Progress Briefing on
2022-2024 New Medium
Term Business Plan
May 16, 2023
Mitsui Mining & Smelting Co., Ltd.

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0

Financial Index - Net Sales and Ordinary Income
Both net sales and ordinary income are expected to fall short of the 2022-2024 Medium-Term Management Plan.
Ordinary income is expected to reach the 2022-2024 Medium-Term Management Plan level one year behind.
However, the 2030 target remains unchanged.
(Unit: 100 m yen)

(Unit: 100 m yen)

Net sales

Ordinary income
800

8,000
7,250

6,333

6,520

7,180 7,250
660

6,450

600
513

5,229

470

4,731

400

200

199
93

1
2 20203
4 2021
5
6
2019

7
8
2022

9 202310 1112202413Result Plan Forecast Forecast Plan
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14 2025
15 16 2030
17

Plan

2019
1
2 20203
4 2021
5
6

2022
7
8

9

2023
10 11

2024
12
13

14 2025
15 16 2030
17

Result Plan Forecast Forecast Plan

Plan
1Financial Index - Ordinary Income and Real Profit by Segment
Engineered Materials will continue to be the growth driver, and Metals and Mobility will also be factored into profit growth.
(Unit: 100 m yen)

(Unit: 100 m yen)

Real profit by segment

Ordinary income by segment*Real profit = figures exclude inventory factors and precious metal priceeffects from ordinary income

800

800

40

40

660
Corporate
Mobility

39

600

24

200

40

Corporate

130

Mobility

470
30

400
363

145

25

200

253

130

85

Engineered
Materials

300

91

270

-58
-8

-66

-86
-4

Adjustment

2021

270

Engineered
Materials

310

-85
-35

-59

-40

-33

-58
-8

2022

2023

2024

2030

Forecast

Forecast Plan

Plan

100

-66

130

400
270

264

310

135

-86
-4

2021

25

128

Adjustment

Result Plan

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Business
Creation

225
85

110
-67

140

63

280

135

107
Business
Creation

165
28

400
75

122

203

267
4

7

200

200

25
50

25

28
32

30

414

Metals

4

470

84

140
175

199

40

200

25
50

Metals

620

576

4

-85
-35

-67

-59

-40

-33

2022

2023

2024

2030

Result Plan

Forecast

Forecast Plan

Plan
2Financial Index - Cash Flows, ROE, Equity Ratio
Due to the deterioration of business results compared to the 2022-2024 Mid-Term Plan, the following indicators are
expected to fall short of the target of FY2024.
(Unit: 100 m yen)Free cash flows (FCF)

ROE, Equity ratio, Net DE ratio
850

ROE

23.8%

12.2%

11.4%
3.9%

3.5%

370

352

354

2021

2022
Result

240
114

Plan

2023

2024

Forecast

Forecast Plan

150
Net
D/E ratio

0
2021

14.0%

2022
Result Plan

2023
Forecast

2024
Forecast Plan

(22-24)Cumulative
total

Forecast Plan

0.82

0.76

Equityratio 37.6%

0.78

0.71

0.66

40.1% 41.0%

43.2%

40.1%

50.0%
0.42

Cash flows fromoperating activities
Cash flows frominvesting activities

FCF

607
-255
352

430 700-316 -550
114 150

580
-580
0

750 800-510 -430
240 370

1,760 2,300-1,406 -1,450
354
850

2021
1

2

3 2022 4

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Plan

5

2023
6
Forecast

7

8 2024 9

ForecastPlan
3

Shareholder Return
The dividend policy will continue for the foreseeable future. Interim dividends will be paid from this fiscal year.

Dividend Policy for the 2022-2024
Mid-term Plan onwards
By placing importance on providing continuous and stabledividends, we will provide dividends at a rate of 3.0% DOE(consolidated dividend on equity)

Dividend per share forecast

FY2022
Dividend pershare

140 yenFY2023 (Provisional amounts)

InterimYear-end

Annual70 yen70 yen140 yen

We will revise shareholder return policy in line with progress in improving financial strength
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4

Our Purpose and Vision
In order to adapt to the era of VUCA, we have established Purpose (Our social reason for existence), which forms the “axis ofmanagement decision-making” that is unaffected by any changes and is the “moral compass” for all employees in the 2022-2024
Medium Term Plan. We are implementing a range of initiatives to spread internally and externally, with a focus on Purpose.

Purpose● In-house newsletter, Purpose training, My Purpose● Purpose special website launched (Purpose story movie posted)
URL: https://www.mitsui-kinzoku.com/purpose/ (Japanese version)● Transportation advertisements (JR Osaki Station, JR Ageo Station(Saitama Prefecture), Fukuoka Airport)

Our Group Vision for 2030

Building new businesses－and the future－with our material intelligence.
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In-house newsletter espoir No. 75,
special issue on Purpose
Published in January 2023

Published in front of the south
exit ticket gates of JR Osaki
Station5

Integrated Thinking-based Management
In order to achieve our vision based on Purpose, from April 2022, we conducted full-fledged introduction andpromotion of Integrated Thinking Management, which aims to achieve both social and financial value.

Integrated thinking-based management(2) Financial value(1) Social value
ESG (Opportunities and risks)

Define product/market scope

We will evaluate each business from five perspectives related toour materiality initiatives, and use the sustainability of thebusiness to make business decisions

Ambidexterity

Environmental
impactSocialcapitalBusiness model
innovation

HumancapitalLeadershipgovernance

Exploitation
Dynamic business portfolio management
Exploring synergies

M&A
Strategic
Investments

Exploration
Proactive allocation of management resources tobusiness creation sector(3) New structures to support integrated thinking
Organizational
Talent strategy
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DX

6

Integrated Thinking-based Management
In order to achieve our vision based on Purpose, from April 2022, we conducted full-fledged introduction andpromotion of Integrated Thinking Management, which aims to achieve both social and financial value.

