Mitsubishi Paper Mills : Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (unaudited)

Summary of Consolidated Financial Results

for the Fiscal year Ended March 31, 2026 (unaudited)

Mny 14, 2026

Compaoynazoc:

Mitsubishi Paper Mills Limited (Code No 3864 Tokyo Stock Excbmge) https://www.rupmco.jp/

Representative: Ryuichi Kisnka, President and ChiefExecutive Officer

Contact: Daisiike Ynmada, Creneml Manager, Strategy Planning DlviSlon

Phone: +8l-3-5600-1488

General meeting of stockholders to be held: June 26, 2026 Stnrt of dividend payout: lime 8, 2026 Statutory annual report to be presented: June 25, 2026

(Amounts of less than one million yen are roimded doexr.)

1. Consolidated Financial Results for the Fiscal year Ended March 31, 2026 (April 1, 2025 to March 31, 2025)

   1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

      FY2025	Net sales 157,455 (10.5)		264	(94.2)	1,720	(62.2)	Profit attributable to owners of parent 1,900 (56.2)
      FY2024	175,942	(9.1)	4,567	(15.6)	4,548	(35.9)	4,343	4.2

      Note: Comprehensive income FY2025 ¥18,629 million FY2024 ¥(5,235) million

      FY2025	Profit per share Yen 43.37	Diluted profit per "s°bex°bo"le"e' ' share equity Yen 2.0	'°°'® Raho of operating iocometototel income to net sales assets 0.8 0.2
      FY2024	99.13	4.9	2.1 2.6

      Note: Equity in earning of affiliates

      Total assets

      Net assets

      Shareholders' equity redo

      Net assets per share

      
      
      

   2. Consolidated Financial Condition

   FY2025 ¥663 million FY2024 ¥706 million

   FY2025	222,776		103,185	46.3		2.354.68
   FY2024 Note: Shareholders' equity	208,217	FY2025	85.282 ¥103,154 million	40.9	FY2024	1.945.16 Y85,256 milhon
   (3) Consolidated Cash Flow

   FY2025	Cash dows frnm operating activities 5,223	Cash flows from investing achvities 1,601	Cash dows hum financing activities (8,303)	Ash and cash uivalents at end of p 4895
   FY2024	4,854	4,797	(13,402)	6,239

   Totnl dividend

   Annual

   payout ratio on net assets (Consolidated)

   
   
   
2. Dividends

   FY2024	0.00	15.00	15.00	669		0.7
   FY2025	0.00	15.00	15.00	669	34.6	0.7
   FY2026(Forecast) Note : Revision to	7.00	13.00	20.00 .y . . . None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

   (% indicates changes from the previous corresponding period.)

   	Net sales		Operating profit			Profit attributable to owners ofparent		Earnings per share
   First half	85,000	7.6	1,000	1,000	1761	2,500		57.04
   Full year	175,000	11.1	6,000	6,000	248.8	6,500	242.0	148.31

4. Notes

   1. K1 lficnnt changes in the scope of consolidadon during the period: None Newly included: - (Company name);

      Excluded: - (Company name);

   2. Changes in accounting policles, changes in accounting estimates andretrospechve restatement

      1. Changes in accounting policles &ie to the revision of accoimting standards: None

      2. Changes in accounting policles other thru 1) Above: None

      3. Changes in accounting estimates: None

      4. Retrospective restatement: None

   3. Total niunber oflssued shares (common shares)

      1. Total niunber oflssued shares at the end of the period (including treasury shares): FY2025 44,741,433 shares

         FY2024 44,741,433 shares

      2. Total niunber of treasury shares at the end of the period: FY2025 933,254 shares

         FY2024 911,368 shares

      3. Average number of shares during the period: FY2025 43,827,351 shares

FY2024 43,820,052 shares

Notes: The Company has adopteda BIP (Bonrd Incentive Plan) trust, assiuning the nimiber of shares held by the trust are included in the niunber of treasury stock of "(3) Total number of issued shares (common shares)".

