Consolidated Financial Results for the Six Months Ended September 30, 2014
Mitsubishi Materials Corporation
Tokyo, Japan
November 11, 2014
Stock code:
Shares listed:
URL:
Representative:
For further information please contact:

5711
Tokyo Stock Exchange
http://www.mmc.co.jp/
Mr. Hiroshi Yao, President
Mr. Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
November 13, 2014
December 5, 2014
Yes
Yes (For Corporate Investors)

Filing date of Quarterly Report:
Scheduled date of start of dividend payment:
Supplementary materials for the quarterly financial results:
Investor conference for the quarterly financial results:

1. Results of the six months ended September 30, 2014 (From April 1, 2014 to September 30, 2014)(1) Results of operations (cumulative):(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales

Operating profit

Ordinary income

Net income

Six Months ended Sept. 30, 2014

¥751,194

6.8(%)¥34,034

2.1(%)¥40,079

12.9(%)¥23,238-20.5(%)

Six Months ended Sept. 30, 2013

¥703,688

10.7(%)¥33,336

26.0 (%)¥35,4851.5(%)¥29,23979.6(%)(Note) Comprehensive income

Six Months ended Sept. 30, 2014:
Six Months ended Sept. 30, 2013:

30,604 million yen (-46.2%)
56,924 million yen (409.6%)(Yen)

Six Months ended Sept. 30, 2014
Six Months ended Sept. 30, 2013

Net income per share

Diluted net income per share¥17.73¥22.31－－(2) Financial Position:(Millions of yen)
Total assets
As of September 30, 2014
As of March 31, 2014
(Reference) Shareholders’ equity

Shareholders’ equity ratio

Net assets¥1,838,975¥1,778,505
As of Sept. 30, 2014: 475,405 million yen
As of Mar. 31, 2014: 456,749 million yen¥545,590

25.9 (%)¥525,707

25.7 (%)

2. Dividend payments(Yen)
Dividends per Share
Second quarter
Third quarter
¥2.00
－
¥3.00

(Record date)
First quarter
Year ended March 31, 2014－
Year ending March 31, 2015－
Year ending March 31, 2015
(Forecast)(Note) Revisions to dividend forecast in the current period: None

Year-end¥4.00

Annual
¥6.00

¥5.00

¥8.00

－

3. Forecast (From April 1, 2014 to March 31, 2015)

Net sales

Operating profit

Year ending¥1,500,000
6.0%¥74,000
March 31, 2015
(Note) Revisions to forecast in the current period: None

11.6%

(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net income per
Ordinary income
Net income
share¥84,000

9.2%¥50,000-4.9%¥38.15 (yen)* Notes(1) Significant changes of subsidiaries during the period (including changes in scope of consolidation): None
(2) Application of specific accounting treatment: Yes(Note) For details, please refer to “(1) Application of Specific Accounting Treatment” under “2. Summary Information (Notes)” on
page 5.
(3) Changes in accounting policies; changes in accounting estimates; restatements(i) Changes in accounting policies due to amendment of accounting standards:
Yes(ii) Other changes in accounting policies:Yes(iii) Changes in accounting estimates:Yes(iv) Restatements:
None(Note) For details, please refer to “(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements” under “2.
Summary Information (Notes)”on page 6.
(4) Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury stock)Six months ended September 30, 2014:
1,314,895,351 sharesYear ended March 31, 2014:
1,314,895,351 shares(ii) Number of treasury stock at end of year
Six months ended September 30, 2014:
4,554,835 sharesYear ended March 31, 2014:
4,449,074 shares(iii) Average number of shares during the period (quarterly cumulative period)
Six months ended September 30, 2014:
1,310,397,480 shares
Six months ended September 30, 2013:
1,310,639,746 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial Instruments and ExchangeAct. As of the disclosure of these financial results, the procedures for reviewing quarterly financial statements pursuant to the
Financial Instruments and Exchange Act are in progress.

