Investor Conference Material
Mitsubishi Materials Corporation

November 11, 2016

Akira Takeuchi, President

Contents
1. Performance Summary (P3-8)
2. Progress on the Medium-Term
Management Plan (P9-12)
3. Dividend Policy (P13-14)
4. Initiatives by Segment (P15-37)

5. Recap (P38-39)

2

1. Performance Summary3

FY2017 1st Half Result

4

FY2017 1st Half Result (YoY Comparison)
Net sales:

YoY
comparison

Net sales were down, particularly in the Metals business, due to factors such as the yen appreciation and thefalling copper prices.
Operating profit: Operating profit decreased, mainly in the Metals business and the Advanced Materials & Tools business, whichwere affected by the yen appreciation, despite higher profit from the Aluminum business due to an increase insales of bottle cans and a decrease in raw material costs.
Ordinary income: Ordinary income declined due to decreases in dividends from copper mine and equity in earnings of affiliates.
Net income:Net income fell, primarily due to the absence of a gain on sales of investment securities that was recorded in theprevious fiscal year.

Difference(b)-(a)

FY2016
1st Half Result (a)FY2017
1st Half Result (b)Net sales

709.5

603.1

-106.4

Operating profit

36.1

27.3

-8.8

Ordinary income

38.9

26.0

-12.9

Net income

45.7

29.5

-16.2

349.32225.62-123.705

2-3(Billions of yen, except whereotherwise indicated)

Net income per share (yen) *Dividend per share (yen) ** The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016. Accordingly, net income per share is calculated on the assumption thatthe consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year. For the amount of dividends at the end of the second quarter, the amount prior to theconsolidation of shares is stated because the dividends were paid based on the number of shares before the consolidation of shares.

Exchange rate (JPY/USD)
Copper price (LME)

122

105

-17

256¢/lb216¢/lb-40¢/lb

5

FY2017 1st Half Result (Comparison with the previous forecast)
Net sales:

Comparison
with theprevious
forecast

Net sales were 26.8 billion yen less than the previous forecast, chiefly due to the more than expected yen
appreciation and the lower copper prices.
Operating profit: Operating profit exceeded the forecast by 0.3 billion yen, reflecting an upturn in the Aluminum business owing mainly
to a decrease in raw material costs.
Ordinary income: Ordinary income was 3.0 billion yen above the forecast, mainly due to the rise in operating profit and the posting in
the first half of part of the dividends from copper mine expected in the second half.
Net income:Net income exceeded the forecast by 5.5 billion yen, reflecting the rise in ordinary income and less-than-expected tax
expenseDividend:
Dividends remained unchanged from the previous forecast.

(Billions of yen, except whereotherwise indicated)

FY2017 1st Half
forecast (a)Difference(b)-(a)

FY2017 1st Half
result (b)(Announced on
August 8, 2016)

Net sales

630.0

603.1

-26.8

Operating profit

27.0

27.3

+0.3

Ordinary income

23.0

26.0

+3.0

Net income

24.0

29.5

+5.5

183.20225.62+42.422

2-

Net income per share (yen) *Dividend per share (yen) ** The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016. Accordingly, net income per share is calculated on the assumption thatthe consolidation of its shares was conducted at the beginning of this fiscal year. For the amount of dividends at the end of the second quarter, the amount prior to the consolidation ofshares is stated because the dividends were paid based on the number of shares before the consolidation of shares.

Exchange rate (JPY/USD)
Copper price (LME)

107

105

225¢/lb216¢/lb-2-9¢/lb 6

FY2017 Full Year Forecast

7

FY2017 Full Year Forecast (Comparison with the previous forecast)
Net sales:

Comparison
with theprevious
forecast

Net sales, primarily in the Metals business, were revised downward due to changes in assumptions about exchange
rates and copper prices and a revision to the sales plan.
Operating profit: Factoring in lower domestic sales of cement and cemented carbide products and electronic materials & components,
operating profit was revised downward.
Ordinary income: Ordinary income was revised downward because of the decline in operating profit, in spite of expecting theimprovement of net interest and dividends income.
Net income:Net income was revised downward because of the decline in ordinary income.
Dividend:
The previous forecast remains unchanged.

FY2017 Full Year
forecast (a)(Announced on
August 8, 2016)

FY2017 Full Year
forecast (b)(at this time)

1,330.0

1,280.0-50.0

1,417.8

Operating profit

65.0

61.0

-4.0

70.4

Ordinary income

64.0

61.0

-3.0

72.4

Net income

25.0

22.0

-3.0

61.3

190.84169.97-22.87468.03

2/2Q, 40/4Q

2/2Q, 40/4Q

-

10

31.4

35.7

+4.3

21.4

(Billions of yen, except whereotherwise indicated)

Net sales

Net income per share (yen) *Dividend per share (yen) *Dividend ratio (%)

Difference(b)-(a)

FY2016
Full Year result* The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016. Accordingly, net income per share is calculated on the assumptionthat the consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year.
For the year-end dividend per share in the fiscal year ending March 31, 2017 (forecast), the amount after the consolidation of shares is stated (ten times as much as the amounts before
the consolidation of share).

Exchange rate (JPY/USD)

Copper price (LME)

106

105

-1

120

230¢/lb220¢/lb-10¢/lb237¢/lb8

2. Progress on the MediumTerm Management Plan
(Group-wide growth strategies)

9

Growth strategy “Fortifying the Foundation for Growth”
Accelerate Business Selection and Focus
Key Strategic Investments in Period of Current Medium-Term Management Plan

New!
New!

