FY2024-2026

Third Medium-Term
Management Plan
Securities Code: 1515
May 13, 2024

I would like to explain our medium-term management plan (MTMP).

Third Medium-Term Management Plan Contents
Summary
Review of Second Medium-Term Management Plan (FY2021-FY2023)
Long-Term Vision and Basic Policies under Third Medium-Term Management Plan

Financial Indicators and Medium- To Long-Term Management Targets

Strategies by Business Segment
Sustainability
Capital Allocation
Management Conscious of Cost of Capital and Share Price
Shareholder Returns Policy
Appendix

P 3
P 4
P 7
P 8
P10
P22
P23
P24
P27
P29

Summary

Review of Second
Medium-Term
Management Plan

Third Medium-Term
Management Plan

Initiatives forManagement
Conscious of Cost of
Capital and Share
Price

Earnings were strong for all business segments. With a weakening yen and rising copper prices
also contributing substantially, ROA (operating profit) and the equity ratio both achieved thetargets
For large-scale investments (third vertical shaft at Torigatayama Quarry Complex, new mining area
at Hachinohe Mine, development at the Arqueros Mine), progress is steady despite some delays
For our financial situation, borrowings are to increase sharply due to funding for the developmentof the Arqueros Mine
For our business results, profits are to be weighed down by depreciation costs arising from thestart of operations for the third vertical shaft of the Torigatayama Quarry Complex
In FY2026, the final year of the Medium-Term Management Plan, operations are to start at theArqueros Mine, providing a full-fledged contribution to earnings improvement from the period of
the Fourth Medium-Term Management Plan and beyond
We have introduced ROIC as a management indicator and aim for its uptake and instilment not justby individual business segments but also at the level of individual business sites, so as to achieve a
better business portfolio
As part of initiatives for management conscious of cost of capital and share price, we are striving for
P/B ratio of 1.0x by lowering cost of equity and enhancing IR activities
For shareholder returns, we implement dividend payments targeting a consolidated payout ratio of40%
If the P/B ratio is under 1.0x as of the end of the fiscal year, the lower limit dividend value will be
3% of market price-based DOE, and if the P/B ratio is 1.0x or higher as of the end of the fiscal year,
the lower limit dividend value will be 3% of DOE
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

3

Review of Second Medium-Term Management Plan (FY2021-FY2023) (1)
Steadily implement large-scale investments, aim to acquire resources for sustainable growthfor full-scale operations of the third vertical shaft at
1 Aim
Torigatayama Quarry Complex (limestone) in FY2023

Targets

Full-scale operations are scheduled to commence from June 2024, one year
later than originally planned, due to delayed civil engineering work and typhoon
recovery construction

2

Proceed with the ongoing development of the newarea of Hachinohe Mine, aiming for full-scale
operations in the next medium-term management plan
periodCommenced some production in July 2021
Stripping and other work are progressing smoothly, and river rerouting is underway
Full-scale extraction is scheduled to commence from FY2026

3

Proceed with the development at the Arqueros Mine,
which is in its preparation stage, aiming for full-scale
operation in the next medium-term management plan
period (FY2024-FY2026)

Despite impacts such as the COVID-19 pandemic and delayed environmental
approval, the decision to start development was finalized in April 2023, and we
aim for operations to begin in FY2026

Allocate management resources in response to demand trends in Japan and overseas

Targets

1

Improve value of mineral resources(incl. price increase)

Negotiated with customers about production costs and stable supply
With inflation also progressing, yielded some benefits

2

Maintain the stability of domestic supply andexpand exports overseas

No protracted operating stoppages or other troubles
Secured share in export markets and acquired new customers

3

Identify growth fields and develop demand

Despite progress with some projects and launches of new projects, these failed
to contribute to earnings during the period of the Second Medium-termManagement Plan

4

Balance SDGs initiatives with business activities

Announced endorsement of TCFD recommendations in June 2022
Installing renewable energy power generation facilities for own consumption
Using FIT Non-Fossil Certificates with tracking for our FIT solar power plants to effectively
shift to renewable energy for some purchased electricity for the Torigatayama Quarry
Complex
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

First, I would like to review of the second MTMP.
In that plan, we established the basic policy: (1) to steadily implement largescale investments, aiming to acquire resources for sustainable growth, and(2) to allocate management resources in response to demand trends in Japanand overseas. Based on this, we proceeded with large-scale investments
including the construction of the third vertical shaft at the Torigatayama
Quarry Complex, the development of the new mining area of the Hachinohe
Mine, and the development at the Arqueros Mine.
The investments are proceeding steadily despite some delays in certain
projects due mainly to natural disasters and the spread of COVIT-19.
Regarding the construction at Torigatayama (limestone), we have invested
seven years in the project since November 2017, with the planned launch ofoperations scheduled for June 2024. The investment with the aim ofmaintaining production volume rather than increasing it, it is inevitable for
Torigatayama, a producer of high-grade limestone with the largest volume
domestically, to ensure sustainable supply.
About the development of the Arqueros Mine, anticipated to be the second4copper production site following the Atacama Kozan at chile, we acquired theinterests in October 2017 and has proceeded with the development stage
despite taking longer than expected to acquire environmental license due
partially to the temporary suspension of the authorities review amid COVIT-19.
At HACHINOHE MINING Co., Ltd., one of our subsidiaries, it has advanced
initiatives to develop the new mining area in order to increase limestone
reserves. The development is proceeding on schedule, with partial production
launch from July 2021.

Review of Second Medium-Term Management Plan (FY2021-FY2023) (2)Progress with Medium-Term
Management Plan Targets
20%
15%

Operating Profit and EBITDA（Times）

1.00

0.81

0.77

0.76
0.75

10.5%
10%
5%

8.3%
8.1%

6.7%

6.7%

5.1%

0%

0.50
0.25
0.00

FY2021

FY2022

FY2023Operating margin
ROA (operating profit)
Total capital turnover（Billions of yen）

