Consolidated Financial Results for the Year Ended March 31, 2013
Mitsubishi Materials Corporation
Tokyo, JapanMay 10, 2013
Stock code:
Shares listed:
URL:
Representative:
For further information please contact:
Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date of start of dividend payment:
Scheduled date of filing of financial statements:
Supplementary materials for the financial results:
Investor conference for the financial results:

5711
Tokyo Stock Exchange and Osaka Securities Exchange
http://www.mmc.co.jp/
Mr. Hiroshi Yao, President
Mr. Hisato Matsubara, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
June 27, 2013
June 3, 2013
June 27, 2013
Yes
Yes (For Corporate Investors)

1. Results of the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(1) Results of operations:(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net salesYear ended Mar. 31, 2013

1,287,251

Year ended Mar. 31, 2012
(Note) Comprehensive income-10.7 (%)

1,440,847
8.0 (%)
Year ended Mar. 31, 2013:
Year ended Mar. 31, 2012:

Net Income per
Share

Diluted Net
Income per ShareYear ended Mar. 31, 201328.19 (yen)Year ended Mar. 31, 20127.29 (yen)(Reference) Equity losses and earnings of affiliates

Operating Profit

Ordinary Income

52,50074,41475.1 (%)

36,948286.3 (%)

52,293-8.7 (%)
42,49590,252 million yen (543.2%)
14,030 million yen (223.0%)-24.7 (%)

9,565

-33.0 (%)

0.4 (%)Net Income/
Shareholders’ Equity

Net Income

Ordinary Income/Total Assets－
9.8 (%)
4.2 (%)－
2.8 (%)
2.4 (%)
Year ended Mar. 31, 2013:
5,193 million yen
Year ended Mar. 31, 2012: (21,071) million yen

Operating
Profit/Net Sales
4.1 (%)
3.6 (%)(2) Financial Position:

As of Mar. 31, 2013
As of Mar. 31, 2012
(Reference) Shareholders’ equity

Total Assets

Net Assets

1,811,767

466,231

1,751,870
409,074
As of Mar. 31, 2013: 405,230 million yen
As of Mar. 31, 2012: 351,083 million yen

Shareholders’ Equity
Ratio(Millions of yen)
Shareholders’ Equity
per Share

22.4 (%)

309.17 (yen)20.0 (%)

267.62 (yen)(3) Cash Flows:
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Year ended Mar. 31, 2013

101,616(88,514)(36,316)

Year ended Mar. 31, 2012

91,549(48,335)(84,159)(Millions of yen)
Cash and Cash
Equivalents at End
of Year63,29969,499

2. Dividend payments
Dividends per Share

Year

First

SecondThird

Quarter

Quarter

QuarterYear-End

Dividend
Ratio(Consolidated)

Total Dividends(Annual)AnnualDividends/
Net Assets(Consolidated)

Ended

Yen

Yen

Yen

Yen

Yen

(Millions of yen)%%Mar. 31, 2012

－

0.00

－

2.00

2.00

2,623

27.4

0.8

Year

－

0.00

－

4.00

4.00

5,242

14.2

1.4

－

2.00

－

4.00

6.00

Ended

Mar. 31, 2013
Year Ending
Mar. 31, 2014

17.5

(Forecast)

3. Forecast (From April 1, 2013 to March 31, 2014)(Millions of yen)
(Percentage changes relative to the previous corresponding period)
Net Income
Operating
Ordinary Income
Net Income
per Share
ProfitNet Sales
Six months ending
September 30, 2013
Year Ending March
31, 2014

710,000

11.7 (%)

31,00017.1 (%)

31,000-11.3 (%)

1,480,000

15.0 (%)

72,00037.1 (%)

80,000 7.5 (%)

25,00053.6 (%)

19.07 (yen)45,00021.8 (%)

34.33 (yen)*Note(1) Significant changes of subsidiaries during the period (including changes in scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury shares)
Year ended March 31, 2013:
1,314,895,351 sharesYear ended March 31, 2012:
1,314,895,351 shares(ii) Number of treasury shares at end of year
Year ended March 31, 2013:
4,193,557 sharesYear ended March 31, 2012:
3,039,965 shares(iii) Average number of shares during the period
Year ended March 31, 2013:
1,310,926,644 sharesYear ended March 31, 2012:
1,311,908,715 shares(Reference) Summary of nonconsolidated financial results
Nonconsolidated results of operations of the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(1) Nonconsolidated results of operations:(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales

Operating Profit

Ordinary Income

Net Income

Year ended Mar. 31, 2013

673,632-12.4 (%)

18,28127.7 (%)

54,332102.6 (%)

44,738145.9 (%)

Year ended Mar. 31, 2012

769,337

6.3 (%)

14,319-3.1(%)

26,822-21.1 (%)

18,194-8.1 (%)

Year ended Mar. 31, 2013
Year ended Mar. 31, 2012

Net Income per Share

Diluted Net Income per Share

34.13 (yen)13.87 (yen)－－(2) Nonconsolidated financial position:(Millions of yen)

As of Mar. 31, 2013
As of Mar. 31, 2012
(Reference) Shareholders’ equity

Shareholders’ Equity
Ratio

Total Assets

Net Assets

1,256,038

373,68329.8 (%)

323,245
373,683 million yen
323,245 million yen

26.9 (%)

1,200,368
As of Mar. 31, 2013:
As of Mar. 31, 2012:

Shareholders’ Equity
per Share
285.10 (yen)246.40 (yen)*Indication regarding the situation of audit procedures
As of the disclosure of these financial results, audit procedures of the 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 earning forecasts and other forward-looking statements, etc.)
1. Earning 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 make any warranties
with respect to the accuracy, etc. Accordingly, there might be cases in which actual results materially differ fromforecasts of this report. To use assumptions for forecasts and to refer to specific revisions on consolidated financial
forecasts, see “(3) Outlook for the Year Ending March 31, 2014 (page 4)”, under “1.Analysis of Business Results andFinancial Position (1) Analysis of Business Results”.
(Method of obtaining supplementary information to and contents of the financial results briefing)
Mitsubishi Materials Corporation is scheduled to hold financial results briefing for institutional investors on May 14,
2013 (Tuesday). Supplementary information to the financial results to be used in this briefing is being released on
TDnet and on the Company’s website with the announcement of the consolidated financial results for the year ended
March 31, 2013.

Contents

1. Analysis of Business Results and Financial Position .........................................................................................P2(1) Analysis of Business Results .................................................................................................................. P2(2) Analysis of Financial Position ................................................................................................................ P4(3) Basic Profit Distribution Policies and Dividend Payments .................................................................... P5(4) Business and Other Risks ........................................................................................................................ P6
2. Management Policies ......................................................................................................................................... .P8(1) Basic Group Management Policies ......................................................................................................... P8(2) Target Management Indicator, Medium- and Long-term Management Strategies
and Issues to Be Addressed ................................................................................................................... .P8
3. Consolidated Financial Statement ................................................................................................................... P11(1) Consolidated Balance Sheets ..................................................................................................................... P11(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations ............................................................................................... P13
Consolidated Statement of Comprehensive Income ........................................................................... P14(3) Statement of Changes in Consolidated Shareholders’ Equity .................................................................. P15(4) Consolidated Statements of Cash Flows ..................................................................................................... P18(5) Segment Information .................................................................................................................................. P20(6) Per-share Information ................................................................................................................................. P26(7) Important Subsequent Event ....................................................................................................................... P26

