Corporate Report 2021
©WWF ジャパン
Mitsubishi Paper Mills Ltd.
Editorial Policy
Mitsubishi Paper Mills publishes the Mitsubishi Paper Mills Corporate Report, which summarizes financial and non-financial information to provide stakeholders with an understanding of the Group' s overall business activities. In these pages, we report on the Mitsubishi Paper Mills Group's corporate value building activities which seek to bring about a more sustainable society.
- Scope
The companies included are Mitsubishi Paper Mills Limited and its consolidated subsidiaries (18 companies in Japan and 6 companies overseas), as well as its equity-method affiliates (2 companies in Japan and 1 company overseas).
- Reporting Period
The reporting period is fiscal 2021 (April 1, 2020 to March 31, 2021), with some content included from outside this period.
- Guidelines Referenced
ISO26000
GRI's Sustainability Reporting Standards
Environmental Reporting Guidelines (2018 Edition), Ministry of the Environment
- Contact
Mitsubishi Paper Mills Limited
General Affairs & Corporate Communications Group, General Affairs & Personnel Department 2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Phone: +81 3 5600 1487
Facsimile: +81 3 5600 1489
E-mail:csr@mpm.co.jp
- Issued
August 31, 2021 (Previous: August 31, 2020)
- Next Report
Late August 2022
Our Website
The Mitsubishi Paper Mills website provides a range of information on subjects that include CSR and the environment, investor relations, products and services, research and development, basic data on the company, and recruitment.
- CSR / Environment
Corporate reports, CSR reports
https://www.mpm.co.jp/eng/env/report-index.html
- Investor Relations
Annual Business Report
https://www.mpm.co.jp/eng/ir/library/index.html
■ Products & Services
https://www.mpm.co.jp/eng/products/index.html
■ Research & Development
https://www.mpm.co.jp/eng/rd/index.html
"FSCⓇ-Certified Pandaruma," which was developed through the collaboration among WWF Japan, Ichise Co., Ltd., Shirakawa Daruma Sohonpo, and Mitsubishi Paper Mills Ltd.
Table of Contents
To Our Stakeholders
Editorial Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・1 Our Website ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・1 Table of Contents ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2 Message from the President・・・・・・・・・・・・・・・・・・・3 Management Policies・・・・・・・・・・・・・・・・・・・・・・・・・5 Consolidated Financial and Non-FinancialHighlights・・ 7
Special Feature
Business Development from a Long-Term Point of View・・ 9
BusinessActivitiesof
the MitsubishiPaper Mills Group
Overview of Business Segments ・・・・・・・・・・・・・・ 15
Printing Paper Business・・・・・・・・・・・・・・・・・・・・15 Imaging Media Business ・・・・・・・・・・・・・・・・・・・17 Speciality Materials Business ・・・・・・・・・・・・・・・19
Research and Development ・・・・・・・・・・・・・・・・・・21
Initiatives Toward Sustainability
Initiatives Toward Sustainability・・・・・・・・・・・・・・・23 The Way We See Sustainability ・・・・・・・・・・・・・23 Sustainabilit Promotion Structure ・・・・・・・・・・・・23 ESG/ISO 26000 and Initiative of MPM Group ・・24
Key Issues (Material Issues) Concerning CSR Activities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25