25

21.1

20
15

15.2

10
5

19.1

17.1

14.8

15.4

FY2023

FY2023Operatingmargin6% or more

6.7%

Total capitalturnover0.7 or more

0.76

4% or more

5.1%

57.5% or
more

61.3%

Target

15.7

13.6

9.4

9.0

FY2021

FY2022

7.3

11.1

0
FY2023Operating profit (plan)
Operating profit (actual)
EBITDA（plan）
EBITDA（actual）

ROA（operating profit）

Equity ratio

ActualIn FY2021, overall operating profit was 6.3 billion yen (or 67%) higher than planned. The Metallic Minerals Division of the Mineral Resources Segment topped the planby a strong 4.6 billion yen, despite the COVID-19 pandemic, due to rising copper prices, which had previously stalled, backed by the recovery trend in the global
economy. Additionally, better-than-planned profit in the Nonmetallic Minerals Division and lower study and other costs contributed.
In FY2022, overall operating profit was 4.6 billion yen (or 51%) higher than planned, with the Metallic Minerals Division exceeding the plan by 4.5 billion yen amid aweakening yen.
In FY2023, overall operating profit was 3.8 billion yen (or 52%) higher than planned, aided by the deferred recording of depreciation costs due to construction delays
for the third vertical shaft at the Torigatayama Quarry Complex in the Nonmetallic Minerals Division, yen weakening, and other factors.
Regarding ROA (operating profit) of 4% or more, which is our target for return on capital, due to earnings exceeding plans along with sales of shareholdings progressing
in line with our policy on reducing cross-shareholdings (announced in Nov. 2022) and our revised policy on expanding shareholder returns (announced in Aug. 2023),
both operating margin and total capital turnover, which comprise ROA, topped plans, and as such, ROA (operating profit) also hit its target, coming in at 5.1%
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Then, I will talk about financial results of the second MTMP.
In the plan, the results exceeded the targets driven by solid performancesacross the segments, especially the Mineral Resources segment, against the
backdrop of internal initiatives such as price increases and productivity
improvements for limestone, as well as external factors including yen
depreciation and copper price appreciation. Additionally, the depreciation
cost of the Torigatayama third vertical shaft was pushed back to FY2024 dueto the construction delays.
And, management targets for the plan, such as ROA and equity ratio,
surpassed the targets due to our efforts to improve capital efficiency throughthe reduction of cross-shareholdings: a total of 19 stocks, totaling to 2.9
billion JPY, were disposed of in line with the policy that we set to optimize thecross-shareholdings, and the expansion of shareholder returns policy.

5Review of Second Medium-Term Management Plan (FY2021-FY2023) (3)Production Volume

Changes in Exchange Rates and Copper Prices(Thousand tons)（Yen）

150,000180

125,000

160

100,000

140

75,000

288

266

388

100

25,000
0

500
379
375

312

135

120

50,000

111

109

106

FY2018FY2019FY2020145

FY2019FY2020

FY2021

FY2022

FY2023

Domestic crude steel production

Domestic cement production

Domestic limestone production

Our limestone production

250
125

112

80
FY2018Source:（Cents）

440

0
FY2021

FY2022

FY2023

Exchange rate (JPY/USD)

The Japan Iron and Steel Federation (Japan production data), Limestone Association of Japan (monthly
supply/demand data), The Japan Cement Association (supply/demand data)

Copper price (cents/pound)

FY2021

FY2022

FY2023Externalfactors+ Economic activities normalizing from+ Weakening yen, rising copper prices－ Rising manufacturing costs due to+ Weakening yen－ Suspension of blast furnace operations due toInternalfactors+ Lower management and study costs

COVID-19
Lifted the banking of blast furnace
Rising copper prices, weakening yen
amid the pandemic

surging energy and material prices+ Boost from higher value of mineral
resources (incl. price increase)
Sales of cross-shareholdings

structural reforms by blast furnace steel
makers+ Boost from higher value of mineral resources(incl. price increase)－ Lower sales volume due to falling limestone
demandHigher costs for the Atacama Kozan
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6

Long-Term Vision and Basic Policies under Third Medium-Term Management Plan

Contributing to society through the development and stable supply of mineral

resources and harnessing the collective strength of the Group as an integrated

Long-term Vision（Vision FY2033）

Basic Policies（For period of Third
Medium-Term ManagementPlan)mineral resources company to achieve sustainable growth.

Long-Term Management
ROIC (return on invested capital) ７% or more
Goal for FY2033

In adopting and using ROIC as a management indicator, we aim for its uptake andentrenchment down from the company to individual business segments and from individual
business segments to individual business sites, as well as for improved capital efficiency
Steady progress with Arqueros Mine development and achieve start of operations
Initiatives to optimize limestone supply, centered on Torigatayama Quarry Complex
Continue initiatives to develop new markets (limestone, Polytetsu)
Secure and develop new resources, regardless of interest (major/minor) or approach(greenfield/brownfield）

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Now, I would like to explain the third MTMP.
Our long-term vision*, as outlined since the first MTMP, is now redefined aswhat we aim to achieve by FY2033, alongside the establishment of a 7% ROIC
as our management goal.
*Achieve sustainable growth by contributing to society through thedevelopment and stable supply of mineral resources, and by harnessing thecollective strengths of the Group as an integrated mineral resources company.
“What we aim to achieve” in the Mineral Resources, our core business, is tofurther strengthen our business foundation as “an integrated mineral
resources company” through efforts: to ensure stable supplies, tosecure/develop new mineral resources and enhance the value of minerals byleveraging accumulated technological capabilities, and to seek to develop
mining-related technologies including geological consulting capabilities.
Additionally, we fulfill our sustainable growth by harnessing collective
strengths of the Group, including the Machinery & Environmental Engineering,
the Real Estate and the Renewable Energy.
Regarding numerical targets, we have newly set an ROIC of above 7% for7

FY2033, exceeding our assumed cost of equity of a 6% WACC.
Under the growth strategy derived from our aim for FY2033, we will implement
practical initiatives. The basic policy of the plan is outlined as follows:
Regarding the first point, “In adopting and using ROIC as a management
indicator, we aim for its uptake and instilment down from the company toindividual business segments and from individual business segments toindividual business sites, as well as for improved capital efficiency,” in order toachieve the ROIC target of above 7%, outlined in our management goal,
implementation of the ROIC at the management level is not sufficient. It is
important to penetrate and instill the ROIC as a KPI throughout theorganization. In the period of the third MTMP, we will establish ROIC
management across the Group and promote the management focusing on
bridging the gap between ROIC and WACC (cost of capital forinvestors/creditors), and business portfolio.
Followed by the second point, “Steady progress with the Arqueros Minedevelopment and achieve start of operations,” in April 2023, the Arqueros Minehas progressed to the next stage of the development where large-scale civil
works and construction of plant buildings are underway. The Mine isscheduled to commence operations in FY2026, the final year of the plan. We
expect the Mine to contribute to the expansion of earnings in the Metallic
Minerals Division from FY2026, its first year of operation. To realize thiscontribution to earnings, it is crucial to ensure the completion of thedevelopment work during the plan.
Then, about third and fourth points, “Initiatives to optimize limestone supply,
centered on Torigatayama Quarry Complex,” Torigatayama Quarry Complex,
one of our major mines, produces high-grade limestone with the largest levelof production volume domestically. By further leveraging these strengths ofthe mine, we will improve productivity and enhance BCP through initiatives todomestically optimize the production and sales structures of limestone
centered at the mine. Additionally, we will focus on exploring overseas
markets by harnessing the advantages of the mine’s loading facilities facing
the Pacific Ocean and compatible with 60,000-ton-class large vessels. In thisplan, we will further strengthen our domestic supply system, while expand
overseas sales and explore new applications flexibly.
We will explore overseas markets initially focusing on East Asia and Southeast
Asia, by building factories of Polytetsu, a flagship product for theEnvironmental Division, in Taiwan and Vietnam.
The last point is about “Secure and develop new resources, regardless ofinterest (major/minor) or approach (greenfield/brownfield),” so far, we havefocused on greenfield projects, starting with exploration from scratch and thenacquiring major interests for development and operation on our own. However,looking ahead, brownfield projects, where we would be able to mitigate risks

at early stages and expedite exploration lead time by holding minor interests
in promising projects, will also be among our options.

