Data Section

FAQ
We would like to address questions frequently asked by individual investors and other stakeholders.

1

I have heard that non-ferrous metals havea promising future. Why is this and what
are their growth areas?

Non-ferrous metals such as copper and nickel are importantmaterials that support social infrastructure, and their use continues to increase steadily along with the growth of the
global economy. In addition, the rapid digitalization of society
in recent years, the technological innovation, and energy
transition toward creating a decarbonized society are major
trends that are greatly expanding opportunities for nonferrous metals.
Take the electrification of automobiles, for example. Electricvehicles are said to use about four times as much copper as
conventional gasoline-powered vehicles, and demand fornickel is expected to increase for use as a cathode material inautomobile batteries.

not increase mining and production
2 Whywhen metal prices are high?
Some mines contain dense (high-grade) metals and somelight (low-grade) metals. If only the high-grade areas aremined when metal prices are high, short-term performance
will improve, but the low-grade areas will remain. As a result,
there is a risk of leaving some areas unprofitable, depending
on metal prices. We believe that rather than pursuing only ashort-term contribution to business performance, we should
give full consideration to environmental concerns and local
communities, emphasize sustainable development, and strive
for long-term stable operations, which will lead to the maximization of benefits for SMM and our stakeholders.

3

Why is production at the Hishikari Minebeing reduced in the 2021 3-YearBusiness Plan?

136

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

In July 2021, we announced a 2,000 tons per month production increase for nickel-based cathode material, including theconstruction of a new plant in Niihama, aiming for a production capacity of 7,000 tons/month by FY2025.
In this expansion project, the plan is to complete construction of the new plant by the end of 2023, after which the equipment will be delivered to the plant. Progress of the new plant ison track toward completion in 2025. We will continue to aggressively expand our production capacity to reach 10,000 tons/
month by FY2027 and 15,000 tons/month by FY2030.
In addition, since taking over the lithium iron phosphate(LFP) battery materials business of Sumitomo Osaka Cement
Co., Ltd. in 2022, we have strived for stable production andsales toward its customers, as well as considered converting
our existing process to reduce cost. We will also meet a wider
range of customer needs by expanding our product lineup as
well as our existing nickel-based cathode materials.

5

What are the strengths of the Sumitomo
Metal Mining Group’s 3-business collaboration model?

In its more than 430 years of handling metals, the SMM Grouphas continued to hone not only its mining, smelting, and refining
technologies, but also its analysis, quality and equipment management, research & development, and other technologies. Thisknowledge and these technologies related to metals are used in
the three businesses of Mineral Resources, Smelting & Refining,and Materials, and the combined efforts of these businesses contribute to the expansion of our earnings. A typical example of thecollaboration among these three businesses is our proprietary,
integrated nickel supply chain that spans the securing of nickel
ore to the production of battery materials, and achieves traceability in the securing of raw materials, stable supply, quality, andother factors. Further, we are contributing to the creation of a sustainable, circular economy and expanding business opportunities
by promoting battery recycling, in which nickel and cobalt arerecovered from used secondary batteries for automotive applications in the Smelting & Refining Business and recycled as cathodematerials for batteries in the Materials Business. Another strengthof ours is the supply and demand outlook for non-ferrous metal
resources in areas close to final consumer goods, obtained from
customers for our battery materials and advanced materials. Thisis an important source of information for our medium- to longterm growth investments in the resource field and the smelting
and refining field. Our Group seeks to achieve further growth bycombining the knowledge gained from our three businesses,
including technologies in wide-ranging fields, experience andachievements in numerous projects, and market forecasting.

Why did you start disclosing profit/loss,

6 excluding temporary factors, in FY2022?
Prices of non-ferrous metals (such as copper and nickel) in
which we operate are determined in trading markets represented by LME, and our profit and loss is characterized by thefact that they are significantly influenced by the market environment, including economic trends. Further, when prices of
non-ferrous metals rise, the differences in timing of buying
and selling causes profit to temporarily exceed standard levels, and likewise when prices decline profit temporarily fall
below standard levels. We have received requests from investors to disclose our profit and loss based on actual performance, excluding temporary factors, and as such shared ouractual profit and loss for FY2022 at our Progress of Business
Strategy briefing. For details on what constitutes profit/loss,
excluding temporary factors, please refer to p. 43.

7

What are your shareholder return policies
on topics such as share buybacks anddividends?

Our current financial situation is characterized by a highdemand for funds due to two major projects underway in the
Mineral Resources segment, and the expansion of production
for cathode materials for automobile batteries in the Materials
segment. Further, in terms of the business environment,
development in the Mineral Resources, and Smelting &Refining is becoming increasingly challenging due to factorsthat include the high altitude of sites, the necessity to mine
deeper, and the rising cost of materials. While growth investment requires immediate expenditures in the ¥100 billion
range, it takes time for the results to materialize. Without arobust financial foundation that can withstand these challenges, we cannot position ourselves as a suitable partner for
development projects undertaken by major overseas nonferrous companies.
Considering these factors, we believe it is crucial for us tomaintain a strong financial foundation while steadily executing our growth strategy to achieve our long-term vision.
Therefore, while we do not rule out the possibility of purchasing our own shares in the future, for the time being, we arecommitted to maintaining a performance-based dividend
policy (consolidated dividend payout ratio of 35% or more inprinciple).

are the future prospects for battery
8 Whatrecycling?
We and Kanto Denka Kogyo Co., Ltd. have jointly developed aworld-first horizontal recycling process that recovers lithiumfrom used lithium-ion batteries (LIBs) as a high-purity compound for battery materials. We will continue our efforts toachieve “battery to battery” recycling and contribute to theformation of a sustainable, circular economy and to address
global resource depletion through the promotion of resource
recycling. For details, please refer to p. 77.

9What types of products contribute to a
low-carbon society and to the reductionof GHG emissions?