Integrated thinking-based management(2) Financial value(1) Social value
ESG (Opportunities and risks)

Define product/market scope

We will evaluate each business from five perspectives related toour materiality initiatives, and use the sustainability of thebusiness to make business decisions

Ambidexterity

Environmental
impactSocialcapitalBusiness model
innovation

HumancapitalLeadershipgovernance

Exploitation
Dynamic business portfolio management
Exploring synergies

M&A
Strategic
Investments

Exploration
Proactive allocation of management resources tobusiness creation sector(3) New structures to support integrated thinking
Organizational
Talent strategy
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7

Social Value

Social value

Steady progress in initiatives centered on carbon neutrality as well as diversity and inclusion.

Main progress

Main items
Environment(Initiatives to achieve carbon
neutrality)

Human capital/Talent strategy

・ Participation in “GX League Basic Concept” by Ministry of Economy, Trade andIndustry (News release on May 15, 2023)
・ Decision to introduce an internal carbon pricing system (News release on March 23,
2023)

・ Promotion of diversity and inclusion
・ Full-fledged strategic company-wide allocation of human resources
・ Transition to a job-based personnel system
・ Certified as 2023 Health & Productivity Management Outstanding Organization(News release on March 10, 2023)

Governance・ Revitalization of the Board of Directors (Chairman of the Board of Directors to be an
outside director)
・ Plan to introduce ESG index-based restricted stock awards (Disclosed by TSE on April
14, 2023)☞ Trials underway to visualize future financial effects of non-financial activities

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8

Medium- to Long-term Carbon Emission
Reduction Targets and Initiatives

Social value(Environment)

Carbon emissions(% relative to reference year 2013)● Reduce carbon emissions by 38% globally by FY2030 (Scope 1, 2 compared to FY2013)● Aim to achieve carbon neutrality (zero net emissions) by FY2050
ResultReference year
-7%100%
(relative to 2013)
Target-38%(relative to2013)

1,810 kt
Japan: 1,450 kt
・ Improve processes
Overseas: 360 kt -Reduce GHG intensity

・ Improve processes
・ Improve energy procurement
・ Introduce new tech
- Energy transition(Hydrogen, synthetic fuels, methanation, biomass)- Introduce technology for absorption, capture, and reuse-Energy transition(Electrification, low-carbon fuel conversion)・ Improve energy procurement

Carbon neutrality(net zero emissions)-Reduce per-consumption carbon emissions-Generate renewable energy, leverage
environmental values

2013

2021

2030

Implement projects for reducing carbon emissions

Create projects for reducing carbon emissions
Implement Carbon Neutral Roadmap◆ Continuous scrutiny of environmental investments (technology assessment, cost reduction)◆ ICP simulation (target, investment amount)

Use LCA*1 to identify areas to improve◆ Roll out LCA across organization (Complete by FY2024)◆ Quantify carbon footprint of each product and process

Scope 3 Monitor carbon emissions

・Under monitoring.
・Finish company-wide monitoring and set target
by the end of FY2023

Use TCFD scenario analysis to formulate strategy◆ Roll out TCFD scenario analysis across organization (Complete by
FY2024)◆ Establish technologies and strategies for reducing carbon emissions

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2050

Use ICP*2 as a guide for environmental investment◆Use ICP to assess profitability of prospective investments incarbon reduction and invest accordingly (launch in FY2023)

Participate in GX
Address new regulations and new technologies
League◆ Build a system for emissions trading◆ Gather information and materialize new technologies throughcollaboration with member companies*1 LCA: Life Cycle Assessment*2 ICP: Internal Carbon Pricing

9ICP (Internal Carbon Pricing) System

Social value(Environment)

ICP System Overview (News release on March 23, 2023)
Scope 1:
Scope 2:30,000 yen/t-CO2
20,000 yen/t-CO2

In-house carbon price*Set a higher carbon price for Scope 1 than for Scope 2 in order to further promote measures for reducing
Scope 1, which is more difficult to reduce

TargetCapital and development investments involving changes in carbon emissions

Application method

In-house carbon price is applied to carbon emissions from eligible capital investment and development
investment plans, and the cost conversion is used as a reference for investment decisions

Date of introduction

April 1, 2023

Going forward, we will further raise awareness within the company and promote low-carbon investment and climate change measuresthrough the implementation of the “Company-Wide Roadmap to Carbon Neutrality by 2050,” utilizing the ICP system.

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10

Social value(Human capital)

Human Capital/Talent Strategy

We are implementing various measures for talent as an organization while at the same time respecting eachindividual (blue descriptions below).
Realize business
Engaged workplace
Innovative workplacestrategies

Promote workplace diversity

Allocate talent strategically acrossthe entire company

Initiatives to leverage all types of diversity

Strengthen human resources business partner functions

Introduction of KPI on women empowerment into remuneration of
directors and officers

Full-scale operation of specialized departments

Career development support
Achieve professional growth and career
vision of each employee

One on one careers advice Enhanced
training system

Job satisfaction
Provide a positive work environment that
supports focus and productivity of diverse
talents
Conduct employee awareness survey andexecute measures

Utilize human resources
information
Comprehensive, de-personalized,
centralized management

System installation

Develop human resources strategy
Identify issues with foresight and resolve
them quickly

Dialogue with management andbusiness divisions[Respect for Individuals][Utilization as an organization]

Recognize, enhance, and utilize diversity

Create a competitive advantage in terms of human resources

Performance-based talent management (Transition to a job-based human resources system in FY2022)

Respect for human rights
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11

Health and Productivity Management
Promotion System

Social value(Human capital)● Disseminate the Health and productivity management declaration internally and externally● Certified as a 2023 Health & Productivity Management Outstanding Organization (Large enterprise category)(News release on March 10, 2023)