Financial Indicators and Medium- To Long-Term Management Targets (1)FY2023(Billions of yen)Management
Targets

Assumptions

Sensitivity

ActualFY2024FY2025

FY2026

Third Medium-Term Management Plan Period

Net sales

166.8

181.4

172.8

184.8

Operating profit

11.1

7.4

9.0

12.8

Profit attributable to owners ofparent

6.6

6.7

7.2

9.2

Operating margin

6.7%

4.1%

5.2%

6.9%

EBITDA

17.1

16.3

16.9

24.5

(Operating profit before tax＋depreciation)

Interest-bearing liabilities

22.1

37.2

62.4

63.3

Equity capital

140.7

144.5

147.7

151.7

ROIC

4.9%

3.0%

3.2%

4.2%

WACC

5.5%

5.8%

5.8%

5.8%

ROE

4.8%

4.7%

4.9%

6.1%

Exchange rate (JPY/USD)

145

Copper price (￠/lb)

379

Depreciated by
5JPY/USD
Appreciated by
10￠/lb-FY2033
ROIC
７％ or more
NOPAT 14 billion yen
Invested capital
200 billion yen*Operating profit before tax, 20 billion yen

140
400
Net sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

+2.7

+0.1

+2.6

+0.1

+3.0

+0.2

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit

+2.0

+0.4

+2.0

+0.4

+2.2

+0.7

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I would like to explain the financial indicators for the third MTMP and mid- tolong-term management goals.
We assume an exchange rate of 140 JPY to the USD and a copper price of
400 cents per pound.
In the third MTMP, unlike the second plan where favorable FX partiallycontributed, OP is expected to slow down due to the lack of FX gain incurredin the Metallic Minerals Division and depreciation costs for the third verticalshaft at the Torigatayama Quarry Complex. We anticipate a brief decline in
the OP level for the first two years. However, for the final year of the plan,
FY2026, OP is expected to surpass the OP in FY2023. This is due tocontribution from the Arqueros Mine, scheduled to commence operations in
FY2026, and a decline in depreciation costs.
The profit attributable to owners of parent reflects the gain on sales ofinvestment securities of approx. 6 billion JPY during the period of this plan.
We intend to implement shareholder returns through long-term stabledividends.
Next, I will explain the invested capital. The interest-bearing liabilities is8

planned to be increase during the plan due to the fund borrowing fordevelopment costs of the Arqueros Mine as disclosed in March 2024.
For the period of the plan, ROIC level, based on the expected profits andinvested capital is projected to be range of 3-4%, failing short of WACC due tolower OP level and higher invested capital funded from increases both ininterest-bearing liabilities and equity capital.
In FY2026, the final year of the plan, ROIC is planned to turn for the better
contributed by the commencement of operation at the Arqueros Mine. We
expect the numbers to improve further from the second year onwards, in the
fourth MTMP.

Financial Indicators and Medium- To Long-Term Management Targets (2)Management Targets

FY2023
Billions of yen

ActualFY2024FY2025Net sales

166.8

181.4

172.8

184.8

Operating profit

11.1

7.4

9.0

12.8

Profit attributable toowners of parent

6.6

6.7

7.2

9.2

Operating margin

6.7%

4.1%

5.2%

6.9%

EBITDA

17.1

16.3

16.9

24.5

（Operating profit before tax＋depreciation）

FY2033

FY2026

ROIC of 7% or
more

Third Medium-Term Management Plan

Interest-bearing
liabilities

22.1

37.2

62.4

63.3

Equity capital

140.7

144.5

147.7

151.7

ROIC

4.9%

3.0%

3.2%

4.2%

WACC

5.5%

5.8%

5.8%

5.8%

ROE

4.8%

4.7%

4.9%

6.1%

Raise value of limestone

Variousinitiatives toclose the gap

Develop new copper mines（greenfield/brownfield projects）
Expand Polytetsu into
East/Southeast Asia
（Build plants in Taiwan, Vietnam)
Profit expansion driven
by start of operations at
the Arqueros Mine

New geothermal
developments（Shiramizugoe area）

Expand exports from Torigatayama Quarry Complex
Advance ROIC management
Continued reductions of crossshareholdings

Strengthen sales ofaggregates via
marine shippingOver the Third Medium-Term Management Plan period, ROIC is expected to temporarily remain low due to a decrease in operating profit reflecting the start of depreciation
for large-scale investments (Torigatayama Quarry Complex) and an increase in interest-bearing liabilities as a result of funds borrowed to develop the Arqueros Mine.
However, we aim to achieve ROIC of 7% or more by implementing various initiatives above to close the gap and by shrinking interest-bearing liabilities(Billions of yen)

Reductions incrossshareholdings

7.5
5.0
2.5
(actual and outlook） 0.0

6.0
2.0

Plan

Nov-22

列1

0.2

Plans to sell 6 billion
yen* worth of crossshareholdings

FY2022 FY2023 FY2024 FY2025 FY2026

Announced reductions in cross-shareholdings* Value of cross-shareholdings planned for sale during the Third
Medium-term Management Plan period is based on market value
as of end-March 2024
Plan for 6 billion yen-reduction, announced in Nov. 2022,
based on market value as of end-Mar. 2022
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

We aim for a 7% ROIC for FY2033, as our management plan. Measures tobridge the gap between our FY2033 goal and our current state are shown on
the slide. We strongly believe it’s inevitable for us to implement and benefit
from these measures, progressing towards FY2033 starting from the third
MTMP, in order to realize our goal.

92024/6/13

Mineral Resources Segment: Nonmetallic Minerals Division Strategy Review
Specific initiatives in the Second Medium-Term Management Plan and their progress

Targets

1

Raise value of mineral resources(incl. price increase)

Negotiated with customers about production costs and stable supply
With inflation also progressing, yielded certain results

2

Expand exports to Asia/Oceania region

Secured share in export markets and acquired new users

3

Rebuild stable supply network

Learning from fire at the Torigatayama Quarry Complex in January 2021, we re-evaluatedoperational risks as well as our backup systems at our four coastal quarry complexes(Shiriya, Hachinohe, Torigatayama, Tsukumi) plus the Sodegaura Distribution Center

4

Improve production efficiency andeconomic potential by adopting AI and IT

Detecting foreign objects in limestone on conveyor belts to ensure stable plant operations
and product quality
Ran trial using AI visual recognition for changed configurations on conveyor belt surfaces

5

Develop nonmetallic minerals, including
limestone, in Japan and abroad

In addition to studying mineral occurrence, quality, development prospects, etc. using
desktop surveys and exploration, we are also selecting study areas

Business environment and our initiatives• For steelmaking, domestic crude steel demand is expected to trend flat. Due to structural reforms and carbon neutral initiatives by blast furnace steelmakers, domestic
blast furnaces are being consolidated. Over the long term, we expect lower consumption volumes of limestone as a steel auxiliary material due to higher ratios of scrap toExternal iron source and the use of hydrogen reduction steelmaking
Environ- • For cement and aggregates, there is a certain level of demand for redevelopment and infrastructure rebuilding but the impact from delayed construction due to worker
ment
shortages is considerable, and given decarbonization moves by companies and consolidation of production facilities, we expect limestone demand to decline• We aim to establish optimal production network by production/sales collaboration so as to respond to demand trends among various users of steel,cement and aggregates.
• Capacity arising from lower sales to domestic customers to be allocated to exports and developing other applications to secure earnings.
In particular, we are leveraging the strengths of the Torigatayama Quarry Complex, which produces high-quality limestone, and are focusing on
developing new applications overseas (= new demand).
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10