(Reference)

1. Results for the Year Ended March 31, 2026 (April 1, 2025 to March 31, 2026)

1. Non-consolidatedOperating Results (% indicates changes from the previous corresponding period.)

   FY2025	Net sales 101,604	(4.5)	244	(95.2)	5,296	(34.9)	Prnfit (314)
   FY2024	106,347	3.1	5,098	3.8	8,139	8.0	9,364

   FY2025	Profit per shnre Diluted profit per sbnre Yen Yen (7.18)
   FY2024	213.64

2. Non-consolidatedFinnncinl Condition

Note: Shareholders' equity

FY2025 ¥56,367 million

FY2024 ¥57,845 million

• This financial WSults report 1s exempt from being mutated by certified public nccountnnts or an audit

• Explnnntion of the proper use of financial results forecast rind other notes

The earnings forecasts rind other forward-looking statements herein are based on inforniahon currently acquired by the Company and certain assumptions assessed to be rensonnble. Actual re ailts mny differ significantly from these forecasts due to n side rnnge of factors.

Contents of Attachments

1. Overview of Operating Results, etc 2

   1. Overview of Operating Results 2

   2. Overview of Financial Position 6

   3. Overview of Cash Flows 6

   4. Future Outlook 6

   5. Basic Policy for Dividends and Dividends for the Fiscal Year under Review and the Next Fiscal Year 6

2. Basic Policy for the Selection of Accounting Standards 6

3. Consolidated Financial Statements 7

   1. Consolidated Balance Sheet 7

   2. Consolidated Statements of Income and Comprehensive Income 9

   3. Consolidated Statements of Cash Flows 11

1. Overview of Operating Results, etc.

(1) Overview of Operating Results

During the consolidated fiscal year ended March 31, 2026, the Japanese economy as a whole experienced a gradual recovery, driven by improvements in corporate profits as well as employment and income conditions. At the same time, the prices of raw materials and fuels have been affected by rising prices, the fluctuation of interest and exchange rates, U.S. trade policy, and ongoing geopolitical risks, such as the situation in the Middle East. As a result, the economic outlook remains uncertain.

Under these circumstances, the Group has begun implementing its new Medium-term Management Plan (fiscal year ended March 2026 to fiscal year ending March 2028). The basic policy of the plan is "130 years as a 'SHINKA' company

and ever evolving." The following provides a basic policy of the Medium-term Management Plan and the Group's initiatives to enhance its corporate value.

1. SHINKA (sophistication) of technologies and research to expand our array of distinctive functional and environmentally friendly products and accelerate productivity improvement

   The Group is utilizing its technologies and research and development capabilities to enhance added value and drive sales through the global expansion of the functional materials business, which is a growth business. The Group is increasing its sales of environmentally friendly products and improving productivity in the sustainable fiber materials business. The Group is generating synergies between both businesses in the areas of marketing and technology to expand them. The Company has begun renovating the Advanced Technology Center (previously known as the Kyoto R&D Center) to strengthen its innovation base and enhance its research and development capabilities.

   In its functional materials business, the Group aims to boost sales and improve profitability, and to establish itself as a leader in functional materials, which include base materials for water treatment membrane support substrates, separators for energy storage devices, tape base paper, and filters. The Group is taking steps to achieve these goals, including focusing investments on growth areas and enhancing production efficiency at the Takasago, Kyoto, and Fuji Mills. The Group discontinued the operation of a paper milling machine and a converting machine at the Fuji Mill due to brand integration and equipment consolidation. Meanwhile, at our core Takasago Mill, we have fully launched the "Beyond" next-generation transformation project, aiming to evolve into a global core plant that leverages its unique technological capabilities. Mitsubishi HiTec Paper Europe GmbH, a consolidated subsidiary in Germany, offered a voluntary retirement program to enhance production efficiency. The Group will continue to advance these structural reforms of its businesses to increase profitability.

