Mitsubishi Paper Mills : Summary of Consolidated Financial Results for the Six Months Ended September 30,2017(unaudited)

November 10, 2017

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2017 (unaudited)

Company name: Mitsubishi Paper Mills Limited Stock exchange listing: Tokyo Stock Exchange Code number: 3864

URL: http://www.mpm.co.jp/

Representative: Kunio Suzuki, President and Chief Executive Officer Contact: Hironori Oikawa, General Manager, Finance & Accounting Dept.

Phone: [phone]

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

1. Consolidated Financial Results for the Six Months Ended September 30, 2017 (April 1, 2017 to September 30, 2017)

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

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent
   Six months ended September 30, 2017 September 30, 2016	Million yen % 99,415 (1.0) 100,375 (6.2)	Million yen % 303 (84.7) 1,980 233.1	Million yen % 313 (37.4) 500 310.1	Million yen % (418) - (294) -

   (Note) Comprehensive income: Six months ended September 30, 2017: ¥(20) million [-%]

   Six months ended September 30, 2016: ¥(1,122) million [-%]

   Earnings per share	Diluted earnings per share
   Six months ended	Yen	Yen
   September 30, 2017	(12.23)	-
   September 30, 2016	(8.61)	-

   * The Company conducted a reverse stock split to consolidate every ten shares of common stock into one share on October 1, 2016. Earnings per share are calculated assuming that the reverse stock split was conducted at the beginning of the previous consolidated fiscal year.

3. Consolidated Financial Condition

4. Total assets	Net assets	Equity ratio
   As of September 30, 2017	Million yen	Million yen	%
   	237,641	56,579	22.9
   As of March 31, 2017	235,869	56,631	23.1

   (Reference) Equity: As of September 30, 2017: ¥54,395 million

   As of March 31, 2017: ¥54,383 million

5. Dividends

   Annual dividends
   1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2017 Fiscal year ending March 31, 2018	Yen - -	Yen 0.00 0.00	Yen -	Yen 0.00	Yen 0.00
   Fiscal year ending March 31, 2018 (Forecast)	-	-	-

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

   Year-end dividend for Fiscal year ending March 31, 2018 has yet to be determined.

6. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)

7. (% indicates changes from the previous corresponding period.)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Earnings per share
   Full year	Million yen % 203,000 0.5	Million yen % 3,000 (30.5)	Million yen % 2,500 (7.5)	Million yen % 1,500 30.1	Yen 43.88

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

   * Notes:

8. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None

   New: - (Company name); Excluded: - (Company name)

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

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

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

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

13. Changes in accounting estimates: None

14. Retrospective restatement: None

15. Total number of issued shares (common shares)

16. Total number of issued shares at the end of the period (including treasury shares): September 30, 2017: 34,258,433 shares

    March 31, 2017: 34,258,433 shares

17. Total number of treasury shares at the end of the period: September 30, 2017: 77,326 shares

    March 31, 2017: 76,185 shares

18. Average number of shares during the period:

19. Six months ended September 30, 2017: 34,181,641 shares

    Six months ended September 30, 2016: 34,184,762 shares

    * The Company conducted a reverse stock split to consolidate every ten shares of common stock into one share on October 1, 2016. Average number of shares for six months ended September 30, 2016 is calculated assuming that the reverse stock split was conducted at the beginning of the previous consolidated fiscal year.

    • This quarterly financial results report is exempt from quarterly review.

    • 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.

    Quarterly Consolidated Financial Statements

    (1) Quarterly Consolidated Balance Sheets

    (Million yen)

    Current assets

    Assets

    As of March 31, 2017 As of September 30, 2017

    Cash and deposits	10,840	11,005
    Notes and accounts receivable - trade	46,291	45,883
    Merchandise and finished goods	24,756	25,760
    Work in process	6,541	6,793
    Raw materials and supplies	10,108	10,383
    Other	5,475	6,297
    Allowance for doubtful accounts	(216)	(189)
    Total current assets	103,797	105,935

    Non-current assets

    Property, plant and equipment

    Buildings and structures, net	27,089	26,232
    Machinery, equipment and vehicles, net	51,642	49,788
    Land	22,068	22,083
    Construction in progress	676	1,104
    Other, net	2,586	2,565
    Total property, plant and equipment	104,064	101,774
    Intangible assets
    Other	291	1,521
    Total intangible assets	291	1,521
    Investments and other assets
    Investment securities	23,001	23,655
    Other	4,814	4,810
    Allowance for doubtful accounts	(99)	(55)
    Total investments and other assets	27,716	28,410
    Total non-current assets	132,071	131,706
    Total assets	235,869	237,641

    Current liabilities

    (Million yen)

    Liabilities

    As of March 31, 2017 As of September 30, 2017

    Notes and accounts payable - trade	24,556	28,438
    Short-term loans payable	68,264	68,003
    Income taxes payable	399	365
    Other	14,155	15,202
    Total current liabilities	107,376	112,009
    Non-current liabilities
    Long-term loans payable	57,570	53,945
    Reserve for loss on dissolution of employee's fund	143	143
    Net defined benefit liability	8,949	9,205
    Asset retirement obligations	888	888
    Other	4,310	4,868
    Total non-current liabilities	71,862	69,052
    Total liabilities	179,238	181,061
    Net assets
    Shareholders' equity
    Capital stock	32,756	32,756
    Capital surplus	7,438	6,271
    Retained earnings	8,599	9,349
    Treasury shares	(147)	(148)
    Total shareholders' equity	48,647	48,228
    Accumulated other comprehensive income
    Valuation difference on available-for-sale securities	5,506	6,254
    Foreign currency translation adjustment	1,245	1,215
    Remeasurements of defined benefit plans	(1,015)	(1,302)
    Total accumulated other comprehensive income	5,736	6,167
    Non-controlling interests	2,247	2,184
    Total net assets	56,631	56,579
    Total liabilities and net assets	235,869	237,641