Examples include battery materials and the near-infraredabsorbing material CWO®. One type of battery materials that
supports electrification in the automotive industry, such as
hybrid and electric vehicles, is cathode materials. Cathodematerials are materials used for the positive electrodes of batteries, and SMM mainly produces cathode materials for batteries used in automobiles. While cathode materials with highnickel content, which are our main products, have highcapacity, it is difficult to ensure stable quality. We maintain ahigh market share worldwide thanks to our technical capabilities and quality control system that enable us to mass produce such cathode materials with stable quality. The
near-infrared absorbing material CWO® is a material thatcombines high transmittance of visible light with strong
absorption capacity of near-infrared rays. When applied towindow materials, for example, it can efficiently block out theenergy of near-infrared rays contained in sunlight, thereby
significantly suppressing the rise in indoor temperatures
while maintaining brightness.

is your approach to business and
10 Whathuman rights?
Based on the Sumitomo Metal Mining Group Policy on
Human Rights, which is in line with the UN’s Guiding
Principles on Business and Human Rights, SMM conducts due
diligence and operates a grievance mechanism that external
stakeholders can also use. In practice, SMM places particularemphasis on the three areas of employees, local residents
and indigenous peoples, and the supply chain, based on thematerial issues of our Vision 2030, namely: Employees’
Occupational Health and Safety, Diverse Human Resources,
Development and Participation of Human Resources,
Co-Existence and Mutual Prosperity with Local Communities,
Rights of Indigenous Peoples, Human Rights in the Supply
Chain, etc. We also promote comprehensive initiatives basedon dialogue and consultation with relevant stakeholders.
These initiatives are regularly reported to the Sustainability
Committee, which is overseen by the Board of Directors andchaired by the President.

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

Data Section

The Hishikari Mine is a gold mine that boasts high earning
capacity and cost competitiveness, with the most significant
feature being its world-class ore grade (approximately 20
grams per ton), and has produced approximately 264 tons ofgold (as of March 31, 2023) since mining began in 1985. Our
mission at this mine is to completely mine out the 155 tons ofrecoverable reserves as of December 31, 2022. In the 2021
3-Year Business Plan, we have shifted to a sustainability-oriented operation based on average-grade ore mining. In order
to extend the mine life, we plan to produce 4 tons in FY2023,
down from the 6 tons before the 2021 3-Year Business Plan.
We will continue to work on the development of the lower
orebody of the mine and will also review our cost structure
through a variety of innovative means, such as DX.

4

What are your plans for increasing production of battery materials needed for xEV,
which are expected to grow in the future?

137

Data Section

Glossary

Term

Explanation
A raw material used in copper smelting, consisting of about 30% copper content with sulfur and iron as most of the remainder. Copper
concentrates are produced mainly from sulfide ores. At present, ores
extracted from overseas mines generally have a grade of about
1%. The ores are then “dressed” at the mine to enhance the gradeand produce concentrate. The raw materials imported by copper
smelting and refining plants in Japan are primarily copper
concentrates.

Copper concentrates

The SMM Group’s first HPAL plant. Located in the Province of
Palawan in the Philippines, CBNC produces mixed nickel-cobalt sulfides (MS) using HPAL technology for export to the Group’s Niihama
Nickel Refinery and Harima Refinery.

Coral Bay Nickel Corporation(CBNC)GRI

An acronym for Global Reporting Initiative. An organization that creates and promotes international guidelines and standards for sustainability reports. It issued its first guidelines in 2000, and has
transitioned to issuing standards from 2016.

P. 12, 117-118

An acronym for High Pressure Acid Leach. This technology enables
the recovery of nickel from low-grade nickel oxide ores that had
been conventionally difficult to process. The SMM Group was thefirst company in the world to apply it successfully on a commercial
scale. HPAL causes low-grade nickel oxide ores to react stably withsulfuric acid under high-temperature and high-pressure conditions,to produce a high-grade nickel raw material.

P. 1, 23, 28, 32, 35, 63, 88

An approach to human rights protection based on the United
Nations Guiding Principles on Business and Human Rights approvedby the United Nations Human Rights Council in 2011, this is a seriesof processes for performing preventive investigations to avoid andmitigate the negative effects that organizations have on humanrights, and for taking appropriate corrective action based on thefindings. The SMM Group built a system for human rights due diligence in FY2014 and has followed it since then.

P. 11, 53, 98

Human rights due diligence

ICMM

138

SUMITOMO METAL MINING CO., LTD.

An acronym for International Council on Mining and Metals. This isan organization composed of worldwide metal and mining companies and related industry bodies. Its mission is “In collaboration withothers, we will strengthen the social and environmental performance of the mining and metals industry and build recognition of
its contribution to local communities and society at large.”

Integrated Report 2023

P. 17, 49, 51, 81, 99

IoT

An acronym for “Internet of Things,” referring to communication
among objects via the Internet. Communication devices, such as
smartphones and PCs, and even items such as home appliances, arebecoming connected to the Internet, creating expectations for a
future society in which all things are connected to networks.

P. 12, 78, 80, 86, 88

LT/LN

Lithium Tantalate (LT) and Lithium Niobate (LN). These are used inchips for information and communication terminal SAW filters.

P. 23, 40, 70

Lithium Iron Phosphate(LFP)

LFP is a cathode material for lithium-ion batteries, like nickel-based
cathode materials (NCA, NMC), which are battery materials. While
nickel-based cathode materials are made from metals such as nickel,
manganese, and cobalt, LFP is made from relatively inexpensive lithium, iron, and phosphorus. It is mainly produced in China.

P. 15, 23, 35, 40, 69-70, 136

MCLE

An acronym for Matte Chlorine Leach Electrowinning. This is a manufacturing process adopted at the SMM Group’s Niihama Nickel
Refinery. Matte and mixed nickel-cobalt sulfides (MS) are dissolvedin chlorine at high temperature, then electrolysis is used to produce
high-purity nickel. MCLE is more competitive than other methods interms of cost, but poses significant operational challenges, and only
a few other producers outside of SMM have commercialized it using
similar technology.