11. Analysis of Business Results and Financial Position(1) Analysis of Business Results
1) Results for the Year Ended March 31, 2013
During the fiscal year under review, the global economy as a whole slowed down due to slower economic
expansion in emerging economies such as China and India, as well as the impact of the debt crisis in Europe.
In Japan, despite demand generated by reconstruction efforts in the wake of the earthquake, economic
recovery appeared to be pausing against a backdrop of the global economic slowdown. Since the end of 2012,
however, with the expectation of economic recovery backed by the government's economic measures taken into
consideration in advance, the level of exchange rates and the stock market have been rapidly improving.
In the fiscal year under review, despite full-scale demand generated by reconstruction efforts in the wake ofthe earthquake, the business environment in which the Group operates remained unpredictable because the levelof exchange rates continued unfavorable until the end of 2012, copper prices were downward trend comparedwith the previous fiscal year, and orders for core products for automobiles and the electronic industry weresluggish.
Amid such circumstances, we have pursued the sophistication of the business management system in order
to appropriately respond to an ever-changing business environment and secure stable profit. We have also
implemented various measures based on "Simultaneously implementing growth strategies and financial
improvements," which is a basic concept of the medium-term management plan (FY 2012-2014), entitled"Materials Premium 2013 – Aiming for New Value Creation," as well as two initiatives stated as growthstrategies: "Advancement into overseas markets, especially emerging markets" and "Generation of distinctivesynergies as an integrated business entity."
As a result, consolidated net sales for the fiscal year amounted to ¥1,287,251 million, down 10.7% fromthe previous fiscal year. Operating profit increased year-on-year 0.4% to ¥52,500 million. Ordinary income
increased 75.1% to ¥74,414 million because, while equity in losses of affiliates was recorded in the previous
fiscal year in relation to SUMCO Corporation, equity in earnings of affiliates was recorded in this fiscal year.
Net income surged 286.3% to ¥36,948 million.
2) Overview of Segment(Cement)
FY 2012Net sales
Operating profit
Ordinary income

FY 2013
158.8
9.2
7.7

164.7
14.2
14.0

(Billions of yen)
Increase/decrease (%)
5.8
3.7%
4.9
54.0%
6.2
81.4%

In the Cement business, sales volume in Japan increased thanks to demand generated by reconstruction efforts
in the wake of the earthquake, and solid demand particularly in redevelopment projects and road-related projects
in the Tokyo metropolitan area. Overseas, while the recovery trend in demand continued in United States mainlyfor private-sector capital spending, demand decreased in China firstly due to a decrease of investment inhousing construction such as condominium buildings, and secondly due to the influence of delay withresumption of high-speed rail construction and with progress with the new airport being constructed in
Shandong, as a result, the sales volume decreased. In the entire Cement business, cement production amounted
to 11.7 million tons, mostly unchanged from the previous fiscal year.
In the entire Cement business, both net sales and operating profit rose year-on-year thanks to an increase insales.
Ordinary income also rose due to an increase in operating profit.

(Metals)
FY 2012Net sales
Operating profit
Ordinary income

FY 2013
761.1
20.1
37.8

622.7
17.7
39.1

(Billions of yen)
Increase/decrease (%)(138.3)-18.2%(2.3)-11.7%
1.2
3.4%

In the copper business, despite the steady operations throughout the fiscal year at the Onahama Smelter &Refinery (operated by Onahama Smelting and Refining Co., Ltd., based in Fukushima Pref.), where operations
were suspended until the end of June 2011 affected by the earthquake, both net sales and operating profit
declined year-on-year. This is due to the impact of furnace repairing in Naoshima Smelter & Refinery (Kagawa)2and PT Smelting in Indonesia, and production cutbacks resulting from the lower quality level of copper
contained in the raw material ore. In the entire Metals business, electrolytic copper production amounted to 508
thousand tons, down 49 thousand tons from the previous fiscal year.
In the gold and other valuable metals business, despite production cutbacks resulting from a decrease in theamount of gold contained in the raw material ore, net sales declined but operating profit rose partly thanks to a
cost reduction effect.
In the processed copper products business, both net sales and operating profit declined due mainly to weaksales of products for electronic materials and construction.
As a result, the entire Metals business posted year-on-year decreases in both net sales and operating profit.
Ordinary income rose due to an increase in dividend income and an increase in equity in earnings ofaffiliates.

(Advanced Materials & Tools)

Net sales
Operating profit
Ordinary income

FY 2012
144.2
13.4
12.3

FY 2013
136.6
10.7
10.6

(Billions of yen)
Increase/decrease (%)
(7.5)
-5.2%
(2.6)
-20.0%(1.7)-13.8%In the cemented carbide products business, both net sales and operating profit declined partly because of adecrease in sales due to the reason that the impact of the floods in Thailand continued until the first half of theyear, and also due to the deterioration of market conditions.
In the high-performance alloy products business, net sales declined but operating profit rose partly due tostrong demand in the aircraft-related market although sales decreased owing to weakening demand in theautomobile-related market and a boycott of Japanese cars in China, and sales of motor products decreased
owing to decreased sales of motorcycles in Southeast Asia and South America.
As a result, the entire Advanced Materials & Tools business posted a year-on-year decrease in both net
sales and operating profit.
Ordinary income also declined due to a decrease in operating profit.

(Electronic Materials & Components)
FY 2012Net sales
Operating profit
Ordinary income (loss)

FY 2013

74.4
4.1(20.6)

68.6
4.8
3.4

(Billions of yen)
Increase/decrease (%)
(5.8)
-7.8%
0.6
14.6%
24.1
－%

In the advanced materials business, despite decreased sales of products for solar batteries, net sales declined but
operating profit rose thanks to solid demand for smartphone-related products and products for automobiles.
In the electronic devices business, despite sluggish demand in the related market of electronic devices suchas flat-screen TVs and PCs, both net sales and operating profit rose thanks to increased sales of products forhousehold appliances.
In the polycrystalline silicon and related products business, despite decreased sales resulting from sluggish
demand in the semiconductor-related and solar battery-related markets, net sales declined but operating profit
rose because we sought efficiency by stopping some production lines of the Yokkaichi Plant. An amountequivalent to fixed costs associated with the stopped production lines was transferred to extraordinary loss.
As a result, the entire Electronic Materials & Components business reported year-on-year decreases in net
sales, but increases in operating profit.
Ordinary income turned into the black thanks to increased operating profit and improved equity inearnings/losses of affiliates in relation to SUMCO Corporation.

(Aluminum)

Net sales
Operating profit
Ordinary income

FY 2012
149.8
5.6
4.4

FY 2013
146.6
6.1
5.5

(Billions of yen)
Increase/decrease (%)
(3.2)
-2.1%
0.5
9.9%
1.0
24.6%

In the aluminum cans business, despite decreased demand for regular cans because of the slump in shipping3

volume of beer or beer-like beverages, demand for bottle cans increased for black coffee and tea-based
beverages.
In the rolled aluminum and processed aluminum products business, despite increased demand foraluminum can materials, demand for products for electronic materials including products for solar batteries
decreased.
As a result, the entire Aluminum business reported year-on-year decreases in net sales, but increases inoperating profit.
Ordinary income rose due to an increase in operating profit.

(Others)

Net sales
Operating profit
Ordinary income

FY 2012
408.9
7.0
10.1

FY 2013
348.9
6.9
10.8

(Billions of yen)
Increase/decrease (%)(59.9)-14.7%
(0.0)
-0.8%
0.7
7.5%

In the energy-related products business, both net sales and operating profit rose year-on-year thanks to theincreased sales amount of coal and increased orders related to development in the field of nuclear energy suchas decontamination.
In the "e-waste" (used electronics and electrical products) recycling business, both net sales and operating
profit declined due to the termination of the eco-point system for household appliances and the completion of
the transition to digital terrestrial transmission.
In the precious metals business, both net sales and operating profit declined due to the decreased trading
volume of gold bullion owing to less volatile gold prices and decreased sales of jewelry-related items.
Orders for nuclear energy and engineering services amounted to ¥58.7 billion, up ¥2.1 billion from theprevious fiscal year. The order backlog at the end of the period was ¥17.8 billion, up ¥2.9 billion from a year
earlier.