Mineral Resources Segment: Nonmetallic Minerals Division
Long-Term
VisionEstablish stable supply and sales network, secure and develop new mining areas

Long-term strategy with 10-year horizon
Optimize earnings from each mine
— Optimize business efficiency by maintaining the Torigatayama Quarry Complex’s
annual production/sales volume at 13.5-14 million tons
Lift production capacity by introducing cutting-edge technology, including AI and IT
Secure and develop new mining areas

Specific initiatives in Third Medium-Term Management Plan
Secure production/sales volume of 13.5 million tons/year at the Torigatayama Quarry
Complex

Segment Profit Outlook(Billions of yen)

14
12
10
8
6
4
2
0

Higher mineral
resources value(incl. price Sales
increase) growth
Depreciation Lower costs +0.９
costs

-1.4

11.0

FY2026

FY2033

Outlook for Sales Volume and Value(Thousand tons)

26,000Enhance BCP by standardizing products and establishing the solid network of our four
coastal quarry complexes + distribution center

22,000Strengthen export capabilities by expanding ore storage facilities housing finished products
for export

18,000

Improve mine production efficiency by adopting heavy equipment tracking systems

+0.2

8.4

FY2023

Respond to aggregates demand in the Tokyo metropolitan area, centering on Sodegaura
Distribution Center

Maximize utilization of shipping facilities of the Torigatayama Quarry Complex, including its
dock (can berth ships up to 60,000-ton class), pier berth (can berth ships up to 20,000-tonclass) and three ship loaders

+1.1

＋3.0

5.9

Raise value of mineral resources (incl. price increase)
Capture new users by exploring new application of high-grade limestone

Higher mineral
resources value
Lower(incl. price Higher
depreciincrease) exports
ation costs Lower costs +1.3

(Billions of yen)34

24,00030
26

20,00022
18

16,00014,000

FY2023 FY2024 FY2025 FY2026
Sales volume (domestic)

Sales volume (overseas)

FY2033

14

Sales

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111

2024/6/13

Mineral Resources Segment: Metallic Minerals Strategy Review
Specific initiatives in the Second Medium-Term Management Plan and their progress

1

Expand ore reserves for the Atacama
Kozan in Chile

Began mining in the Sol Naciente area (handed over to Atacama Kozan in 2016), after receiving
approval. We are focusing on securing resource volume through continued exploration in surrounding
mining areas
Identifying exploration projects in Atacama Region, including around the Atacama Kozan, and focusing
on joining projects owned by third parties in addition to our own mine area projects

2

Promote development of Arqueros Mine in
Chile

Completed development preparatory work in FY2022, one year behind the original plan,and commenced development work in April 2023

3

Study candidate copper mines for postArqueros Mine development

Joined the Los Chapitos copper exploration project in Peru in June 2023
Also studying development projects in Australia, Canada, Saudi Arabia, and Latin America,
etc. while taking into account the status of infrastructure and laws

4

Earnings improvement with smelting cost
reductions as a top priority

Despite rising costs, including electricity rates and fuel costs, as well as smelting costs
remaining high, earnings improved due to significant yen weakness

Targets

Business environment and our initiatives
External Copper demand is likely to expand over the medium to long term amid electrification and the shift to renewable energy to achieve
Environ- carbon neutrality
ment• For the Atacama Kozan, we are focusing on mining from the Sol Naciente area and are also exploring surrounding
mining areas, securing mineral resources volume and continuing with stable operations• For the Arqueros Mine, development work is underway, and we aim for operations to commence in FY2026(investment in mine development approx. 55 billion yen, 396 million US dollars)
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

12

Mineral Resources Segment: Metallic Minerals Division Strategy
Long-Term
VisionDevelop new mineral sources and efficiently balance between the smelting and mining sides of the business to create synergies

Long-term strategy with 10-year horizon
Aim to produce at least 50,000 tons of copper equivalent per year
Achieve stable profits in our smelting business

Segment Profit Outlook(Billions of yen)

10

AtacamaArqueros
+3.6

8
6
4
2
0

Specific initiatives in Third Medium-Term Management Plan
Obtain new reserves and increase profits at the Atacama Kozan
Steady development work at the Arqueros Mine
Continue exploration of our own new copper mines
Join interests
Join interests in mines beyond copper
Improve earnings, with reducing smelting costs the top-priority issue
Obtain the “The Copper Mark” in collaboration with Anglo American

2.9

Smelting-1.3 Atacama-0.3

FY2023

Smelting+0.６

Arqueros
+2.0

7.5

3.3
FY2026

FY2033

Production Volume Outlooks for
Mining and Smelting（copper equivalent)(tons)

60,00050,00040,00020,000

Arqueros Mine

Copper concentrate production

10,0000

New copper minedevelopment

Hibi Kyodo Smelting
Outsourced production

30,000Atacama Kozan

Copper concentrate production

FY2023

FY2026

FY2033Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

132

2024/6/13

Mineral Resources Segment: Metallic Minerals Division Strategy - Arqueros Mine Development Status

FY

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Optional Exploration/Evaluation Stage

Development Preparation Stage

Development

Reconnaissance
exploration

Tunnel surveying,detailed exploration,
environmental impact study

Mine construction

Infill drilling

Temporary closure andmonitoring

2026

Activities
on siteAdministrative
work andpermits

Scoping
study

Geological surveys
2011.7

Joined project

Pre
F/S

Outsourced F/S andConsideration ofinternal improvement
pointsComplementary
Engineering

Detailed engineering

EIA

EIA application review

2019.４2014.1

Established Arqueros Minedevelopment office2017.82023.4

Exploratory tunnel
excavation, struck ore body

Decision to start development

2023.12

Mine closure plan approved

Acquired additional shares(acquired 100% voting rights）

2026

Scheduledstart ofoperations

2024.12017.10

Executed Options (acquired 80% interest) andmoved on to the development preparation stage

2017.122022.12Start of major civil engineering works
on site

EIA approval for construction

2022.12

Established local office2024.5

Scheduled start of plant construction

Detailed engineering completion

With Atacama Kozan as a stepping stone, we decided to enter the Arqueros Project to expand our own operations. In 2011,we initiated exploration works and made adecision after 12 years of careful consideration.
Once in operation, Arqueros will produce copper concentrate along with Atacama Kozan, reaching a joint estimated produced volume of 28,000 tons of copper per year, thus
contributing to the success of the Metallic Minerals Division of Nittetsu Mining Co., Ltd.
The Arqueros mine plays a pivotal role in the training of human resources and technological transfer for our next development
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

14

Mineral Resources Segment: Status of mineral resources development in Japan and overseas
Geologicalsurveys

Initialexploration

Advanced
exploration

South
America
AfricaResource
evaluation

Economic
evaluation

Various regions in Japan

Development
Country or region
1. Mineral
2. Our interest
3. Stage

1. Silica stone
2. None
3. Information collecting ongoing

Saudi Arabia

1. Copper
2. None
3. Information collecting underway

Fiji

Pacific
Ocean

MiddleEast

Japan

Informationcollecting

Namosi joint Venture Project
1. Copper and gold
2. 2%
3. Revising economic evaluation