* Appropriate use of business forecasts and other special items(Notes regarding descriptions of earnings forecasts and other forward-looking statements, etc.)
Earnings forecasts and other forward-looking statements in this document are based on information currently
available to the Company’s management and certain assumptions judged rational, and we do not promise that theforecasts in this report will be achieved. Accordingly, there might be cases in which actual results materially differ
from forecasts of this report. To use assumptions for forecasts and to refer to specific revisions on consolidated
financial forecasts, please refer to (3) Explanation of Forecast and Other Future Predictions (page 5) under “1.
Qualitative Information Regarding the Consolidated Performance.”(Method of obtaining supplementary information to and contents of the first two quarters financial results briefing)
Mitsubishi Materials Corporation is scheduled to hold a first two quarters financial results briefing for institutional
investors on November 13, 2014 (Thursday). Materials to be used in this briefing will be posted on the Company’s
website on the same day.

Contents

1. Qualitative Information Regarding the Consolidated Performance ................................................................... P2(1) Explanation of Business Performance .....................................................................................................P2(2) Explanation of Financial Position .............................................................................................................P5(3) Explanation of Forecast and Other Future Predictions ..............................................................................P5
2. Summary Information (Notes) ........................................................................................................................... .P5(1) Application of Specific Accounting Treatment ........................................................................................P5(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements ..................................P6(3) Changes in Representation ............................................................................................................................ P6
3. Consolidated Financial Statements .................................................................................................................... P8(1) Consolidated Balance Sheets ......................................................................................................................... P8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income .......................................................................................................P10
Consolidated Statement of Comprehensive Income ............................................................................. P11(3) Consolidated Statement of Cash Flows ......................................................................................................P12(4) Notes on Consolidated Financial Statements ...............................................................................................P13
Notes on Assumptions for Going Concern.................................................................................................P13
Segment Information ....................................................................................................................................P13
Notes in Event of Significant Changes in Shareholders’ Equity ..............................................................P14
Additional Information ................................................................................................................................P141

1. Qualitative Information Regarding the Consolidated Performance(1) Explanation of Business Performance1) Overview of period under review
During the consolidated six months ended September 30, 2014, the overall global economy headed toward modest
recovery thanks to signs showing that the U.S. and European economies were on the course of recovery, while there
was a continuing slowdown in the economies of China, India, and other Asian countries.
In spite of negative impact of the last minute demand after the increase in the consumption tax rate, the Japanese economy
continued to recover gradually thanks to an improvement in employment and income conditions, etc.
Regarding the operating environment for the Mitsubishi Materials Group, although overall business was impacted
by the depreciation of the yen, on the other hand, it faced several negative factors, such as delays in construction works
and energy cost over-runs.
Amid such circumstances, consolidated net sales for the period under review totaled ¥751,194 million, up 6.8%
from the previous corresponding period. Operating profit increased 2.1% to ¥34,034 million, as well as ordinary
income, up 12.9%, to ¥40,079 million. However, the quarterly net income decreased 20.5%, to ¥23,238 million.
2) Overview of Segment
The Mitsubishi Materials Group has revised the reporting segments since the consolidated first quarter. Detailed
information about this revision is described in “(4) Notes on Consolidated Financial Statement (Segment Information).”Please take note that the comparison with the corresponding period of the previous year in the following segments wasmade based on the figures after the said revision of the segments was made.
(Cement)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2¥87.2

Increase/decrease (%)

¥90.6

¥3.4

(3.9%)

Operating profit

7.0

6.4

-0.6

(-8.7%)

Ordinary income

¥6.7

¥6.0

-¥0.7

(-10.7%)In the Cement segment, although there were unsuccessful bids for and delays of public works in the Tohoku region andthe Tokyo metropolitan area, Japanese gross domestic demand hovered at the same level with the corresponding periodof the last year and sales volumes also remained almost in line with the corresponding period of the previous year,
thanks to steady progress of redevelopment construction in the areas surrounding railway stations and housing
construction for condominiums in the Kinki and Tokai regions. In the United States, sales volumes slightly decreased asa result of implementation of business policies emphasizing selling prices and delays in construction works due tonegative impact of bad weather in Southern California at the beginning of this year. In China, while demand continued
to shift favorably thanks to the high-speed rail construction in Shandong and the new airport construction, sales
volumes decreased due to a decline in demand for real-estate investment. Total cement production for the entire
business during the period under review was 5.9 million tons, in line with the previous corresponding period.
We saw a sales increase in the United States as the price of cement and ready-mixed concrete was revised. On theother hand, operating cost increased.
As a result, the entire business posted a year-on-year increase in net sales but a decrease in operating profit.
Ordinary income fell from the previous corresponding period due to a decrease in operating profit.

