May 10, 2018
To: AllCompany
Mitsubishi Materials Corporation
Representative Akira Takeuchi, President(Securities Code: 5711 on the First Section of theTokyo Stock Exchange)
Inquiries to:
Nobuyuki Suzuki, GeneralManager, Corporate
Communications Dept., General
Affairs Dept.
(TEL: 03-5252-5206)

Progress on Addressing Non-Conforming Products at MMC Subsidiaries
Mitsubishi Materials Corporation (“MMC”) sincerely apologizes for the difficulties that we havecaused to all concerned parties, including our customers and shareholders, in connection with Mitsubishi
Cable Industries, Ltd.’s (“MCI”), Mitsubishi Shidoh Co., Ltd.’s (“MSC”), Mitsubishi Aluminum Co., Ltd.’s(“MAC”) Tachibana Metal Mfg Co., Ltd.’s (“TKC”) and Diamet Corporation’s (“DM”) delivery of productsthat deviated from customer or internal specifications (“Non-Conforming Products”) due to misconduct,
including the rewriting of data. MCI, MSC, MAC, TKC, and DM are consolidated subsidiaries of MMC.
We would like to report today on the progress that has been made to date in addressing these issues.

1.

Safety Confirmation Status
Each of the relevant companies is proceeding with safety confirmation with the cooperation of theircustomers. The progress as of May 9, 2018 is as follows. The figures in parenthesis in the tables are thefigures as of March 28, 2018.
The categories, reflecting the status of the relevant company’s progress in evaluating the safety ofaffected products, are as follows:A.

The customer has completed its confirmation that there are no safety concerns.

B.

The customer has determined that there are no immediate safety concerns, but is conducting
further review.

C.

The relevant company (MCI, MSC, MAC, TKC or DM) has communicated to the customers
its opinion that, from a technical perspective, there is a high probability that the affected
products can be assumed to be safe.

D.

The relevant company has provided notification that Non-Conforming Products weredelivered to the customer.

1)

MCI
Product

Number ofA

Customers
‐1‐B

C

D2)

Seal Product218

201 (110)

17 (108)

0 (0)

0 (0)

MEXCEL

5

3 (1)

2 (4)

0 (0)

0 (0)

Number ofA

B

C

D

30

29 (21)

1 (9)

0 (0)

0 (0)

Number ofA

B

C

D

87 (7)

1 (1)

0 (0)

0 (0)

114

40 (35)74 (67)0 (12)0 (0)MSC
ProductCustomers

Brass-strip andcopper-strip
products

3)

MAC
ProductCustomers
120

Rolled Products
Extruded
Products(Note) There are 2 overlapping customers in the number of customers for rolled products and for
extruded products.
4)

TKC
Product
Extruded
Products

5)

Number ofA

B

C

D

339

129 (85)

200 (165)

10 (89)0 (0)Number ofA

B

C

D

33 (0)

33 (26)47 (61)0 (26)

Customers

DM
Product

Customers

Sintered
Machinery Parts

113

etc.
2.

Extraordinary Quality Audits
Given the circumstances, since February 2018, for the target period from January 1, 2017, to December
31, 2017, MMC group started conducting extraordinary on-site quality audits at production facilities ofMMC and its affiliates to reaffirm the absence of quality issues, and completed the audits for all 119
locations.

Although some incidents in which there were issues with quality control method wereidentified as a result of the audits, corrective actions have been completed with respect to such issues. No
cases in which there were issues with product quality were identified.
‐2‐

Taking into account the completion of the extraordinary quality audits, the Special Investigation
Committee was dissolved as of today.
3.

Outlook on Financial Results
While the impact on this matter on MMC’s financial results have been incorporated into our forecasted
consolidated financial results for the fiscal year ending March 31, 2019 that was announced today based on
certain assumptions, their monetary impact is minimal.
END

Direct any question to:
Corporate Communications Department, General Affairs Department, Mitsubishi Materials Corporation
TEL：03-5252-5206
Corporate Administration & Personnel Section, Administrative Division, Mitsubishi Cable Industries, Ltd.
TEL：03-3216-1551
Corporate Administration & Personnel Division, Mitsubishi Shidoh Co., Ltd.
TEL：03-6629-5850
General Affairs Department, Mitsubishi Aluminum Co., Ltd. (including questions related to TKC)
TEL：03-3769-0111
General Affairs Department, Administration Division, Diamet Corporation
TEL：025-275-0111‐3‐