Chile

Arqueros minedevelopment
1. Copper
2. 80％
3. In development (fromApr. 2023)

Peru

Los Chapitos copper exploration project
1. Copper
2. None（participating in option）
3. Exploration

MoroccoAchmmach tin project
1. Tin
2. 5%
3. Economic evaluation ongoing
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153

2024/6/13

Review of Machinery & Environmental Engineering Segment Strategy

Environment
Machinery

Targets

Specific initiatives in the Second Medium-Term Management Plan and their progress

1

Develop new demand by developing nextgeneration wastewater treatment agents

In 2020, launched sales of Polytetsu-T in Kyushu area
Uptake increasing due to positive reaction to removal of phosphorous, chromaticity
and E. coli from wastewater as well as to being able to reduce chemical additive
amounts by roughly 50%
Began supply in Kanto region in 2023 and plan to accelerate nationwide expansion

2

Construct new wastewater treatment agent
plants in Taiwan, Southeast Asia, etc. anddevelop new overseas markets

Currently establishing plans to build wastewater treatment agent plants in Taiwan
and Vietnam

1

Develop new overseas markets, especially fordust collectors in Asia

Increased sales in South Korea. Focusing on developing overseas markets,
especially Asia

2

Strengthen cost competitiveness throughsuch improvements as automated productionof dust collection filters

Technological studies underway on whether to adopt technology for automating
filter manufacturing at domestic plants

3

Expand sales by developing new applications
for smoke separators

Launched single-occupant, box-type smoking booth COCOPA in 2H FY2023

Business environment and our initiatives• In the Environment Division, sales of automotive and semiconductor applications are recovering. For Polytetsu materials, we are switching to overseas products toExternal make up for the shortfall in procurement caused by domestic production cutbacks, which is pushing up manufacturing costs
environ• In the Machinery Division, machinery-related markets are relatively stable. The smoking booth market has been recovering since the pandemic and demand is
mentstrong, especially for public smoking locations• Polytetsu, the mainstay of the Environment Division, is being adopted in new plants for semiconductor production. We have strengthened stablesupply by starting operation of a 2,000-ton material yard with an eye to supplying semiconductor plants. We are also undertaking trials to switch to a
production method that is expected to increase capacity 1.5-fold. We also bolstered stock facilities in the Kanto and Tokai regions.
• In the Machinery Division, we continued to receive orders for dust collectors from steel and animal feed plants as well as for overseas projects. For
smoke separators, in response to strong demand from public smoking locations, we are focusing on increasing sales for single-occupant, box-typesmoking booth COCOPA, which we launched in 2H FY2023.
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

16

Machinery & Environmental Engineering Segment Strategy
Long-Term
VisionAchieve segment profit of 3 billion yen

Long-term strategy with 10-year horizon and initiatives
in the medium-term management plan
Expand Polytetsu sales (acquire new customers, enter PAC
market, etc.) and build stable supply network
Expand Polytetsu sales overseas (build plants in Taiwan and
Vietnam)Diversify Polytetsu materials
Establish Polytetsu manufacturing method conscious ofenergy efficiency

Segment Profit Outlook(Billions of yen)

4
3

Sales
growth
+0.１

2
1
0

Sales
growth+0.８

Overseas
expansion
+0.７

3.0
1.4

1.5

FY2023

FY2026

FY2033Enter domestic baghouse market and expand exports bystrengthening the competitiveness of Sinter Lamellar Filter
Expand sales channels for plasma membranes (develop new
applications and develop new markets)
Expand sales of COCOPA, a single-occupant box-typesmoking booth

COCOPA, a single-occupant boxtype smoking booth

Inorganic iron flocculant Polytetsu
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174

2024/6/13

Review of Real Estate Segment and Strategy
Specific initiatives in the Second Medium-Term Management Plan and their progress

Targets1

Promote studies of new developments

Conducting studies envisioning store development for tenants on idle land2

Improve customer satisfaction and ensureprofitability through renovations

No concreate renovation plans during Second Medium-Term Business
Plan period, with plans to be studied in light of age of buildings andtiming of tenant contract renewals

3

Review profitability and future prospectsof existing properties

Steadily lifting rents in light of market environment and with understandingof tenantsLong-Term
VisionEffective use of company-owned real estate, efficient management with top priority on stable earnings

Long-term strategy with 10-year horizon and initiatives in themedium-term management plan
Maximize earnings from existing buildings— Improve customer satisfaction and secure profitability throughrenovations of buildings and facilities
Property use conscious of return on capital— Promote studies of new developments, existing properties

Segment position• The real estate segment leverages properties inherited from
the Mineral Resources Segment• Acts as a counter to the Mineral Resources Segment, whose
earnings are relatively volatile

Contribute to earnings as a stablerevenue source

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

18

Renewable Energy Segment Strategy Review
Specific initiatives in the Second Medium-Term Management Plan and their progress

Targets

Group
wide

Consider introduction of renewableenergy for in-house power generationand consumption

1

Examine and draft plans for securing astable supply of steam to covermaximum electricity output of the Ogiri
Geothermal Power Station2

Promote investigations for theconstruction of new geothermal power
plantsGeothermal

Introducing solar power, wind power and small-scale hydropower
facilities, with some facilities already starting operations
Maintained facility utilization rate among highest in Japan
Formulating plans to dig auxiliary production wells and wells for reinjection as we aim establish a steam generation-hot water reinjection system to enable stable steam generation over the long term
Regarding development in the Shiramizugoe district, we began geophysicalexploration in Sep. 2022 after receiving approval of the mayor and received
approval from the mayor in Sep. 2023 for exploration well drilling
We will continue with development/investigations while taking sufficient time to
explain to local stakeholders to gain their understanding

Solar
power

Engage in stable operations
Consider ways to use surplus electricity

All eight solar power plants in Japan have started to connect online,
enabling output controls that result in lower loss amounts.

Hydropower

Promote studies for small-scalehydropower generation using seepage inmine tunnels

Conducted water volume studies for limestone mines and considered
installation of facilities

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

19

5

2024/6/13

Renewable Energy Segment Strategy
Long-Term
VisionRenewable energy surveys/development/operations; Achieve carbon neutrality through business activities; Contributeto environmental preservation

Long-term strategy with 10-year horizon andinitiatives in the medium-term management plan
Existing Businesses

Network of renewable energy power generation facilities●New renewable energy power generation facilities (internal consumption)●Existing renewable energy power generation facilities (solar power)●Existing renewable energy power generation facilities (small-scale hydropower)●Geothermal power plants (steam supply)

Establish stable steam supply system for Ogiri Geothermal Power
Station and improve earnings through higher steam volumes— Stabilize reservoirs by digging new auxiliary wells for re-injection• Aim for operations to start in FY2026— Establish plans to upgrade existing wells and for new production wells

New Businesses
Business expansion through geothermal power generation at
Shiramizugoe (15MW)— Development surveys, explanation to local communities• Sep. 2023: Received approval from mayor of Kirishima for exploration welldrilling plan
• Plan for re-injection zone exploration well drilling (one well) during Third
Medium-Term Management Plan period• Target development during the period of the Fourth or Fifth Medium-Term
Management Plan