2

(Metals)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2

Increase/decrease (%)¥366.9¥410.0¥43.0(11.7%)

Operating profit

12.3

12.4

0.1

(1.0%)

Ordinary income

¥16.8

¥16.8

-¥0.0

(-0.4%)In the copper business, progress in operations at PT Smelting in Indonesia remained stable. This resulted in increased
production, which in turn led to an increase in both net sales and operating profit. Total production of copper cathodefor the period was 295 thousand tons, up 33 thousand tons from the previous corresponding period.
In the gold and other valuable metals business, both net sales and operating profit decreased due to smaller sales
volume of gold bullions caused by price fluctuations within a narrow range.
In the processed copper products business, despite an increase in sales of products for automobiles, the products fornuclear power stations recorded a sales decrease that resulted in increased net sales but decreased operating profit.
As a result, the entire business posted year-on-year increases in both net sales and operating profit.
Despite an increase in dividends income, ordinary income for the entire business fell from the previous
corresponding period due to a decrease in equity in earnings of affiliates.
(Advanced Materials & Tools)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2

¥72.5

¥68.0

Increase/decrease (%)-¥4.4(-6.1%)

Operating profit

7.5

8.3

0.8

(11.8%)

Ordinary income

¥7.0

¥8.1

¥1.1

(16.0%)

In cemented carbide products business, both net sales and operating profit increased thanks to demand increase in Japanand other overseas countries, especially in the countries in Europe and Southeast Asia, as well as aggressive sales
promotion efforts.
In the high-performance alloy products business, although sales of products for the automobile sector hovered at a
steady level, both net sales and operating profit decreased. Some of the factors were the increased cost for the expansionof our production capacity, and the fact that Mitsubishi Materials C.M.I. Corporation was excluded from Mitsubishi
Materials Group’s subsidiaries in January 2014, while MMC Superalloy Corporation became an equity-method affiliateof the Group in July 2014.
As a result, the entire business posted a year-on-year increase in operating profit, but a decrease in net sales.
Ordinary income increased from the previous corresponding period due to an increase in operating profit.

3

(Electronic Materials & Components)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2

Increase/decrease (%)

¥34.5

¥30.5

-¥3.9

(-11.5%)

Operating profit

2.0

2.0

0.0

(1.9%)

Ordinary income

¥0.9

¥3.3

¥2.3

(242.1%)In the advanced materials business, despite a decrease in sales of LSI products for smartphones, both net sales andoperating profit increased thanks to a steady progress of sales in semiconductor manufacturing equipment-related
products.
The electronic components business posted an increase in both net sales and operating profit due to increased salesof products for household appliances.
The polycrystalline silicon and chemical products business posted a decrease in both net sales and operating profit,
as sales of polycrystalline silicon decreased as a result of suspension of operations at the Yokkaichi Plant until June 29,
2014, after an explosion and fire.
As a result, the entire business posted a year-on-year increase in operating profit, but a decrease in net sales.
Ordinary income increased from the previous corresponding period due to an increase in equity in earnings ofaffiliates.
(Aluminum)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2¥77.5

Increase/decrease (%)

¥80.9

¥3.3

(4.3%)

Operating profit

4.3

3.9

-0.3

(-8.2%)

Ordinary income

¥3.9

¥3.6

-¥0.2

(-7.5%)In the aluminum cans business, demand for both regular cans and bottle cans increased.
Demand for rolled aluminum and processed aluminum products increased, driven by demand from the automobile
sector.
The aluminum segment saw an overall upturn in energy cost and material cost.
As a result, the entire business posted a year-on-year increase in net sales but a decrease in operating profit.
Ordinary income fell from the previous corresponding period due to a decrease in operating profit.