3) Outlook for the Year Ending March 31, 2014
As for the global economy, while the US economy is on a recovery trend, and the economy is expected to pick up
in Asia, especially in Southeast Asia, there are still downside risks, such as the debt problem in Europe and thefiscal problem in the US.
The Japanese economy is expected to start to recover thanks to an anticipated recovery of domestic
demand on the back of the government's economic measures, and an improved export environment.
As for the business environment in which the Group operates, despite demand generated by reconstruction
efforts in the wake of the earthquake and an anticipated recovery of demand from the automobile-related industry,
there are concerns about the current downward trend of copper prices and the higher costs resulting from a hike inelectricity rates.
Amid such situation, the Group will implement the measures as described in “2. Management Policies”
for our growth.
In this environment, our consolidated performance forecasts for the year ending March 31, 2014 are as
follows: net sales of ¥1,480 billion, operating profit of ¥72 billion, ordinary income of ¥80 billion, and net incomeof ¥45 billion.
(2) Analysis of Financial Position
At March 31, 2013, total assets amounted to ¥1,811.7 billion, up ¥59.8 billion from a year earlier. This was mainly
due to the increase of investment securities.
Total liabilities increased ¥2.7 billion, to ¥1,345.5 billion. This stemmed mainly from an increase in gold
payable.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥101.6 billion, up ¥10.0 billion from the previous fiscal
year. This was due mainly to a stable performance.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥88.5 billion, up ¥40.1 billion from the previous fiscal year. Thiswas due mainly to outlays related to capital investments and purchase of consolidated subsidiaries’ share.
(Cash Flows from Financing Activities)
4

Together, operating activities and investing activities produced a net inflow of ¥13.1 billion, which was
mainly applied to the repayment of bank borrowings. Accordingly, net cash used in financing activities was ¥36.3
billion, down ¥47.8 billion from the previous fiscal year.
As a result of the above, as well as exchange rate changes and other factors, the balance of cash and cash
equivalents at March 31, 2013, stood at ¥63.2 billion, down ¥6.1 billion from March 31, 2012.
Below is a summary of major cash flow indicators.

Equity ratio (%)
Equity ratio on amarket-value basis (%)
Ratio of interest-bearing
debt to cash flow
Interest coverage ratio

March 31,
2009
21.0

March 31,
2010
18.7

March 31,
2011
18.7

March 31,
2012
20.0

March 31,
2013
22.4

19.6

19.3

20.1

19.6

19.4

6.7

18.6

7.1

8.0

7.1

7.9

3.4

7.8

8.3

9.0

Equity ratio:
Equity ratio on a market-value basis:
Ratio of interest-bearing debt to cash flow:
Interest coverage ratio:

Shareholders’ equity/Total asset
Total value of shares at market price/Total assets
Interest-bearing debt/Cash flow
Operating cash flow/Interest payments(Note 1) All indicators are calculated on a consolidated basis.
(Note 2) Market capitalization is based on the year-end share price multiplied by the number of shares issued andoutstanding at year-end (after deducting treasury stock).
(Note 3) Operating cash flow is based on the net cash provided by operating activities in the Consolidated
Statements of Cash Flows.
(Note 4) Interest-bearing debt covers all interest-bearing debt in the Consolidated Balance Sheets. Interest
payments are based on the amounts shown in the Consolidated Statements of Cash Flows.

(3) Basic Profit Distribution Policies and Dividend Payments
At its 81st General Meeting of Shareholders held on June 29, 2006, the Company changed its Articles ofIncorporation to distribute the surplus following the resolution at the Board of Directors Meeting. We regard the
distribution of profits to all shareholders as one of our most important priorities. Accordingly, our policy is tomake decisions on profit appropriation based on comprehensive consideration of various factors related to overallmanagement, such as income over the relevant period, retained earnings, and financial position. Based on thispolicy, the Board of Directors, at its meeting on May 10, 2013, passed a resolution to pay the year-end dividend
for the period under review of ¥4.00. As a result, as the Company did not distribute an interim dividend, thefull-year dividend for the fiscal year under review was ¥4.00 per share (¥2.00 per share higher than the previous
fiscal year).
Dividend payments for the year ending March 31, 2014 expected to amount to ¥6 per share (¥2 interim
dividend plus ¥4 year-end dividend).

5(4) Business and Other Risks
Because the Group, as stated in "3. Consolidated Financial Statement (5) Segment Information", is engaged in a
broad variety of business activities, its business results and financial standing are influenced by all kinds of factors,
such as political affairs, economy, weather, market conditions, currency movements, and laws and ordinances bothin and outside the country. Listed below are the factors that may have particularly substantial impact on theGroup.
Please note that although the matters listed in this section contain items related to the future, these items havebeen chosen as of May 10, 2013.
1) Corporate reorganization
The Group is always engaged in selection and concentration of its various businesses, actively throwing inmanagement resources in businesses with high profitability, at the same time actively conducting revisions,reorganizations, and restructuring of its businesses always ready to consider possibilities regarding collaboration
with other companies. Business results and financial standing of the Group may be influenced by this process.
2) Market and customer trends
The Group offers products and services to all kinds of industries, and due to such factors as changes of theconditions of the world economy, rapid changes of the clients' markets, changes of the clients' market share, andchanges of clients' business strategies or product development trends may influence the sales of the products of
the Group. Especially the automobile industry and the IT-related industry are exposed to intense competition in
the area of prices and technical development, and while the Group takes every precaution endeavoring to reducethe costs and develop new products and technologies, in cases where we cannot appropriately respond to thechanges of the industries and the clients' markets, business results of the Group may be affected.
3) Rates for nonferrous metals, exchange fluctuation, etc.
In the Metals business, dividends from mines the Group made capital subscriptions into that are denominated inforeign currency, which are the main sources of profits, as well as smelting expenses, etc., are influenced by rates
for nonferrous metals, exchange fluctuations, and conditions of ore purchasing. Furthermore, in the area of
inventories, there is a risk of rates for nonferrous metals and exchange fluctuation influencing the material costs inthe period from the procurement of the ore to the production and sales of the metals.
Also, such items as nonferrous metals used as raw materials in the Aluminum business and the Advanced
Materials & Tools business as well as coal in the Cement business are international merchandise, and theacquisition cost of these raw materials and mineral fuel can be influenced by fluctuation of market prices,
exchange rates, ocean freight, etc. for nonferrous metals and coal.
4) Trends in the conditions of the semiconductor market
The Group supplies electronic materials, polycrystalline silicon, etc. for the semiconductor industry, and is also
engaged in the silicon wafer business for semiconductors in the SUMCO Corporation, which is an equity-method
affiliate, and business results and financial standing of the Group may be influenced by conditions of thesemiconductor market.
5) Interest-bearing debt
In the term ended March 31, 2013, the interest-bearing debt of the Group was ¥692.9 billion yen (which is thesum total of short-term loans payable, current portion of bonds payable, commercial papers, bonds payable, andlong-term loans payable; same below if there are no explanatory notes) amounting to 38.2% of the total assets.
And although we are making efforts to improve the financial standing by reducing inventories, asset sales, etc., thefuture financial situation may affect business results and financial standing of the Group.
6) Important matters related to fund procurement
Among the loans payable of the Group such as syndicated loans there are some loans, for which we contractuallypromised the maintenance of shareholders' equity above a certain level. In cases where the Company or the Group
cannot keep these assurances due to changes for the worse of our financial situation or some other factors, there isa risk of a duty to repay such loans before the term of payment being generated, and depending on the subsequent
steps these situations may impact the fund procurement of the Group.
7) Guaranty of liabilities, etc.
In the term ended March 31, 2013, the Group has undertaken a ¥33.9 billion yen guaranty of liabilities, etc.
against monetary liabilities of affiliated companies, which are not included in the scope of consolidation. In cases,
where a situation arises in the future, in which we are requested to fulfill these guaranties of liabilities, this may
6