Corporate Governance ・・・・・・・・・・・・・・・・・・・・・・ 26 Basic Policy on Corporate Governance ・・・・・・・ 26 Corporate Governance Framework・・・・・・・・・・・26
Board of Directors and Audit & Supervisory
Board Members ・・・・・・・・・・・・・・・・・・・・・・・・27 Outside Directors ・・・・・・・・・・・・・・・・・・・・・ ・・・ 28
Assessments of the Board of Directors
Effectiveness ・・・・・・・・・・・・・・・・・・・・・・・ ・・・ 29 Information Disclosure ・・・・・・・・・・・・・・ ・・・・・・30 Compliance・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・31
Risk Management ・・・・・・・・・・・・・・・・・・ ・・・・・・32
Fair Operating Practices ・・・・・・・・・・・・・・・・・・・・・33 Ensuring Fair Trade・・・・・・・・・・・・・・・・・・・・・・・ 33 Preventing Corruption ・・・・・・・・・・・・・・・・・・・・ 33 Disavowal of Anti-Social Elements ・・・・・・・・・・ 33
Promoting Social Responsibility in the
Value Chain ・・ ・・・・・・・・・・・・・・・・・・・・・・・・・・33 Responsible Raw Material Procurement ・・ ・・・・ 33 Relationship with the Environment・・・・・・・ ・・・・・ 35 Environmental Management System ・・・・・・・・ 35 Chemical Substance Management・・・・・・・・・・35 Preventing Global Warming ・・・・・・・・・・・・・・・ 36 Preserving Biodiversity ・・・・・・・・・・・・・・・・・・・ 37 Effective Use of Materials ・・・・・・・・・・・・・・・・・・ 38 Material Balance・・・・・・・・・・・・・・・・・・・・・・・・・・39 Environmental Indicators ・・・・・・・・・・・・・・ ・・・・ 40 Relationship with Employees ・・・・・・・・・・・・ ・・・・ 41 Occupational Safety and Health Initiatives ・・・・41 Promoting Good Mental and Physical Health ・・ 41
Efforts to Create Comfortable Work Environments・・・・・・・・・・・・・・・・・・・・・・・・・・・42
Relationship with Customers ・・・・・・・・・・・・ ・ ・・・・ 43 Quality Control System ・・・・・・・・・・・・・・・ ・・・・・ 43 Product Safety Control System ・・・・・・・・・ ・・・・・43 Communication with Customers ・・・・・・ ・・・・・ ・44
Encouraging the Worry-Free Use of
Our Products ・・・・・・・・・・・・・・・・・ ・・ ・・・・ ・ ・ 44 Relationship with Communities ・・・・・・・・・・・ ・・・ ・45 Communication with Community Members ・・・・ 45 Philanthropic Expenditures ・・・・・・・・・・・・ ・・・ ・46 Fiscal 2021 CSR Activities ・・・・・・・・・・・・・・ ・・・ ・47 Fiscal 2022 CSR Action Plan・・・・・・・・・・・・ ・・・ ・49
Financial Section | 51 |
Company Profile and Corporate Data | 58 |
History and Main Offices and Mills of the Mitsubishi Paper Mills Group ・・・・・・・・・・・・・・・・・・・・・・ 59
1 | 2 |
Message from the President
Yukihiro Tachifuji
President and
Chief Executive Officer
立藤 幸博
Aims of the Mitsubishi Paper Mills Group
Since its founding in 1898, Mitsubishi Paper Mills has, as "technological Mitsubishi," contributed to the development of information media such as printing, publishing, and photography by developing and providing high value-added products.
In the information society, we are witnessing a rapid shift to a structure that does not require paper media through digitization. Amidst these drastic changes in the management environment, we entered into a capital and business alliance agreement with Oji Holdings Corporation with the aim of achieving sustainable growth and increasing the corporate value of the Mitsubishi Paper Mills Group and, in March 2019, we became an equity method affiliate of Oji Holdings.
Presently, the Mitsubishi Paper Mills Group has upheld and is vigorously engaging in 3 key strategies as part of its New Mid-Term Management Plan (April 2019 to March 2022) whose basic principle is "Strengthening and diversifying the business base for a new stage."
