the treatment of unrecognized actuarial gain or loss and unrecognized past service
cost in the balance sheet is different from in the consolidated financial statements. In the non-consolidatedbalance sheet, the amount after subtracting pension assets from the amount after adding and/or subtracting
unrecognized actuarial gain or loss and unrecognized past service cost to or from retirement benefit obligations
is posted as provision for retirement benefits.
7. Application of the group tax sharing system
The Company applies the group tax sharing system.
(Notes to changes in presentation method)“Extra retirement payments,” which was separately stated in “Extraordinary losses” in the previous fiscal year, ispresented in “Other” in the fiscal year under review, since it has become insignificant in terms of monetary amount.

- 28 -

(Notes to accounting estimates)
Items whose amounts are reserved in the financial reports for this fiscal year due to the accounting estimate and that
may have a major impact on the financial reports for the following fiscal year are as follows:
Recoverability of deferred tax assets(1) Amounts recorded in the financial statements for the fiscal year under review
Deferred tax assets (net)2,238 million yen
The amount before offsetting deferred tax liabilities was 3,689 million yen, which is obtained by deducting
10,545 million yen, the amount of valuation allowance, from 14,235 million yen, the total amount of deferred
tax assets pertaining to deductible temporary differences and tax losses carried forward.
(2) Information on accounting estimates
Notes are omitted due to the inclusion of the same information in “2. Recoverability of deferred tax assets”
in the table of Notes to Consolidated Financial Statements (Notes to accounting estimates).
(Notes on changes made to accounting estimates)
The Company changed the number of years in the expense period of actuarial differences in the accounting treatmentof retirement benefits from 10 years to 9 years beginning in the business year under review due to a reduction in the
average remaining years of service of employees.
This change resulted in operating income, ordinary income, and profit before income taxes all increasing 378 million
yen each.
(Additional information)(Performance-linked stock compensation plan)
Notes are omitted due to the inclusion of the same information in “Additional information” in the table of Notes toConsolidated Financial Statements.
(Notes to balance sheet)
1. Collateral assets
Factory foundation revolving mortgage applies to the following assets, which, however, are not secured liabilities
and, thus, not, in effect, pledged as collateral.
Buildings
7,618 million yen
Structures
1,466 million yen
Machinery and equipment
8,796 million yen
Vehicles15 million yen
Tools, furniture and fixtures
41 million yen
Land8,855 million yen
Total

26,795 million yen

2. Accumulated depreciation on property, plant and equipment totaled
299,499 million yen
3. Reduction entry of non-current assets

2,176 million yen

4. Liabilities on guarantee(i) Guarantee for borrowings from financial institutions through asset-building savings system of the Company’s
employees
157 million yen(ii) Guarantee for borrowings, etc. from financial institutions
Mitsubishi HiTec Paper Europe GmbHMPM Operation Co., Ltd.
Other: 1 accountTotal

6,807 million yen
577 million yen
2 million yen
7,387 million yen- 29 -

5. Monetary claims and liabilities to affiliated companies
Short-term monetary claims
Long-term monetary claims
Short-term monetary obligations

33,336 million yen
2,009 million yen
9,248 million yen

6. Contingent liabilities
The details are the same as those in the Notes to the Consolidated Financial Statements, "(Notes to the Consolidated
Balance Sheet) 5. Contingent liabilities," so they have been omitted.
(Notes to statement of income)1. Total transaction volume with subsidiaries and associates
Net sales
Cost of sales and selling, general and administrative expenses
Volume of trade arising from other than business transactions

68,135 million yen
19,338 million yen
1,457 million yen

2. Impairment losses
An impairment loss was posted for the following asset group.
Location

Use

Shirakawa, Fukushima

Idle assets

Type

Impairment losses

Buildings, structures, machinery andequipment, etc.

