May 12, 2008
Company name:

Mitsubishi Materials Corporation

Representative’s:

Akihiko Ide, President(Securities Code No.: 5711 First Section of the Tokyo Stock
Exchange and Osaka Securities Exchange)
Contact:

Toru Suzuki, Deputy General Manager,
Corporate Communications and IR Dept.
(TEL:+81-3-5252-5206)

Status of Progress of Medium-Term Management Plan
“Break-through 1000” (fiscal 2008-2010) and Future Forecast
Mitsubishi Materials Group (the “Group”) started its medium-term management plan (fiscal2008-2010; the “Breakthrough 1000”) in April of last year, and has been putting into practicefull-bore operational management centered on four core businesses with different business models.
In fiscal 2008, the first year of the period, each of these businesses was favorably on track, and thecollective efforts of the Group bore fruit as results for consolidated ordinary income achieved an
all-time-high. This year and hereafter as well, the Group will work to achieve “Break-Through1000” through strategic investment and the reinforcement and expansion of drivers of growth in eachbusiness to improve our corporate value, oriented to “Advancement and Change.”
Based on our current situation, we reexamined our numerical targets for fiscal 2010, and wehereby notify you of our present status of progress.
1. About “Break-Through 1000”
During “Break-through 1000,” such management policies as “take a Decisive Lead in Our Core
Business,” “Value Professionalism Highly,” and “Share of Sense of Achievements” will bepursued, and in the meantime, we will achieve “Advancement and Change” through thereinforcement of our intrinsic strength, to pursue sustainable earnings in the following years at alevel of more than ¥100 billion.
2. Status of Progress in fiscal 2008 through 2009
In fiscal 2008, the price of copper stayed high, and in addition, our four core businesses grew inthe three growth fields of “automobiles, IT and recycling,” and, as a result our consolidated
ordinary income reached an all-time-high.
In fiscal 2009, deterioration of the business environment is predicted, including price increases
for coal, deterioration of conditions of copper ore trade and concern about a slowdown of theworld economy originating in the US Subprime mortgage loan crisis. However, through efforts at
sustainable growth of each business such as domestic price increases for the cement business, andfor the copper business through reinforcement of the downstream copper processing business, wewill aim at achievement of ¥100 billion in consolidated ordinary income.

(Companywide Targets)[Publicly announced
target in March 2007]

Consolidated ordinary income
ROA (ratio of ordinary income
to total assets)
Debt-to-equity ratio

FY 2008

FY 2009

FY 2010135.9 billion

100.0 billion

7.5%

5.3%

Greater than 5%

1.5 times

1.5 times

1.4 times

More than
100.0 billion

3. Future outlook
In fiscal 2008, as a strategic move for medium-to-long term business growth of the four corebusinesses, the Group has decided on capital investments for expansion and reinforcement of thegrowth drivers in each business, such as converting Robertson Lady Mix into a consolidated
subsidiary for reinforcement of the US cement business, converting two copper alloy companies
into wholly-owned subsidiaries and the new establishment of Mitsubishi Shindoh Co, Ltd.,
investment for reinforcement of the business infrastructure of the carbide insert business and a1000 ton increase in production of polycrystalline silicon. Since we accelerated investment for
medium-to-long term growth, the total invested over the three years of “Break-Through 1000”
will increase from ¥250 billion to ¥410 billion. Because of this, although a part of the businessenvironment is predicted to worsen, concerning the goal of consolidated ordinary income ofgreater than ¥100 billion, it is now predicted that we will achieve a profit level of over ¥110billion. Meanwhile, as to the debt-to-equity ratio, as large scale investment opportunities arose
simultaneously, we will modify the goal for fiscal 2010 from 1.4 times to 1.5 times, and throughreexamination of the business portfolio, etc., we will continue to strive for improvement of ourfinancial strength.
[Publicly announcedtarget in March 2007]

FY 2010
Consolidated ordinary income
ROA (ratio of ordinary income
to total assets)
Debt-to-equity ratio[Target after reexamination]

Modified target for
FY 2010More thanMore than

100.0 billion

110.0 billion

Greater than 5%

Greater than 5%

1.4 times

1.5 times