P. 22, 28

MLCC

An acronym for Multi-Layer Ceramic Capacitor. These are capacitors
made of multiple layers of ceramic dielectric bodies for greater
capacity. In addition to consumer applications, in recent years they
are being used often in electric automobiles so demand is expected
to increase. The nickel paste produced by our Group is used in theinternal electrodes of MLCCs.

P. 70, 72-73, 75

MS

An acronym for Mixed Sulfides of nickel and cobalt. CBNC and THPAL
produce a mixed nickel-cobalt sulfide intermediate containing
about 55–60% nickel by weight. It is used as a raw material in the
production of electrolytic nickel, nickel sulfate, and other products.

P. 22, 63-64

Matte

A term for metal sulfides. Niihama Nickel Refinery produces electrolytic nickel using nickel matte (of about 75–80% purity) sourced
from PT Vale Indonesia Tbk.

P. 22, 64

NCA

An acronym for a type of secondary battery cathode material composed primarily of N (nickel), C (cobalt), and A (aluminum).

P. 73

NMC

An acronym for a type of secondary battery cathode material composed primarily of N (nickel), M (manganese), and C (cobalt).

P. 73

P. 64, 67, 77, 88

P. 12, 48, 92

SUMITOMO METAL MINING CO., LTD.

Data Section

Hydrometallurgical refining

A refining method in which metals and impurities are dissolved in asolution, and chemical reactions are used to separate them. The
method is stable and enables continuous processing, but incurs thecosts of chemical reagents.

P. 1, 28, 40-42, 47, 62-67, 88, 92

Pages

Internal carbon pricing(ICP)

P. 2, 16-17, 22, 35, 42, 47, 61,
63-65, 88, 92, 97

Electrolytic copper(electrolytic nickel and cobalt)

Explanation
A framework for encouraging investment that leads to decarbonization. Internal carbon pricing uniquely attaches prices to carbon
emissions within a company, attaches monetary values to GHG
emission reductions, and incorporates these into investment
cost-effectiveness.

P. 1, 28, 30, 66

A high-purity copper material produced through electrolytic refining
in a solution (electrolysis). At our Group’s Toyo Smelter & Refinery, we
dissolve copper concentrate in a flash furnace, pass it through a converter and a refining furnace, cast anodes in plate form, and produce
electrolytic copper through electrolytic refining. Electrolytic nickel andelectrolytic cobalt are also produced through electrolytic refining.

HPAL

Term

Pages

Integrated Report 2023

139

Data Section

Glossary

Term

Explanation
A smelting and refining method that uses lead to remove silver andimpurities contained in crude copper. Developed by Soga Riemon
around 1600. An alloy made by melting and rapidly cooling lead andcrude copper containing silver is heated, and silver-containing lead,which melts out at a melting point below that of copper, is heatedatop ash. The lead is absorbed by the ash and only the silver
remains. This allows the collection of silver while obtaining highpurity refined copper.

Nanban-buki

NiO (nickel oxide) for fuel cells

Nickel oxide ores
(laterite ore)

OJT

While predominantly higher-grade sulfide ores are used in nickel
refining, nickel oxide ores are more prevalent than nickel sulfides.
High refining costs and technical issues have limited the use ofoxide ores in nickel refining to date, but the SMM Group has succeeded in mass producing nickel from low-grade oxide ores basedon HPAL technology.
An acronym for On-the-Job Training, this is a method of training forthe acquisition of knowledge and skills through the performance ofactual work in the workplace under the guidance of superiors or
senior colleagues. Its aim is the fast acquisition of work execution
capabilities.

Pages

Silicon carbide (SiC)

P. 17, 35, 40, 68, 72-73

Smelting & Refining

This refers to the extraction of valuable metals from ore and otherraw materials, and is mainly divided into pyrometallurgical smelting
and hydrometallurgical refining. The SMM Group’s Toyo Smelter &Refinery in Saijo, Ehime Prefecture uses pyrometallurgical smelting
in its upstream processes (treatment processes), while Niihama
Nickel Refinery in Niihama, Ehime Prefecture uses only hydrometallurgical refining throughout.

P. 1-3, 7, 11, 16-18, 20-22, 28,
30-35, 40, 42-45, 47, 50-51, 60-64,
66-67, 74-77, 86-89, 92, 98, 102,
108, 123, 128, 129, 132, 136-137

Sustainable procurement

Sustainable procurement ensures that there is no complicity in negative effects such as infringement on human rights, environmental
destruction, or corruption in the procurement of parts, services, etc.
It affirms that companies in the supply chain do not cause such negative effects, requests corrections when necessary, and enhancestransparency in the supply chain.

P. 11, 29, 87, 91, 98 ,116

TC/RC

An acronym for Treatment Charge and Refining Charge. These arecosts that make up a part of the terms of purchase of metal raw
materials (copper concentrate, nickel ore, etc.). As an example, (LMEprice at a given point in time) – (TC/RC used in the transaction) +(other terms) is used as the purchase price of copper concentrates.

P. 60

TCFD

An acronym for the Task Force on Climate-related Financial
Disclosures. Established by the Financial Stability Board (FSB) to
examine the disclosure of climate-related information and how
financial institutions should respond. It recommends the disclosureof information concerning governance, strategy, risk management,
and metrics and targets concerning climate change-related risks
and opportunities.

P. 90-91

Taganito HPAL Nickel
Corporation (THPAL)The SMM Group’s second HPAL plant. Located in the Province ofSurigao del Norte in the Philippines, THPAL produces mixed nickel-cobalt sulfides (MS) using HPAL technology for export to theGroup’s Niihama Nickel Refinery and Harima Refinery.

P.2, 16-17, 22, 35, 40, 42, 47,
61-65, 88, 92, 97

xEVElectric vehicles. Types of electrification are diverse, differing by
method of supplying electricity. Types include BEVs that carry batteries, plug-in hybrids (PHEVs), hybrids (HEVs/MHVs), and fuel cell electric vehicles (FCEVs/FCVs).