In fiscal 2021, as part of our first key strategy "Establish a robust management base through the alliance with the Oji Group," we integrated the production systems for carbonless paper and determined the transfer of the pressboard business. As part of our second key strategy "Make structural reforms and enrich existing businesses," the control of the printing photosensitive material tasks was transferred to a subsidiary and the subsidiaries for the inkjet business were integrated. Finally, as part of our third key strategy "Diversify the business base by fostering new profit pillars," in addition to the household and consumer paper business and biomass power generation business, which are operated in cooperation with the Oji Group, we set up equipment for manufacturing melt-blownnon-woven fabric, determined the addition of wet non-woven fabric papermaking machine to respond to the healthy demand for base materials for water treatment membrane and the production increase for battery separators, manufactured and sold special-purpose release/casting paper, promoted sales of barricote® and barrisherpa®, which contribute to the reduction of plastics and started the sale of water-repellent,oil-proof paperboard. Additionally, while coping with the spread of the novel coronavirus with anti-virus functional filters and alcohol disinfectants, we earnestly engaged in the transformation of our business portfolio and sowed the seeds towards its next pillar, such as films with added functionality for the electronics field and medical-related products.
Going forward, we will proceed with strengthening and diversifying our business base, and while aiming to further develop the Mitsubishi Paper Mills Group, we will improve corporate value and contribute to society.
We hope for your continued support and encouragement in the future.
3
Mitsubishi Paper Mills Group Corporate Philosophy
A corporate group
that lives up to the trust
of its customers in the world market
A corporate group | A corporate group | |
that contributes | ||
that is always | to preserving | |
on the leading edge | the global environment | |
of technology | and creating | |
a recycling society |
We aim to contribute to society by pursuing the world market,
technological capabilities, and the global environment.
Contribution to SDGs
Through the trust and empathy of all our stakeholders, the Mitsubishi Paper Mills Group is aiming to increase its corporate value and contribute to the solutions to social issues, and is conducting unique activities for various challenges by utilizing the Group's business domains and management resources.
In recent years, there have been demands to apply the sustainable development goals (SDGs) to management in corporate activities. We were one of the first to produce and sell FSC®-certified paper, which contributes to the attainment of SDGs. Furthermore, we are also marketing packaging paper for a variety of food products as well as paper straws in order to reduce or eliminate plastic usage. Additionally, we established the "Mitsubishi Paper Mills Group Environment Vision 2050" in March 2021 in order to contribute to the realization of a decarbonized or carbon-neutral society. We will continue to make efforts to realize a sustainable society through our businesses.
In fiscal 2020, we worked on "Enhancing activities to ensure safety and health" and "Product development centered on harmony with society" as the two top priority issues. For fiscal 2021, considering the Mitsubishi Paper Mills Group's business environment, conditions and performance evaluation results of the previous fiscal year, we have established "Product development centered on harmony with society," "Enhancing activities to ensure safety and health" and "Ensuring product quality" as the three top priority issues. "Product development centered on harmony with society" is based on the idea of the SDGs, and aligns with "Diversifying the business base by fostering new profit pillars," which is one of the key strategies of the current New Mid-Term Management Plan. We will continue to work to develop new products that will pave the way to realizing a sustainable society. At the same time, with a renewed appreciation of the fact that "Enhancing activities to ensure safety and health" and "Ensuring product quality" undergird the Group's business, we go back to our corporate philosophy and step up our efforts.
FSC® C021528
4
Management Policies
New Mid-Term Management Plan (FY2020 - FY2022)
Since April 2019, with "Strengthening and diversifying the business base for a new stage" as our basic principle, we have been taking initiatives under a New Mid-Term Management Plan, which aims to achieve sound and sustainable growth and maximize corporate value over the medium- to long-term. There was a sudden change in the business environment in the second year, that is fiscal 2020, due to the spread of the novel coronavirus, and it significantly impacted our businesses in the printing and communication paper field and the imaging field. In a New Mid-Term Management Plan, the following three key strategies are established:
- Establish a robust management base through the alliance with the Oji Group;
- Make structural reforms and enrich existing business; and
- Diversify the business base by fostering new profit pillars.
We are aiming for a shift away from the conventional business structure based on printing and communication paper and the strengthening and diversification of our business foundation. We believe there is a need to further accelerate this change.
