Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

To whom it may concern:

May 12, 2022
Company name:Name of representative:

Inquiries:

FURUKAWA CO., LTD.
Minoru Nakatogawa, President andRepresentative Director(Securities code: 5715; Prime
Market of the Tokyo StockExchange)
Hiroyuki Sakai, Director andGeneral Manager of Corporate
Planning Department(Telephone: +81-3-6636-9501)

Notice Concerning Termination of Entrusted Smelting Agreementwith Onahama Smelting and Refining Co., Ltd.
FURUKAWA CO., LTD. (the “Company”) hereby announces its decision, resolved at the Board of Directors
meeting held today, to terminate the entrusted smelting agreement concluded between Furukawa Metals &Resources Co., Ltd. (2-6-4, Otemachi, Chiyoda-ku, Tokyo; President: Masanori Saito), a core operating company
in the Furukawa Company Group, and the smelting entrusted party, Onahama Smelting and Refining Co., Ltd. totake effect on March 31, 2023. Details are provided below.
In conjunction with the termination of the aforementioned entrusted smelting agreement, the Company decided
that all shares of Onahama Smelting and Refining Co., Ltd. owned by Furukawa Metals & Resources Co., Ltd.
would be transferred to Mitsubishi Materials Corporation.
1. Reason for termination of agreement
The Company operates an entrusted copper smelting business at Furukawa Metals & Resources Co., Ltd.
(hereinafter “Furukawa Metals & Resources”), a core operating company in its metals segment. The entrustedsmelting business is subject to the effects of international market trends and copper concentrates treatment andrefining charges, and revenue can fluctuate considerably. As it is of critical importance to keep a close eye on
profitability and future prospects, the Company considered radical reform for the entrusted smelting business.
Of particular focus was the recent trends in the copper smelting business environment where copper
concentrates treatment and refining charges (TC/RC) from mining companies, our source of revenue, continues
to be disadvantageous to the smelting company due to mainly booming copper concentrates purchasing demand
from China causing instability in the supply and demand balance, and where it is difficult to expect any
considerably improvement to the TC/RC even in the future. At the same time, not only must smelting companies
shoulder the increasing costs of capital expenditure for environmental response, maintenance and renewal
investment for aging facilities, along with related depreciation, but also they are facing continuing high costs
for the smelting process because of the soaring costs of operation including electricity and fuel oil costs. As aresult, the smelting costs have continued to exceed the TC/RC.
Furukawa Metals & Resources has been working to reduce exports of unprofitable electrolytic copper andsulfuric acid as a response to the deficit structure of the entrusted smelting business under this businessenvironment by incrementally reducing production. However, deeming it necessary to implement further radicalaction, the decision was made to terminate the entrusted smelting agreement with Onahama Smelting andRefining Co., Ltd., which is entrusted with approximately 34% of Furukawa Metals & Resources’ annualproduction volume for copper (approximately 24,000 tons).

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2. Agreement termination date and entrusted copper production to be terminatedTermination date of entrusted
smelting agreement:
Terminated entrusted copper
production volume:

March 31, 2023
Approximately 24,000 tons per year
* Approximately 34% of the (planned) fiscal 2023 copper
production volume of Furukawa Metals & Resources ofapproximately 70,800 tons/year

3. Outline of counterparty of agreement to be terminatedName:

Onahama Smelting and Refining Co., Ltd.

Location:

2-2-2, Kanda-Tsukasamachi, Chiyoda-ku, Tokyo

Title and name of the representative:

Takahiro Yamada, President

Date of incorporation:

1963

Share capital:¥6,999 million

Shareholder composition:

Mitsubishi Materials Corporation

55.714%DOWA METALS & MINING CO., LTD.

31.621%

Furukawa Metals & Resources Co., Ltd.

12.665%

4. Future outlook
As a result of the termination of the entrusted smelting agreement with Onahama Smelting and Refining Co.,
Ltd., the fiscal 2024 copper production volume of Furukawa Metals & Resources is expected to beapproximately 46,600 tons/year. That production is to be entrusted to only Hibi Kyodo Smelting Co., Ltd., anequity-method affiliate of the Company. By taking this action, it will be possible to considerably reduce theunprofitable exports as Furukawa Metals & Resources’ domestic sales volume of electrolytic copper will beapproximately 40,000 tons/year. Through the termination of this entrusted smelting agreement, the Companyis confident that it can proceed with the radical reform of the entrusted smelting business, a criticalmanagement issue of the metals segment. The Company has deemed that it is possible to secure profitability
from entrusted operations and from fiscal 2024 onwards, it will supply electrolytic copper on a stable basis
mainly to customers inside Japan.
5. Impact on performance
Because the termination of the agreement will take effect on March 31, 2023, it will have no effect on thefinancial performance of the metals segment in the fiscal year ending March 31, 2023 (fiscal 2023). As for theeffect on the financial performance of the metals segment in the fiscal year ending March 31, 2024 (fiscal2024), under calculations based on the assumptions of a copper price of US$9,400 per ton, and an exchange
rate of ¥120/US$, which are the conditions for fiscal 2023, the Company expects net sales will be reduced byapproximately ¥40,000 million compared with ¥110,700 million forecasted for fiscal 2023. However, byreducing the unprofitable exports and improving profitability from entrusted operations, the Company expects
operating profit to increase by approximately ¥400 million compared with the fiscal 2023 forecast of ¥0million. Moreover, the Company expects adjustments to accounts receivable - trade and inventories willremove approximately ¥8,500 million from the balance sheet.

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