Health and Productivity Management Declaration
Mitsui Kinzoku Group aims to continue to contribute to society with valuable products.
In order to achieve this goal, it is necessary to create a work environment where all
employees and their families can maintain both physical and mental health.
We become even more vibrant company with higher productivity andperformance through keeping our employees and their families healthy,
which is a foundation for them to maximize their individuality and abilities.
We declare that we will continuously contribute to society by promoting the creation of amore vibrant company through engaging in initiatives to maintain and promote the health of
our employees and their families.
・ Certified as a Health & Productivity Management Outstanding Organization continuously since 2019・ Based on our achievements in FY2022, we continuously received certification as a 2023 Health &Productivity Management Outstanding Organization (Large enterprise category)

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12

Social value(Governance)

ESG Index-based Restricted Stock Awards

The Compensation Committee decided to introduce ESG-related indicators for the compensation of Directors (excluding
Outside Directors) to ensure that the Company continues to contribute to society and remain essential to it in the future.
● In addition to existing continuous service-type restricted stock awards, the Company has introduced a new
ESG index-based restricted stock awards with the achievement of ESG indicators added as a requirement● Specific ESG indicators are related to greenhouse gas reduction, promotion of job satisfaction and diversity,and compliance
Percentage of stock-based compensation based on consolidated ordinary income of 40 billion yen
TargetDirectors

Mode ofCompensation

Status of ESG indicator achievement and share of equity compensation (total of continuous service type and ESG
index-based type) in total compensation

Stock-based
compensation

Target achieved

Partially achieved

Missed all targets

15%

10% (Same level as FY2022)~12.5%

7.5%(Continuous service only, total stockbased compensation
will decrease compared to FY22)(Reference) Ratio of Directors’ Compensation: If all ESG items are achieved
Consolidated
Ordinary Income

0 yen or less20 billion yen

40 billion yen

60 billion yen

80 billion yen or
more

Base compensation

78%

65％

53%

48%

40%

Performancecompensation

0%

17％

32%

38%

48%

Stock-based
compensation

22%

18％

15%

14%

12%

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Since the Company’s performance-based compensation
fluctuates according to the Company’s performance, thepercentage fluctuates within the range shown on the left

13

Integrated Thinking-based Management
In order to achieve our vision based on Purpose, from April 2022, we conducted full-fledged introduction andpromotion of Integrated Thinking Management, which aims to achieve both social and financial value.

Integrated thinking-based management(2) Financial value(1) Social value
ESG (Opportunities and risks)

Define product/market scope

We will evaluate each business from five perspectives related toour materiality initiatives, and use the sustainability of thebusiness to make business decisions

Ambidexterity

Environmental
impactSocialcapitalBusiness model
innovation

HumancapitalLeadershipgovernance

Exploitation
Dynamic business portfolio management
Exploring synergies

M&A
Strategic
Investments

Exploration
Proactive allocation of management resources tobusiness creation sector(3) New structures to support integrated thinking
Organizational
Talent strategy
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14

FY2022 Review of Matrix for Dynamic Portfolio
Management

Financial value

No major changes to the business portfolio looking ahead to FY2030 based on the results of FY2022 review of matrix for dynamic portfolio
management.
Value Expansion and Cultivation promote business expansion measures including M&A, while Value Transformation promotes searching for thebest owners both internally and externally.

Growth prospects(market attractiveness × winnability)

Value Cultivation

Business
Creation
SectorValue Expansion

Corebusinesses

New Business
Area●Copper Foil
●Engineered Powders*Utilizing M&A

Engineered
Materials
SectorBusiness
Reconstruction
OfficeValue Transformation

Mobility
Sector
MetalsSectorValue Reinforcement

Business’s value
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15

Capital Investment/Investment (M&A)

Financial value

Capital investment progressed largely according to plan.
No change in M&A budget (20 billion yen over 3 years from 2022 to 2024) in 2022-2024 Mid-Term Plan as we are currently
searching for the best owner.
(Unit: 100 m yen)

Investment Cases for Value Cultivation
and
Value
Expansion
・Doublethe production
capacity of solid electrolyte A-

Capital Investment/Investment (M&A)
Upper: Capital Investment + M&A, etc.
Lower: Capital Investment

558
450
320

243

108

108

130

105

3
2022

2023

2022
Result2023
Forecast

Business
Creation Sector

1,400
1,170

Capital Investment for
Value Reinforcement,
etc.

844

850

219

230

M&A, etc.

317

320

Capital investment for
Value Cultivation andValue Expansion

3-year cumulative total

22-24 MTP

SOLiD®
・Investment to increase production of HRDP® (HighResolution De-bondable Panel)

Copper Foil

・Initiatives to increase production of MicroThin™
・New installation of processing machines fordevelopment and testing, etc.

Engineered
Powders

・Strengthen competitiveness of existing products
・Increase production of new products such as
NANOBIX™, etc.

494
386

328
325

82

1,380
1,161

281

2024

2024
Forecast

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Growth investment cases(cumulative 22-24)● Plan: 55.0 billion yen● Forecast: 53.6 billion yen(22-24) Cumulative total
Forecast Plan

16

Business Creation Sector (1) - Summary

Financial value
Value cultivation

Promoted R&D and commercialization preparations largely as planned such as improving provision of A-SOLiD® and HRDP® samples.
In co-creation, made strategic investments in eSep and Helical Fusion (9th investment both in Japan and overseas).

2022-2024 Mid-Term Plan Overview① Uncovering opportunities② R&D③ Commercialization

Search better

Strengthen R&D

Strategic Investments③-1 Decided to increase production capacity of A-SOLiD® (February
2023)
・ Full-scale supply of samples for EV All-Solid
State Battery (ASSB)・ Progress in product adoption for non-automotive
applications (Maxell, Hitachi Zosen, etc.)