P. 27, 69-70, 136

P. 63, 86, 88, 90

P. 1, 23, 27-28, 61, 64, 88

P. 28-29, 48, 81, 133

Off-JT

Pyrometallurgical smelting

A smelting method in which raw ore is melted in a high-temperature furnace and the metal is separated in the molten state. While itis possible to treat a large amount at one time, it requires periodic
repair of heat-resistant equipment.

SDGs

Listed in the 2030 Agenda for Sustainable Development andadopted at the UN Sustainable Development Summit in September
2015, the Sustainable Development Goals (SDGs) are a set of international goals for creating a sustainable and better world by 2030.
They are composed of 17 goals and 169 targets, and pledge to“leave no one behind.”

P. 7, 9-10, 12, 14, 85

Secondary battery cathodematerials

Materials used in the cathodes of batteries (secondary batteries) thatcan be charged and reused. The constituent components of secondary batteries break down roughly into cathode material, anodematerial, a separator, and electrolytic solution. The SMM Group produces the secondary battery cathode materials used in electric andhybrid automobiles.

P. 23, 70, 73, 75, 77, 88

Integrated Report 2023

Explanation
SiC is a power semiconductor material used mainly in electric power
control applications. Its use is expanding as a material capable ofreducing energy loss in high-capacity fields (high current and highwithstand voltage) demanded for drive control devices, particularly
in hybrid vehicles and electric vehicles.

P. 20, 32

A method of training conducted away from the workplace or separate from normal work. Its aim is the acquisition of advanced work
capabilities or other knowledge and skills not directly connected tonormal work based on systematic knowledge and theory.

SUMITOMO METAL MINING CO., LTD.

Term

P. 29, 81, 132

P. 63-64, 67, 77

SUMITOMO METAL MINING CO., LTD.

Data Section

140

Fuel cells are a clean and highly efficient method for generating
electricity and heat through the chemical reaction of hydrogen andoxygen. Plans for increased use of fuel cells in a wide range of applications, from homes to factories, are being formulated in countries
around the world. Nickel oxide powder for fuel cells is used in theelectrodes of solid oxide fuel cells (SOFCs), which deliver the highest
power generation efficiency.

Pages

Integrated Report 2023

141

Data Section

Eleven-Year Financial SummaryIFRS

J-GAAP
2023

2022

2021

2020

2019

2018

Net sales*3¥1,422,989¥1,259,091¥    926,122¥    851,946¥   912,208¥   929,746

Gross profit

250,106

257,794

150,876

109,471

126,637

149,015

Years ended March 31

Results for the year:

Millions of yen (except per share amounts and key ratios)

2018

2017

2016

2015

2014

2013

Net sales¥   933,517¥   786,146¥   855,407¥   921,334¥   830,546¥   808,540

Gross profit

157,089

122,296

113,862

174,257

124,822

140,650

Operating income

110,203

76,39059,720125,779

75,41895,785

Other income (expenses)

124,853(1,565)(12,764)

174,226

114,352

115,034

Years ended March 31

Results for the year:

Profit before tax

229,910357,434

123,379

79,03589,371

108,286

Profit (loss) before income taxes

105,795(5,999)559

123,261

111,006

122,455

Profit attributable to owners of parent

160,585

281,037

94,60460,60066,79090,227

Profit (loss) attributable to owners of parent

91,648(18,540)(309)

91,11380,25886,640Capital expenditures

140,845

64,53935,05950,68947,44574,675

Capital expenditures

74,589125,950

51,01355,232

66,44159,291

Depreciation

53,31046,45545,72945,35543,541

46,762

Depreciation

46,86544,232

46,141

38,12532,426

27,578Financial revenue (expenses)

10,804

10,546

8,927

6,250

3,530

(144)

Net cash provided by (used in) operating
activities

120,382

159,489

91,522

136,545

114,744

78,552

Net cash provided by (used in) operating
activities

79,405

43,796

119,704

120,003

80,014

114,665

Net cash provided by (used in) investing
activities(185,503)

9,796(32,393)(70,334)(142,354)(22,787)

Net cash provided by (used in) investing
activities(22,994)(143,219)(92,876)(105,024)(126,937)(88,745)

Net cash provided by (used in) financing
activities

49,336(129,618)(55,758)

9,149(29,047)(89,797)

Net cash provided by (used in) financing
activities(90,095)

70,392(4,003)(39,047)

81

21,549

Free cash flows(65,121)

169,285

59,12966,211(27,610)55,765

Free cash flows

56,411(99,423)

26,828

14,979(46,923)

25,920Financial position at year-end:

Financial position at year-end:

Total assets¥2,707,899¥2,268,756¥1,885,999¥1,719,690¥1,797,701¥1,732,333

Total assets¥1,699,037¥1,685,018¥1,630,800¥1,740,246¥1,572,367¥1,351,153

Equity1,789,296

1,557,418

1,222,983

1,110,860

1,151,280

1,113,349

Net assets

1,120,008

1,024,121

1,075,995

1,158,945

1,019,053

844,547

Non-current liabilities

447,340

326,547

337,694

402,520

388,943

378,438

Long-term loans payable after one year

257,409358,564

248,036

245,000

243,130

212,323

Interest-bearing liabilities

457,257

301,355

330,678

367,882349,798

361,775

Interest-bearing liabilities

362,297495,504

400,559

394,094

383,580

330,073

Working capital

369,668

382,810313,812

307,436

314,198

338,866¥   332.42¥    (33.61)¥     (0.56)¥   165.11¥   145.35¥   155.58

299.94——149.44129.71142.403,771.69

1,743.46

1,781.91

1,905.50

1,653.83

1,393.02

100.0

11.0

31.0

48.0

37.0

34.0

Amounts per share (Yen)*2:

Amounts per share (Yen)*2:¥     5,938¥     5,260¥     4,054¥     3,646¥    3,812¥    3,746

Basic earnings per share

584

1,023

344

221

243

327

—BasicDiluted earnings per share

584

1,023

344

221

243

295

—Diluted

Equity attributable to owners of parent per share

Net income (loss)

Shareholders’ equity*

1

205

301

121

78

73

100

ROA (%)

6.5

13.5

5.3

3.5

3.8

5.2

ROA (%)

Dividends
Key ratios:

Cash dividends
Key ratios:

5.42(1.12)(0.02)

5.50

5.49

6.94

1

ROE (%)

10.4

22.0

8.9

5.9

6.4

9.1

ROE (%)*

9.17(1.93)(0.03)

9.28

9.54

12.13

Equity ratio (%)

60.3

63.7

59.1

58.3

58.3

59.4

Equity ratio (%)*1

61.0

57.1

60.3

60.4

58.1

56.9

Interest-bearing liabilities to total asset ratio (%)

16.9

13.3

17.5

21.4

19.5

20.9

Interest-bearing debt to total asset ratio (%)

21.3

29.4

24.6

22.6

24.4

24.4

Debt-to-equity ratio (times)

0.28

0.21

0.30

0.37

0.33

0.35

Debt-to-equity ratio (times)*1

0.35

0.52

0.41

0.37

0.42

0.43

Current ratio (times)

2.2

2.4

2.1

2.7

2.1

2.6

Current ratio (times)

2.70

2.82

2.39

2.29

2.40

2.60

142

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

Data Section*1 Shareholders’ equity is defined by the following equation.
Shareholders’ equity = Total shareholders’ equity + Accumulated other comprehensive income*2 The Company consolidated its shares at a rate of one share for every two shares of its common stock with October 1, 2017 as the effective date.
“Amounts per share” is calculated on the assumption that the consolidation of its shares was conducted at the beginning of the year ended March 31, 2018.
*3 Effective from the fiscal year ended March 31, 2021, the Company has changed its accounting policy for non-free supplied materials received from customers.
This change in accounting policy was applied retrospectively to the figure for the fiscal year ended March 31, 2020.

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

143

Data Section

1

Consolidated Financial Statements(1)

Consolidated Financial Statements

1)

Consolidated Statement of Financial Position
Notes

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets and goodwill
Investment property
Investments accounted for using equity
methodOther financial assets
Deferred tax assets
Other non-current assets

FY2021(As of March 31,2022)

FY2022(As of March 31, 2023)

Millions of yen

Millions of yen

Thousands of
U.S. dollars

213,977
187,310
49,342
420,136
44,354215,007
189,199
6,273
555,941
56,423

1,610,057
1,416,796
46,975
4,163,105
422,518

915,119

1,022,843

7,659,450

89, 34
16, 3410
17

11, 2112
14507,82256,586
3,477

629,451
68,2173,477

4,713,576
510,836
26,03715368,751

450,5123,373,611

16, 3418
17, 23

387,507
1,645
27,849497,496
1,822
34,081

3,725,446
13,644
255,212

1,353,637

1,685,056

12,618,362

2,268,756

2,707,899

20,277,812

Total non-current assets
Total assets

FY2021(As of March 31,
2022)

Notes

6

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Provisions
Retirement benefit liability
Deferred tax liabilities
Other non-current liabilities

19, 3420, 3420, 21, 34
22
24

20, 3420, 21, 34
22
23
18
24

Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings

25
7, 25
25
25

Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

FY2022(As of March 31, 2023)

Millions of yen

Millions of yen

Thousands of
U.S. dollars

206,013
120,983
7,027
24,9406,101
19,727

251,696
158,409
10,337
24,968
8,663
17,1901,884,799
1,186,229
77,408
186,970
64,872
128,725

384,791

471,2633,529,003

210,249
9,579
25,107
5,310
75,631
671

298,848
8,816
40,361
4,396
94,041878

2,237,891
66,018302,239
32,919704,216
6,575

326,547

447,340

3,349,858

711,338

918,6036,878,860

93,242
90,213(38,056)
124,304
1,175,626

93,24289,800(38,076)
220,383
1,266,322

698,233
672,458(285,128)
1,650,315
9,482,717

1,445,329

1,631,671

12,218,594

112,089

157,625

1,180,358

1,557,418

1,789,296

13,398,952

2,268,756

2,707,899

20,277,812

Data Section

As to the pages indicated in "NOTES," please refer to the Consolidated Financial Statements at the following address.
https://www.smm.co.jp/en/ir/library/consolidated_financial_statement/pdf/Consolidated_Financial_Statement_2023.pdf

144

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

SUMITOMO METAL MINING CO., LTD.

- 1 -

- 2 -

Integrated Report 2023

145

Data Section

2)

Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income

Consolidated Statement of Profit or Loss
FY2021
Notes (From April 1, 2021
to March 31, 2022)

FY2021
Notes (From April 1, 2021
to March 31, 2022)

FY2022(From April 1, 2022
to March 31, 2023)

27
28

1,259,091(1,001,297)

1,422,989(1,172,883)

28
29
29

257,794(52,711)31,884(2,969)250,106(63,997)
29,389(8,596)

1,872,892(479,235)
220,076(64,370)

15

57,53736,536

273,59630
30

81,850(15,951)

4,672(18,200)

34,986(136,289)6
18357,434(58,903)229,910(59,469)

1,721,656(445,327)

Profit298,531

170,441

1,276,329

Profit attributable to:
Owners of parent
Non-controlling interests

281,037
17,494

160,5859,856

1,202,524
73,806

298,531

170,441

1,276,329

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Finance income
Finance costs
Share of profit of investments accounted forusing equity method
Other income
Other expenses
Profit before tax
Income tax expense