269 million yen

Kitakami, Iwate
Idle assets
Machinery and equipment, etc.
98 million yen
The book value of idle assets was reduced to a recoverable amount and the reduced amount was recognized as an
impairment loss under extraordinary losses. The recoverable amount is measured by net sales value, and the bookvalues has been reduced to the memorandum value.
(Notes on statements of changes in shareholders’ equity)
Type and number of treasury shares at the end of the business year under review
Class of shares

At the beginning of
the fiscal year ended
March 31, 2024

Increase

DecreaseAt the end of the
fiscal year ended
March 31, 2024

Common shares
986,044
1,724
48,235939,533(Notes) 1. The number of shares of the Company’s common stock held as treasury shares includes shares of theCompany’s stock held by the executive compensation BIP trust (863,739 shares at the end of businessyear under review).
2. Overview of reason of change
The breakdown of the increase is as follows:
Increase due to demand for purchases of shares of less than one unit
1,724 shares
The breakdown of the decrease is as follows:
Decrease due to demand for increased purchase of shares of less than one unit
103 shares
Decrease due to the issuance of treasury shares by the executive compensation
BIP trust
48,132 shares- 30 -

(Notes to tax effect accounting)
1. Breakdown of key factors contributing to deferred tax assets and deferred tax liabilities
Deferred tax assets
Accrued expenses
188 million yen
Provision for retirement benefits
2,537 million yen
Accumulated impairment of non-current assets
435 million yen
Loss on valuation of investments in capital of subsidiaries and associates
8,073 million yen
Loss on valuation of shares of subsidiaries and associates
1,119 million yen
Tax losses carried forward
416 million yen
Other1,462 million yen
Subtotal of deferred tax assets
Valuation allowance related to tax losses carried forward
Valuation allowance related to deductible temporary differences
Valuation allowance subtotal

14,235 million yen-89 million yen-10,456 million yen-10,545 million yen

Total deferred tax assets

3,689 million yen

Deferred tax liabilities
Gain on contribution of securities to retirement benefit trust
Valuation difference on available-for-sale securities
Other-11 million yen-1,315 million yen-123 million yen

Total deferred tax liabilities
Net deferred tax assets-1,451 million yen
2,238 million yen- 31 -

(Notes to related party transactions)
1. Subsidiaries and associates
Type

Company
name

Percentage
of votingrightsRelationship with related
partyContent of thetransaction%

Transaction
value

Item

Million yen

Sales agents. Lease a part
Mitsubishi Oji
Direct: 99.9 of real estate. Executives
Paper Sales
Indirect: may hold concurrent
Co., Ltd.
positions.

Million yen

Sale of paper,
printing platematerials,
pharmaceuticals, etc.
(*Note 1)

Accounts
62,226 receivable trade

19,378Group financetransaction(*Notes 1 and 2)

3,791

Short-term
loans
receivable

8,154

Funding and technological Collection of funds
Mitsubishi
assistance for business(*Notes 1 and 4)
HiTec Paper
Direct: operation in Europe.
Europe GmbH Indirect: 100
Loans of funds
Executives may hold(*Note 3)(*Note 1)
concurrent
positions.
Subsidiary
Mitsubishi
Paper Holding Direct: 100.0 Executives may hold(Europe)Indirect: concurrent positions.
GmbH

Balance at
end ofperiod8,993

Short-term
loans
3,937 receivable‒Collection of funds(*Note 1)
Loans of funds(*Notes 1)

1,600 Short-term
loans
1,793 receivable

1,793

Underwriting of
capital increase(*Notes 1 and 5)

9,377

Collection of funds
Purchase of products of
MPM OJI
Kitakami HiTec. Supply of (*Note 1)
Direct: 70.0
Home Products
raw materials. Executives
Indirect: Co., Ltd.
may hold concurrent
Loans of funds
positions.
(*Note 1)
MPM Oji Eco
Loans, etc. provided by the
Direct: 45.0
Collection of funds
Associates Energy Co.,
Company. Executives may
Indirect: (*Note 1)
Ltd.
hold concurrent positions.

‒－Short-term
loans
receivable
Long-term‒
loans
receivable

242

450

242

1,694

Long-term
loans
receivable

315(Note 1) Prices and other terms of business are determined in negotiations using market prices as a reference.
(Note 2) The transaction amount for group finances indicated is an increase or decrease between the end of theprevious fiscal year and the end of the business year under review.
(Note 3) Mitsubishi HiTec Paper Europe GmbH is a subsidiary of Mitsubishi Paper Holding (Europe) GmbH.
(*Note 4) With the collection of loans to Mitsubishi HiTec Paper Europe GmbH, reversal of allowance for doubtful
accounts from affiliates of 3,239 million yen was posted under extraordinary income.
(*Note 5) The Company underwrote the capital increase by Mitsubishi Paper Holding (Europe) GmbH.
(Note 6) Guarantee obligations are listed in the notes to the balance sheet in the notes to specific items, and areoperated under general terms of business.
2. Sister companies
Type

Company
name

Percentage
of votingrightsRelationship with relatedparty%
Subsidiaries
OCM
Fiber
of otherDirect: 14.0 Sale of imported chips toassociates Trading Co., Indirect: the Company
Ltd.