Support introduction of renewable energy for internal power
generation and consumption— Consider introduction of solar power, wind power, small-scalehydropower

Status of initiatives to develop Shiramizugoe geothermal resources

Develop geothermal resources and promote supply of steam to power plants,
leveraging our longstanding expertise in underground resource development asa mining company— In accordance with Kirishima City ordinances, we explained results ofgeophysical exploration as well as future plans for re-injection zone exploration
well drilling at a discussion forum with the local community in Jun. 2023
— Submitted re-injection zone exploration well drilling plans at end-Jun. 2023 toKirishima City, with approval from the mayor received in Sep. 2023; survey
work is underway— Pushing ahead with various work after consistently monitoring hot springs anddrinking water in close coordination with the local community— Investment to total 20-30 billion yen if Shiramizugoe geothermal plant isdeveloped

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

20

R&D Division Strategy
Contribute to the Mineral Resources Segment (Metallic Minerals
Division) by developing effective beneficiation processes

Contribute to the expansion of the Machinery Division by
improving/upgrading dust collection filters— R&D for low-energy ore processing technologies to reduce loss of valuable resources totailing by improving beneficiation recovery rates— Develop new elements with low pressure loss, high tensile strength, andlow price by optimizing sintering and coating methods for resin filters— For new mine development, conduct R&D for next-generation beneficiation technology
targeting refractory ore mines and work to recover valuable resources from tailing andother waste

Contribute to the expansion of the Environment Division by
optimizing materials and manufacturing methods for
wastewater treatment agents— Develop low-energy environmental purification technology targeting mine drainage andsubsurface water— Aim for stable domestic supply and new overseas expansion by
establishing manufacturing methods spurred by diversifying iron materials

Create new materials with our unique membrane coating technology
and contribute to the materials science field— Realize new materials that use membrane coatings to control optical qualities, electricalqualities, and chemical stability, as well as boast core material properties andmembrane qualities

Mineral Resources
Segment related— Consider adding new functions and uses for new applications. Additionally,
develop new wastewater treatment agent technology for incorporation into
the material cycle

Machinery &Environmental
Engineering Segment
relatedCarbon neutrality
relatedSinter Lamellar Filter(industrial-use dust
collection filter)

Laboratory
flotation testing

Promote technological development that can contribute toachieving energy-derived CO2 emissions reduction targets by
FY2030— Develop a green hydrogen recovery system using photocatalytic reactions fromhydrogen sulfide— Establish carbon fixation technology in calcareous materials using ammonia

Hydrogen evolution
photocatalyst
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

21

6

Sustainability
Material Issues（selection）

E

S

Targets

Reduce CO2 emissions【FY2030 Targets】
Responding to Domestic CO2 energy-derived emissions
down at least 38%（vs. FY2013）
climatechangeRespecting
humanrights anddiversity, anddeveloping
human
resources【FY2050 Targets】
Carbon neutrality in Scope 1, 2 emissions• Continued reductions in energy consumption per unit
Aim for continued improvement in energy consumption per unit of at least 1% annually partly by switching to energysaving facilities and reviewing operations• Introduce renewable energy power generation facilities for internal consumption
Plan to introduce solar power facilities with output of approx. 570kW in FY2024. Over medium term, aim to introduce
facilities with total output of 3,500-4,000kW• Effectively shift to renewable energy for purchased electric power
Using FIT Non-Fossil Certificates with tracking for our FIT solar power plants to effectively shift to renewable energy for
power purchased for the Torigatayama Quarry Complex
Plan to acquire FIT Non-Fossil Certificates for approx. 17,000MWh/year (equivalent to all purchased energy for our FIT
solar power plants) from FY2024 onward• Carbon offset initiatives using company-owned forests
We started calculating CO2 forest absorption amounts for the company-owned forest in Shiraoi, Hokkaido (area of roughly
1,200 ha; SGEC forest certified) from FY2024

Percentage of women hired for career track
positions (Nittetsu Mining): 30％ or more

• Ensuring diverse human resources
Hire throughout the year, regardless of gender, nationality, or whether candidates are recent college graduates or midcareer hires

Gender gap in average continuous service(Nittetsu Mining): less than 2 years• Introducing systems for accommodative work styles
Adopted and expanding systems for accommodative work styles, including telecommuting, staggered schedules, paid
leave systems, support systems for family care

Percentage of management positions• Developing human resources
Enhance educational initiatives, including nurturing a global workforce and creating a workplace enabling autonomous
learning, in line with our human resources development policy(FY2030)

Women: 5％ or more
Foreign nationals : 5％ or more
Mid-career hires :15％ or more

Enhancing the corporate governancesystem

G

Main Efforts

Strengthening Strengthening the compliance systemgovernanceRisk management• Improve engagement
Establish an expert organization and solve various issues emerging from engagement surveys• Build an organization that responds swiftly and correctly to changes in the management environment and build amanagement system to ensure fair and highly transparent decision making
Transitioned to a company with an Audit and Supervisory Committee (FY2023)
Evaluate effectiveness of the Board of Directors (used for external evaluations by third party bodies）• Establishing compliance system in accordance with Group Code of Conduct, establishing/applying internal controls forfinancial reporting
Conduct internal audits at multiple locations
Appropriate operation of whistleblowing system
Use of external reporting desk (outsourced to law firm)
Hold compliance training• Establish appropriate measures ahead of time based on risk management priorities
Run evacuation and safety training and continue to review BCP
Quality Assurance Committee continuously identifies and evaluates risks and considers responses
Taking various initiatives for information security
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

22

Capital Allocation
Period of Third Medium-Term
Management Plan (FY2024-FY2026)

Period of Second Medium-Term
Management Plan (FY2021-FY2023)(Billions of yen)

Operating cash flow

35.0

Sales of investment
securities

6.0

6.0

Other

10.0

Shareholder returns

In addition to stable dividends,
we will also consider sharebuybacks depending on
circumstances

Capital expenditure(Billions of yen)

Operatingcash flow
Sales ofinvestment
securities
Other

33.3

2.9
2.2

Cash in

9.1

Other

7.5

Shareholder
returns

21.8

Capital expenditure

Cash out

75.0
Debt

50.0

Full-scale depreciation
stemming from Arqueros Minedevelopment is to start in the
period of the Fourth MediumTerm Management Plan (fromFY2027)
Repayment of loans related tothe development of theArqueros Mine are to begin in
the period of the Fourth
Medium-Term Management
Plan (from FY2027)

Cash inCash out
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Regarding capital allocation for the third MTMP, far greater cash-out flows
than cash-in flows from operations and sales of cross-shareholdings, is
expected due to the period of investment for the Arqueros Mine development.
Therefore, we plan for free cash flow to be temporarily negative during thethird MTMP. However, we intend to allocate capital in the same level as we
did in the second MTMP for shareholder returns.

23

Management Conscious of Cost of Capital and Share Price: Challenges and initiatives (1)Share Price and P/B Ratio Trends
(Yen)

（x）

7,000

1.2

6,000

1.0

5,000
4,000

0.8

3,000

0.6

2,000

0.4

1,000
0

0.2

Mar-14Mar-15Mar-16

Mar-17Mar-18

Share priceMar-19Mar-20Mar-22Mar-23Mar-24

Share price shown adjusted for stock split conducted October 1, 2022.