affect business results and financial standing of the Group.
8) Fluctuations of the market value of assets
Business results and financial standing of the Group may be influenced by fluctuations of the market value of the
securities, land, and other assets possessed.
9) Retirement benefit expenses and obligations
The employees' retirement benefit expenses and obligations are calculated based on the assumptions andconditions mainly derived from mathematical calculations. In setting these assumptions and conditions we take
into consideration the employees' average remaining length of service, long-term interests of the Japanese
government bonds, as well as the status of pension assets including the shares contributed to trust funds, but losses
caused by decline in the discount rate or operations with pension assets may affect the future expenses andobligations posted by the Group.
10) Environmental regulations, etc.
In each business establishment in and outside the country, the Group makes efforts to control pollution such as the
air pollution, wastewater pollution, soil pollution, and ground water pollution, in accordance with environmental
laws and ordinances, and in dealing with abandoned mines within the country is endeavoring to control mine
pollution by for example preventing water pollution from mine water or conducting security management of thedumps in accordance with the Mine Safety Law. We also determine targets and endeavor to reduce emission ofgreenhouse gas. However, in cases where related laws are revised or the volume of permissible emission ofgreenhouse gas is changed, the Group may need to bear new expenses.
11) Overseas operations, etc.
The Group has production bases, sales bases, and other bases in 26 countries and regions abroad, and foreign sales
amount to 34.7% of its consolidated sales. Business results and financial standing of the Group may be influenced
by political/economic conditions, exchange rates at each country as well as changes of trading/commercial
regulations, mining policies, environmental regulations, systems of taxation, other unforeseen changes of laws or
regulations as well as differences of interpretation thereof, and changes of management policies of local
cooperators and partners.
12) Intellectual property rights
The Group fully recognizes the importance of intellectual property rights and makes efforts to protect them, but incases, where the measures to protect the same are insufficient, or in cases where our rights are illegally infringed
on, this may affect business results and financial standing of the Group. At the same time, although the Grouphandles the intellectual property rights held by other companies with the greatest possible care, in cases where it isestablished that we have infringed on the intellectual property rights held by other companies and have to pay
liabilities, such as compensation for damages, this also may affect business results and financial standing of theGroup.
13) Quality of the products
The Group takes all possible measures regarding the quality control, striving to offer our clients products of highquality. However, in cases where due to some unforeseen circumstances we need to conduct a large-scale recall,this may affect business results and financial standing of the Group.
14) Accidents at facilities, etc.
The Group has many production facilities and equipment and strives to conduct all possible measures to avoid all
accidents, such as accidents at work and accidents to production equipment, from both the side ofoperation/maintenance control, and the side of ensuring safety of equipment, but in cases where a major accident
at work or an accident to the equipment occurs, this may affect business results and financial standing of theGroup.
15) Management of information
The Group strives to ensure thoroughness of management of information including handling of personal
information, but in cases, where a leak of information or some other accident to information occurs, due todamage to our reputation in the society or other factors this may affect business results and financial standing of
the Group.
16) Lawsuits, etc.
Business results and financial standing of the Group may be influenced by rulings, amicable settlements, verdicts,
7

etc. related to lawsuits, disputes, and other legal procedures, in which the Group is one of the parties concerned atpresent, or will be one of the parties concerned in the future in relation to the business conducted by the Group
presently or in the past within the country and in foreign countries.
17) Procurement of electricity
Business results and financial standing of the Group may be influenced by increases of prices for electricity
resulting from such factors as instabilities in supply of electricity due to suspension of operation of nuclear power
stations, cost increases of imported fossil fuels, and increases in charges for renewable energy18) Other matters
In addition to the above, business results and financial standing of the Group may be influenced by changes oftrade practices, terrorist attacks, wars, epidemics, earthquakes and other natural disasters, and other unexpectedcircumstances.

2. Management Policies(1) Basic Group Management Policies
The Mitsubishi Materials Group’s basic management policy is to contribute to people, society, and the Earth.
As an integrated corporation with comprehensive strengths, we provide total solutions in the fields ofmaterials, parts and components, systems, and services for society oriented toward recycling and advanced
information. In this role, we aim to revolve and become a top-class corporate group that is essential to theworld.
(2) Target Management Indicator, Medium- and Long-Term Management Strategies and Issues to be
Addressed
In line with its medium-term management plan, the Group will continuously seek to become the strongest
integrated business entity in this resource-recycling society by advancing into overseas markets, especiallyemerging markets, and generating distinctive synergies as an integrated business entity ("Materials
Premium") while simultaneously implementing growth strategies and financial improvements.
We will continue to implement the measures outlined below as growth strategies.
1) Advancement in overseas markets, especially newly emerging nations
Under circumstances where the domestic market is not expected to expand substantially, advancement into
overseas markets, especially emerging markets is key to the Group's growth. In line with our medium-term
management plan, we will seek advancement into overseas markets, especially fast-growing Asian emerging
markets, where the Group has many existing bases, implement measures such as carrying out regional
strategies and marketing across divisions, establishing common sales companies utilizing the existing bases
and business expansion to non-Japanese clients.
2) Realization of Materials Premium
The Group has a wide range of materials, products and technologies including nonferrous metals and cement
and is operating globally particularly in Asian emerging economies. In line with our medium-term
management plan, we will pursue "Generation of distinctive synergies as an integrated business entity(Realization of Materials Premium)" by bringing together the capabilities of the Group and further
strengthening collaboration among our businesses to expand and enhance our existing integrated areas and tocreate new business areas.
In order to expand and enhance our existing integrated areas, we will seek to enhance the resources andenvironmental recycling businesses among others. We will further strengthen these businesses to achieve
their medium- and long-term growth since these businesses have grown in value followed by the growing
importance of resources security with a changing business environment and worldwide demand forestablishing a resource-recycling society.
3) Group strategies supporting growth
In line with our medium-term management plan, we aim to be an integrated business entity group where
employees can be active globally across divisions. For this purpose, we will develop diverse humanresources by employing and using global staff and promoting deployment and use of staff across businesses
and companies, and foster a corporate culture to respond to and challenge a changing business environment.
We will also continue to enhance efforts to pursue a switch to a low-cost structure. We will further reduce
sourcing and process costs by establishing a global sourcing system, improving our supply chain
8