ProfitEarnings per share
Basic earnings per share
Diluted earnings per share

32
32

Yen
1,022.80
1,022.80

Millions of yen

Yen
584.44584.44

298,531

170,441

Thousands of
U.S. dollars
1,276,329

31

39,7488,810

65,973

31

3,660

2,852

21,35715, 31

137

75

562

43,545

11,73787,891

31

1,167

1,662

12,44631

46,92258,729439,786

15, 31

25,13044,579333,825

73,219104,970786,057

Millions of yen

Thousands of
U.S. dollars
10,655,901(8,783,009)

Millions of yen

U.S. dollars
4.38
4.38

ProfitOther comprehensive income
Items that will not be reclassified to profit
or loss:
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit
plans
Share of other comprehensive incomeof investments accounted for using
equity method
Total of items that will not bereclassified to profit or loss
Items that will be reclassified to profit orloss:
Cash flow hedges
Exchange differences on translation offoreign operations
Share of other comprehensive incomeof investments accounted for using
equity method

FY2022(From April 1, 2022
to March 31, 2023)

Total of items that will be reclassified to
profit or loss
Other comprehensive income, net of tax

Millions of yen

116,707873,948415,295

287,148

2,150,277

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

387,078
28,217263,161
23,987

1,970,653
179,624Comprehensive income

415,295

287,148

2,150,277

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

Data Section

116,764

Comprehensive income

As to the pages indicated in "NOTES," please refer to the Consolidated Financial Statements at the following address.
https://www.smm.co.jp/en/ir/library/consolidated_financial_statement/pdf/Consolidated_Financial_Statement_2023.pdf

146

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

- 3 -

- 4 -

147

Data Section

3)

Consolidated Statement of Changes in Equity

FY2022 (From April 1, 2022 to March 31, 2023)

FY2021 (From April 1, 2021 to March 31, 2022)

Equity attributable to owners of parent
Other components of equity

Equity attributable to owners of parent
Other components of equity
Notes

Share capital

TreasurysharesCash flow
hedgesMillions ofyenMillions ofyenMillions ofyenMillions ofyenMillions ofyen

93,24287,604(38,027)(45,083)(1,987)

72,218

–

–

–

–

–

–

–

–

–

61,4891,043

39,737–––61,4891,043

39,737

Profit31

Total comprehensive income

Notes

Financialassetsmeasured atfair value
through othercomprehensive income

Millions of
yen
As of April 1, 2021
Other comprehensive income

Capitalsurplus

Exchangedifferenceson translationof foreign
operations

As of April 1, 2022
ProfitOther comprehensive income
Total comprehensive income

–

26

–

–

–

–

–

–

7

–

(413)

–

–

–

–

16

–

–

–

–

–

(3,598)

–

(413)

(20)

–

–

(3,598)93,24289,800(38,076)

105,602725

114,056

Total equity

–

–

–

–

7

–

2,609

–

–

–

–

Transfer to retained earnings(3,113)93,242

90,213(38,056)

16,406(944)

108,842

Transactions with owners - total
As of March 31, 2023

Equity attributable to owners of parent
Other components of equity
Total

Retainedearnings

Total

Noncontrollinginterests

Millions ofyenMillions ofyenMillions ofyenMillions ofyenMillions ofyenMillions of
yen

As of April 1, 2022–

124,304

1,175,626

1,445,329

112,089

1,557,418

Profit––160,585

160,5859,856

170,441

2,899

102,576–

102,576

14,131

116,707

2,899

102,576

160,585

263,161

23,987287,148
(21)

Notes

Equity attributable to owners of parent
Other components of equity
Notes

Total

Noncontrollinginterests

Total equity

Total

Retainedearnings

Millions ofyenMillions ofyenMillions ofyenMillions ofyenMillions ofyenMillions ofyen–

25,148945,956

1,113,923

109,060

1,222,983

Remeasurements ofdefinedbenefit plans

As of April 1, 2021
ProfitOther comprehensive income

31

Total comprehensive income––

281,037

281,037

17,494

298,531

3,772

106,041–

106,041

10,723

116,764

3,772

106,041

281,037

387,078

28,217415,295

Purchase of treasury shares

25

–

–

–

(29)

–

(29)

Disposal of treasury shares

25

–

–

–

0

–

0

Dividends

26

–

–

(58,252)(58,252)(12,053)(70,305)

Changes in ownership interest in
subsidiaries

7

–

–

–

2,609

(13,119)(10,510)

–

–

–

–

(16)

(16)

Loss of control of subsidiaries
Transfer to retained earnings

16

Transactions with owners - total(6,885)

6,885

–

–

–

(6,885)(51,367)(55,672)(25,188)(80,860)–

124,304

1,175,626

1,445,329

112,089

1,557,418

Other comprehensive income

31

Total comprehensive income

Remeasurements ofdefinedbenefit plans

Purchase of treasury shares

25

–

–

–

(21)

–

Disposal of treasury shares

25

–

–

–

1

–

1

Dividends

26

–

–

(76,386)(76,386)(7,155)(83,541)

Changes in ownership interest in
subsidiaries

7

–

–

–

(413)

28,70428,291

Transfer to retained earnings

16

Transactions with owners - total
As of March 31, 2023

(2,899)(6,497)

6,497

–

–

–

(2,899)(6,497)(69,889)(76,819)

21,549(55,270)–

220,383

1,266,322

1,631,671

157,625

1,789,296

Data Section

As of March 31, 2022

(3,772)(3,772)

8,812

Dividends–

As of March 31, 2022

1,669

–

–

(3,113)89,196

–

26

–

–

–

Changes in ownership interest in
subsidiaries

–

–

1

Dividends

–

–

–

0

Changes in ownership interest in
subsidiaries–

108,842

–

–

–

–

(944)

–

25

–

(29)

16,406–

Disposal of treasury shares––(38,056)

–

8,812

0

2,609

90,213––

0–93,242

1,669

–

–

Millions of
yen

–

25

16

Millions ofyen

89,196

Disposal of treasury shares

Transactions with owners - total

Millions of
yen

–

–

Transfer to retained earnings

Millions of
yen

(21)

–

–

Millions of
yen

–

–

–

Millions of
yen

–

(29)

–

Treasuryshares–––Capitalsurplus–––

Share capital

25

25

–

Cash flow
hedgesFinancialassetsmeasured atfair value
through othercomprehensive income

Purchase of treasury shares

Purchase of treasury shares

Loss of control of subsidiaries

31

Exchangedifferenceson translationof foreign
operations

As to the pages indicated in "NOTES," please refer to the Consolidated Financial Statements at the following address.
https://www.smm.co.jp/en/ir/library/consolidated_financial_statement/pdf/Consolidated_Financial_Statement_2023.pdf

148

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

SUMITOMO METAL MINING CO., LTD.