Backcast thinking

Environment, energy

Main Progress in FY2022

50% more staff

Next-gen electronics

Digitize R&D

Environment, energy
Electrolytes for All-Solid State Battery

Improve provision of samples of A-SOLiD®
Next-gen electronics
Cultivate market for HRDP®*(a special glass carrier for mounting next-gen chips),

Life science

A-SOLiD® mass production testing building (Ageo City)③-2 Decided to establish HRDP® second line (May 2023)

・Enhanced DOE*1 capacity, started testing at mainstream*2 market
customers
・Improved quality and productivity and increased production capacity
on a fully automated second line

HRDP®

③-3 Activated copper paste evaluation for power semiconductor bonding-Exhibited at PCIM (Germany), APEC (U.S.A.), and other automotive exhibitions in Japanmaking it the de-facto standard*HRDP®: High Resolution De-bondable Panel(a special glass carrier for mounting next-gen chips)
Sintered copper bonding paste④ Co-creation**Create new markets in collaboration with external partners (customers, startups, universities,business partners)
CVC: 1.6 bn yen during 2019–2021 ➡ 3 bn yen during 2022–2024*1 DOE: Design of Experiments We examine our customers’ processes and provide value propositions*2 Markets for mid-range (various communication terminals, etc.) and high-end (AI, high-performance computing, networking, etc.) thatwill expand significantly as their features and initial market adoption cases are recognized*3 Develop and manufacture functional separation membranes made of ceramics*4 Implement nuclear fusion power generation in society

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Power module prototype④-1 Investment in eSep Inc.*3 (Kyoto prefecture) (July 2022)
Uncover opportunities in environment and energy business area
Develop membrane reactors for e-fuel production, etc.

④-2 Investment in Helical Fusion Co., Ltd.*4 (Tokyo Metropolitanarea) (March2023)
Uncover business opportunities in the nuclear fusion area17

Business Creation Sector (2) –Progress of Next-generation Products ①

Financial value
Value cultivation

Solid electrolyte for All-Solid State Battery A-SOLiD®.
Solid electrolyte A-SOLiD®

All-Solid State
Battery (ASSB)

Photo provided by Maxell, Ltd.

Business stage

Features• Powdered sulfide solid electrolyte
essential for All-Solid State Battery(ASSB)• Features high ionic conductivity due toargyrodite-type crystal structure andexhibits excellent battery properties

Electric Vehicle(EV)applications

R&D stage
Each company accelerates
development

Industrial
applications

Early stage ofmarket formation>

Photo provided by LIBTEC

Topics• Maxell, Ltd. commercialized ceramic package type all solid-state battery using our product A-SOLiD®
• Increasing development of all solid-state batteries for EVs and increasing supply of samples to multiple companies in Japanand overseas• Decided to double production capacity of the mass production testing facility (In the premises of Corporate R&D Center, Ageo
city, Saitama prefecture)**News release on February 7, 2023 Decision to Enhance Production Capacity of the Mass Production Testing Facility for A-SOLiD®, a Solid Electrolyte for All-Solid-State Batteries
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18

Business Creation Sector (3) –Progress of Next-generation Products ②

Financial value
Value cultivation

HRDP® - a special glass carrier for mounting next-gen chips Features
Functional
layer
thickness
0.65 um• Specialty carriers that enable high production
efficiency with thinner and higher density,
which are essential for next-generation
semiconductor packages• Contribute to customers’ process yield
maximization in next-generation semiconductor
package manufacturing

Enhance functionality of DOE*1• Propose specific measures to address
important customer issues• Verify customer quality requirements

Product Structure

TopicsMolding equipment

Stripping equipment• Responding to mass production for domestic composite chip module manufacturers and major overseas mounting manufacturers.
Aim to gain further adoption from early market customers.
• Started selecting carrier materials that are essential for the introduction of organic interposers *3 that enable heterogeneous integrated
packages.*2• DOE facility started operation in February 2023 to handle testing of customer base connected to the mainstream market.*4• Decided to invest in the second production line in cooperation with GEOMATEC to prepare for quality and capacity for mass
production to meet the customer’s 2025 roadmap.
*1 DOE: Design of Experiments We examine our customers’ processes and provide value propositions*2 Next-generation packaging technology that provides design and manufacturing flexibility by densely mounting various chips of different technologies, functions, and sizes in a single package*3 One of the materials that electrically connects the package substrate to multiple chips, a material that plays an important role in packaging technology*4 Markets for mid-range (various communication terminals, etc.) and high-end (AI, high-performance computing, networking, etc.) that will expand significantly as their features and initial market adoption cases are recognized

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19

Engineered Materials Segment –Progress of 2022-2024 Mid-Term Plan

Financial value

Vision for 2030
In FY2030, net sales of 180 billion yen, real profit of 40 billion yen, at least 70% of newly launched products, and at least 50% sales ratio ofenvironmentally friendly products

Progress of major strategies of 2022-2024 Mid-Term Plan
Major strategies of 2022-2024 Mid-Term Plan

Evaluation

Progress

･ ① Increased adoption of HDI MSAP (Modified Semi Additive Process)･ ② Progress of transfer from PKG-MT to Malaysia

Copper Foil

・Fully prepared for the expansion of markets and applications for
MicroThin™
① Enter new markets ② Maximize utilization of supply capacity

Engineered
Powders

・Maximize profits from existing products (expand sales of copper
powders for electrical materials and abrasives)
・Launch new products (copper powders for 3D printers, rare metal
solutions, etc.)

PVD
Materials

・Maintenance of good margins, overhaul of production to reduce costs
and to cultivate future products・ Price correction and cost reduction progressed as planned・ New product development is on track

Ceramics

・ Expand sales of new products (e.g., next-gen cutters)・ Steady progress in sales expansion for next-gen cutters, 3D ceramicmoldings, etc.

