To Our Shareholders:

May 12, 2014
Company name: Mitsubishi Materials Corporation
Representative: Hiroshi Yao, President
Stock code: 5711
Shares listed: Tokyo Stock Exchange
For further information please contact:
Naoya Sasaki,Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206

Announcement regarding the establishment of the “long-term management policy” andmedium-term management plan (FY2015-2017) “Materials Premium 2016 – Challenge
to become the world’s leading businesses group”
At this time, Mitsubishi Materials Corporation has formulated its “long-termmanagement policy” that looks toward the early 2020s, and its medium-term
management plan (FY2015-2017) “Materials Premium 2016 – Challenge to become theworld’s leading businesses group.” Details are listed below.
I. Long-term management policy
In recent years, the business environment has drastically changed because theworldwide economy has become more complex, social needs have diversified, andinnovation speed has accelerated. Under such business circumstances, the Mitsubishi
Materials Group states a vision as “We will become the world’s leading business group
committed to supporting recycling-oriented society through materials innovation, withuse of our unique and distinctive technologies., looking forward toward the beginning of
the 2020s, in order to securely implement the corporate philosophy “For People, Societyand the Earth.”
Based on this policy, each operation of the Group commits to create valuable products
and services with our unique technologies and to take a leading position in the industryand market.
The Group’s target for the early 2020s is to reach net sales of ¥2 trillion or more andnet income of ¥100 billion or more.
II. Medium-term management planA) Recap of medium-term management plan (FY2012-2014) “Materials Premium 2013”
Results
FY2014targets in themedium-termmanagement
FY2012FY2013
FY2014plan(FY2012-2014)
Consolidated ordinary
¥42.4
¥74.4
¥76.9
¥110 billion
incomebillion
billionbillionROA (Ordinary income/Total
2.4%
4.1%
4.3%6%
assets)
1.5 times orNet D/E ratio
1.8 times
1.6 times
1.3 times
lower
In the medium-term management plan “Materials Premium 2013” to the previous
fiscal year, the Company charted a basic policy of simultaneously implementing growth1strategies and financial improvements. As a growth strategy, the Company focused on
business development in overseas markets, especially in emerging countries, as well as
realization of distinctive synergies as an integrated business entity under “MaterialsPremium”.
Regarding the first aspect of this growth strategy, business development in overseas
markets, especially in emerging countries, the Company took several steps to fortify its
operation for future growth. For example, the Company expanded its network ofproduction and sales locations, particularly in Asia. In the United States, the Company
merged Robertson’s Ready Mix, Ltd. as a wholly owned subsidiary that runs
ready-mixed concrete and aggregate business. Further, the Company participated in theZafranal Copper Project in Peru.
The second aspect of the Company’s growth strategy was the realization of“Materials Premium”. In this effort, the Company achieved tangible results on severalfronts. Leveraging its unique strengths as an entity with strong operations in bothcement and metals, the Company launched a “smelting and cement recycling system.”This system reuses copper slag generated from the copper smelting process as afeedstock for cement production. Similarly, the Company began to promote the use ofcopper slag as the aggregates for concrete. The Company achieved the highest pinnacleof Materials Premium such as the large-scale silver alloys; target materials for long
cylinders through collaboration in raw-material procurement, recycling, fusion-casting
and rolling technologies.
Furthermore, the Company invented MNEX® and DBA substrates with silver
fired film, which crystallize various non-ferrous alloy technologies; the Company
succeeded in developing a series of flexible thermistor sensors by using technologies forthe manufacture of cemented carbide tools and electronic materials. Theserevolutionary products are the world’s thinnest bendable thermistor sensor.
As for the financial improvements, the Company achieved its plan for improvement
to its net debt-to-equity (D/E) ratio. However, the Company could not meet its targets
for consolidated ordinary income and ROA. Improving profitability remains an issue totackle with renewed effort going forward.
B) Outline of medium-term management plan (FY2015-2017) “Materials Premium2016”
Our medium-term management plan “Materials Premium 2016” is positioned as afirst step to focus on strengthening our foundations to become the world’s leadingbusiness group as defined in our long-term management policy.
Materials Premium 2016 calls for a three-pronged strategy for the overall Group
growth: fortifying the basis for growth, strengthening global competitiveness, andpursuing a recycling-oriented business model.
The targets for Materials Premium 2016 are consolidated operating profit of ¥100billion, consolidated ordinary income of ¥110 billion, ROA of 6% and net D/E ratio of 1.0
or lower by FY2017.
1. Management targets
1) Financial plans(1) Management targets
Consolidated operating profit
Consolidated ordinary income
ROA (Ordinaryincome/Totalassets)
Net D/E ratio