(*Note)Content of thetransaction

Transaction
value

Item

Million yen
Purchase of imported
chips (*Note)

Balance at
end ofperiodMillion yen

Accounts
16,462 payable trade

2,120

Prices and other terms of business are determined in negotiations using market prices as a reference.

(Notes to business combination, etc.)(Transactions under common control)

The description has been omitted as it is the same content as "(Notes regarding businesscombinations, etc.) (Common control transactions, etc.) Mergers of wholly owned subsidiaries andmergers between consolidated subsidiaries ①Integration of the Company and Kitakami Site's
subsidiaries" in the consolidated notes within the financial statements.

- 32 -

(Notes to revenue recognition)
Basic information for understanding revenue from contracts with customers
Basic information for understanding revenue is provided in section, “4. Accounting standards for significant revenues
and expenses (Notes on significant accounting policies).
(Notes on per share information)(1) Net assets per share(2) Profit per share

1,165.22 yen
1.39 yen(Notes to significant subsequent events)(Absorption-type merger of wholly owned subsidiary)
At a meeting of the Board of Directors held on November 13, 2023, the Company resolved to implement
organizational restructuring of the Group (the “Organizational Restructuring”). It implemented the following
Organizational Restructuring as of April 1, 2024. The effective date of the absorption-type merger with the Company
as the surviving company and KJ Specialty Paper Co., Ltd. as the absorbed company is planned to be July 1, 2024.
(1) Purpose of the Organizational Restructuring
In the medium-term management plan (FY2023/3-FY2025/3), the Group has set, and is working to establish, asolid business foundation and create a new Mitsubishi Paper Mills Group. As part of these initiatives, the Group
integrated Diamic Co., Ltd. into Mitsubishi Oji Paper Sales Co., Ltd. on April 1, 2023, and implemented a mergerof subsidiaries in the Kitakami site and the Hachinohe site, etc. This time, the Group will reduce fixed costs throughorganizational rationalization and strengthen corporate governance by merging its subsidiaries described below.
(2) Overview of the Organizational Restructuring<Absorption-type merger of wholly owned subsidiary>(i) Legal form of the business combination
It is absorption-type merger whereby the Company is the surviving company, and Shin Hokuryo Forest Products
Co., Ltd, Kyoryo Chemical Co., Ltd., Takasago Paper Processing Co., Ltd. and KJ Specialty Paper Co., Ltd. are
the absorbed companies.
(ii) Business combination date
April 1, 2024

Shin-Hokuryo Forest Products Co., Ltd., Kyoryo Chemical Co., Ltd. andTakasago Paper Processing Co., Ltd.

July 1, 2024 (plan)
KJ SPECIALTY PAPER Co., Ltd.
(iii) Names of combined companies and description of their businesses
Names of combined companies

Description of business

Surviving
Mitsubishi Paper Mills Limited
company

Manufacturing, processing and sale of paper, pulp andphotosensitive materials

Shin-Hokuryo Forest Products Co., Ltd.

Production, purchase and sales, etc. of wood chips
Finishes of photosensitive materials and coated paper,
manufacture of sanitizer and disinfectant solution, etc.

Absorbed Kyoryo Chemical Co., Ltd.
company
Takasago Paper Processing Co., Ltd.

Paper trimming, grading and packaging

KJ SPECIALTY PAPER Co., Ltd.
(iv) Name of the company after business combination
No change

Manufacturing, processing and sale of chemical paper(3) Overview of accounting treatment to be taken
The Company plans to account for the Reorganization as the common control transaction under the AccountingStandard for Business Combinations (ASBJ Statement No. 21, January 16, 2019) and the Implementation Guidanceon Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ
Guidance No. 10, January 16, 2019).

- 33 -