May 13, 2020
To All Concerned Parties
Company name
Representative

Contact for inquiries

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)

Notice of Revisions to the Consolidated Earnings Forecasts and Recording of Extraordinary Losses
Mitsubishi Materials Corporation hereby announces revisions to the consolidated earnings forecasts announced onFebruary 12, 2020, and recording of extraordinary losses for the fourth quarter of the fiscal year ended March 31,2020.
Details are as described below.
1. Revisions to the consolidated earnings forecasts for the fiscal year ended March 31, 2020
(from April 1, 2019, to March 31, 2020)
1) Revisions to the consolidated earnings forecasts
Profit (loss)
Net sales

Operating profit

Ordinary profit

attributable toowners of parent

Million yen

Million yen

Million yen

Million yen

Previous forecasts (A)1,520,000

27,00040,000(57,000)

Revised forecasts (B)1,516,000

37,00049,000(72,000)

Amount change (B-A)(4,000)10,0009,000(15,000)

Percentage change (%)

(0.3)

37.0

22.5-

1,662,990

36,861

50,6791,298(Reference) Results in previous
fiscal year (fiscal year ended
March 31, 2019)2) Reasons for the revisions
Regarding to the consolidated earnings forecasts for the fiscal year ended March 31, 2020, profit attributable toowners of parent is expected to decline from the previous forecasts due to the increase of extraordinary losses andtax expenses, while operating profit and ordinary profit are expected to increase from the previous forecasts as aresult of improvement of recovery rate and reduction of smelting cost, which exceeded the forecasts, in the Metals
Business.
2. Dividends forecasts
The dividends forecasts remain unchanged despite the revisions to the forecasts.
3. Recording of extraordinary losses
1)

Impairment loss of fixed assets

In the Advanced Products Business and Metalworking Solutions Business of MMC, it was observed that there
was an indication of impairment loss due to a decline in profitability under the significant deterioration of businessenvironment and a decline in market value of land. As a result of careful consideration of future recoverability,

MMC determined to record 27.4 billion yen of extraordinary losses for non-current assets of the plants engaged inthese businesses on the consolidated and non-consolidated financial statements for the fourth quarter of the fiscal
year ending on March 31, 2020, based on the “Accounting Standard for Impairment of Fixed Assets.”
At subsidiaries in the Aluminum business, it was observed that there was an indication of impairment loss due toa decline in profitability. As a result of careful consideration of future recoverability, MMC determined to record
20.3 billion yen of extraordinary losses on the consolidated financial statements for the fourth quarter of the fiscal
year ending on March 31, 2020, based on the “Accounting Standard for Impairment of Fixed Assets.”
2)

Provision for loss on business restructuring

To cover potential losses resulting from business restructuring of MMC and subsidiaries in the Sintered parts
business, MMC determined to record 30.3 billion yen of the estimated loss as extraordinary losses on theconsolidated financial statements for the fourth quarter of the fiscal year ending on March 31, 2020.
On the non-consolidated basis, provision of allowance for doubtful accounts of 12.9 billion yen related to loans to
subsidiaries and associates will be recorded in non-operating expenses and provision for loss on businessrestructuring of 17.4 billion yen will be recorded in extraordinary losses.
3)

Loss on valuation of investment securities in subsidiaries and associates

The shares of the subsidiaries in the Aluminum business, held by MMC, significantly reduces its actual value due
to “impairment loss on fixed assets” as stated in 1) above, and consequently extraordinary losses of 16.2 billion
yen will be recorded as loss on valuation of investment securities in subsidiaries and associates.
The loss on valuation of investment securities in subsidiaries and associates will not affect the consolidated results
because the loss is written off with the consolidated results.
(Note) The above forecasts has 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 to various
factors arising in the future.

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