Mitsubishi Paper Mills : Summary of Consolidated Financial Results for the Second Quarter of the Year Ending March 2026 (unaudited)

November 13,2025

Summary of Consolidated Financial Results for the

Company name:

Representative: Contact: Phone:

Second Quarter of the Year Ending March 2026 (unaudited)

https://www.mpm.co.jp/

Rytuchi Kisaka, President and Chief Execnhve O&icer

Daisuke Yamada, General Manager, Sbategy Planning Division

+81-3-5600-l488

(Amounts of less than one mrlhon yen are rounded down.)

1. Results for the Second Quarter of the Year Ending March 31, 2026 (April 1, 2025 -September 30, 2025)

   1. Consohdated Operating Results (P« indicates changes from the previoiu corresponding period.)

      	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
      Pirst Half ofFY2025	Milhon yen °A 79,023 (10.6)	Million yen °A 58 (93.7)	Million yen to 362 (19.7)	Million yen to (1,281)
      Pirst Half ofFY2024	88,400 (8.6)	934 (53.2)	450 (87.2)	(232)

      Note: Comprehensive income First Half of FV2025 Y(1,845) nulhon

      First Half of FV2024 ¥(933) milhon

      Diluted profit per

      Pirst Half ofFY2025 Pirst Half ofFY2024

      (29.22)

      
      
      

   2. Consohdated Financial Condition

   	Total assets	Net assets	Shareholders' equity ratio
   Pirst Half ofFY2025	Million yes 202,617	Million yen 82,711	40.8
   Year ended March 2025	208,217	85,282	40.9

   Note: Shareholders' equity

   First Half of FV2025

   FY2024

   ¥82,683 milhon

   ¥85,256 milhon

   
   
   
2. Dividends

   PY2024 PY2025

   PY2025tPorecast)

   End of IQ

   End of 2Q 0.00

   0.00

   Dividend per share Rnd of 3Q

   Rnd of FY 15.00

   15.00

   15.00

   15.00

   Note : Revision to the forecast for dividends annoimced most recently - None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026

   (April 1, 2025 to March 31, 2026)

   (No indicates changes from the previoiu corresponding period.)

   	Net sales	Operating profit		Profit attributable to owxrers of parent	Earnings per share
   Rillyear	Mtlhon yes °A 170,000 (3.4)	Mtlhon yen °A 5,000 9.5	Mtlhon yen 5,500 20.9	3,500 (19.4)	79.82

   Note : Revision to the financial results forecast annoimced most recently - Yes

4. Notes

   1. Significant changes in the scope of consolidation during the period: None Newly included: - (Company name);

      Excluded: - (Company name);

   2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None

   3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

      1. Changes in accounting policies due to the revision of accounting standards: None

      2. Changes in accounting policies other than 1) above: None

      3. Changes in accounting estimates: None

      4. Retrospective restatement: None

   4. Total number of issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares): First Half of FY2025 44,741,433 shares

         FY2024 44,741,433 shares

      2. Total number of treasury shares at the end of the period: First Half of FY2025 932,404 shares

         FY2024 911,368 shares

      3. Average number of shares during the period: First Half of FY2025 43,843,617 shares First Half of FY2024 43,811,248 shares

Notes： The Company has adopted a BIP (Board Incentive Plan) trust, assuming the number of shares held by the trust are included in the number of treasury stock of "(4) Total number of issued shares (common shares)".

• This quarterly financial results report is exempt from quarterly review by certified public accountants or an audit firm.

• Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information currently acquired by the Company and certain assumptions assessed to be reasonable. Actual results may differ significantly from these forecasts due to a wide range of factors.

Contents of Attachments

1. Qualitative Information on Semi-annual Financial Results for the Period under Review 2

   1. Explanation of Operations Results 2

   2. Explanation of Financial Position 5

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 5

2. Consolidated Financial Statements and Primary Notes 6

   1. Consolidated Balance Sheets 6

   2. Consolidated Statements of Income and Comprehensive Income 8

1. Qualitative Information on Semi-annual Financial Results for the Period under Review

   1. Explanation of Operations Results

      During the six months ended September 30, 2025, the Japanese economy experienced a gradual recovery, driven by improvements in personal income and the employment environment resulting from a rebound in corporate profits. At the same time, the economic outlook remained uncertain due to fluctuations in the forex market, rising prices, increasing personnel expenses, the prolonged materialization of geopolitical risks in various regions, and concerns about a potential economic slowdown caused by U.S. trade policy, among other factors.

      Under these circumstances, the Group has begun implementing its new Medium-term Management Plan (fiscal year ending 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.

         In April 2025, the Core Technology Center was established to enhance research and development capabilities. The center will focus on developing sustainable fiber materials, as well as masking tape backing and medical-grade paper for sterilization. The center aims to strengthen core technologies.

         The Group discontinued the operation of the N1 paper milling machine at the Kitakami Mill to increase profitability in the sustainable fiber materials business. The Group will continue to concentrate on high-efficiency production machinery to reduce fixed costs and improve production efficiency.

