Defining product/market scopes in 2030
Organizational reform according to the product/market scopeManaging portfolio dynamically
Strategic investments in M&As
Portfolio Matrix

Positioning at the start of the 22 Mid-term Plan

We will balance and accelerate the management of “exploitation” and “exploration” and pursue
internal and external synergies to continually create financial value and social and environmental values.

According to the scope, we carried out
organizational reform, reorganizing businessorganizations toward 2030.
The design concept in the reorganization had two
axes: attractive product/market scopes and allowing
continued pursuit of synergies. Traditionally, at
Mitsui Kinzoku, each sector has accessed its
market and customers. Now, organizations aregrouped by product/market scope to be able toconstantly provide attractive markets with value.
In addition to developing existing businesses inthree sectors, the Business Creation Sector will
create new businesses to reinforce and accelerate
the pursuit of ambidexterity.
“Exploitation” is to develop existing businesses andmaximize their potential. “Exploration” is to forge
new businesses and to expand knowledge inuncharted areas for creating new businesses.
These two will be balanced by the pursuit ofambidexterity. For the advancement of exploitation,
we will evaluate the value of existing businesses
based on the two axes of business feasibility andbusiness value for portfolio management andeffective allocation of management resources.

In starting the medium-term management plan2022–2024, we made comprehensive judgementson the business units of the Group by considering
the evaluation of future feasibility based on objective
data and the initiatives and results of the pastmedium-term management plans for the 2016–2018 period and for the 2019–2021 period.
In highly feasible businesses, we will seek M&As
and partnerships to aggressively use external
strength, rather than relying for growth only on ourown power, to further expand and develop value.
That reinforces our growth strategy by combining
synergies within our Group, which are brought
about by the organizational reform, and synergies
outside the Group.
In April 2022, we established the Business
Development Office, which is in charge of carryingout the effort, under the Corporate Planning
Department.
We also decided that the basic M&A policy should
be a programmatic method of executing small-scale
M&As in a planned manner in areas where theeffects of synergies with existing businesses would
be high. The method aims to gain the capabilities
required for the long-term strategy in a phasedmanner, accumulate M&A experience, and improvethe effect of integration.
Based on dynamic business portfolio management,
we will constantly assess businesses and explore
internal and external best owners* for businesses
that are categorized for value restructuring.
In the product/market scopes set based on the
Purpose, we will continue to bring about innovationby controlling the balance between exploitation andexploration and promote integrated thinking-based
management that can continually create financial
value and social and environmental values.

● Copper foil[Core businesses]

Growth prospects (Market attractiveness + Our winnability)

To realize the Vision firmly based on our newly
established Purpose, we reviewed the Mitsui
Kinzoku Group’s product and market scopes.
We set the product and market scopes in 2030 as
the intersection between attractive markets, which
are backcast from the predicted world in 2050, andadvantageous markets, which are forecast basedon the strengths of our Group.
Mitsui Kinzoku Group will engage in business in six
product/market scopes: the environment andenergy, resources, life science, electronics, mobility,
and circular economy.

● Engineered powders● Business Creation Sector[New business domains]
Through synergies with external.
Leverage M&As.

● Engineered Materials Sector● Mobility Sector

Businesses not part of
the three business sectors● Metals Sector

Value of Business* Best owner“Best owner” refers to the management entity that is
expected to make the best use of the management
resources of the business to maximize the corporate
value in the medium to long term.

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Business strategy

Exploring for new businesses

Sustainably co-create new businesses【Enhancing of exploration capabilities】

Business Creation Sector

Explore business opportunities through backcasting thinking

Environmental and Energy【Strengthening R&D capabilities】

Vision for 2030 (What we should be in 2030)

Next-Generation Electronics

・ Increase R&D personnel
・ DX promotion in R&D

Our Core
Technologies

A team of excited people co-creating value, andexploring the future with material intelligence

Life Sciences

Know-how
Sales Channels【Promoting commercialization throughstrategic investments】“Help build a better future.” By taking on this challenge and making it come true, we will help improve
the sustainability of society and enhance the corporate value of Mitsui Kinzoku Group.