- 5 -

- 6 -

Integrated Report 2023

149

Data Section

4)

Equity attributable to owners of parent
Other components of equity
Notes

Share capital

Exchangedifferenceson translationof foreign
operations

TreasurysharesCash flow
hedgesThousands of
U.S. dollars

Thousands of
U.S. dollars

698,233

675,550(284,978)122,855(7,069)

–

–

–

–

–

–

–

–

–

667,935

12,49865,988

As of April 1, 2022
ProfitOther comprehensive income

CapitalsurplusFinancialassetsmeasured atfair value
through othercomprehensive income

31

Thousands of Thousands of Thousands of Thousands of
U.S. dollars
U.S. dollars
U.S. dollars
U.S. dollars
815,052–––

667,935

12,49865,988Purchase of treasury shares

25

–

–

(157)

–

–

–

Disposal of treasury shares

25

–

0

7

–

–

–

Dividends

26

–

–

–

–

–

–

Changes in ownership interest in
subsidiaries

7–(3,093)

–

–

–

–

Transfer to retained earnings

16

–

–

–

–

–

(26,943)–(3,093)

(150)

–

–

(26,943)698,233

672,458(285,128)

790,789

5,429

854,096

Total comprehensive income

Transactions with owners - total
As of March 31, 2023

Equity attributable to owners of parent
Other components of equity
Total

Thousands of
U.S. dollars

Thousands of
U.S. dollars

As of April 1, 2022–

930,837

8,803,549

10,823,192

839,366

11,662,558

Profit––1,202,524

1,202,524

73,806

1,276,329

21,709768,129–

768,129

105,818

873,948

21,709768,129

1,202,524

1,970,653

179,624

2,150,277(157)

Other comprehensive income

31

Total comprehensive income

Retainedearnings

Total

Total equity

Thousands of Thousands of Thousands of Thousands of
U.S. dollars
U.S. dollars
U.S. dollars
U.S. dollars

Purchase of treasury shares

25

–

–

–

(157)

–

Disposal of treasury shares

25

–

–

–

7

–

7

Dividends

26

–

–

(572,008)(572,008)(53,579)(625,588)

Changes in ownership interest in
subsidiaries

7

–

–

–

(3,093)214,947

211,854

Transfer to retained earnings

16

Transactions with owners - total
As of March 31, 2023

(21,709)(48,652)

48,652–––(21,709)(48,652)(523,356)(575,251)

161,367(413,883)–

1,650,315

9,482,717

12,218,594

1,180,358

13,398,952

SUMITOMO METAL MINING CO., LTD.

FY2021
Notes (From April 1, 2021
to March 31, 2022)

FY2022(From April 1, 2022
to March 31, 2023)
Thousands of
U.S. dollars

Millions of yen

Millions of yen

357,434
46,455(1,364)269

229,91053,310(1,428)3,444

1,721,656
399,206(10,693)
25,790(57,537)(36,536)(273,596)(74,374)25

187(5,100)(4,642)(34,761)(56)(31,884)
2,969

4,257
(29,389)
8,596

31,878(220,076)
64,370(28,260)

113

846(92,717)(133,712)(1,001,288)

44,66338,689289,718(9,401)

1,861

13,936904(11,154)(83,526)

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss (gain) on sale of fixed assets
Impairment losses
Share of loss (profit) of investments
accounted for using equity method
Loss (gain) on sale of subsidiaries
Increase or decrease in retirement benefit
asset or liability
Increase (decrease) in provisions
Finance income
Finance costs
Decrease (increase) in trade and otherreceivables
Decrease (increase) in inventories
Increase (decrease) in trade and otherpayablesDecrease (increase) in advance payments
to suppliers
Increase (decrease) in accrued
consumption taxes
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries andassociates
Proceeds from sale of shares ofsubsidiaries and associates
Collection of short-term loans receivable
Payments for long-term loans receivableCollection of long-term loans receivable

15,787

13,770103,115

167,788
3,483
33,248(2,419)(42,632)
21

137,114
11,05628,657(5,927)(50,662)144

1,026,764
82,792
214,595(44,384)(379,377)
1,078

159,489

120,382

901,468(43,185)83–(55,408)(387)
50,848(6,279)6,911(123,823)(2,898)
380,770(47,020)
51,752(927,235)

1,647

565

4,231

(1,162)
7,483(7,087)
10,053(53,070)
75,281(9,777)(30,403)(227,670)

25

0

0

278
(29,144)
26,4193,033(90,983)
103

22,712(681,316)
771–

Integrated Report 2023

SUMITOMO METAL MINING CO., LTD.