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・ Existing products did not reach target due to external factors
・ New product launches are on track ()20Copper Foil (1) - MicroThinTM Sales Volume
Forecast and Production Capacity

Financial value
Value expansion

Although the FY2024 sales volume of MicroThinTM did not reach the 2022-2024 Mid-Term Plan, the growth story toward 2030 remains unchanged.
The existing production capacity is sufficient to cater to present demand. Still, we will continuously work to reinforce production capacity in preparation
for future growth in demand until 2030.
If growth is expected to exceed capacity, plan and execute an increase in production.

MicroThinTM Production capacity

MicroThinTM Sales Volume Forecast

Index▬: HDI*1-MT▬: PKG*2-MT for smartphones▬: PKG-MT for non-smartphones

5,000

Production capacity[km2/month]

Forecast to exceed current
capacity by 2030

5,000

4,000

2,000

180

176

3,000

155
122

▬: Malaysia▬: Japan

Improvement inproductivity

4,000

196

2,400 km2/month

3,000

144

110

100

2,000

1,000
0

Total 4,400 km2/month*3

1,000
2019

2020

2021

2019

2020

2021

2022

2022P

2022
Result Plan

2023

2024

2024P

2023
2024
Plan Forecast Plan

●MicroThinTM for PKG
Forecast increase in PKG-MT’s non-smartphone ratio due to businessexpansion in non-smartphone field by higher capacity/higher speed
communication, etc.
●MicroThinTM for HDI
Promote adoption of MSAP by Chinese smartphone manufacturers(currently three companies)
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2030

2030
Plan

1,500 km2/month

2,000 km2/month02016 2017 2018 2019 2020 2021 2022 2023 2024
●Improve productivity through smart factory promotion first, thenconsider investment for increasing production●Continue and promote transfer of production from PKG-MT to
Malaysia (making maximal use of production facilities)*1: High Density Interconnected: High-density mounting wiring substrate*2: Package: IC Package Substrate *3: Current production capacity
21

Copper Foil (2) – Reinforcement of
the Product Development Structure

Financial value
Value expansion

We are implementing measures such as speed up product development by installing a processing machine for development
tests, reinforcement of marketing in Greater China, and opening a website to recruit co-creation partners to further leap
forward and develop the copper foil business.

Speed up product development
New installation of a processing machine for development tests(press release on January 10, 2023)

Installation
location

Ageo Operation Center

Expected
completion

End of FY2023

FeaturesMain products
targeted fordevelopment

・A machine designed to significantly increase the degree of freedom of tests toenable a wide variety of tests to be implemented⇒ Enables development of high-end copper foil having additional functions
・Early delivery of copper foil in sizes that facilitate evaluation by customers
themselves⇒ Speeding up of evaluations by customers
・ Copper foil for semiconductor package PCBs
・ Copper foil for high-frequency, high-speed PCBs
・ Copper foil for module PCBs
・ Copper foil for fields beyond circuit materials

Reinforcement of marketing
Upgrading and expansion of marketing bases, and reinforcement of
the marketing structure in Greater China
China

Installation of the South China (Shenzhen) base (completed)
Reinforcement of personnel at the East China (Shanghai)base (in progress)

TaiwanInstallation of a marketing base (decided)

Conduct marketing campaigns
centered on semiconductor-related manufacturers
Launch of website to recruit co-creation partners to develop new
applications for copper foil business(News release on April 3, 2023)

・The keyword is “Beyond together, Copper Foil.”・We are looking for partners we can collaborate with to generate themarket for new applications of copper foil.

Connect to development into new businesses that match society’s needs with newenvironmentally friendly products and deepening of existing businesses
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

[Copper Foil Division, “Beyond together, Copper Foil.” Website]
URL: https://em.mitsui-kinzoku.com/douhaku

22

Engineered Powders (1) - Sales Performanceand Forecast for Copper Powders

Financial value
Value expansion

Our copper powders business will expand on a long-term basis despite unachieved sales volume target set by 2022-2024 MidTerm Plan due to the slowdown in the Chinese market (lockdowns, etc.).
We will steadily proceed to implement our major strategies, expand sales to major clients, and commercialize new products.
450

●FY22

Index

[Market] Large-scale production cutbacks by MLCC manufacturers due tothe slowdown in the Chinese market (lockdowns, etc.)
Prolonged inventory adjustment due to the backlash ofaccumulated MLCC inventory in FY21
[Our company] Copper powders for MLCC Global share of 30%,
equivalent to FY21

400
350

285

300
250

216

200

162

164

●FY23 and beyond

232[Market]

149

150

100

100

[Our company] Follow-up in the MLCC market expected to expand andISS expansion- Expansion of our share in the market by making the mostof our technological capabilities- Reinforcement of overseas marketing

100
50
0

2019

2020

2019

2020

2021

2021

2022

Market conditions are expected to bottom out in FY22 andrecover from FY23
Estimated CAGR (FY21/FY24) of 4%(completion of inventory adjustment in FY22 →Market recovery based on actual demand in FY23)

2022

2022
Result Plan

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

2023

2023
Plan

2024

2024

2024
Forecast Plan

2030

2030
Plan

● Steadily promote the launch of new products in addition to

expanding sales of existing products to achieve growth for 2030

23

Engineered Powders (2) - Status of
New Product Development

Financial value
Value expansion

The development of Abrasive for SiC wafers (NANOBIX™) and Copper Chromium Alloy Powder for 3D Printer is progressing
steadily with news releases for FY2022.
Abrasive for SiC wafers – NANOBIX™

Nature ofproduct

・A two-pack abrasive consisting of manganic oxidebase abrasive grain liquid and oxidant liquid for
SiC wafers

Compared to existing silica abrasive/alumina
abrasives,

Features・ Capable of grinding SiC wafers fasterwith less damage
・ Easier to remove the abrasive grains
after grinding SiC wafers

Abrasive for SiC wafers

Observation image of an SiC wafer(SICA)

Before grinding

After grinding

Status・ Production capacity will be reinforced in stages up to 50 tons/year or moreduring FY2023 to make the most of the growth in demand for NANOBIX™
(News release on January 10, 2023)
・ Further demand growth is expected in the future as SiC semiconductors
become more widespread