4

(Others)(Billions of yen)
FY2014 Q1-Q2
Net sales

FY2015 Q1-Q2

Increase/decrease (%)¥118.1¥114.7-¥3.4(-2.9%)

Operating profit

2.5

3.0

0.5

(20.5%)

Ordinary income

¥2.5

¥4.9

¥2.3

(91.7%)In the energy-related business, both net sales and operating profit decreased due to a decrease of coal sales and sales fornuclear-related decontamination business in Fukushima.
Both net sales and operating profit of "E-waste" (used electronics and electrical products) recycling businesshovered at the same level with the corresponding period of the previous year.
Orders for nuclear energy and engineering services recorded ¥39.3 billion, up ¥8.6 billion from the previous
corresponding period. The order backlog at the end of the period was ¥40.1 billion, up ¥14.7 billion from a year earlier.
(2) Explanation of Financial Position
As of September 30, 2014, the Group’s consolidated total assets stood at ¥1,838.9 billion, up ¥60.4 billion from March 31,
2014. This was mainly due to an increase in notes and accounts receivable-trade.
Total liabilities stood at ¥1,293.3 billion, up ¥40.5 billion from March 31, 2014. This was mainly due to an increase innotes and accounts payable-trade.
For the consolidated six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014), status andvariable factors of each cash flow are as follows:(Cash Flows from Operating Activities)
Net cash provided by operating activities totaled ¥12.5 billion (a decrease of ¥21.7 billion from the same period ofprevious year), due mainly to the stable performance, despite an increase in inventories, and notes and accounts
receivable-trade.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥21.4 billion (a decrease of ¥25.6 billion from the same period of previousyear), due mainly to expenses related to capital investments.
(Cash Flows from Financing Activities)
Net cash used in both operating and investing activities totaled ¥8.9 billion, while net cash provided by financing
activities was ¥3.4 billion as of September 30, 2014 (a decrease of ¥11.2 billion from the same period of previous year),due mainly to financing by means of borrowing of such funds.
As a result of the above, cash and cash equivalents at September 30, 2014, stood at ¥59.1 billion, down ¥2.8 billion
from March 31, 2014.
(3) Explanation of Forecast and Other Future Predictions
Although business performance of the Group may be largely affected by some variable factors such as currency exchange
rates and electricity cost, we do not change our consolidated earnings forecasts for the full-year period ending March 31,
2015 announced in the earnings summary released on May 12, 2014, considering the performance during the consolidated
six months ended September 30, 2014, and our projection for the future business environment.

2. Summary Information (Notes)(1) Application of Specific Accounting Treatment
The Group rationally assumes an effective tax rate after applying tax-effect accounting to income before income taxes
for the consolidated fiscal year, including the current second quarter under review, and multiplies such effective tax
5rate by quarterly income before income taxes to arrive at the tax expense.

(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements
Changes in Accounting Policies(Adoption of Accounting Standard for Retirement Benefits)
We have adopted “Accounting Standard for Retirement Benefits” (Corporate Accounting Standards No. 26 of May 17,
2012, hereinafter referred to as “Retirement Benefits Accounting Standards”) and “Implementation Guidance on
Accounting Standard for Retirement Benefits” (Corporate Accounting Standards No. 25 of May 17, 2012, hereinafterreferred to as “Implementation Guidance on Retirement Benefits”) starting from the first quarter of fiscal year under
the provisions stipulated in the texts of the Section 35 of the Retirement Benefits Accounting Standards and of theSection 67 of the Implementation Guidance on Retirement Benefits: we have revised the accounting method for
retirement benefit obligations and service cost, and have changed our method of attributing projected retirement
benefits from a straight-line basis to a benefit formula basis along with changing the method of discount determination
to a method that uses single-weighted average discount rate reflecting the estimated timing and amounts, either thanthe discount rate based on the average remaining years of service.
To apply the Retirement Benefits Accounting Standards, we comply with the transitional handling stipulated in the
Section 37 of Retirement Benefits Accounting Standards, and effect of the revision of the method for calculation ofretirement benefit obligations and service cost, financial effects are added to or subtracted from retained earnings at
the beginning of the second quarter consolidated cumulative period under review.
As the result, net defined benefit liability increased by ¥4,617 million while retained earnings decreased by ¥3,611
million at the beginning of the second quarter consolidated cumulative period under review. Please take note that the
expected effect this change has on our operating profit, ordinary income and income before income taxes during theconsolidated six months ended September 30, 2014, is negligible.
(Change in Method for Calculation of Depreciation of Property, Plant and Equipment)
The Company and its Japanese domestic consolidated subsidiaries have adopted the straight-line method for
depreciation of manufacturing facilities of cemented carbide products starting from the consolidated first quarter offiscal year, instead of the declining-balance method that had been mainly used. This change of the depreciation
method was decided when we increased productive capacity of the Tsukuba Plant by introducing the manufacturing
facilities for increased production of cemented carbide products and developed the medium-term management plan(for FY 2015 through 2017); we estimated that, according to the forecast for the global demand of cemented carbide
products in the future, the facilities would be used consistently and that the investment would be returned more
steadily than before, without being exposed to the risk of technological obsolescence. For the above reason, we
decided that to employ the straight-line method was more rational.
As a result, compared with the method used before, during the consolidated six months ended September 30, 2014,
operating profit, ordinary income and income before income taxes respectively increased by ¥894 million.
In addition, the Group has adopted the straight-line method for depreciation of manufacturing facilities ofaluminum cans in domestic consolidated subsidiaries starting from the consolidated first quarter of fiscal year, insteadof the declining-balance method that had been mainly used. This change of the depreciation method was decided
when we developed the medium-term management plan (for FY 2015 through 2017); we estimated that, according to
the expected demand of aluminum cans in the future, the facilities would be used consistently and that the investment
would be returned more steadily than before, without being exposed to the risk of technological obsolescence. For theabove reason, we decided that adopting the straight-line method was more rational.
As a result, compared with the method used before, during the consolidated six months ended September 30, 2014,
operating profit, ordinary income and income before income taxes increased by ¥440 million, respectively.