management (SCM) and developing quality engineering.
Moreover, we will contribute to sustainable development of society as a whole by further promoting
corporate social responsibility (CSR) activities and making continued efforts in business activities focusing
on factors that have a material effect on corporate value (materiality).
<Priorities in each business>● Cement
In the domestic cement business, sales are expected to continuously increase thanks to demand generated byreconstruction efforts in the wake of the earthquake. We will fulfill our social responsibility toward
reconstruction in affected regions by stably supplying cement, a key reconstruction material, and byreceiving disaster waste in the plant with an understanding of local residents.
In the US cement business, demand is expected to continue to recover. We will work on increasing sales
volume and revising sales price. We will also strive to increase profitability by making the maximum use of
the businesses and assets of Robertson’s Ready Mix, Ltd., which became our wholly owned subsidiary inDecember 2012, and by further enhancing the efficiency of the US cement and ready-mixed concretebusinesses.
In the Chinese cement business, with the development of infrastructure such as high-speed railway,
airport and subway in Shandong Province well underway, demand is expected to recover. In this environment,
we will continue to seek cost reduction and profitability enhancement.
● Metals
The supply-demand situation of copper concentrates is expected to become easy due to the enhanced supply
capacity of mines. Copper market price is currently on a downward trend, and the future price trends are still
uncertain. We will therefore keep a close watch on the price movements together with exchange rates andstock market trends.
In the processed copper products business, demand for products for automobiles and electronic materials
is expected to recover gradually.
Amid such circumstances, in the Metals business, we will strive to establish a robust foundation lesssusceptible to market environment through ongoing efforts to lower the break-even point by reducing energy
and fixed costs. In copper smelting, we will seek the steady operations at domestic and overseas smelting
facilities. In addition, we will improve profitability through expansion of the recycling business andincreasing revenues from treating waste by establishing the system to treat waste which is difficult to treat. In
copper processing, we will continue to increase profitability by enhancing sales competitiveness throughaccelerated development of alloys, drawing on our technological and development capabilities.
● Advanced Materials & Tools
In the cemented carbide products business, although demand currently remains gradual recovery, demand is
expected to expand particularly in the automobile-related market in the medium- and long-term.
In the high-performance alloy products business, demand is expected to recover gradually in theautomobile-related market, and demand is expected to remain strong in the aircraft-related market.
Amid such circumstances, on the production side in the cemented carbide products business, we will
scale up the production capacity in manufacturing bases and build the most suitable production system foreach market. On the sales side in the cemented carbide products business, we will strive to enhance sales
activities by establishing new sales bases and expanding sales network especially in emerging economies,
and deepening marketing in the automobile-related, aircraft-related and medical-related markets. In addition,
we will promote the diversification of suppliers and raise the recycling ratio through scrap recovery in orderto stably procure tungsten, which is a main raw material of cemented carbide products. In thehigh-performance alloy products business, we will strive to increase profitability by further enhancing
quality and productivity using manufacturing technology capabilities that we have strengthened so far. We
will also try to obtain demand in emerging economies by quickly enhancing the capabilities of new
manufacturing bases in China.
● Electronic Materials & Components
In the advanced materials business, demand for smartphone-related products is expected to remain strong,and demand for products for solar batteries is expected to increase by a feed-in tariff. As for products forautomobiles, it is expected that the number of car models which adopt the products and new car sales in the
US will increase although the impact of the expiration of government subsidies for eco-friendly cars isconcerned. In the relevant markets, we will continue to increase profitability by using core technologicalcapabilities, and enhancing sales competitiveness and proposal capabilities to clients.
9

In the electronic devices business, future demand for products for flat-screen TVs and other household
appliances is still uncertain. We will reinforce our business foundation by promptly launching new products,
strengthening our sales system in emerging economies including China, and further reducing costs.
In the polycrystalline silicon and related products business, demand in the semiconductor-related market
is still uncertain. Amid such circumstances, except for some processes, we resumed operations in April 2013at the Yokkaichi Plant (Mie Pref.), where some production lines were stopped from April 2012. We will
strengthen our revenue base by revising the operational framework and implementing thorough cost
reduction.
● Aluminum
In the aluminum cans business, we will actively expand sales of aluminum bottle cans, which are subject tosteadily increasing demand for black coffee and tea-based beverages and we position as strategic products.
We will also actively promote stable orders of regular cans, favorable procurement of raw materials, stableproduct quality and cost reduction.
In the rolled aluminum and processed aluminum products business, we forecast that demand foraluminum can materials will remain unchanged from this fiscal year, that demand for products forautomobiles will decrease due to the expiration of government subsidies for eco-friendly cars, and thatdemand for products for electronic materials, especially for products for solar batteries will increase driven
by the feed-in tariff program. We will keep a close watch on the overall demand trends, seek stable orders ofaluminum can materials, and strive to increase orders of products for the automobile sector both domesticallyand abroad.
We will also contribute to establish a resource-recycling society by actively promoting the recycling
business of used aluminum cans, which the Group has long worked on.

10

3. Consolidated Financial Statement(1) Consolidated Balance Sheets[March 31, 2013 and 2012](Millions of yen)
As of March 31, 2012

As of March 31, 2013

Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred income taxes
Gold bullion on loan
Other
Allowance for doubtful accounts
Total Current Assets

70,923223,977
71,793
99,11486,7109,983
85,503
115,912(2,584)
761,333

64,416
211,748
79,941
98,948103,463
15,622
99,548107,171(1,929)778,931

Noncurrent Assets:
Property, Plant and Equipment:
Building and structures, net
Machinery and equipment, net
Land, net
Construction in progress
Other, net
Total Property, Plant and Equipment

158,764
197,337
272,40921,81912,502662,834

156,929
198,220
271,517
18,96813,337
658,974

39,285
8,507
47,792

38,7609,520
48,281

239,926
16,186
31,778(2,221)(5,760)279,910
990,537
1,751,870

271,754
29,18332,061(1,748)(5,672)
325,579
1,032,835
1,811,767

ASSETS

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

11

As of March 31, 2012

(Millions of yen)
As of March 31, 2013

115,582
275,248
40,000
2,000
5,864
1,776
10,660105,889
287,942－
26,0006,653
734
12,097

Gold payable
Allowance for loss on disposal of inventories
Other

210,308
1,702
114,110232,002
1,557
123,460

Total Current Liabilities

777,253

796,337

75,000316,62961,8091,404

110,040
268,998
59,601
1,470

2,367
4,412
33,712
34,40535,8002,035
4,238
32,77133,68336,358565,542

549,198

1,342,795

1,345,535

119,457
113,566
116,890(1,443)

119,457
92,272
158,456(1,692)

348,471368,495

Valuation difference on securities available for sale
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

31,316(768)
36,008(63,945)

40,516(1,189)34,830(37,422)

Total Accumulated Other Comprehensive Income

2,611

36,735

Minority interests

57,99161,001

Total Net Assets

409,074

466,231

1,751,870

1,811,767

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Commercial papers
Income taxes payable
Deferred income taxes
Accrued bonuses

Noncurrent Liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Reserve for directors’ retirement benefits
Reserve for loss on subsidiaries and affiliates
Reserve for environmental measures
Deferred income taxes
Deferred income taxes on revaluation reserve for land
Other
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Shareholders’ Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ Equity
Accumulated Other Comprehensive Income:

Total Liabilities and Net Assets
12(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations[For the year ended March 31, 2012 and 2013](Millions of yen)

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
Equity in losses of affiliates
Expenses for rent in undertaking
Loss on disposal of property, plant and equipment
Expenses for settlement of remaining business in mine
Other
Total Non-Operating Expenses
Ordinary Income
Extraordinary Income:Insurance income
Gain on sales of noncurrent assets
Gain on sales of marketable securities and investments insecurities
Other
Total Extraordinary Income
Extraordinary Losses:
Loss on impairment
Loss on valuation of investment securities
Loss on termination of operations
Expenses for construction of disaster prevention measure
Loss on sales of property, plant and equipment
Loss on disaster
Other
Total Extraordinary Loss
Income before Income Taxes
Corporate income taxes and business tax
Income taxes adjustments
Total Income taxes
Income before minority interests
Minority interests in income
Net Income

13Year Ended Mar. 31, 2012

Year Ended Mar. 31, 2013

(Apr. 1, 2011―Mar. 31, 2012)(Apr. 1, 2012―Mar. 31, 2013)

1,440,847
1,249,744
191,102138,80952,293

1,287,251
1,094,588
192,663
140,163
52,500625
28,510
－
5,070
2,637
36,844597
29,399
5,193
4,705
3,408
43,304

11,50721,071
4,237
2,495
1,875
5,455
46,64142,495

10,453
－
3,300
2,941
2,370
2,323
21,38974,414

－
396

3,305
3,061

155

2,457

736
1,287

599
9,423

5,179
1,480
－
－
2,115
5,278
1,388
15,442
28,341
14,208(1,714)
12,493
15,847
6,281
9,565