P/B ratio

Changes in Equity

Earnings have been stable over the past decade
resulting in a higher equity ratio(Billions of yen)

200

80%

150

60%

100

40%

50

20%

0

0%

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

EquityMar-21Equity ratio

Shares have increased roughly 2.5 fold
Enhanced shareholder returns during period of theSecond Medium-Term Management Plan (FY2021FY2023) lifted the P/B ratio from the 0.4x level toaround 0.6x
As of end-Mar. 2024, the P/B ratio was at roughly 0.6x
The P/B ratio is regularly below 1.0x
There is room to improve PR and IR activities, including
explaining specific growth strategies and their prospects,
for shareholders/investors
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

I would like to explain management focusing on cost of capital and stock
prices.
Over the last 10 years, our stock price has surged by approximately 2.5 times,
however, the PBR has remained around 0.6 times, falling short of reaching 1.0
times.
We have recognized that there is room for improvement in PR/IR, better
communication with stakeholders including detailed explanation of our
growth strategies and their feasibilities.

24

Management Conscious of Cost of Capital and Share Price: Challenges and initiatives (2)ROE

Effectively enhance profitability beyond cost ofcapital (WACC）

Market valuation

P/B
ratio

High

— Adopt ROIC and use as management metric

Aim for uptake and entrenchment down from company toindividual business segments and from individual businesssegments to individual business sites— We aim to improve capital efficiency by reducing crossshareholdings by roughly 6 billion yen during the Third
Medium-Term Management Plan period

Return on capital low Market valuation high Return on capital highMarket valuation highPeriod from4th Medium-Term
Management Plan
onwardPBR 1xDuring 3rd
Medium-Term
Management
Plan

Risk-free rate

βMarket risk premium

0.705％

1.068

6-7%

approx. 8%

Return on capital low Market valuation low Return on capital highLow

— Starting from the FY2023 results announcement, earnings
calls presented by the Representative Director andassociated Corporate Executives will be available on
demand— Taking proactive efforts by establishing a dedicated teamin charge of PR/IR/SR in 1H FY2024

Cost of equity
Present

Low

P/E ratio

Aim to lower cost of capital by enhancing PR,
IR and SR activities

ROE 8%

Market valuation low

Return on capital High* Risk-free rate is yield on 10-year Japanese government bonds* β is relative to daily TOPIX returns for the past five years* Market risk premium is historical stock market yield minus risk-free rate

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Initiatives to implement management focusing on cost of capital andstock price are being undertaken. Given the limited expectation forimprovement of capital efficiency, particularly for the third MTMP, we
aim to enhance our market valuation through proactive measures by a
newly establishing dedicated PR/IR team, alongside an expansion inshareholder returns in accordance with the basic policy set in August
2023.
Additionally, we aim to achieve a PBR of 1.0 times or higher throughimprovements in profitability and capital efficiency, achieved in partthrough the disposal of cross-shareholdings, among other measures.

25

Management Conscious of Cost of Capital and Share Price: Challenges and initiatives (3)ROIC Outlook by Segment (Mineral Resources Segment)
FY2023 → FY2026 → FY2033

20%●Mineral Resources
Segment (Nonmetallic
Minerals Division)●Mineral Resources
Segment (Metallic
Minerals Division)

ROIC

15%
※2nd year of Arqueros operations (FY2027)
Expect ROIC of 6.9%

10%

Circle size
＝ROIC denominator(invested capital)※

5%

WACC (group-wide) 5.8％

0%
0

5

10
Operating profit

15 (Billions of yen)

ROIC Outlook by Segment (ex-Mineral Resources Segment)
FY2023 → FY2026 → FY2033●Machinery &Environmental
Engineering Segment●Real Estate Segment●Renewable Energy
Segment

ROIC

40%
30%

Circle size
＝ROIC denominator(invested capital)

20%
10%

WACC (group-wide) 5.8％

0%
0

1

2
Operating profit

3(Billions of yen)

For the Nonmetallic Minerals Division, we aim toachieve ROIC above WACC by promoting improvementin the value of nonmetallic mineral resources (incl.
price increase) and optimizing investment capital
For the Metallic Minerals Division, ROIC is likely todecline sharply during the Third Medium-Term
Management Plan period due to the increase ininvested capital arising from Arqueros Minedevelopment. However, with stable earnings expected
in FY2026 due to the scheduled start of operations for
the Arqueros Mine, ROIC is likely to exceed WACC fromFY2027, the second year of the mine’s operations
The Machinery & Environmental Engineering Segment
aims for further ROIC improvement by establishing
new wastewater treatment agent plants in Taiwan and
Vietnam and expanding Polytetsu sales in
East/Southeast Asia
For the Real Estate Segment, we see improved ROIC
on stable earnings and depreciation of individual
properties
Once plans progress for geothermal development in
the Shiramizugoe district by around the mid-2030s
and investments can be recovered, considerable
improvement in ROIC is expected for the Renewable
Energy Segment
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.
26

Shareholder Returns Policy
Changes in Dividends and Payout Ratio
（Yen）

200

50%

150

40%
30%

100

167.5

50
0

35

40

40

45

55

45

50

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

Dividends per share

177.5

169

20%
10%
0%

FY2021

FY2022

FY2023

Payout ratio

Our core business, the mining industry, is an extremely long-term business, starting with research and development before moving on to subsequent
operations spanning several decades or more. During that time, profits will vary due to changes in economic and business conditions, fluctuations in
the price of resources, and other factors
In order to achieve sustained growth, we must be prepared for large-scale investment in the future, given not only the nature of our business,meaning the considerable size of investments for mine development and long investment recovery cycles, and the start of new mine development inlight of mineral depletion at existing mines
As a result, our basic policy has been to pay stable dividends over the long term while maintaining an optimal balance between equity and shareholder
returns

Dividend Policy in Third Medium-Term Management Plan
Based on the basic policy of paying stable dividends over the long term while maintaining an optimal balance between
equity and shareholder returns, we will pay dividends with a target consolidated payout ratio of 40%
Additionally, if the P/B ratio at the end of a fiscal year is less than 1x, the lower limit of dividends is 3% of the market
value DOE; if it is 1x or greater, the lower limit is 3% of the DOE
Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Lastly, I would like to explain shareholder returns.
Based on the basic policy announced in August 2023, of paying stabledividends over the long term while maintaining an optimal balance
between equity capital adequacy and shareholder returns, we intend topay dividends with a payout ratio of approx. 40%, and set the lower
limits of dividends: 3% of the market value DOE when the year-end PBR
falls short of 1.0 times/ 3% of the DOE when the year-end PBR reaches
1.0 times.
I would like to conclude my presentation here. Thank you for your time.

27

Note regarding forward-looking statements
The plans and outlook of future performance and other forward-looking statements contained in thesematerials were compiled based on certain assumptions using information currently judged to be reasonable byus. We cannot guarantee the accuracy and completeness of this information.
Actual results may differ significantly to the plans and other forward-looking statements contained in thesematerials due to various risk factors and uncertainties.

2024/6/13

Appendix: Financial position & business results under Second Medium-Term Management Plan (1)FY2021Plan

Net Sales

ActualFY2022
Diff.

