Mitsubishi Paper Mills (3864) investor relations material

Executive summary

• Net sales declined 10.5% year-over-year to 157,455 million yen, with operating profit dropping 94.2% to 264 million yen and profit attributable to owners of parent down 56.2% to 1,900 million yen.

• The company implemented a new Medium-term Management Plan focused on technological sophistication, environmental initiatives, and governance reforms.

• Structural reforms included business restructuring in Germany, equipment consolidation, and the launch of major transformation projects at key mills.

• The company faced challenges from raw material costs, equipment aging, and an earthquake, but benefited from cost reductions and gains on sales of policy-held shares.

Financial highlights

• Gross profit fell to 20,244 million yen from 25,162 million yen year-over-year.

• Ordinary profit decreased 62.2% to 1,720 million yen.

• Comprehensive income rebounded to 18,629 million yen from a loss of 5,235 million yen, mainly due to remeasurements of defined benefit plans.

• Cash and cash equivalents at year-end were 4,895 million yen, down from 6,239 million yen.

Outlook and guidance

• FY2027 forecast: net sales of 175,000 million yen (+11.1%), operating profit of 6,000 million yen, ordinary profit of 6,000 million yen, and profit attributable to owners of parent of 6,500 million yen.

• Annual dividend for next fiscal year planned at 20 yen per share.