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

Copper Chromium Alloy Powder for 3D Printer・This copper powder allows for 3D printing
with copper, which was previously
considered difficult

Photo of the copper powder

3D modeling example(heat exchanger)

Compared to similar copper powder for 3D printers,

・Our copper powder for 3D printers is superior in its
capability to realize final products having a highlevel of conductivity, strength, and heat radiation
・It excels in fine 3D printing with low-energy lasers

・ Our copper-chromium alloy powder for 3D printers has been adopted by 3D
System, a leading 3D printer company (News release on February 7, 2023)
・ Ongoing joint development with 10 or more customers (mostly overseas
customers)
・ Promotion of new customer acquisition by proactively participating indomestic and overseas exhibitions

24

Metals Segment –Progress of 2022-2024 Mid-Term Plan

Financial value
Value reinforcement

Vision for 2030
We are indispensable in efforts to build a sustainable society We have a recycling network underpinned by our distinctive characteristics, and we use it to provide new metals andminerals for renewable energy

Progress of major strategies of 2022-2024 Mid-Term Plan
Major strategies of 2022-2024 Mid-Term Plan

Head
OfficeZinc &
lead

Copper &precious
metals

Evaluation

Progress in FY2022

Initiatives in FY2023■ Build an advanced recycling network leveraging ourunique and diverse smelting assets

・ Completed definition of digitalization requirements
for smelter equipment management as well as
operational data sharing and utilization■ Leverage existing assets to expand waste
processing business

・ Increase in revenue from disposal of lowconcentration PCBs and other wastes

・Address waste disposal needs associated with the return of
manufacturing to Japan■ Improve margins for increased smelting of metals
produced from complex raw materials

・ Conducted new trial at Hachinohe Mukai complex
raw materials mine・ Acquire new overseas contracts

・ Improve lead blast furnace utilization rate byshortening shutdown time,・ Standardize impurity management

・ Development of facilities management system and start ofoperation data system

・ Fundamental study on the use of alternative fuels to ・ Start demonstration tests for alternative fuel utilization
reduce carbon emissions■ Increase inventory and smelting of new lead/zinc raw
materials to make profit■ Improve margins from increased smelting of
profitable raw materials

・ In-house processing of some raw materials

・ Improve yield through complementary functions among
copper, lead, and zinc smelters■ Reduce costs by improving operations and investing
more judiciously・ Control fixed repair costs through more judicious
capital investment

・ Reduce depreciation and repair costs through stable
operations and investment optimization

・ Confirmed the prospect of securing profitability inthe preliminary economic assessment

・Begin feasibility study to verify reserves and mining costs inthe actual mining sites

Mineral■ Explore new mining opportunities in Huanzala and
Pallcaresources
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

Improve Sn extraction yield by handling impurities

・ Raw materials collection and marketing25

Metals Segment (1) - Industrial Waste andRecycled Raw Materials Processing

Financial value
Value reinforcement

Achieved certain results in the processing business by utilizing existing assets. Steady in processing both zinc smelting industrial waste
and lead-based recycled raw materials.
■ Increased smelting of zinc smelting industrial waste

Result158■ Increased smelting of lead-based recycled raw materials

FY22-FY24
Average

165

ResultResult(Index)Result130

Result(Index)100

FY16-FY18(16-18 MTP)

121

Result

FY22-FY24
Average

129

129

FY22
Result

FY22-FY24(22-24 MTP)100

FY19-FY21(19-21 MTP)

FY22ResultCopyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

FY22-FY24(22-24 MTP)

FY16-FY18(16-18 MTP)

FY19-FY21(19-21 MTP)

26

Metals Segment (2) - Initiatives to Achieve
Carbon Neutrality

Financial value
Value reinforcement

Metals business accounts for 83% of domestic emissions, 55% of which are from Scope 1. We will work on improving processes and introduction of newtechnology to realize CN by 2050.
Measures for FY2030

Improveprocesses

Energyconservationand higher
efficiency

Technologyestablished or
implementablemeasures

Improve efficiency by
updating outdated
facilities■ Improve heat exchange efficiency, including sulfuric acid heatexchangers

Promote utilization ofwaste heat

■ Capture steam from waste heat and use in existing power generation
facilities

Improve electricity
intensity■ Demand response utilizing digital technology in electrolysis plants(Keidanren’s Challenge Zero Innovation Case)■ Identify and realize energy conservation projects

Introduce newtechShift energy
sources

Utilize renewableenergyMeasures for FY2050

Continuous initiatives after
FY2030■ Substitute coal with biomass fuels
Conduct testing of actual equipment using biomass pulverized coal toreplace 20% of coal
■ New hydroelectric power plant

Utilize low emission
factor energy

Measures underdevelopment
through internaland external
collaboration

Carbonabsorption,
capture, andreuse

CCUS utilization, etc.
Explore newtechnologies■ Reduce coke consumption in ISP smelting by utilizing alternative
fuels (Keidanren’s Challenge Zero Innovation Case)
Research on Zn re-oxidation effect by hydrogen at a development
center■ Develop carbon capture technology
Planning Hachinohe field test with modules in the first half of next fiscal year

Sowing Seeds for Future

Energy conservation based on existing technologies and realization of energy transition
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

■ Ferro coke utilization
Introduce zinc reduction method with iron
(Technical guidance and research by Tohoku University)■ Participate in the Carbon Recycling Fund in Hiroshima Prefecture andthe Hachinohe Area New Zero Emission Liaison Council

Search for breakthroughs by leveraging
company-wide technological synergies

27

Mobility Segment –Progress of 2022-2024 Mid-Term Plan

Financial value
Value reinforcement

Vision for 2030
Pioneer of a mobility society that continues to identify and create values to be chosen. New products sales ratio of more than 50%, ordinary income of 20
billion yen, and zero recall