Plan

Actual

Diff.

Plan

Actual（Billions of yen）

Diff.

Mineral Resources:
Nonmetallic Resources

51.1

54.7

3.6

49.8

60.0

10.2

49.4

61.5

12.1

Mineral Resources:
Metallic Resources
Machinery &Environmental Engineering

61.5

78.7

17.2

59.9

86.9

27.0

58.4

88.3

29.9

12.5

12.0

-0.4

12.7

13.7

1.0

12.8

14.0

1.2

Real Estate

2.8

2.8

0.0

2.7

2.8

0.1

2.7

2.8

0.1

Renewable Energy

1.7

1.7

0.0

1.6

1.7

0.1

1.7

1.7

0.0

Adjustments

-1.2

-1.0

0.1

-1.2

-1.3

-0.1

-1.2

-1.7

-0.5

128.4

149.0

20.6

125.6

164.0

38.4

123.8

166.8

43.0

Total

FY2021
Plan

Operating
ProfitFY2023

ActualFY2022
Diff.

Plan

ActualFY2023
Diff.

Plan

Actual（Billions of yen）

Diff.

Mineral Resources:
Nonmetallic Resources
Mineral Resources:
Metallic Resources

6.6

7.0

0.4

6.3

5.9

-0.3

4.0

5.9

1.9

2.6

7.2

4.6

2.1

6.6

4.5

2.5

2.9

0.4

Machinery &Environmental Engineering

1.0

1.0

-

1.0

1.2

0.2

1.1

1.4

0.3

Real Estate

1.5

1.5

-

1.4

1.7

0.3

1.6

1.6

0.0

Renewable Energy

0.4

0.5

0.1

0.4

0.5

0.1

0.4

0.5

0.1

Adjustments

-2.6

-1.6

1.0

-2.3

-2.4

-0.1

-2.3

-1.5

0.7

9.4

15.7

6.3

9.0

13.6

4.6

7.3

11.1

3.8

Total

29

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

Appendix: Financial position & business results under Second Medium-Term Management Plan (2)（Billions of yen）

FY2021

Financing
Plan

Plan

ActualFY2022
Diff.

Plan

ActualFY2023
Diff.

Plan

Actual

15.2

21.1

5.9

14.8

19.1

4.3

15.4

17.1

1.7

Interest-bearing
liabilities

21.5

20.7

-0.8

25.3

20.8

-4.5

30.4

22.1

-8.3

*EBITDA=Operating profit before taxes + depreciation costs

FY2021
Plan

CapitalInvestment
Plan

Diff.

EBITDA*

ActualFY2022
Diff.

Plan

ActualFY2023
Diff

Plan

Actual（Billions of yen）

Diff.

Capital investment

12.1

11.0

-1.1

13.2

8.5

-4.7

17.3

7.6

-9.6

（incl. growth investments*)

(7.0)

(6.3)

(-0.7)

(8.7)

(5.2)

(-3.5)(13.3)(2.7)(-10.6)

5.8

5.4

-0.3

5.8

5.4

-0.3

8.1

6.0

-2.0

-

-

-

(0.2)

(0.0)

-0.2

(2.3)

(0.0)

-2.3

Depreciation（incl. depreciation for third
vertical shaft)* Growth investments = Third vertical shaft at Torigatayama Quarry Complex (limestone), new mining area at Hachinohe Mine (limestone), Arqueros Mine

FY2021
Plan

Investments
by Segment

Mineral Resources:
Nonmetallic Resources
Mineral Resources:
Metallic Resources
Machinery &Environmental Engineering

ActualFY2022
Diff.

Plan

ActualFY2023
Diff.

Plan

Actual（Billions of yen）

Diff.

11.1

10.4

-0.7

9.7

7.8

-1.9

3.5

5.9

2.4

0.6

0.5

-0.1

2.9

0.4

-2.5

13.1

1.5

-11.5
0.0

0.1

0.1

-

0.2

0.2

0.0

0.1

0.0

Real Estate

0.0

0.0

-

0.1

0.0

-0.1

0.0

0.0

0.0

Renewable Energy

0.3

0.0

-0.3

0.3

0.0

-0.3

0.7

0.0

-0.7

Corporate/intersegment
eliminations

0.1

-0.1

-0.2

0.0

-0.0

-

-0.1

-0.0

-0.0

Total

12.1

11.0

-1.1

13.2

8.5

-4.7

17.3

7.6

-9.6

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

30

12024/6/13

Appendix: Net sales and operating profit under Third Medium-Term Management Plan
（Billions of yen）

FY2023
ActualMineral Resources:
Nonmetallic Minerals
Mineral Resources:
Metallic Minerals

Net Sales

FY2025Plan

FY2026
Plan

61.5

67.6

68.3

68.4

88.3

96.2

86.5

97.9

14.0

14.8

15.2

15.7

Real Estate

2.8

2.8

2.8

2.8

Renewable Energy

1.7

1.7

1.8

1.7

Adjustments

-1.7

-1.7

-1.7

-1.7

166.8

181.4

172.8

184.8

Mineral Resources:
Nonmetallic Minerals
Mineral Resources:
Metallic Minerals

5.9

6.7

7.1

8.4

2.9

0.1

0.7

3.3

Machinery & Environmental
Engineering

1.4

1.3

1.4

1.5

Real Estate

1.6

1.6

1.5

1.4

Renewable Energy

0.5

0.3

0.4

0.4

Adjustments

-1.5

-2.6

-2.0

-2.2

Total

11.1

7.4

9.0

12.8

Assumptions

Forex…¥140/USD
Copper price …400 cents/pound

Machinery & Environmental
Engineering

Total

Operating
ProfitFY2024Plan

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

31

Appendix: Financing & capital investment plans under Third Medium-Term Management Plan
（Billions of yen）

FinancingPlan

FY2023
ActualFY2024Plan

FY2025Plan

FY2026Plan

EBITDA*

17.1

16.3

16.9

24.5

Interest-bearing liabilities

22.1

37.2

62.4

63.3

*EBITDA＝Operating profit before taxes + depreciation costs

Capital investment

CapitalInvestment
Plan

Investments
by Segment（incl. growth investments*）

Depreciation

7.6

22.7

32.5

18.3

(2.7)

(18.3)(26.2)

(9.7)

6.0

8.8

7.9

(incl. depreciation for third vertical
(0.0)
(2.2)
(2.0)
shaft)(incl. depreciation for Arqueros Minedevelopment)* Growth investments = Third vertical shaft at Torigatayama Quarry Complex (limestone), new mining area at Hachinohe Mine (limestone), Arqueros Mine

11.7
(1.4)
(4.0)

Mineral Resources:
Nonmetallic Minerals
Mineral Resources:
Metallic Minerals
Machinery & Environmental
Engineering

5.9

4.8

5.6

6.1

1.5

17.5

26.4

9.8

0.0

0.1

0.1

0.1

Real Estate

0.0

0.1

0.1

0.1

Renewable Energy

0.0

0.2

0.1

1.8

Corporate/intersegment eliminations

-0.0

-0.0

0.2

0.4

Total

7.6

22.7

32.5

18.3

Copyright(C) Nittetsu Mining Co., Ltd. All rights reserved.

322