FY2014 results¥66.2 billion¥76.9 billion

FY2017 targets¥100 billion¥110 billion

4.3%

6%

1.3 times

1.0 time or lower2(2) Assumptions

FY2014100 yen/USD
134 yen/EUR
322￠/lb

Exchange rate (yen/USD)
Exchange rate (yen/EUR)
LME copper price(3) Sensitivity

Impact on results

Exchange rate¥/US$ (yen depreciation)+¥0.7 billion

Exchange rate¥/€ (yen depreciation)+¥0.1 billion+¥0.5 billion

LME copper price (increase of 10¢ per lb)+¥1.5 billion

FY2017
100 yen/USD
130 yen/EUR300￠/lb
Remarks
Consolidated
operating profit
Same as above
Same as above
Consolidated
non-operating profit

2) Investment plan (Total for the 3-year period 2015–2017)
Maintenance and upgrading
Expansion/ Rationalization/NewJapan

Overseas

Subtotal

Japan

¥100
¥30
¥130
¥100billion
billionbillionbillion30%
10%40%30%* Includes strategic investment of ¥100 billion.

Overseas

Subtotal*¥100billion30%¥200billion
60%

Total forthe 3-yearperiod¥330billion
100%

2. Group-wide Growth strategy
1) Fortifying the foundation for growth
Setting the motto “Safety and Health are the First” as our first priority, we will
enhance our safety management systems. Thus, we foster our corporate philosophy
and culture to value safety so that we will secure stable operational frameworks
which contribute to the growth of the Group business.
Further, we will continue to work to improve our financial position by raisingprofitability through business selection and focus, while accelerating growth byexecuting strategic investments worth ¥100 billion over the three-year period,
focusing on M&A and expansion in production and sales locations in the overseascountries.
2) Strengthening global competitiveness
Focusing on expanding our current production and sales locations in the overseas
countries; Developing new production and sales locations mainly in the emerging
countries, we will acquire the growing new global markets.
Furthermore, by conducting strategic marketing in the automotive and electronics
industries, we will gain the access to new customers and markets so that we canboost our competitiveness.
3) Pursuing a recycling-based business model
The Group operates its business widely across the upstream (sources), midstream(materials) and downstream (processed products) markets. In addition, we will
pursue the business model to circulate wastes to the upstream market for utilization.
Through our “Material Premium” plan that derives from our unique strength as aconglomerate, we will facilitate recycling of the wastes that have so far been hard toprocess so that we can contribute to the sustainable growth of society.

33. Operating strategy in each segment
1) Plan by segment (FY2017 plan)
FY2014 results
Net sales Operating Ordinary
profitincome190.1
19.118.8
750.9
23.7
37.8

(Billions of yen)
FY2017 results
Operating Ordinary
Net sales
profitincome
229.0
35.0
35.0
810.0
30.0
40.0