Progress of major strategies of 2022-2024 Mid-Term Plan
Major strategies of 2022-2024 Mid-Term Plan

Evaluation

Progress

Head
Office・ Explore and realize business synergies (short/medium/long term)
・ Develop and promote new business in response to changes in thebusiness environment

Catalyst

・Maintain and strengthen technical development capabilities fordifferentiation
・ Enhance manufacturing efficiency in production, development, asset
compression, etc.
・ Create a winning scenario from a medium- to long-term perspective byleveraging our strengths

Mitsui
Kinzoku
ACT・ Aim to transform into a system supplier by focusing on the development
and sales expansion of electric system products
・ Strengthen cost competitiveness and quality by deepening global optimum
production and smart factory

・ Received orders for electric sliding door system products for derivatives of existingmodels as planned.
Developing and expanding sales of electric door system products and products for EVs
・ Accelerating business restructuring mainly in China and Japan in response to lower
sales and profit in FY2022 due to changes in the market environment (vs. 22-24 MTP)・ Business restructuring and generation of appropriate profits

・ Cost improvement and shift to high value-added products are steady, but it isnecessary to accelerate response to increased energy and raw material costs
・ Creating and strengthening technology and sales synergies through the integration of
Mitsui Kinzoku Die-Casting and Kamioka Components

DieCasting

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

・ Developing best practices for improving processes, ICT, equipment, etc.
・ Promoting sales expansion by utilizing sales channels and market information

・ Introduced and started operation of Materials Informatics
・ Development, manufacturing, and financial DX in progress・ Medium term: Prior development to comply with new regulations, focusing on catalysts
for motorcycles
Long term: Collaborate with Business Creation Sector to develop environmentallyfriendly products

28

Catalyst - Trends in Sales Volume forMotorcycles and Automobiles

Financial value
Value reinforcement

In FY2023, sales of catalysts for motorcycles are expected to increase in Southeast Asia and South America, and sales of catalysts for automobiles arealso expected to increase due to new orders and GPF* sales.
In the long run, aim to create new businesses that contribute to CN based on exhaust gas catalyst technology, and collaborate with the Business
Creation Sector develop environmentally friendly products.
● Sales volume in 2022
・ Sales in Southeast Asia and South America increased over plan

Sales results and forecasts of motorcycle catalysts(Let 2019 be 100)

100

2019

102

2020

103

2021

118 113115● Sales volume in 2023 onwards
・ Continued strong performance in Southeast Asia and South America.
Market expected to remain strong until 2030

114 117

2022

2023

2024

2030

Result Plan

Forecast

Forecast Plan

Plan

● Sales volume in 2022
・ Sales down from plan due to shortage of semiconductors

Sales results and forecasts of four-wheeled vehicles
catalysts (Let 2019 be 100)

100

106

114

120

133

132

● Future Strategy
・ Maintain market share by complying with new regulations in each country
and by complying with precious metal regulations(50% global market share)● Sales volume in 2023 onwards
・ Increased sales through new orders and GPF* sales. In the mid- to long-term,
the market will shrink due to accelerated electrification

146 141● Future Strategy
・ While continuing to develop technologies to meet the next regulations of eachcountry and to save precious metals, we will select and focus on development
themes in order to create new environmentally friendly products
2019

2020

2021

2022

2023

2024

2030

Result Plan

Forecast

Forecast Plan

Plan

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

* GPF: Catalyst that suppresses PM (particulate matter) emissions inaddition to the normal exhaust gas purification function29

Mitsui Kinzoku ACT –Expand Sales of Electric Door Systems

Financial value
Value reinforcement

In addition to business structure reforms, increase the sales composition of high-value-added electric door system products in responseto the expansion of electrification and automation of doors.

■ Expand sales of electric door system products and products for EVs
FY23

TopicsFY22

FY25

Started mass production of sliding
doors for PSD sharing vehicles ofcompact cars

FY26-

Expanded sales and started mass
production of electric door systemproducts in Japan, U.S., andChinese markets

Develop and expand sales of electricdoor system products and products
for EVs

Started mass production of electric sliding
doors (PSD) for China’s proprietary brands

Electric tailgate for
pickup trucks

1,200
1,000
800
Net sales

788

860

979

1,009

1,014

(100 m600
yen)
400

Ratio of systemproducts
200
to net sales

24%

25%

25%

26%

29%

Electric Frunk systemfor electric vehicles

Electric back door

0

2021

2022

2023

2024

2025

Electric sliding door

2030

■ Promote business structure reform in response to lower sales/profit results (China, Japan)
・ China: Expand local electrical/electronic product development resources in parallel with the EV shift as well as implement organizational changes in line with this expansion
・ Japan: Thorough reform of head office functions and organization (development/production technology/quality control) for transformation into an electric door system supplier
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

30

Mitsui Kinzoku Die-Casting – Absorption-typeMerger between Wholly Owned Subsidiaries

Financial value
Value reinforcement

Decision to integrate Mitsui Kinzoku Die-Casting and Kamioka Components for the following purposes as head office synergies.
(News release on February 7, 2023)● To Build a foundation for sustainable growth of the metal parts business by combining and mutually complementing the management resources ofMitsui Kinzoku Die-Casting and Kamioka Components.
● To win in the attractive growth market for mobile electrical components through manufacturing.

Before integration

New Company
FY2023
FY2030Areas to leverage Mitsui Kinzoku Die-Casting’s strengths(sales force, equipment infrastructure)

Head office synergies (sales
channels, technology, etc.)from multiple perspectives

Increased sales ofelectrical components

Net sales

Mitsui Kinzoku
Die-Casting

Shift to high value-added products (automotive
electrical components)

・ Strengthen marketing capabilities (including powder metallurgy)
・ Sales mix optimization by utilizing the infrastructure to its maximum
potential

KamiokaComponents
KamiokaComponents

Improvement of manufacturing capabilities

Cost

・ Deploy process management skills of Kamioka Components
・ ICT Utilization
Mitsui Kinzoku
Die-Casting

Areas to leverage Kamioka Component’s strengths(process control, quality control, labor saving)
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

31

Integrated Thinking-based Management
In order to achieve our vision based on Purpose, from April 2022, we conducted full-fledged introduction andpromotion of Integrated Thinking Management, which aims to achieve both social and financial value.