         The Group aims to enhance profitability at its overseas subsidiaries. Mitsubishi HiTec Paper Europe GmbH, a consolidated subsidiary in Germany, has conducted to offer voluntary retirement. The Group will continue to advance structural reforms of its businesses to increase profitability.

      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 as a "Nature Coexistence 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. 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 (internalization) of governance and human capital management

         The Group is undergoing a governance transformation. This includes enhancing the quality management system, improving stakeholder engagement, meeting the higher standards required for companies listed on the Prime Market, and strengthening risk management practices. Additionally, the Group seeks to enhance its human capital and organizational capabilities by hiring and cultivating a diverse workforce while creating an environment for this. It is committed to fostering a corporate culture that emphasizes integrity, supporting employee growth and awareness, prioritizing safety, and driving digital transformation.

         On May 14, the Company received and made public an investigation report from a special investigative committee that looked into improper quality management related to heat resistant electrically insulated pressboard products. These products were manufactured by Mitsubishi Paper Engineering Co., Ltd., a subsidiary of the Company, at the Shirakawa Production Facility. Management visited all production facilities and subsidiaries nationwide and held briefings to raise awareness of the importance of quality management and compliance again. To restore stakeholders' confidence, the Company ensures that it implements measures to prevent recurrence

         and Quakes significant efforts to improve operations.

         Consolidated net sales amounted to 79,023 llion yen (down 10.6% year on year) in the first six months under review.

         On the profitability side, the Company recoAeda consolidated operating profit of 58 million yen (do*s 93.7% year on year) end a consolidated oAinary profit of 362 million yen (down 19.7% yenr on year), primarily due toa decline in the sales volume of exported printing paper and pulp in domestic opeiahons and communication paper in overseas operations, as well as trouble caused by aging equipment. despite a rediiction in raw material and fuel costs. Profit attiibiitable to owners of parent was 1,281 million yen (compared

         *4th a loss attributable to owners ofparent of 232 million yen in the previous fiscal yenr).

         Operating remilts by segment arc as follows:

         (Million yen)

         		Net sales			Operating income (loss)
         		Six months ended September 30, 2024	Six months ended September 30. 2025	Change (%)	Six months ended September 30. 2024	Six months ended September 30, 2025	Change (%)
         Reportable Segments	Functional materials	46,203	39.721	(14.0)	I .6d4	653	(60.7)
         	Sustainable fiber materials	43,007	39,885	(7.3)	(652)	(563)
         	Engineering	2,381	2,718	14.1	(3)	76
         Toinl		91,f9l	82,324	(10.1)	I ,008	1g6	(83.5)
         Adjustment (Note)		(3,190)	(3,301)		(74)	(107)
         Toinl		88,400	79,023	(10.6)	934	58	(93.7)

         (Note) Adjiistment is mainly related to internal transactions.

         From the second quarter of the current consolidated fiscal year onuards, the 'Engineering Biisiness', which was previously incliided under 'Other', has been disclosed as areportable segment due to its increased significance.

         (Functional materials business)

         In the comiuunicahon paper-related pnduct segment, the sales value ofthemial paper increased year on year, driven by the group of POS market share. Sales of carbonless paper and PPC paper were lower than the prexioiis yenr in both voliune and monetary terms. The sales value of reuaiteable media increased from the previous year due to an increase in sales overseas.

         In the ñuaging-related product segment, sales incnsased from the previous year in both volume and monetary terms as the Group captured demand for inkjet printing paper in Europe.

         In the funchonal materials-related product segment, the sales value of glass fiber nonwoven fabric and decorative laminate base paper remained flat yeer on year, reflecting solid demand and piJce revisions. Sales of tape base paper remained solid, and sales value remained unchanged from the previous year Sales of total heat exchanger eleriients increased, primarily in overseas markets. Sales value exceeded that of the previous year. The sales volume of water treatment base materials declined due to intensifying competition in the Chinese market. The sales value of separators for po*er storage dex-ices decreased year on year due to changes in specifications for certain applicahons, whichreflected customer requests.

         In the Group's business in Germany, both volumes and sales ainoiints were lower than the year-apo level, re0ecting sliiggish economies in Germany and across Europe as well as intensified price coiupehhon, aiuonp other factors. To enhance earnings,a volilntary retueiuent program spas intiodiiced as part ofrestructuring efforts.

         As a result, the fiinctional materials business posted lower sales and profits.

         In the co inication paper-related prodiict segment, the Group will continiie to stabilize the production of thermal paper at the Takasago Mill rind expand sales ofthermal paper for applications in the POS market. In the PPC paper segment, the Group w'ill enhance its prodiiction and sales systems to capture large amounts of demand from major mail-order businesses. To promote sales of environmentally friendly products, the Group anus to capture new demand for linerless thermal labels made from thermal paper. Additionally. the Group will focus on stabilizing earnings by expanding transactions ofFSC forest-cerhfiedpaper (PPC).