10,551
4,524
3,246
3,189
361
224
3,965
26,063
57,774
16,481(5,690)10,79046,983
10,03536,948

Consolidated Statement of Comprehensive Income[For the Year Ended March 31, 2012 and 2013](Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on securities available for sale
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Equity in earnings of affiliates
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority
interests

14

Year Ended Mar. 31, 2012

Year Ended Mar. 31, 2013

(Apr. 1, 2011―Mar. 31, 2012)(Apr. 1, 2012―Mar. 31, 2013)

15,847

46,983

3,434
(812)
4,938
(7,869)(1,507)(1,816)
14,0309,256
595－
31,0972,318
43,26890,252

9,532

73,282

4,498

16,970(3) Statement of Changes in Consolidated Shareholders’ Equity[For the year ended March 31, 2012 and 2013](Millions of yen)
Year Ended Mar. 31, 2012

Year Ended Mar. 31, 2013

(Apr. 1, 2011―Mar. 31, 2012) (Apr. 1, 2012―Mar. 31, 2013)

Shareholders’ Equity
Capital stock
Balance at beginning of period
Balance at end of period
Capital surplus
Balance at beginning of period
Change during the year
Disposal of treasury stock
Decrease in capital surplus resulting from acquisition of
non-controlling interest
Total change during the year
Balance at end of period
Retained earnings
Balance at beginning of period
Change during the year
Cash dividends from retained earnings
Net income
Decrease from write-downs of land revaluation excess
Increase due to change of fiscal term of consolidated
subsidiaries
Increase due to change of fiscal term of equity method
affiliate
Increase from rise in number of consolidated subsidiaries
Increase from rise in number of equity method affiliate
Increase from exclusion of affiliates from consolidation
Increase resulting from merger of non-consolidated
subsidiaries
Disposition of treasury stock
Retirement of treasury stock
Total change during the year
Balance at end of period
Treasury stock
Balance at beginning of period
Change during the year
Acquisition of treasury stock
Disposition of treasury stock
Total change during the year
Balance at end of period
Total Shareholders’ Equity
Balance at beginning of period
Change during the year
Cash dividends from retained earnings
Net income
Decrease from write-downs of land revaluation excess
Increase due to change of fiscal term of consolidated
subsidiaries
Increase due to change of fiscal term of equity method
affiliate
15

119,457
119,457

119,457
119,457

113,570

113,566

(4)

(0)

－

(21,292)(4)
113,566(21,293)
92,272

108,887

116,890(2,623)
9,565
696(2,623)36,948
1,177

－

122

－

44

57
203
3

1,070
4,698
－

101

135

－
－
8,003
116,890(0)(8)
41,565
158,456(1,421)(1,443)

(29)
8
(21)
(1,443)

(251)
2
(248)
(1,692)

340,493

348,471(2,623)
9,565
696(2,623)36,948
1,177

－

122

－

44

Statement of Changes in Consolidated Shareholders’ Equity (Continue)[For the year ended March 31, 2012 and 2013](Millions of yen)
Year Ended Mar. 31, 2012
Year Ended Mar. 31, 2013
(Apr. 1, 2011―Mar. 31, 2012) (Apr. 1, 2012―Mar. 31, 2013)

Increase from rise in number of consolidated subsidiaries
Increase from rise in number of equity method affiliate
Increase from exclusion of subsidiaries from consolidation
Increase resulting from merger of non-consolidated
subsidiaries
Acquisition of treasury stock
Disposition of treasury stock
Retirement of treasury stock
Decrease in capital surplus resulting from acquisition of
non-controlling interest
Total change during the year
Balance at end of period
Other Accumulated Comprehensive Income
Valuation difference on available for sale securities
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
Deferred gains or losses on hedge
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
Revaluation reserve for land
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
Foreign currency translation adjustments
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
Total of other accumulated comprehensive income
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
16

57
203
3

1,070
4,698
－

101

135

(29)
4
－

(251)
1
(8)

－

(21,292)

7,977
348,471

20,023
368,495

28,15731,3163,159
3,159
31,316

9,199
9,199
40,516

95

(768)

(863)
(863)
(768)

(421)
(421)
(1,189)31,61636,0084,392
4,392
36,008(1,177)(1,177)
34,830(56,129)(63,945)(7,816)(7,816)(63,945)

26,523
26,523(37,422)

3,739

2,611

(1,127)(1,127)
2,611

34,12334,12336,735

(Millions of yen)
Year Ended Mar. 31, 2012
Year Ended Mar. 31, 2013
(Apr. 1, 2011―Mar. 31, 2012) (Apr. 1, 2012―Mar. 31, 2013)

Minority Interests
Balance at beginning of period
Change during the year
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period
Total Net Assets
Balance at beginning of period
Change during the year
Increase by share exchanges
Net income
Decrease from write-downs of land revaluation excess
Increase due to change of fiscal term of consolidated
subsidiaries
Increase due to change of fiscal term of equity method
affiliate
Increase from rise in number of consolidated subsidiaries
Increase from rise in number of equity method affiliate
Increase from exclusion of subsidiaries from consolidation
Increase resulting from merger of non-consolidated
subsidiaries
Acquisition of treasury stock
Disposition of treasury stock
Retirement of treasury stock
Decrease in capital surplus resulting from acquisition of
non-controlling interest
Net change in items other than shareholders’ equity
Total change during the year
Balance at end of period

17

58,63557,991(643)(643)
57,991

3,009
3,009
61,001

402,868

409,074(2,623)
9,565
696(2,623)36,948
1,177

－

122

－

44

57
203
3

1,070
4,698
－

101

135

(29)
4
－

(251)
1
(8)

－

(21,292)(1,771)
6,206
409,074

37,13357,157466,231(4) Consolidated Statements of Cash Flows[For the year ended March 31, 2012 and 2013](Millions of yen)
Year Ended Mar. 31, 2012

Year Ended Mar. 31, 2013

(Apr. 1, 2011―Mar. 31, 2012) (Apr. 1, 2012―Mar. 31, 2013)

Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase in allowance for doubtful accounts and reserves
Increase (decrease) in severance and pension benefit of
employees and employers
Increase (decrease) in reserve for loss on investments ofaffiliates
Increase (decrease) in allowance for loss on disaster
Increase (decrease) in reserve for loss on business of affiliate
Increase (decrease) for environmental measures
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Loss on impairment
Loss (gain) on sales of marketable securities and investments insecurities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivables-trade
Decrease (increase) in inventories
Proceeds from sales of gold bullion deposited from customers
under consuming bailment My Gold Plan
Payment for purchases of gold bullion from market for customer
under My Gold Plan
Decrease (increase) in current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued expenses
Increase (decrease) in other current liabilities
Increase (decrease) in other noncurrent liabilities
Equity losses (earnings) of affiliates
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund (paid)
Net Cash Provided by (Used in) Operating Activities

18

28,34162,493
4,005(495)

57,77456,442
3,928
(228)

(666)

(2,423)

(15)

(472)

(4,357)(118)(823)(29,136)
11,507
1,772
2,495
5,179

－
(182)
(173)
(29,997)
10,453(2,793)
2,941
10,551(147)(2,457)

1,480(1,538)
1,778

4,524
28,402(11,318)

73,727

138,627(64,528)(129,801)(5,746)(20,960)
7,255(3,511)
1,040
21,071(2,922)
87,18030,499(11,054)(15,075)
91,549(423)(23,075)(16,870)
2,178(1,054)(5,193)
8,041
97,401
30,621(11,239)(15,166)
101,616(Millions of yen)
Year Ended Mar. 31, 2012