(3) Changes in Representation(Consolidated Income Statement)
Although some U.S. consolidated subsidiaries in the Cement business have been using the representation titled“selling, general and administrative expenses” to show the cost associated with transportation of ready-mixed concrete,
we have replaced such representation with “cost of sales” starting from the first consolidated quarter of fiscal year.
We made this change to properly represent cost of sales and selling, general and administrative expenses
6respectively, alongside with reexamining the correspondence between earnings and behavior of costs generated overtransportation of ready-mixed concrete. Said reexamination was due to forecast that earnings of the ready-mixed
concrete business in the U.S. would increase in the medium-term management plan (for FY 2015 through 2017)
having the current fiscal year as the base point.
In order to reflect this change in representation, we have reclassified the quarterly consolidated income statementsof the consolidated six months ended September 30, 2013.
Please take note that ¥6,829 million represented as “selling, general and administrative expenses” in the quarterly
consolidated income statements of the consolidated six months ended September 30, 2013, was reclassified as “cost of
sales.”

7

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of September 30, 2014ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets¥63,486
219,016
81,516100,280
103,155
208,853(1,843)
774,465¥61,235
242,414
92,195
108,841
115,676
213,244(1,966)
831,642

Noncurrent Assets:
Property, Plant and Equipment:
Machinery and equipment, net
Land, net
Other, net
Total Property, Plant and Equipment

178,296
273,048
199,226
650,571

178,651
271,957
191,524
642,134

38,816
9,410
48,22636,066
10,091
46,158250,576
61,630(1,168)(5,797)305,241
1,004,039¥1,778,505

264,124
61,899(1,168)(5,815)
319,039
1,007,332¥1,838,975

Intangible Assets:
Goodwill
Other
Total Intangible Assets
Investments and Other Assets:
Investment securities
Other
Allowance for investment loss
Allowance for doubtful accounts
Total Investments and Other Assets
Total Noncurrent Assets
Total Assets

8

(Millions of yen)
As of March 31, 2014

As of September 30, 2014

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Commercial papers
Income taxes payable
Provision
Gold payable
Other
Total Current Liabilities¥106,656
256,098
40,000－9,576
12,899212,760
100,526
738,518¥137,366
265,656
30,00040,000
7,925
12,038214,736
101,271808,994

Noncurrent Liabilities:
Bonds payable
Long-term loans payable
Provision
Net defined benefit liability
Other
Total Noncurrent Liabilities
Total Liabilities

85,140268,605
7,556
52,787100,190514,279
1,252,797

65,140256,905
8,488
54,876
98,980484,390
1,293,384

119,457
92,272
207,354(1,782)
417,302

119,457
92,272
222,133(1,818)432,044

31,972
218
32,907(12,348)(13,302)39,447
68,957525,707¥1,778,505

36,256(2,796)32,794(10,108)(12,786)
43,36070,185545,590¥1,838,975

NET ASSETS
Shareholder's Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholder's Equity
Accumulated Other Comprehensive Income:
Valuation difference on securities available for sale
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive Income
Minority interests
Total Net Assets
Total Liabilities and Net Assets

