February 2, 2021
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 Regarding Hybrid Loan (Subordinated Loan)
Mitsubishi Materials Corporation (hereinafter referred to as “the Company”) announces that it executed anagreement concerning financing of JPY 100 billion through hybrid loan (subordinated loan, hereinafter referred toas the “Loan”). Details are as follows:1. Purpose of financing
The Company has examined means for raising funds necessary for aggressively developing growth strategies andmaking investments on a continuous basis. The Company decided to implement financing through the Loan since
the Loan is enable the Company to effectively strengthen its financial structure without diluting any of its equity.
2. Outline of the Loan
The Loan has an intermediate nature between equity and liabilities. While it is debt financing which does not cause
dilution of stock value per share, it has similar nature and characteristics to those of equity including optional deferralof interest payments, ultra-long-term repayment term and subordination nature in liquidation and bankruptcy
proceedings. The Company, therefore, expects each of Rating and Investment Information, Inc.(R&I) and Japan
Credit Rating Agency, Ltd.(JCR) to recognize an equity content on 50% of the amount of financing.
(1) Amount of financing

JPY 100 billion(2) Date of agreement

February 2, 2021

(3) Date of loan execution

February 5, 2021

(4) Final repayment dateFebruary 5, 2056
However, the Company may repay before the due date all or part of theprincipal on each interest payment date on or after February 5, 2026.

(5) Replacement restrictions

In the event of a prepayment of the Loan before the due date, theCompany intends to raise funds through issuance of common stock or
subordinated loan or other means within 12 months prior to theprepayment date such that the amount of capitalization which isrecognized as having an equity content, is equal to or greater than theregognized equity content of the principal amount to be repaid. Provided,
however, that where the most recent consolidated net D/E ratio is 1.0
times or less at the time of prepayment, the Company may deduct theamount of an increase in consolidated shareholders’ equity since the endof September 2020 multiplied by 50%, from the principal amount whichis recognized as equity content of the principal amount to be repaid.

(6) Constraint on interest payments

The Company may defer payment of all or part of interest on the Loan atits discretion, except when the Company distributes dividends on its
common stock.

(7) Subordination clauseIn the event that liquidation, bankruptcy, corporate reorganization, or civil
rehabilitation proceedings are commenced against the Company, thelenders of the Loan shall have the right to receive payment after all claims
other than subordinated claims (which refer to claims under the Loan andclaims which have the terms and conditions substantially same as theclaims of the Laon; the same applies hereinafter) are repaid in full. No
provision of the agreement concerning the Loan may be amended in any
way that is disadvantageous to creditors other than the creditors ofsubordinated claims.

(8) Equity credit rating by rating

Rating and Investment Information, Inc.(R&I)): Class 3, 50%

agencies (prospect)

Japan Credit Rating Agency, Ltd.(JCR): Middle Level, 50%(9) Lenders

MUFG Bank, Ltd., Development Bank of Japan Inc.
Mizuho Bank, Ltd., the Norinchukin Bank2