【Co-creation with markets】
Create new markets in collaboration with"external forces" such as customers, startups, universities, and partners

Allocate resources to Business Creation Sector
Tasked with exploration for the entire Mitsui
Kinzoku Group, the Business Creation Sector
will provide our stakeholders with exciting value
to contribute to improving the corporate value of
the Group.
To that end, in the three years of the 22 MidTerm Plan, we will carry out our regular activities,
centering on R&D and market co-creation, but ona larger scale than under the previous 19 MidTerm Plan.
In addition to the three strategies of searching
better, strengthening R&D, and strengthening thefoundation, we will make active investments topromote the commercialization of existing units.
We will make efforts to establish our sector’svalue —“excited, energetic, and thorough”— andtake on challenges for the growth of our groupand for solving global problems.

Executive Officer,
Senior General Manager of Business Creation Sector

YASUDA Kiyotaka

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MITSUI KINZOKU Integrated Report 2022

Corporate Venture Capital[100 million yen]

400・[100 million yen]340

[100 million yen]

100・

400・

343

80

40・
30

294

300・

64

30・
231

200・

500・

157

19 Mid-term 22 Mid-term（FY2019-21）

19 Mid-term 22 Mid-term

200・

20・

100・

10・

2021

2022

2024

16

19 Mid-term 22 Mid-term（FY2022-24）

The Market Co-creation Department drives co-creation with markets andexplores and creates business opportunities. The department is working on thecreation of potential partnerships that will lead to new businesses by broadening
the scope of communication to develop opportunities for co-creation with external
contributors.
The R&D Center is responsible for creating new businesses, which will play acore role in the future, through the use of our core technologies and creative
research and development (R&D). By conducting R&D activities in line withmarket trends, the center moves forward with new business creation in a swift
and timely manner.
The Production Process Development Department breaks down the new
business into highly competitive processes, adopting innovative equipment andproduction technologies.
We will cooperate with other sectors and the Materials Analysis & Exploration
Center to make concerted efforts across the Group for new business creation.

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25

Business strategy
Main Business Strategies

Engineered materials

Main High-Share Products

Copper foil
□ Prepare to expand MicroThin™ market/applications(1) Enter new markets (2) Fully leverage supply capacity□ Develop, launch, and expand sales of high-performanceelectrolytic foil

［ Engineered Materials Sector ］

For semiconductor package substrates

Global share

95％

Engineered powders□ Maximize profit from existing products (Sales expansion ofcopper powders for electronics, abrasives)□ Launch new products (copper powders for 3D printers, rare
metal solutions)

Vision for 2030 (What we should be in 2030)

FY2030 targets: ¥180 billion net sales,¥40 billion ordinary income
More than 70% of newly launched products and more than 50%
of sales are green products.

For hybrid cars

35％

Mitsui Kinzoku started providing materials forbatteries in the 1940s and started developing
materials for rechargeable batteries ahead ofmany other companies. Since the 1990s, wehave been supplying hydrogen storage alloys
for batteries used in hybrid cars.

Battery materials (Hydrogen storage alloys)□ Keep decent margins, overhaul production to reduce costs□ Cultivate future products

For glass substrates

Ceramics

Global share□ Expand sales of new products (e.g. next-generation setters*)

40％

Cerium oxide-based abrasives

ESG Initiatives

Work with Head Office to pave way for producing green products
and reaching carbon neutrality by 2050

・ Creation of new demand through technological innovation
・ Expansion of demand for high-performance products due toincreasingly sophisticated market needs
・ Increase in demand due to expansion of markets inemerging economies
・ Intensifying price competition due to rise of manufacturers inemerging economies
・ Sluggish demand due to spread of infection and rise ofprotectionism
・ Increase in geopolitical risks in procurement of raw materials
from overseas

These materials are essential for polishinghigh-performance glass, such as optical lenses,
hard disk glass substrates, and liquid crystal
glass substrates. Mitsui Kinzoku’s strength lies
not only in nonferrous metal materials but also
in rare-earth products.
For MLCCs (multi-layered ceramic capacitors)

Copper powders

Global share

30％

Opportunities and Risks

The Engineered Materials Sector explores customer
needs in order to create products that will achieve
the No. 1 market share in the world, with the goal of
becoming an enterprise that embodies competitive
advantage. As our vision for 2030, we have set
specific targets for net sales, income, and creationof green products, sustainable products.
We aim to contribute to a more prosperous
society and world by creating not only economic
value but also social and environmental value.
To that end, we will transform our organization,
developing a highly engaged workforce and making
concerted efforts to create business opportunities.
To increase earnings, we will launch new products
and expand sales of existing products.
Together with customers, employees, andstakeholders, our sector will work vibrantly,
cheerfully, and positively to achieve growth.