Integrated thinking-based management(2) Financial value(1) Social value
ESG (Opportunities and risks)

Define product/market scope

We will evaluate each business from five perspectives related toour materiality initiatives, and use the sustainability of thebusiness to make business decisions

Ambidexterity

Environmental
impactSocialcapitalBusiness model
innovation

HumancapitalLeadershipgovernance

Exploitation
Dynamic business portfolio management
Exploring synergies

M&A
Strategic
Investments

Exploration
Proactive allocation of management resources tobusiness creation sector(3) New structures to support integrated thinking
Organizational
Talent strategy
changeCopyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

DX

32

Digital Transformation

New structures to support
integrated thinking

Enhance competitiveness by promoting the three DX strategies of R&D, Manufacturing, and Business reform through reinforcement of thedigital infrastructure.
Main items

Vision for 2030

Major strategies for 22-24 MTP

Specific results

Digital Technology Utilization
Digital Infrastructure

R&D

Industry’s shortest R&D cycle time・ Finalize model for reducing R&D cycle time
to 1/3・ Build data infrastructure and operational
infrastructure

Manufacturing

World-class manufacturing

・ Digitize model refineries tostabilize their operations

・ Digitization in progress centered on
equipment asset management system

Resources used efficiently and effectively

・ Visualize themes for streamlining
backoffice operations
・ Roll out SAP S/4HANA・ Completed company-wide transition to
S/4HANA・ Built visualization infrastructure andcreated reports

Infrastructure,
security,
governanceDigital tech used confidently and safely

・ Build network for cloud computing
・ Strengthen global security
・ Expand system controls

・ Started introduction of new network
・ Completed implementation of SOC*
globally・ Implemented expanding system controls

Talent management

Digital talent team across organization

・ Provide digital content training

・ Started training, increased the number ofstudents progressively

Backoffice reform・ Finished building data infrastructure
・ Started building model*SOC: Security Operation Center

Certified as a “DX Certified Business Operator” by the Ministry of Economy, Tradeand Industry (News release on April 5, 2023)
Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

33

Appendix

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

34

Performance Trends (2019-2024)
2019-2021 Mid-Term Plan
FY2019ResultFY2020Result522.9 billion
yen
51.3 billion
Ordinary income 9.3 billion yen
yen
20.8 billion
38.6 billion
Real profityen
yen
44.8 billion
Profit attributable to
1.6 billion yen
owners of parent
yen
11.2 billion
Free cash flows
1.3 billion yen
yen
34.0 billion
28.2 billion
Capital investmentyenyen

FY2021Result2022-2024 Mid-Term Plan
FY2022
ResultFY2023
Forecast

FY24
Forecast

22-24 MTP 22-24 MTP
FY2022
FY2024633.3 billion 652.0 billion 645.0 billion 718.0 billion
yen
yen
yen
yen
66.0 billion 19.9 billion 20.0 billion 47.0 billion
yen
yen
yen
yen
57.6 billion 26.7 billion 22.5 billion 47.0 billion
yen
yen
yen
yen
8.5 billion 10.0 billion 32.8 billion
52.1 billion
yen
yen
yen
yen
11.4 billion
24.0 billion
35.1 billion
0
yen
yen
yen
27.5 billion 32.5 billion 45.0 billion 38.6 billion
yen
yen
yen
yen

725.0 billion 725.0 billion
yen
yen
40.0 billion 60.0 billionyenyen
41.4 billion 62.0 billion
yenyen
29.0 billion 44.0 billion
yen
yen
*
15.0 billon 85.0 billion
yen
yen
*
46.0 billion 117.0 billionyenyen

Net sales

473.1 billion
yen

ROE

0.9%

24.6%

23.8%

3.5%

3.9%

12.2%

11.4%

14.0%

Equity ratio

30.7%

33.4%

37.6%

40.1%

40.1%

43.2%

41.0%

50.0%

Net D/E ratio

1.22

1.09

0.82

0.76

0.78

0.66

0.71

0.42

Zinc ($/t)

2,405

2,420

3,254

3,332

3,000

2,900

3,700

3,000

Exchange (Yen/$US)

108.8

106.1

112.4

135.5

130.0

135.0

120.0

120.0

(Assumption)

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

*Figures in parentheses are three-year totals

35Caution Concerning Forward-looking Statements
Statements contained in these materials regarding forecasts of future events are qualified by various risks, both existing and unknown,
and uncertainties, which may have a material impact on the actual business conditions and operational activities. Consequently,
please be aware that actual performance may differ substantially from forecasts and business plans indicated herein because ofvarious unforeseeable factors.
Mitsui Mining & Smelting Co., Ltd. cannot guarantee the validity of the targets, assumptions, expectations, predictions, plans,
assessments and other information contained in this material, and the Company also cannot guarantee that its actual businessperformance will be consistent with the forecasts presented within.
Regarding latent risks which might impact forecast results and other uncertainties, some items are included in the “Business andOther Risks” section of our financial statements or our website. However, please recognize that these are just a summary rather thana comprehensive list of all possible items relating to latent risks and uncertainties.
This material was compiled with the aim of furthering the understanding of our shareholders and other investors with regard to theCompany’s management policy and other details. This material is not for the purpose of soliciting investment through the purchase orsale of stocks. Accordingly, you are advised not to make your investment decision solely on the basis of the material presented herein.

Copyright © Mitsui Mining & Smelting Co., Ltd. All Right Reserved.

36