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

Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 2026 (unaudited)

Febnu y15,2O26

Company name:

Representative: Contact: Phone:

Mitsubishi Paper Mills Limited (Code No.3864 Tokyo Stock Exchange)

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

Ryuichi Kisaka, President and Chief Executive OfRcer

Daisuke Yamada. General Manager, Strategy Planning Division

-F81-3-5600-I488

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

1. Results for the Third Quarter of the Year Ending March 31, 2026 (April 1, 2025 -December 31, 2025)

Net sales

Operating profit

Ordinary profit Profit attributable to

owners of parent

1. Consolidated Operating Results (No indicates changes from the previous corresponding period.)

   Pirst Nine Months of PY2025		117,761	(11.2)	(1,090)	-	205 (92.4)	(2,047)	-
   Pirst Nine Months of PY2024	|	132,655	(8.3)	2,413	(16.3)	2,704 (37.6)	2,401	-
   Note: Comprehensive income	First Nine Months ofFY2025 First Nine Months ofFY2024			Y(2,070) nulhon ¥641 milhon

   Diluted profit per

   Pirst Nine Months ofPY2025

   Pirst Nine Months of PY2024

   (46.71)

   54.81

   
   
   

   Total assets

   Net assets

   Shareholders'

   
   
   

2. Consolidated Financial Condition

Note : Revision to the forecast for dividends announced most recently . . . None

1. Consohdated Financial Results Forecast for the Fiscal Year Ending Morch 31, 2026

   (April 1, 2025 to March 31, 2026)

   (P« indicates changes from the previoiu corresponding period.)

   Net sales

   Profit attributable to

   160,000 (9. 1)

   2,000 (56.2)

   3,500 (23.0)

   1,500 (65.5) 34.22

   
   
   

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

2. 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 Nine Months of FY2025

         FY2024

         44,741,433 shares

         44,741,433 shares

      2. Total number of treasury shares at the end of the period:

         First Nine Months of FY2025

         FY2024

         933,077 shares

         911,368 shares

      3. Average number of shares during the period:

First Nine Months of FY2025 First Nine Months of FY2024

43,833,092 shares

43,817,024 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)".

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• 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 Quarterly 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

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Operations Results

During the nine months ended December 31, 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. The Company has begun renovating the Kyoto R&D Center to strengthen its innovation base and enhance its research and development capabilities.

   The Group aims 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, and to boost revenue in its functional materials business. 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. 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.

   After ceasing the operation of the N1 paper milling machine at the Kitakami Mill, the Group focuses on high-efficiency production machinery to reduce fixed costs, improve production efficiency, and enhance profitability in sustainable fiber materials business. The Hachinohe Mill has launched the Reborn60 Hachinohe project.

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. 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 and seeks to enhance its human capital and organizational capabilities.

After reflecting on the improper quality management of heat resistant electrically insulated pressboard products, management has been visiting production facilities and subsidiaries to conduct briefings to increase awareness of the importance of quality management and compliance.

On November 28, 2025, the Company announced that its system was accessed without authorization. After the incident was discovered on August 29, the Company promptly took measures to prevent damage and hired external experts to investigate the matter. Personal information of officers, employees, and former employees has been identified as having been leaked or at risk of being leaked, but this incident has not impacted the Company's business operations. To strengthen information security, the Company

－2－

will work with extern.al experts to implement additional measures to prevent future incidents.

In Apial 2026. the Company willmove certain head office fiuictions (the Planning and Management Division) to the premises of the Kyoto Mill. The Kyoto Mill will be an innox-ation hub where research and dex-elopment. production. planning. and management huictions are integrated. It will play a central role in advancing fiittire reforms.

fi.onsolidatednet sales ainoiuited to 11.7.761million yen (down 11.2% year on year) in the first nine months under rex-ieiv.

On the profitability side. the Company recorded a consolidated operatmp loss of 1.090 million yen (compared with a consolidated operating profit of 2.413 million yen in the prm-ioiis fiscal year) and a consolidated ordinary profit of 205 million yen (down 92.4%). These results are primarily attributable to losses due to the earthquake that struck off the east coast ofAoinoia Prefechire on December

8. 2025. issues caused by apinp equipment. and a decrease in sales x-oliimes m the business in Geiniany. Some of these losses were partially offset by lower ran' material and fiiel costs and by cost reductions m the German business. The loss attributable to owners of parent was 2.047 million yen. reflectmg expenses related to stnichiral reforms in the German business recorded during the second quarter. among other factors.

Operating results by segment are as follows:

Due to its increased significance. the Engineering Business is disclosed as a reportable ses'ment starting from the second quarter of the current consolidated fiscal year. It was prex-ioiisly included iuider Other.

(million ven)

(Note) Adjustment is mainly related to inteinal transactions.

(Functional materials business)

In domestic operations. the sales valiie of thermal paper ii the coinimuiicationpaper-related prodiict segment remained flat from the prex-ioiis year. Sales of carbonless paper and copy paper were lower than the previoiis year ii both volume and monetary teinis. The sales x-aliie of rewritable media declined from the prm-ioiis year dire to a decrease m domestic demand. even though demand ii Clnna recovered.

In the imagine-related prodiict segment. the sales value mcreased from the prexsous year as the Group caphired demand in Europe. Additionally. domestic demand was solid.

In the functional materials-related product segment. the sales value mcreased from the previous year. driven by strong sales of nomvoven fabric for biiilding materials and decorative laminate base paper. The sales x-aliie of total heat exchanger elements increased from the prex-ious year. diaven by stronp sales of products designed for use inNorth American condonGiiims.

Sales of water treatment membrane support substrate declined from the prex-ious fiscal year due to intensifying competition in the fi liinese market. resulting m lower sales x-oliimes. The sales value of separators for condenseix. which the Group is actively promoting. increased year on year as the Gioiip captured ox-erseas demand. Hoivex-er. the overall sales x-aliie of separators for enerpy storage dex-ices decreased due to changes m specifications for certain applications. resiiltme ii a temporary drop in demand.

In the Group's biisiness in Geiniany. monthly profits liax-e buried positive due to the inpact of business restixiciiiiine initiatix-es. However. both the x-oliime of sales and sales ainoiuits were lower than they were a year ago. primarily due to the onpoinp slimgidi economy and intensified price competition.

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