9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income[For the Six Months Ended September 30, 2013 and 2014](Millions of yen)
Six Months Ended Sept. 30, 2013

Six Months Ended Sept. 30, 2014

(Apr. 1, 2013 - Sept. 30, 2013)(Apr. 1, 2014 - Sept. 30, 2014)¥703,688
606,801
96,88763,55033,336¥751,194
651,914
99,27965,24534,034

243
7,172
2,201
2,343
979
12,940

283
7,631
4,893
2,455
1,027
16,291

5,005
5,786
10,79135,485

4,334
5,912
10,24640,079

1,412
4,075
1,328
6,815

296
130
283
710

－
－
114
2,580
2,694
39,606
7,932
31,673
2,433¥29,239

1,300
1,101
799
1,196
4,398
36,391
10,49725,893
2,654¥23,238

Net sales
Cost of sales
Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-operating Profit:
Interest income
Dividends income
Equity in earnings of affiliates
Rent income on noncurrent assets
Other
Total Non-operating Profit
Non-operating Expenses:
Interest expenses
Other
Total Non-operating Expenses
Ordinary income
Extraordinary Income:Gain on sales of investment securities
Gain on sales of noncurrent assets
Other
Total Extraordinary Income
Extraordinary Losses:
Provision for environmental measures
Loss on suspension of operations
Loss on valuation of investment securities
Other
Total Extraordinary Loss
Income before Income Taxes
Income taxes
Income before minority interest
Minority interests in income
Net Income

10Consolidated Statement of Comprehensive Income[For the Six Months Ended September 30, 2013 and 2014](Millions of yen)
Six Months Ended Sept. 30, 2013

Six Months Ended Sept. 30, 2014

(Apr. 1, 2013 - Sept. 30, 2013)(Apr. 1, 2014 - Sept. 30, 2014)¥31,673¥25,893

5,916
395
15,100－3,838
25,25056,924

4,230(3,039)4,117
883(1,481)
4,710
30,60450,27327,264¥6,651¥3,339

Income before minority interest
Other comprehensive income
Valuation difference on securities available for sale
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Equity in earning of affiliates
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent company
Comprehensive income for attributable to minority
interests11

(3) Consolidated Statement of Cash Flows(Millions of yen)
Six Months Ended Sept. 30, 2013 Six Months Ended Sept. 30, 2014
(Apr. 1, 2013 - Sept. 30, 2013)(Apr. 1, 2014 - Sept. 30, 2014)¥39,606
28,294(423)－(7,415)
5,005(2,201)(4,162)
114¥36,391
26,426(1,847)(580)(7,914)
4,334(4,893)
(102)
799

5,819

(27,305)(5,621)(7,038)(13,545)
38,431
8,409(5,237)(7,273)34,329(34,995)
27,609(1,259)16,662
8,385(4,383)(8,114)
12,549(29,473)
10,267(2,800)4,354(25,168)591(1,117)
272

－

1,506

(28,780)(687)(47,119)

(312)
2,769
(21,458)(460)
60,410(46,910)
15,100－(26,000)(45)(5,242)(2,998)(1,632)(7,779)39,122
34,765(71,655)－(30,000)
40,000(37)(5,241)(1,873)(1,581)
3,497

4,380

1,797

(16,188)
63,299(3,614)62,078

2,007

732

(62)

－

¥49,055¥59,196

Net Cash Provided by (Used in) Operating Activities:
Income before income taxes
Depreciation and amortization
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Loss (gain) on sales of property, plant and equipment
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivablestrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund (paid)
Net Cash Provided by (Used in) Operating Activities:
Net Cash Provided by (Used in) Investing Activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of investments in subsidiaries
Other, net
Net Cash Provided by (Used in) Investing Activities
Net Cash Provided by (Used in) Financing Activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bond
Redemption of bonds
Increase (decrease) in commercial papers
Purchase of treasury stock
Payment of cash dividends
Cash dividends paid to minority shareholders
Other, net
Net Cash Provided by (Used in) Financing Activities
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Increase (Decrease) in Cash and Cash Equivalents
Resulting from Change of Scope of Consolidation
Increase (Decrease) in Cash and Cash Equivalents
Resulting from Change of Fiscal Term of Subsidiaries
Cash and Cash Equivalents at End of Period12(4) Notes on Consolidated Financial Statements
Notes on Assumptions for Going Concern: N/A.