         The Group aims to increase sales of imaging-related products to existing customers by enhancing the efficiency of the paper finishing system at Kyoto Mill. It will also focus on boosting sales of products designed for large posters, labels and industrial inkjet printing. The Group also plans to actively leverage its overseas business sites to boost sales in emerging countries in Asia and in Europe.

         Functional materials-related products are classified as a product group in a growing sector. The Group will improve production facilities and development systems for these products and integrate them into the sales division to capture increased demand. The Group will introduce the water treatment base materials that it will develop to the market, aiming to capture new demand related to industrial applications and seawater desalination plant applications, which are growth markets. In the separators for power storage device segment, the Group will work to expand sales of auxiliary power applications and automotive electrical applications in the market for capacitors. In the tape base paper segment, the Group aims to boost sales in overseas markets, which are expected to grow. The Group will adapt flexibly to market needs. In the decorative laminate base paper segment, the Group aims to stabilize earnings by improving production efficiency at the Fuji Mill. The consolidation and elimination of brands is being considered. Additionally, the Group will focus on selling sustainable products, including total heat exchanger elements, and super heat-resistant glass fiber nonwoven fabric products, which are new offerings.

         In the business in Germany, the Group aims to enhance its earnings base by implementing business restructuring initiatives, including a voluntary retirement program. In addition, the Group will focus on increasing sales outside of Europe and improve production efficiency to continually increase revenue in the long term.

         (Sustainable fiber materials business)

         In the printing paper segment, despite efforts to maintain product prices and promote replacement with products with higher market demand in Japan where demand generally continues to decline. However, the decrease in domestic demand was offset by an increase in exports. Consequently, sales remained flat from the previous fiscal year in both volume and monetary terms.

         In the wrapping paper market, particularly for bleached kraft paper in Japan, sales volume increased. However, the sales value declined from the same period of the previous fiscal year due to a weaker yen and reduced exports resulting from downturns in Asian markets. Sales quantities of commercial pulp declined due to the adverse effects of the downturn of foreign markets, while product prices remained unchanged in Japan. Sales value also decreased compared to the previous year as the Group prioritized domestic sales over exports to enhance profitability.

         Operations deteriorated due to problems caused by aging equipment at the Hachinohe and Kitakami Mills. As a result, net sales decreased but income increased in the sustainable fiber materials business.

         In the sustainable fiber materials business, the Group will offset the declining domestic demand for printing paper with exports, while maintaining sales volume by expanding wrapping paper and commercial pulp. The Group aims to improve profitability by improving production efficiency and reducing costs.

         In the printing paper segment, the Group will promptly respond to supply and demand trends in Japan and overseas and optimize its production structure while maintaining its efforts to normalize inventory levels. Additionally, the Group will revise product prices. In wrapping paper, the Group plans to capture demand for reduced-or-zero plastic products, which is being driven by the growing awareness of the need for society to be sustainable, and the Group will seek to increase sales of distinctive products that meet customers' needs. Meanwhile, the Group aims to develop emerging markets in Asia that have significant growth potential. The Group will expand its supply system for pulp made exclusively from materials sourced in Japan, which is produced at the Kitakami Mill, and will focus on expanding sales of high value-added products to achieve the continued growth of business. At the Hachinohe and Kitakami Mills, the Group will renovate outdated equipment to ensure stable operations and strengthen the foundation of its business by integrating operations at the mills and sharing personnel to pursue production efficiency and the reduction of costs. In particular, at the Hachinohe Mill, the Group will be conducting intensive equipment inspections and repairs in November to ensure stable operations.

         (Engineering business)

         Net sales stood at 2,718 million yen (up 14.1% year on year), reflecting external construction orders received by construction subsidiaries. Operating profit came to 76 million yen (Operating loss of 3 million yen in the previous fiscal year).

   2. Explanation of Financial Position

      Assets at the end of the first six months under review amounted to 202,617 million yen, down 5,599 million yen from the end of the previous consolidated fiscal year, mainly due to a decrease in accounts receivable - trade and depreciation.

      Liabilities came to 119,906 million yen, down 3,028 million yen from the end of the previous fiscal year, chiefly attributable to decreases in interest-bearing debt, trade payables and income taxes payable.

      Net assets came to 82,711 million yen, down 2,571 million yen from the end of the previous fiscal year, chiefly attributable to a decrease in retained earnings.

      The equity ratio was 40.8%, down 0.1 percentage points from the end of the previous fiscal year.

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

   For full-year consolidated results forecasts, please refer to the "Notice of Differences between Financial Forecasts for the First Half and Actual Results and Notice Regarding Revisions to Financial Forecast for the Fiscal Year Ending March 31,2026" announced today (November 13, 2025).

2. Consolidated Financial Stateiiients

   1. Consolidated Balance Sheets

Assets

Current assets

FY2024 Mar 31,2025

(Million yen) First Half /

FY2025 Sep 30,2025

Liabilities

Current lialnlities

FY2024 Mar 31,2025

(Million yen) First Half /

FY2025 Sep 30,2025