Status of initiatives for priority strategies
- Establish a robust management base through the alliance with the Oji Group
- Centralization of the Carbonless Paper Business
In November 2019, it was agreed to transfer the carbonless paper production and sales business of Oji Imaging Media Co., Ltd. to Mitsubishi Paper Mills, and the business was officially transferred in July 2020 after adjustment of the sales network. We will expand market share and improve profitability through enhanced productivity. We will aim for at least a 35% share of the domestic market going forward.
- Transfer of the Pressboard Business
In August 2020, we integrated our production systems for electrical insulation paper pressboard in Oji F-Tex Co., Ltd. and determined the transfer of the right of business (excluding the heat insulated pressboard business) to it. By integrating production systems in the Nakatsu factory of Oji F-Tex, which is superior in production capacity, we will increase earnings (scheduled to be implemented in October 2021).
- Household and Consumer Paper Joint Venture
MPM Oji Home Products Co., Ltd., which engages in the household and consumer paper business, began commercial operation in April 2019. Amid robust demand for household and consumer paper, MPM Oji Home Products is using the Tohoku region where the brand is already established as a foundation to expand into Tokyo and other areas of the Kanto region. In fiscal 2021, we enhanced our product lineup by releasing twice volume toilet paper, kitchen towels, hand towels, an alcohol-free version of anti-bacterial wet wipes in addition to the alcohol-added version.
Anti-bacterial wet wipes
(Alcoholic type)
Twice volume toilet paper | Kitchen towel | Hand towel |
(Above: Pillow type) | ||
(Below: Box type) |
Anti-bacterial wet wipes (Non-alcoholic type)
- Restructuring and enhancing existing businesses
- Merger of Group Companies
(Reorganization of the Printing Photosensitive Material Business)
In June 2020, Diamic Co., Ltd. (surviving company) and Pictorico Co., Ltd. were integrated and the printing photosensitive material business of Mitsubishi Paper Mills was transferred to Diamic Co., Ltd. Overlapping and common operations will be optimized for the printing photosensitive material business and efforts will be made toward comprehensive business stability based on the maintenance of domestic business and business expansion in the Asian region. In the inkjet business, we will enhance the Pictorico brand, which was cultivated in the high-quality photography paper and photography output business aimed at professionals and advanced amateurs, and mutually cooperate in the fields of proofs, plate making and posters, thus expanding overall sales.
- Reorganization of the Research and Development Base
In January 2020, we established the Research and Development Division, which oversees all the R&D divisions that had previously been under the umbrella of the business departments, creating an environment in which we can flexibly develop new products, provide technical support, and optimize human resources across all businesses. Under this system, we achieved results by formulating key research themes based on management challenges and by optimizing the allocation of research resources. Additionally, we are also focusing on the creation of future-oriented research themes.
Further, in order to accelerate development and ensure contribution to earnings, we reformed the development implementation system and closed the Tsukuba R&D Laboratory, which was located far away from the manufacturing site, and established the Takasago R&D Laboratory inside the Takasago Mill, which is related to major research themes. We also transferred some of the research themes related to the Kyoto Mill to the Kyoto R&D Laboratory. At the same time, analysis operations, which existed in both Tsukuba and Kyoto, will be integrated into the Kyoto R&D Laboratory and strategically operated as an organization under the direct control of the Research and Development Division.
- Diversify the business base by fostering new profit pillars
- Expand in Non-woven Fabric Growth Sectors
At the Takasago Mill, we will install new melt-blownnon-woven fabric manufacturing equipment and add more wet non-woven fabric papermaking machines. In the field of speciality materials, we will develop high-performance functional filter materials and aim to expand its business, while taking steps to expand businesses with healthy demand, such as the businesses of water treatment membrane support substrates and battery separators.
We also relocated our filter business base from Yashio City, Saitama Prefecture to the Takasago Mill and transferred our R&D functions to the newly established Takasago R&D Laboratory in the same mill. The Takasago site was established as the base for comprehensive development and production of the Speciality Materials Business, and we continue to expand this business.