Global share

PVD materials* Calcined ceramic jigs for electronic parts

Extremely-thin copper foils with carrier film
Electro-deposited copper foil is used for wiring
materials in fine circuits. In particular, Mitsui
Kinzoku has a high market share in extremelythin copper foil. These products contribute to
the better performance of electronic products,
such as smaller smartphones.

Demand for MLCCs has been growing rapidly
along with the electrification of automobiles,
higher functionality of smartphones, andwidespread application of IoT. We contribute tothis field by providing materials that help theadvancement of MLCCs, such as smaller sizes
and larger capacity.
For LCDs (liquid crystal displays)

Global share

ITO sputtering targets

30％

ITO (indium tin oxide) is an essential material
in making transparent conductive films for
LCDs. We also supply IGZO sputtering targets
for thin film transistors.

Net sales of Engineered Materials Sector

Ordinary income of Engineered Materials Sector[Billion yen][Billion yen]

200・

40・

40.0
153.0

160.0

31.0

30.0

136.1

27.0

30・
20・

100・

10・

Director, Senior Executive Officer
Senior General Manager of Engineered Materials Sector

OKABE Masato

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[Fiscal]

2021

2024

2030

（Forecast） （Plan）

2022（Plan）[Fiscal]

2021

2024

2030

（Forecast） （Plan）

2022（Plan）【22 Mid-term】【 22 Mid-term 】

Note: The figure for FY2021 was calculated retroactively forthe new sector.

Note: The plan for FY2030 does not include the impact of inventory.

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Business strategy
Main Business Strategies

Metals Mining and smelting

Main High-Share Products

Sector-wide□ Build a sophisticated recycling network based on our
diversified smelting assets［ Metals Sector ］

Lead & Zinc
□ Leverage existing assets to expand business of waste
processing□ Improve margins for metals produced from complex ores
□ Increase the volume of new lead-based materials being
collected and processed to make profit

Vision for 2030 (What we should be in 2030)

Copper & Precious Metals

We are essential in efforts to build
a sustainable world.
We strive to further enhance recycling network underpinned by
distinctive characteristics, and we continue to explore new mineral
resources and renewable energy.

□ Improve margins for metals produced from profitablematerials□ Reduce costs by improving operations and investing morejudiciously

Zinc

Domestic share

42％（Top share）

Domestic share

36％（Second）

Iron is indispensable to both industry andeveryday life. Zinc protects iron from rusting toprolong its life. Zinc is used to plate steel stock
and is widely used for rolled copper and diecasting. Zinc is an essential material for society.

Lead
Lead is made from battery scrap and themineral. Due to its ease of processing, lead isused primarily for lead batteries, as well assolders, lead tube and plates, X-ray shields,
and acoustic insulators.

Mineral Resources□ Explore new mining opportunities around Huanzala and
Pallca in Peru

Electrolytic copper / Zinc base alloy / Antimony trioxide /Gold / Silver / Sulfuric acid / Bismuth / Zinc and leadconcentrates / Zinc oxide

ESG Initiatives

To contribute to a decarbonized society, reduce CO2 emissions
and explore renewable energy solutions
Opportunities and Risks

We have continuously improved our smelting andrecycling over the years. To respond to a growing
need for recycling in line with the development of arecycling-based society, we determined the missionof the Metals Sector to be: provide solutions that
help build a sustainable world.
Toward our vision for 2030, we will pursue a moresophisticated recycling network, explore new mining
opportunities, reduce CO2 emissions for thedevelopment of a decarbonized society, explore
renewable energy solutions, and improve digital
infrastructures for digital transformation.
While optimizing the characteristics of zinc, lead,and copper smelting networks using diverse
processes owned by our Group, mining resources,
and renewable energy, we will enhancecollaboration and synergies between these toprovide unique value.