Segment Information[Segment Information]
I. For the Six Months ended September 30, 2013 (From April 1, 2013 to September 30, 2013)
Sales and Income of Reporting Segments

Advanced Electronic
Materials & Materials & Aluminum
Tools
Components

CementMetalsOthersTotal¥85,582¥361,248¥57,954¥23,847¥77,098¥97,956¥703,688

1,619

5,730

14,560

10,667476

20,206

Total

87,202366,978

72,51534,51477,575

Segment income¥6,766¥16,865¥7,026¥973¥3,904(Millions of yen)Amountindicated in
Adjustment
theamountstatements
of incomeNet sales(1)External
Customers(2)Inter-segment
sales or transfer－¥703,688

53,261(53,261)－

118,163756,949(53,261)

703,688¥2,577¥38,114¥(2,628)¥35,485¥(Notes)1. “Others” segment includes nuclear energy-related services, environmental and recycling-related business, realestate business, and engineering-related services.
2. Included in the segment income adjustment amount (-¥2,628 million) are segment eliminations (¥561 million)
and corporate expenses (-¥3,190 million) that cannot be allocated to any specific segment. Corporate expenses
consist mainly of management-related costs, basic experimental research costs, and financial income/expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly statement ofincome.
II. For the Six Months ended September 30, 2014 (From April 1, 2014 to September 30, 2014)
1. Sales and Income of Reporting Segments

Advanced Electronic
Materials & Materials & Aluminum
Tools
Components

CementMetalsOthersTotal¥88,913¥405,578¥56,394¥26,480¥79,945¥93,881¥751,194

1,693

4,459

11,701

4,048

972

20,871

Total

90,606410,038

68,09530,52980,918Segment income¥6,046¥16,805¥8,150¥3,330¥3,613(Millions of yen)Amountindicated in
Adjustment
theamountstatements
of incomeNet sales(1)External
Customers(2)Inter-segment
sales or transfer－¥751,194

43,747(43,747)－

114,752

794,941(43,747)

751,194¥4,942¥42,888¥(2,809)¥40,079¥(Notes)1. “Others” segment includes nuclear energy-related services, environmental and recycling-related business, realestate business, and engineering-related services.
2. Included in the segment income adjustment amount (-¥2,809 million) are segment eliminations (¥152 million)
and corporate expenses (-¥2,962 million) that cannot be allocated to any specific segment. Corporate expenses
consist mainly of management-related costs, basic experimental research costs, and financial income/expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly statement ofincome.
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2. Notes on Changes in Reporting Segment
Starting from the consolidated first quarter of fiscal year, following the reorganization we had conducted on April
1, 2014, we reclassified the business handling precious metals bullions into the “Metals” segment, instead of the“Others” segment into which the business has been classified before.
Please take note that we disclose the segments reported in the consolidated six months ended September 30,
2013, on the basis of the reporting segments after the modification.

Notes in Event of Significant Changes in Shareholders’ Equity: N/A.
Additional Information
On September 26, 2014, Mitsubishi Materials has consummated a share purchase agreement with Hitachi Metals,Ltd., in which Mitsubishi Materials will acquire shares equivalent to 51% of the issued shares in Hitachi Tool
Engineering, Ltd., a wholly-owned subsidiary of Hitachi Metals, Ltd. This transaction is scheduled for April 1, 2015.
1.

Purpose of acquisition of shares
The purpose of this transaction is to strengthen the base of the Company's cemented carbide products businessthrough expansion of Hitachi Tool’s lineup of cemented carbide products which enable high-precision, highefficiency and high-speed processing, as well as its proposal ability for processing complicated shapes for a variety
of materials.

2.

Name of company of shares acquired
Hitachi Tool Engineering, Ltd.

3.

Business fields
Manufacturing and sales of tips, cutting tools, wear-resistant products, tools for urban development, and various
machine tools made of specialty steels, carbide alloys etc.

4.

Business performance (Results for FY2014, including subsidiaries, etc.)
Net sales¥18.9 billion
Ordinary income¥3.4 billion
Capital stock¥1.4 billion

14