   In the sustainable fiber materials business, the Group ceased the operation of the N1 paper milling machine at the Kitakami Mill and focuses on high-efficiency production machinery to reduce fixed costs, improve production efficiency, and enhance profitability. The Hachinohe Mill is carefully considering the project and then putting it into action step by step.

   .

2. SHINKA (evolution) in our contributions to the global environment

   The Group is accelerating initiatives aimed at achieving carbon neutrality. This includes improving fossil fuel energy intensity and driving a green transformation. The Group is also contributing to creating a recycling-oriented society by utilizing forestry resources, increasing the recycling rate of plastic resources, expanding operations that help achieve the SDGs, and pursuing initiatives to address the climate change risks.

   Murabi Company Forest has been designated a Nature Symbiosis Site under the new Act on the Promotion of Activities for Biodiversity Enhancement by the Ministry of the Environment, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism. Household paper brand nacre has won a 2026 Social Products Award. This product is made entirely from domestic wood pulp certified by the Forest Stewardship Council (FSC). It has been acclaimed for its environmental friendliness and local sourcing of raw materials. The Company is committed to contributing to creating environmental value and a sustainable global environment in accordance with the Mitsubishi Paper Mills Environmental Charter. This commitment includes the maintenance and preservation of biodiversity.

3. SHINKA (intemalization) of governance andhuman capital management

The Group is undergoing a governance hansformahon and seeks to enhance its human capital and oyanizational capabilihes.

After reflecting on the improper quality management of heat-resistant elechically insiilated pressboaid products, management has been visiting production facilities and subsidiaries to conduct briefings to increase awareness of the importance of qiuility management and compliance. On Novmnber 28, 2025, the Company announced that its system vas accessed withDilt authorizahon. The Co any collaborated with external experts to investigate the incident and proiiiptly implement riieasures to prevent any fiuther damage. This incident has not impacted the Company's business operations. To strengthen informaoon security. the Company all implement addiaonal measures to prevent fuhire incidents.

The Company has begun relocating certain head o&ce funchons (the Planning and Management Division) to the premises of the Kyoto Mill. The Kyoto Mill will be en innovation hub where research and development, piodiiction. planning, and ruanageriient functions are integrated. It w'ill playa central role in advancing future reforms.

TD enhance capital e8iciency and improve governance, the CDmpany will rediice its cross-shareholdings to 20% or less ofnet assets during the Mediiun-term Management Planperiod, in accordance with the Corporate Governance Code. To show' its appreciation for the ongoing support of its shareholders and to encoiuage them to hold the Company's stock ox-er the iuediiun to long to the Company has launched a shareholder benefit program (providing gifts of the CDmpany's hoiisehold paper products). The Company will continue to work to enhance cDrpDrate value and provide appropriate returns tD Shareholders.

As a result, consolidated net sales for the fiscal year were 1 f7,455 million yen (does 10.5% year on year).

On the profitability side, the Company recorded a consolidated operating profit of 264 million yen (compared to 4,567 million yen in the previous fiscal year) anda consolidated ordinary pro fit of 1,720 million yen (compared to 4,548 million yen). These results are primarily athibutable to lDV'er raw rtiateiials and energy costs, as well as cost rediichons in the German business. These posihve factor were partially offset by losses from the earthquake that shuck off the east coast ofAoinoii Prefecture on December 8, 2025, an increase in large regular repairs at the Hachinohe Mill, issues arising from the aging of equipment, end a decrease in sales volumes in Germany. Profit attributable to o*ners ofparent was 1,900 million yen (compared to 4,343 million yen in the previous fiscal year), supported by gains from the sale of policy-held shares and other factors, despite the recording of restructuring costs for the German biisiness.

Operating remilts by segment arc as follows:

Due to its increased sigoificance, the Engineering Business is disclosed as a reportable segment starting from the second quarter of the current consolidated fiscal year. It was previously included under Other.

(Million yen)

(Note) Adjiistment is mainly related to internal transactions.