- 7 -

- 8 -

Integrated Report 2023

Data Section

As to the pages indicated in "NOTES," please refer to the Consolidated Financial Statements at the following address.
https://www.smm.co.jp/en/ir/library/consolidated_financial_statement/pdf/Consolidated_Financial_Statement_2023.pdf

150

Noncontrollinginterests

Remeasurements ofdefinedbenefit plans

Notes

Consolidated Statement of Cash Flows151

Data Section

Corporate Data and Investor Information (As of March 31, 2023)
FY2021
Notes (From April 1, 2021
to March 31, 2022)
Millions of yen
Proceeds from sale of interests in
subsidiaries resulting in change in scope of
consolidation
Other
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from share issuance to noncontrolling shareholders
Dividends paid
Dividends paid to non-controllingshareholders
Proceeds from sale of shares ofsubsidiaries not resulting in change inscope of consolidation
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Other

33

33
33
33
33
33
33

26

FY2022(From April 1, 2022
to March 31, 2023)
Millions of yen

Corporate Data

Thousands of
U.S. dollars

Company name113,002

1,592

11,922

(465)

354

2,651

9,796

(185,503)(1,389,119)

190,212(184,833)
15,412(47,688)
64,007(84,007)406,013(351,158)
110,061(42,928)
89,925(105,000)

3,040,385(2,629,609)
824,180(321,462)
673,394(786,281)

8,865

24,073

180,268(58,252)(76,386)(572,008)(12,053)(7,155)(53,579)

Number of Employees

7,330 (Consolidated)

President &Akira Nozaki
Representative Director

Head Office11-3, Shimbashi 5-chome,
Minato-ku, Tokyo 105-8716, JapanFounded1590

Main Branch

Osaka Branch

Incorporated

1950

BranchNagoya Branch

Capital¥93.2 billion

Research centers

Listing

Prime Market

Battery Research Laboratories

No. of subsidiaries(consolidated)

52 (including the money held in trust which is(Ehime Prefecture)

No. of equity-method
affiliates

Sumitomo Metal Mining Co., Ltd.

13

Contact Information(for the year ended March 31, 2023)¥229.9 billion(for the year ended March 31, 2023)

Investor Information
–

3,746

28,052

7(19,374)

–

–

2, 33

(1,907)(1,855)(13,891)(129,618)

49,336369,447

39,667(15,785)(118,204)

Number of authorized shares 500,000,000
Number of issued and
290,814,015
outstanding shares
Number of shareholders
58,107
Listing of shares
Tokyo
Stock transaction unit
100 shares

158,373

213,977

1,602,344

Note: SMM consolidated its common stock at a rate of one share for every two shareswith October 1, 2017 as the effective date.

15,937

16,815125,917

213,977

215,0071,610,057

Net cash provided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodEffect of exchange rate changes on cash andcash equivalents

8

Cash and cash equivalents at end of period

8

March 31

Ordinary General
June
Meeting of Shareholders
Common Stock

Public Relations & Investor Relations Department
11-3, Shimbashi 5-chome, Minato-ku, Tokyo 105-8716, Japan
Phone: +81-3-3436-7705
Facsimile: +81-3-3434-2215
URL https://www.smm.co.jp/en/

Registrar of Shareholders

7

Closing Date

Materials Laboratories (Tokyo)
Ichikawa Research Center (Chiba Prefecture)deemed to be a consolidated company)

Net sales (consolidated) ¥1,423.0 billion
Profit before tax(consolidated)

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan
Stock Transfer Agency Department:

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan

Method of Public NoticeElectronic notification (However, if electronic notification is notavailable due to unavoidable circumstances, notice will be publishedin the Nihon Keizai Shimbun newspaper.)Independent Public Accountant
KPMG AZSA LLC

Breakdown of Shareholders
Number ofshares held
(thousands)

SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023

Shareholding
ratio (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

45,593

16.59

Custody Bank of Japan, Ltd. (Trust Account)

18,567

6.76

Toyota Motor Corporation

11,058

4.02

STATE STREET BANK WEST CLIENT–TREATY 505234

4,813

1.75

Sumitomo Realty & Development Co., Ltd.

3,745

1.36

SUMITOMO LIFE INSURANCE COMPANY

3,737

1.36

JPMorgan Securities Japan Co., Ltd.

3,574

1.30

SMBC Nikko Securities Inc.

3,237

1.18

JP MORGAN CHASE BANK 385781

3,123

1.14

Nippon Life Insurance Company

3,110

1.13

Notes: 1. We own 16,049 thousand shares of treasury stock.
2. The shareholding ratios were calculated based on the total number of issued shares less treasury stock.

(Thousands of shares) Financial
Institutions Securities
Companies Other Domestic
Entities Foreign Entities
 Individuals andOthers Treasury Stock

SUMITOMO METAL MINING CO., LTD.

- 9 -94,52832.50%

15,361

5.28%

31,71310.91%

100,333
32,83034.50%
11.29%

16,0495.52%

Integrated Report 2023

Data Section

152

1-2, Tsukudo-cho, Shinjuku-ku, Tokyo

Major Shareholders
Name of Shareholders

As to the pages indicated in "NOTES," please refer to the Consolidated Financial Statements at the following address.
https://www.smm.co.jp/en/ir/library/consolidated_financial_statement/pdf/Consolidated_Financial_Statement_2023.pdf

Niihama Research Laboratories(Ehime Prefecture)

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Data Section

Attestation of Validity

On the issuance of the Sumitomo Metal
Mining Co., Ltd. Integrated Report 2023

Since 2016, we have published these integrated reports to serve as a tool for dialogue withstakeholders inside and outside the Group.
The Sumitomo Metal Mining Co., Ltd. Integrated Report 2023, our eighth integrated
report, describes value creation by our Group as we further integrate business with sustainability. It places particular focus on progress made under our 2021 3-Year Business Plan
during its second year. In light of the creation of our new Sustainability Report 2023, thisIntegrated Report covers only sustainability information of a material nature for greaterconciseness.
As the officer ultimately responsible for the production of this report, I attest that theprocess of preparing the report is legitimate and that its content described is accurate.
I hope that this Integrated Report will help our diverse stakeholders, including shareholders and investors, understand our Group’s efforts toward sustainable growth and therealization of a sustainable society. We will continue to strive to appropriately disclose
information.

Mihoko Yano
Executive Officer
In charge of Public Relations & Investor Relations Department

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SUMITOMO METAL MINING CO., LTD.

Integrated Report 2023