CementMetals*Advanced
Materials &
145.8
14.0
13.9
168.0
23.0
23.0
Tools
Electronic
Materials &
67.7
4.0
2.1
88.0
7.0
6.0
Components
Aluminum
151.5
5.5
4.7
175.0
8.0
7.0
Others,elimination,
108.5
(0.3)
(0.7)
130.0
(3.0)
(1.0)
etc.*
Total
1,414.7
66.2
76.9
1,600.0
100.0
110.0* Results for FY2014 are shown according to the classifications after the transfer ofprecious metals bullion operations.
2) Operating plans in key segments
CementTarget state at the early 2020s・No. 1 ROA in global cement industry
・Major player in the Pacific Rim
Business strategy in Materials Premium 2016
Stable supply for booming demand due to earthquake disasterreconstruction, hosting of Tokyo Olympics, etc.
Japan
Promote integrated business capabilities to expand recycle
operations
Expand cement supply abilities by such measures as terminal
expansion, etc.
United States
Expand earnings from ready-mixed concrete operations by new
construction and purchasing of ready-mixed concrete plants, andsecuring of aggregate quarries
Deploy operations in emerging countries by such measures asEmerging
building new cement plants, terminals and relationships with local
countries
companies

4Metals
Target state at the early 2020s・Mining:
Captive mine ratio 50% *・Smelting and refinery: No.1 globally in processing of precious metals scrap (E-Scrap)
・Copper processing：No. 1 in globally profitability
Business strategy in Materials Premium 2016
Launching of new mine development (Zafranal in Peru, etc.)
MiningStrengthening of recycling operations; responding to increasing
generation of precious metals scrap (e-scrap) overseas by expanding
Smelting
collection and pretreatment facilities
Utilizing slag (smelting by-products) effectively
Expanding sales of new alloy MNEX® for volume-zone markets inemerging-country
Establishment of slitting facilities and sales location in
Copperemerging-countries
processing
Cultivating new markets with unique alloys such as lead-free
products (“EcoBrass”) and discoloration-resistant antimicrobials
products (“CleanBrass”)* Captive mine ratio 50%= (Copper production volume as share of concentrate rights)/ (Electrolytic copper
production volume from concentrate)
Advanced Materials & Tools
Target state at the early 2020s
・Cemented carbide products: Over 10% global share・High-performance alloy products: World No.1 in ROS
Business strategy in Materials Premium 2016
Expansion of sales through industry-based team automobiles,
aircraft and medical equipment
Cemented carbide
Expansion of sales networks and production locations, focusing on
products
emerging countries
Enhancing tungsten recycling
Increasing market share among auto-parts manufacturers byHigh-performance expanding existing production locations and opening new onesalloy products
Expanding sales of eco-car parts (VVT, etc.) by improving quality
while reducing sales priceElectronic Materials & Components
Target state at the early 2020s
・A high-profitability operator with the world's No. 1 product lineup
Business strategy in Materials Premium 2016
Promotion of marketing-driven R&D to achieve rapid development
Advancedand commercialization of unique, value-added strategic products
materials andOptimization of products portfolio through selection and focus aselectronic devices
well as M&A
Aiming for a recommencement of Yokkaichi Plant, the Group aimsto thoroughly elucidate the causes of the accident and establish
systems for safety and production technology.
SiliconEnsuring early stabilization of overall silicon business.
(The Group will continue to observe autonomous reconstructing atSUMCO.)
5

Aluminum
Target state at the early 2020s・ Rolling and processing: No. 1 global market share in extruded multi-hole tubes forheat exchangers
・ Can manufacturing:No. 1 domestic market share in aluminum cans for beverage
Industry No.1 in UBC usage
Business strategy in Materials Premium 2016
Strengthening of existing overseas locations for extruded
multi-hole tubes for heat exchangers and sheet metal
Rolling andLaunching a company in India; achieving profitability
processing
Serving needs for light weight and low cost in automobiles andelectronics
Enhancing a system for increasing production by speeding up
existing lines
Can
Strengthening bottle can sales overseas
manufacturing
strengthening collaboration among collection, casting and rolling inaluminum-can recycling
Contact details for inquiries: Corporate Communications & IR Dept.
Tel: +81-3-5252-5206

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