- Environmentally Friendly Products
We are enhancing the lineup of environment-friendly products. In addition to barricote® and barrisherpa®, which are the plasticless packaging papers with high biodegradability and recyclability released in May 2020, we launched water-repellent,oil-proof paperboard with greatly improved water and oil resistance and anti-bacterial kraft paper with anti-bacterial properties.
- Special-purposeRelease/Casting Paper
At Kitakami HiTec Paper Corporation, manufacturing equipment for special-purpose release/casting paper, which has been remodeled from existing equipment, has begun operation and new businesses other than the photographic base paper business have started.
- Electronic Industrial Materials
With the full-scale operation of the new coater at the Kyoto Mill, we are expanding the profitability of functional films, such as photosensitive resists for electronic industrial materials.
5 | FSC® C021528 | 6 |
Consolidated Financial and Non-Financial Highlights
The fiscal year runs from April 1 to March 31. | |||||
Fiscal Year | 2017 | 2018 | 2019 | 2020 | 2021 |
Profit and loss situation (millions of yen): | |||||
Net Sales | 201,955 | 201,492 | 203,997 | 194,575 | 162,325 |
Operating Income | 4,313 | 1,790 | △40 | 1,976 | △1,770 |
Ordinary Income | 2,703 | 652 | △914 | 2,696 | △636 |
Profit Attributable to Owners of Parent | 1,152 | 3,198 | 351 | 801 | △2,532 |
Capital Investment | 5,995 | 7,438 | 12,481 | 5,524 | 6,422 |
Cash flow situation (millions of yen): | 19,839 | 12,809 | 19,066 | 9,976 | 13,014 |
Cash Flows from Operating Activities | |||||
Cash Flows from Investing Activities | △7,070 | △5,994 | △8,979 | △6,571 | △2,098 |
(millions of yen) | Net Sales |
300,000 |
250,000 | ||||
201,955 | 201,492 | 203,997 | 194,575 | |
200,000 | ||||
162,325 | ||||
150,000 | ||||
100,000 | ||||
50,000 | ||||
0 | ||||
2017 | 2018 | 2019 | 2020 | 2021 |
(FY) |
(millions of yen) | Operating Income | ||||
5,000 | 4,313 | ||||
4,000 | |||||
3,000 | |||||
2,000 | 1,790 | 1,976 | |||
1,000 | |||||
0 | △40 | △1,770 | |||
2017 | 2018 | 2019 | 2020 | 2021 | |
△1,000 | (FY) | ||||
△2,000 | |||||
△3,000 |
Financial Position (100 millions of yen): | 2,349 | 2,374 | 2,328 | 2,122 | 2,094 |
Total Assets | |||||
Outstanding Interest-bearing Debt | 1,257 | 1,193 | 1,046 | 1,019 | 979 |
Equity Capital | 544 | 597 | 664 | 605 | 629 |
Per Share Information※1 (yen): | 33.72 | 93.57 | 10.04 | 17.96 | △56.72 |
Earnings per Share (EPS) | |||||
Book Value per Share (BPS) | 1,591.00 | 1,747.54 | 1,485.64 | 1,355.27 | 1,408.45 |
Management Indicators: | 2.1 | 0.9 | △0.0 | 1.0 | △1.1 |
Operating Income Margin (%) | |||||
Overseas Sales Ratio (%) | 30 | 32 | 35 | 33 | 29 |
Equity Ratio (%) | 23.2 | 25.2 | 28.5 | 28.5 | 30.0 |
Return on Equity (ROE) (%)※2 | 2.2 | 5.6 | 0.6 | 1.3 | △4.1 |
Debt-Equity Ratio (D/E Ratio)※3 | 2.3 | 2.0 | 1.6 | 1.7 | 1.6 |
EBITDA (millions of yen) | 14,768 | 12,264 | 10,076 | 11,801 | 7,261 |
Outstanding Interest-bearing Debt and D/E Ratio | Equity Capital & ROE |
Outstanding Interest-bearing Debt | Equity Capital | ||||||||||||||||