Year Ended Mar. 31, 2013

(Apr. 1, 2011―Mar. 31, 2012) (Apr. 1, 2012―Mar. 31, 2013)

Cash Flows from Investing Activities:
Purchase of investment securities
Proceeds from sales of investment securities
Payments for lending
Proceeds from repayment of lending
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for purchase of consolidated subsidiaries’ shares
Proceeds from sales of investments in subsidiaries
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Other, net
Net Cash Provided by (Used in) Investing Activities
Cash Flows from Financing Activities:
Net increase (decreases) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Increase (decrease) in commercial papers
Payments for redemption of bonds payable
Proceeds from issuance of bonds
Cash dividends paid
Purchase of treasury stock
Cash dividends paid to minority shareholders
Proceeds from stock issuance 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 in Cash and Cash Equivalents Resulting from
MergerIncrease (Decrease) in Cash and Cash Equivalents Resulting
from Change of Fiscal Term of Subsidiaries
Cash and Cash Equivalents at End of Period

19(2,565)293(2,417)
5,744(50,548)
2,725(1,069)(646)
255(15,225)
4,681(2,576)
4,074(51,432)
3,674(1,545)(30,509)
－

－

420

(106)
(48,335)(75)(88,514)(30,115)
91,003(104,199)(46,000)(20,000)
35,000(2,623)(29)(7,911)
3,100(2,382)(84,159)(16,240)
49,499(83,463)
24,000(40,000)
35,040(2,623)(251)(7,067)
7,494(2,703)(36,316)(2,374)

6,988(43,319)
112,226(16,225)
69,499

504

1,434

88

106

－

8,484

69,49963,299(5) Segment Information(Segment Information)
I. For the year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)
1. Overview of reporting segments(1) Method of determining reporting segments
The reporting segments of Mitsubishi Materials Corporation are those units of the Company for which
separate financial statements are available and which are subject to regular inspection for the use of theBoard of Directors in determining the allocation of resources and evaluating business results.
The Company has adopted an internal-company structure. As such, each internal company,
department and office proposes comprehensive strategy for operations both in Japan and overseas withrespect to the products and services it handles, and carries out operations on that basis.
Therefore, the Company divides its reporting segments according to individual products andservices, based on the internal-company structure. These reporting segments are Cement, Metals,
Advanced Materials & Tools, Electronic Materials & Components, and Aluminum, the latter being
particularly important among the operations of each division and office.
(2)

Types of product and service belonging to each reporting segment
The main products in each business are as follows.
Cement, cement-related-products, ready-mixed concrete, building① Cementmaterials② Metals
Copper smelting (copper ingots, gold, silver, sulfuric acid, etc.),
processed-copper products③ Advanced
Cemented carbide products, high-performance alloy products, diamondMaterials & Tools
tools④ Electronic
Advanced materials, electronic-device products, polycrystalline silicon,
Materials &chemical products
Components⑤ Aluminum
Aluminum cans, rolled-aluminum products, processed aluminumproducts

2. Method of calculation of amounts in net sales, income/loss, assets, liabilities and other items for eachreporting segment
The accounting methods used in reporting business segments are the same as applied in “Basic important
items for preparation of the consolidated financial statements.”
Figures for income from reporting segments are based on ordinary income.
Internal income and transfers between segments are based on actual market prices.

20

3. Information related to sales, income/loss, total assets, total liabilities, and other items for reporting segment(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

AmountIndicated intheStatements ofIncomeAdjustment
AmountCementMetals155,907599,192

115,054

67,471

148,583

354,637

1,440,847－

1,440,847

2,967

161,918

29,149

6,950

1,293

54,274

256,553(256,553)－

158,874

761,111

144,20374,421

149,876

408,912

1,697,400(256,553)

1,440,847

7,729

37,84012,329(20,660)

4,439

10,11051,788(9,293)42,495

Segment assets

306,661

488,400

164,671

136,563

150,828

361,741

1,608,867

143,003

1,751,870

Segment
liabilities

175,354403,785

108,365

161,726

123,435

300,239

1,272,905

69,8901,342,795

Depreciation
andamortization

13,085

18,261

8,542

7,314

8,699

3,216

59,1193,373

62,493

Amortization of
goodwill

2,149

1,700

－

－

173

13

4,037

(32)

4,005

Dividend
income

159

378

54

52

16

418

1,079

(454)

625

Amortization ofnegativegoodwill

－

219

73

－

－

44

337

(1)

336

2,677

5,064

946

2,799

1,080

762

13,330(1,823)

11,507

662

535

10

(23,540)

119

1,139

(21,072)0(21,071)

15,964

7,054

263

34,938302

25,61084,133(132)

84,001

9,801

12,835

11,493

3,851

7,112

3,820

48,914

3,264

52,179Net sales(1)Unaffiliatedcustomers(2)Intersegment

Total
Segment
incomeOther items

Interest
expenses
Equity inearnings ofaffiliates
Investment toequity method
affiliate
Increase intangible andintangible
noncurrent
assets

Notes:
1. “Others” includes nuclear energy-related services, precious metals, environmental and recycling-related
business, real estate business, and engineering-related services.
2. Included in the segment income (loss) adjustment amounted (-¥9,293 million) are segment eliminations(¥342 million) and corporate expenses that cannot be allocated to specific segments (-¥9,635 million).
Corporate expenses consist mainly of management-related costs, basic experimental research costs, andfinancial income/expenses.
3. Included in the segment assets adjustment amounted (¥143,003 million) are segment eliminations(-¥37,719 million) and corporate expenses that cannot be allocated to specific segments (¥180,722
million). Corporate expenses consist mainly of management-related assets and basic experimental
research assets.
4. Included in the segment liabilities adjustment amounted (¥69,890 million) are segment eliminations(-¥37,681 million) and corporate expenses that cannot be allocated to specific segments (¥107,571
million). Corporate expenses consist mainly of management-related liabilities and basic experimental
research liabilities.
5. Adjustment of increase of property, plant and equipment and intangible assets (¥3,264 million) consist
mainly of investment in Central Research Institute.
6. Segment income (loss) has been adjusted together with ordinary income on the consolidated quarterly
statements of income.

21II. For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)
1. Overview of reporting segments(1) Method of determining reporting segments
The reporting segments of Mitsubishi Materials Corporation are those units of the Company for which
separate financial statements are available and which are subject to regular inspection for the use of theBoard of Directors in determining the allocation of resources and evaluating business results.
The Company has adopted an internal-company structure. As such, each internal company,
department and office proposes comprehensive strategy for operations both in Japan and overseas withrespect to the products and services it handles, and carries out operations on that basis.
Therefore, the Company divides its reporting segments according to individual products andservices, based on the internal-company structure. These reporting segments are Cement, Metals,
Advanced Materials & Tools, Electronic Materials & Components, and Aluminum, the latter being
particularly important among the operations of each division and office.
(2)

Types of product and service belonging to each reporting segment
The main products in each business are as follows.
Cement, cement-related-products, ready-mixed concrete, building① Cementmaterials② Metals
Copper smelting (copper ingots, gold, silver, sulfuric acid, etc.),
processed-copper products③ Advanced
Cemented carbide products, high-performance alloy products, diamondMaterials & Tools
tools④ Electronic
Advanced materials, electronic-device products, polycrystalline silicon,
Materials &chemical products
Components⑤ Aluminum
Aluminum cans, rolled-aluminum products, processed aluminumproducts

2. Method of calculation of amounts in net sales, income/loss, assets, liabilities and other items for eachreporting segment
The accounting methods used in reporting business segments are the same as applied in “Basic important
items for preparation of the consolidated financial statements.”
Figures for income from reporting segments are based on ordinary income.
Internal income and transfers between segments are based on actual market prices.
(Change of depreciation method and period of depreciation of property, plant and equipment)
Starting from this consolidated fiscal year, in conjunction with the formulation of the medium-term
management plan (FY 2012-2014) in the Cement business, the Company decided to revise the period ofdepreciation and change the depreciation method regarding plant and equipment of the Cement-related
business.
As a result of this change, the segment income of the Cement business for this consolidated fiscal year
is higher by ¥1,859 million than what it would have been if calculated according to the former method.

