August 6, 2020
To All Concerned Parties
Company name
Representative

Mitsubishi Materials Corporation
Naoki Ono, Chief Executive Officer(Securities code: 5711, First Section, Tokyo
Stock Exchange)
Yuji Omura, General Manager, Corporate
Communications Dept.
(Tel: +81-3-5252-5206)

Contact for inquiries

Notice Regarding theConsolidated Earnings Forecasts, Dividend Forecasts and Non-Consolidated Earnings Forecasts
Mitsubishi Materials Corporation (hereinafter referred to as the “Company”) hereby gives a notice regarding theconsolidated earnings forecasts, dividend forecasts and non-consolidated earnings forecasts for the fiscal year ending
March 31, 2021, which were undetermined in the Consolidated Financial Results for the fiscal year Ended March31, 2020 announced in May 27, 2020, as described below:

1. Consolidated earnings forecasts and dividend forecasts(1) Consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2021
(from April 1, 2020 to September 30, 2020)
Quarterly profit

Net sales

Operating profit

Ordinary profit(loss) attributable toowners of parent

Million yen

Million yen

Million yen

Million yen

Previous forecasts (A)----Current forecasts (B)720,000(2,000)0(5,000)

Amount Change (B - A)----

Percentage change (%)----

748,400

16,97827,242

4,511(Reference) Results for theprevious fiscal year (Sixmonth of the fiscal year ended
March 31, 2020)(2) Consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)
Profit (loss)
Net sales

Operating profit

Ordinary profit

attributable toowners of parent

Million yen

Million yen

Million yen

Million yen

Previous forecasts (A)----Current forecasts (B)1,410,000(5,000)0(10,000)

Amount Change (B - A)----

Percentage change (%)

----

1

(Reference) Results for theprevious fiscal year

1,516,100(fiscal year ended March 31,37,952

49,610(72,850)

2020)(3) Dividend forecasts for the fiscal year ending March 31, 2021
Dividend per share (yen)First quarter

Second quarter

Third quarter

Year-Endyenyenyenyenyen

---

--

Current forecasts

-0-

40

40

Results for the current fiscal

-----

40

80

Previous forecasts-year

AnnualResults for the previous
fiscal year-(fiscal year ended March 31,402020)(4) Reasons for announcement
The Company had not determined the consolidated earnings forecasts for the fiscal year ending March 31, 2021,
because it was difficult to reasonably estimate the impact of the spread of COVID-19 on business results. Whilethe declaration of emergency was lifted in Japan and other countries have gradually resumed economic activities,
the sign of ending regarding COVID-19 was still not shown and the situation remains uncertain. Despite suchsituation, the Company has prepared and hereby announces its earnings forecasts based on information, forecasts,and others currently available to the Company on the assumption that demand will slowly recover after hitting thebottom around the second quarter although their situation may differ among its businesses, in addition, mainlyreflecting the impact of reduced production and net sales due to periodic repairs for smelter & refinery in theMetal Business during the second half of this fiscal year ending March 31, 2021 and so on.
The impact of the COVID-19 in each segment is assumed as follows.
Segments
Advanced Products

Overview of Assumed Impacts of COVID-19
Regarding copper & copper alloy products and electronic materials, demand forautomotive products, etc., is expected to decrease with the spread of COVID-19 but
slowly recover after hitting the bottom in the second quarter.

Metalworking Solutions

Regarding cemented carbide products and sintered products, demand forBusiness

automotive products, etc., is expected to decrease with the spread of COVID-19 but
slowly recover after hitting the bottom in the second quarter.

Metals Business

Regarding the Smelting & refinery business, margin is expected to decline
especially during the third quarter due to a decrease in the volume of E-Scrap to bereceived from overseas with the spread of COVID-19.

Cement Business

Regarding the business in Japan, earnings for the first quarter decreased
substantially quarter-on-quarter mainly due to the suspension of some construction
projects in the Kanto and Tokai areas with the spread of COVID-19.
In the second half of the current fiscal year, major construction projects, including2

redevelopment projects etc., are expected to resume gradually.
Environment & Energy

Mainly due to the temporary suspension and extension of construction projects,

Businessregarding a part of the consolidated subsidiaries of the Company with the spread of
COVID-19 are deterioration of construction progress is expected mainly in thefourth quarter.

Other Businesses

Regarding the Aluminum business and related businesses, demand for automotiveproducts, etc., is expected to decrease with the spread of COVID-19 but slowly
recover after hitting the bottom in the second quarter.

Regarding dividends, the Company has comprehensively taken into account its above earnings forecasts andcurrent financial conditions and expect not to pay dividends at the end of this second quarter, and expects to pay a
dividend of 40 yen at the end of the fiscal year ending March 31, 2021.

2. Non-consolidated earnings forecasts(1) Non-consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)
Net sales

Operating profit

Ordinary profit

Profit (loss)

Million yen

Million yen

Million yen

Million yen

Previous forecasts (A)----Current forecasts (B)790,000(20,000)(10,000)

0

Amount Change (B - A)----Percentage change (%)----

802,655(645)

17,233(49,929)(Reference) Nonconsolidated results for theprevious fiscal year
(fiscal year ended March31, 2020)(2) Reasons for announcement
As for the non-consolidated earnings forecasts, the Company expects that ordinary profit will get into red.
This is because it is forecasted that automobile-related demand, etc., decrease due to the spread of COVID19, construction is suspended mainly in the Tokyo metropolitan area, deterioration in purchasing conditionsof concentrates and the Naoshima Smelter & Refinery plans periodic repairs as well as dividend incomedecreases.
3. Countermeasures
While the business environment surrounding the Mitsubishi Materials Group (hereinafter referred to as the“Group”) is currently promoting the following countermeasures against the decline of the business performancedue to spread of COVID-19 to improve its earnings.
1. Cost reduction･ Cutback in variable costs, including raw materials costs and fuel costs･ Cutback in fixed costs, including reviewing production and sales system to meet demand and reducing
cost for head office32. Review of investment plans
In addition, in order to keep pace with deterioration of business environment and its prolongation as well as rapid
environment changes, the Group seeks to reinforce its business platform by securing liquidity on hand andcapabilities for financing, and establishing a cost-minimum structure, combining work-style reform in new normal
and the Digital Transformation strategy in progress.
(Note) The above forecasts have been prepared on assumed economic conditions, market trends, and other factors
foreseeable as of the date of this announcement, and the results may differ from the forecasts due tovarious factors arising in the future.

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