(100 millions of yen) | D/E Ratio | (100 millions of yen) | ROE(%) | ||||||||||||||
2,000 | 3.0 | 700 | 5.6 | 7.0 | |||||||||||||
664 | |||||||||||||||||
2.8 | ● | 5.0 | |||||||||||||||
650 | |||||||||||||||||
2.2 | 629 | ||||||||||||||||
1,500 | 2.6 | 3.0 | |||||||||||||||
605 | |||||||||||||||||
● | 597 | ||||||||||||||||
1,257 | 600 | ||||||||||||||||
1,193 | 2.4 | ● | 1.3 | 1.0 | |||||||||||||
● | 0.6 | ||||||||||||||||
● | 2.3 | 1,046 | 1,019 | 979 | 2.2 | 550 | 544 | -1.0 | |||||||||
1,000 | |||||||||||||||||
● | 2.0 | 2.0 | 500 | ● | -3.0 | ||||||||||||
-4.1 | |||||||||||||||||
1.8 | |||||||||||||||||
500 | 1.7 | -5.0 | |||||||||||||||
● | ● | 1.6 | 450 | -7.0 | |||||||||||||
● | 1.6 | 1.6 | |||||||||||||||
0 | 1.4 | 400 | -9.0 | ||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||
(FY) | ROE | (FY) | |||||||||||||||
Outstanding Interest-bearing Debt | ● | D/E Ratio | Equity Capital | ● |
Number of intellectual property rights | Greenhouse Gas Emissions and Emissions Intensity | ||
Emissions | Emission Intensity | ||
(cases) | (1,000 tons) | (tons/product tons) | |
2,500 | 1,400 | ● | 1.500 |
Non-financial information:
Number of employees※4 (persons)
Number of intellectual property rights (cases) Industrial Waste Effective Utilization Ratio※5(%) Greenhouse Gas Emissions (1,000 tons)
Greenhouse Gas Emissions Emission Intensity (tons / product tons)
3,734 | 3,723 | 3,668 | 3,676 | 3,579 | |
1,639 | 1,655 | 1,691 | 1,588 | ※6 | 1,521 |
94 | 96 | 96 | 95 | 95 | |
1,065 | 1,095 | 1,037 | 958 | 897 | |
1.155 | 1.160 | 1.155 | 1.185 | 1.423 |
1,300 | 1.423 | |||||||||
2,000 | ● | ● | 1.200 | |||||||
● | ● | |||||||||
1,639 | 1,655 | 1,691 | ※6 | 1.155 | 1.160 | 1.155 | 1.185 | |||
1,588 | 1,521 | 1,200 | ||||||||
0.900 | ||||||||||
1,500 | 1,095 | |||||||||
1,100 | 1,065 | |||||||||
1,037 | ||||||||||
1,000 | 0.600 | |||||||||
1,000 | ||||||||||
958 | ||||||||||
※1 As of October 1, 2016, we conducted a reverse stock split at a ratio of 1 share for every 10 shares of common stock. The calculation is based
on the assumption that the reverse stock split was carried out at the beginning of FY2017. | ||
※2 Return on equity (ROE) = Profit attributable to owners of parent/(net assets - non-controlling interest) | ||
※3 Debt-to-equity ratio (D / E ratio) = Interest-bearing debt / equity capital | ||
※4 | The number of employees is working personnel and does not include the number of temporary employees. | |
※5 | Effective utilization rate of industrial waste = (amount generated-final disposal amount) / amount generated | |
7 | ※6 | In the continuous maintenance of intellectual property, we have been intensively taking inventory of patents since 2019. As a result, the number |
of holdings has decreased. |
500 | 900 | 897 | 0.300 | |||||||||||||
0 | 800 | 0.000 | ||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||
(FY) | (FY) | |||||||||||||||
Emissions | ● | Emission Intensity | 8 | |||||||||||||
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Mitsubishi Paper Mills Ltd. published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 15:53:09 UTC.