22

3. Information related to sales, income/loss, total assets, total liabilities, and other items for reporting
segment(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersAdjustment
AmountTotal

AmountIndicated intheStatements ofIncomeCementMetals161,908

507,198

108,769

62,094

145,641

301,639

1,287,251－

1,287,251

2,856

115,543

27,883

6,508

1,034

47,307201,134(201,134)

－

Total

164,764

622,742

136,653

68,602

146,675

348,947

1,488,385(201,134)

1,287,251

Segment
income14,02339,134

10,622

3,465

5,530

10,864

83,640(9,226)

74,414

Segment assets

322,005

505,627

180,572

144,308

145,459

361,372

1,659,346

152,421

1,811,767

Segment
liabilities

204,657

392,672

117,752

169,564

116,385

299,177

1,300,210

45,324

1,345,535

Depreciation
andamortization

9,409

17,242

8,792

6,940

8,245

3,017

53,6472,794

56,442

Amortization of
goodwill

2,180

1,551

46

－

173

7

3,960

(32)

3,928

204

297

51

58

12

414

1,040

(442)

597

2

－

56

－

－

22

81

(0)

80

2,362

4,232

1,031

2,654

941

518

11,742(1,289)10,453

1,514

1,606

39

921

206

908

5,197

(4)

5,193

15,866

13,465299

50,354621

26,257

106,865(192)

106,673

8,888

13,458

14,520

3,409

6,332

4,212

50,822

2,153

52,975Net sales(1)Unaffiliatedcustomers(2)Intersegment

Other items

Dividend
incomeAmortization ofnegativegoodwillInterest
expenses
Equity inearnings ofaffiliates
Investment toequity method
affiliate
Increase intangible andintangible
noncurrent
assets

Notes:
1. “Others” includes nuclear energy-related services, precious metals, environmental and recycling-related
business, real estate business, and engineering-related services.
2. Included in the segment income adjustment amounted (-¥9,226 million) are segment eliminations (¥168
million) and corporate expenses that cannot be allocated to specific segments (-¥9,394 million).
Corporate expenses consist mainly of management-related costs, basic experimental research costs, andfinancial income/expenses.
3. Included in the segment assets adjustment amounted (¥152,421 million) are segment eliminations(-¥35,384 million) and corporate expenses that cannot be allocated to specific segments (¥187,805
million). Corporate expenses consist mainly of management-related assets and basic experimental
research assets.
4. Included in the segment liabilities adjustment amounted (¥45,324 million) are segment eliminations(-¥35,213 million) and corporate expenses that cannot be allocated to specific segments (¥80,538
million). Corporate expenses consist mainly of management-related liabilities and basic experimental
research liabilities.
5. Adjustment of increase of property, plant and equipment and intangible assets (¥2,153 million) consist
mainly of investment in Central Research Institute.
6. Segment income has been adjusted together with ordinary income on the consolidated quarterly
statements of income.
23

(Reference information)
I. For the year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)
1. Information by Product/Service
Omits because the same information is written in the Segment Information.
2. Information by Region(1) Net sales(Millions of yen)Japan
910,625

U.S.
64,146

Europe105,948

Asia
347,962

Other
12,164

Total
1,440,847(2) Property, plant and equipment(Millions of yen)Japan
573,452

U.S.
62,279EuropeAsia
24,700

600

Other
1,802

Total
662,834

1. Categories for the countries and regions are geographically proximity-based.
2. Main countries and regions belong to the categories other than U.S.
(1) Europe: Germany, United Kingdom, Spain, France(2) Asia: Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong, Thailand(3) Other: Australia, Canada, Brazil
3. Information by Customer
Omits because no customers account for 10% or more of net sales in the Consolidated Statement of Operations.
II.

For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)

1. Information by Product/Service
Omits because the same information is written in the Segment Information.
2. Information by Region(1) Net sales(Millions of yen)Japan
840,094

U.S.
66,883

Europe36,538

Asia
331,715

Other
12,019EuropeAsia
34,331

Other

Total
1,287,251(2) Property, plant and equipment(Millions of yen)Japan
555,062

U.S.
66,366

893

2,321

Total
658,974

1. Categories for the countries and regions are geographically proximity-based.
2. Main countries and regions belong to the categories other than U.S.
(1) Europe: Germany, United Kingdom, Spain, France(2) Asia: Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong, Thailand(3) Other: Australia, Canada, Brazil

3. Information by Customer
Omits because no customers account for 10% or more of net sales in the Consolidated Statement of Operations.

24

(Information related to Impairment Loss of Noncurrent Assets by Reported Segment
For the year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)(Millions of yen)
CementMetalsAdvanced
Materials &Tools

Electronic
Materials &Components

Corporate
Aluminum

OthersTotal

orGrand totalelimination

Loss on impairment
450
2,561
1,205
309
31
583
5,140
(Note) Adjustment of loss on impairment (¥38 million) consist mainly of that of idle assets (land).

38

5,179

For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Millions of yen)
CementMetalsAdvanced
Materials &Tools

Electronic
Materials &Components

Corporate
Aluminum

OthersTotal

orGrand totalelimination

Loss on impairment
413
98
－
5,368
7
1,381
7,270
(Note) Adjustment of loss on impairment (¥3,281 million) consist mainly of that of assets for lease.

3,281

10,551(Information related to Amortization of Goodwill and Unamortized Balance by Reported Segments)
For the year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2012
Balance on Mar. 31,
2012

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2,149

1,700

－

－

173

13

4,037

(32)

4,005

33,473

6,130

0

－

173

2

39,780(495)

39,285

Amortization of negative goodwill and unamortized balance incurred from a business combination before April 1,2010 are as below.
(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2012
Balance on Mar. 31,
2012

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

－

219

73

－

－

44

337

(1)

336

－

2,221

124

－

－

22

2,368

(0)

2,367

For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2013
Balance on Mar. 31,
2013

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2,180

1,551

46

－

173

7

3,960

(32)

3,928

34,547

4,578

63

－

－

23

39,212(451)

38,760

Amortization of negative goodwill and unamortized balance incurred from a business combination before April 1,2010 are as below.
(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2013
Balance on Mar. 31,
2013

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2

－

56

－

－

22

81

(0)

80

－

2,221

68

－

－

－

2,289

－

2,289

25

(Information on goodwill in liabilities for each reporting segment)
For the year ended March 31, 2012 (April 1, 2011 to March 31, 2012)
None
For the year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
None(6) Per-Share Information
Year Ended Mar. 31, 2012
(Apr. 1, 2011―Mar. 31, 2012)

Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

Net assets per share: ¥267.62
Net income per share: ¥7.29
Net income per share after dilution is not indicated, as
no undiluted shares exist.

Net assets per share: ¥309.17
Net income per share: ¥28.19
Net income per share after dilution is not indicated, as
no undiluted shares exist.

Note: The standards used to calculate net income per share are as follows.
Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

Year Ended Mar. 31, 2012
(Apr. 1, 2011―Mar. 31, 2012)

Net income per share
Net income per share(Millions of yen)Amounts not belonging to ordinary
shareholders (millions of yen)
Net income per share belonging toordinary shareholders(Millions of yen)
Average number of shares
outstanding during the period(thousands of shares)(7) Important Subsequent Event: N/A

26

9,565

36,948

－

－

9,565

36,9481,311,908

1,310,926