・ Stable growth of zinc and copper demand in the long run
・ Expanding and increasingly complicated needs for resource
recycling
・ Promotion of the spread of renewable energy
・ Fluctuations in market price of metals and exchange rates
・ Rise in energy costs
・ Accelerated measures to address climate change for carbon
neutrality

Net sales of Metals Sector

Ordinary income of Metals Sector[Billion yen][Billion yen]
40・

269.0

300・
235.6

30・

200・
20・

100・

Senior Managing Director, Senior Managing Executive Officer
Senior General Manager of Metals Sector

TSUNODA Satoshi

36.3

240.0

[Fiscal]

14.5

20.0

17.5

10・

2021

2024

2030

（Forecast） （Plan）

2022（Plan）【22 Mid-term】[Fiscal]

2021

2024

2030

（Forecast） （Plan）

2022（Plan）【 22 Mid-term 】
Note: The plan for FY2030 does not include the impact of inventory.

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Business strategy
Main Business Strategies

Mobility

Main High-Share Products

Sector-wide□ Unlock synergies (short-/medium-/long-term)□ Forge new businesses that reflect the changing times［ Mobility Sector ］

Catalysts

Door latches for automobiles

Global share20％□ Keep honing tech prowess to differentiate products□ Streamline production with technology coefficient improvement
and DX□ Envisage medium- to long-term scenarios in which we use ourstrengths to succeed

Vision for 2030 (What we should be in 2030)

We act as a pioneer of mobility, always making sure ofand always creating the best values to be chosen.

For motorcycles

Exhaust gas purifying catalysts

Global share

Mitsui Kinzoku ACT Corporation□ Develop and expand system-related products to shift focus
toward systems suppliers□ Make costs more competitive by globally optimizing
production and adopting smart factory design50％

New products account for more than 50% of sales, ordinary income
trends at ¥20 billion, and there are no product recalls.

Domestic share28％

ESG Initiatives

We help keep the global environment clean bydetoxifying substances, such as CO and NOx,
that can cause air pollution. We are also
increasing the supply of catalysts for fourwheeled vehicles in the global market.

For LED car headlight units

Mitsui Kinzoku Die-Casting Technology Co., Ltd□ Rebuild business, produce optimal profit

Door latches, Mitsui Kinzoku ACT’s main
products for which it has one of the world’s
largest market shares, are functional parts thatkeep doors firmly in place on the vehicle body.
They must be strong to ensure passenger
safety, as well as ever smaller, lighter, andhigher-performance.

Incorporate customers’ environmental concerns into our own
goals, while trying to reconcile both, develop quantifiable andsustained practices to achieve the goals.

Heat sinks
Heat sinks are used for LED headlights toprevent them from losing their brightness
because of heat. By ensuring visibility, they
contribute to better safety in a wide range ofheat sinks, including general die-casting alloys
as well as alloys with high thermal conductivity.

Opportunities and Risks

Recognizing big changes and evolutions in theautomotive industry, including CASE, MaaS, andcarbon neutrality, as new needs, the Mobility Sector
will provide value that serves our customers andcontributes to the development of a mobility-basedsociety.
The targets we set for 2030 are: increasing thepercentage of new products in net sales,significantly increasing profit, and ensuring that
there are no product recalls. To achieve thesetargets, we will pursue exploitation in technology,
manufacturing, and sales; forge new businesses;
and pursue synergies over short-, medium-, andlong-term cycles.
With the three keywords of enthusiastic“challenge,” “persistence” to make it to the end
without giving up, and “speed” of action, we aim to
be a mobility pioneer that identifies future value andcontinues to create it.

Net sales of Mobility Sector

Ordinary income of Mobility Sector[Billion yen][Billion yen]

20.0

300・

257.0

20・

275.0

15・

207.1

IGATA Hiroshi

13.0

200・
10・
5.0

100・
Senior Executive Officer
Senior General Manager of Mobility Sector

Automotive functional components / Catalysts for purificationof exhaust gases of general-purpose engines/ Powder metallurgy products / Metal injection molding
products

・ Sales expansion of new products through the electrification
and automation of automobiles
・ Tightening of environmental regulations on fuel efficiency,
exhaust gas, etc.
・ Rise of new players with changes in the automotive industry
・ Decrease in demand and delay in production recovery in theautomotive market due to the spread of infection andsemiconductor shortage
・ Increase in geopolitical risks in procurement of raw materials
from overseas[Fiscal]

2021

2024

2030

（Forecast） （Plan）

2022（Plan）【22 Mid-term】

5・

2.4

[Fiscal]

2021

2024

2030

（Forecast） （Plan）

2022（Plan）【 22 Mid-term 】

Note: The figure for FY2021 was calculated retroactively forthe new sector.

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