CementExpanded limestone crushed sand production capabilities in the Kyushu plant [August 2015]

CementExpanded recycling capacity for waste gypsum board powder at the Kyushu plant [December 2015]

MetalsExpanded E-Scrap receiving and processing capabilities in the Naoshima Smelter and Refinery [April 2016]

MetalsPlan to establish an E-Scrap sampling facility in the Netherlands [Slated for completion in the summer of 2017]

MetalsConclusion of share sale and purchase agreement on acquisition of Luvata Special Products division [September 2016]

Advanced
Materials & Tools

Acquired 51% of shares in Hitachi Tool Engineering Ltd, converted company to consolidated subsidiary [April 2015]

Advanced
Materials & Tools

Expanded cemented carbide end mill production capacity and began to produce cemented carbide drills in Indonesia[December 2016]

Key Business Restructuring, Sales of Shares and Other Activities in Period of Current Medium-Term Management Plan
CementSpun off Mitsubishi Materials Kenzai Corp. and transferred business [October 2015]

CementConducted share exchange of all shares in Tokyo Hoso Kogyo Co., Ltd. and transferred business [April 2016]

MetalsExpanded scope of joint venture in cable business of Mitsubishi Cable Industries, Ltd [April 2016]

Advanced
Materials & Tools

New!

Advanced
Materials & Tools

Sold partial shares of MMC Superalloy Corp. [June 2014]

Transferred all shares in Ryoei Metals Corp. [October 2016]

Electronic Materials
Sold partial shares of common stock in SUMCO Corp. [April 2015]& Components

10Progress on Improving Our Financial Position(Billions of yen, except where otherwise
indicated)

FY2015Result

FY2017
1st Half
Result

FY2016
ResultInterest-bearing debt

630.8

526.3

508.5

Net D/E ratio (times)

1.0

0.8

0.8

Shareholders’ Equity ratio (%)

29.0

31.0

31.9

Billions of yen

Interest-bearing debt

D/E ratio (times)

FY2017
Forecast

FY2017
Plan

580.0

650.0

0.9 1.0 or less--

Net D/E ratio (times)

1,000.0
800.0

5.0
796.0
690.3

784.7
708.8

706.0

692.9

4.0

649.8

600.0
2.3

400.0
200.0

526.3

2.3

2.1

2.0

1.7

2.0

1.4

1.8

1.1
1.6

1.3

FY200 8

3.0

508.5

1.7

1.0

0.9

1.0

1.1
1.0

1.3
1.0

0.0

580.0

2.0

1.9

1.5

650.0

630.8

FY200 9FY201 0FY201 1FY201 2FY201 3

FY201 4FY201 50.8

0.8

FY201 6FY201 7 H1

0.9
FY201 7
Forecast

1.0
FY201 7
Medium-Term
Manag ement
Plan

0.0

11

Growth Strategy “Strengthening Global Competitiveness”
Overseas Business Expansion in Markets Expected to Grow
Key Initiatives Related to Overseas Business Expansion
in Period of Current Medium-Term Management Plan
CementCommenced operations of new aggregate mine (Hubbs quarry) in South California [November 2014]

CementAcquired factory site for new ready-mixed concrete plant in Northwestern of Los Angels [December 2015]

MetalsEstablished E-Scrap recycling business division in the United States [July 2014]

Advanced
Expanded cemented carbide sales bases (one in Turkey, five in China, one in Vietnam, and one in India)
Materials & Tools
Advanced
Expanding cemented carbide production bases (planned increases in production capacity at bases in the United
Materials & Tools States and Spain)
Advanced
Commenced manufacture of sintering parts in Indonesia [April 2014]
Materials & Tools
Electronic
Materials &Components

Began production of thermistor sensors in Laos [June 2015]

AluminumStarted production of extruded aluminum heat exchanger materials (multi-port tubes) in India [March 2016]

Companywide

Converted a supervisory office to a local subsidiary managing operations in South and Southeast Asia, andexpanded its functions and networks [April 2015]12

3. Dividend Policy

13

Dividend Policy
FY2015Result

FY2016
Result

FY2017
Forecast

Annual dividend

8

10

2/2Q, 40/4Q*(For reference) Before a consolidation of shares

8

10

6

18.7

21.4

35.7

Dividend ratio (%)* The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016. Accordingly,
for the year-end dividend per share in the fiscal year ending March 31, 2017 (forecast), the amount after the consolidation of sharesis stated (ten times as much as the amounts before the consolidation of share).

Basic policy◆The basic policy is determined in consideration of all aspects of management, including periodic
income, retained earnings, and financial position.
Under the basic policy above, a dividend target in the period of the current medium-term
management plan is set.
◆The Company aims to improve its results constantly and increase dividends accordingly.
Considering financial discipline, the Company aims for a dividend ratio of appropriately 20% as atarget.
In regards of the dividend forecast of FY2017, the dividend ratio will be temporarily increased to35.7% from the viewpoint of consecutive dividend and strive to reduce the reduction range.

As a dividend policy for the next medium-term management plan,◆The Company is considering employing clearer quantitative measures, emphasizing the avoidanceof significant declines in dividends.

14

4. Initiatives by Segment

15

Cement Business16

Domestic Business
Performance (Cement)

Japan(Billions of yen)

◆ Outlook for demand in Japan

25.0
20.0

20.1 19.7

20.9 20.4

17.3 16.7

The Company’s assumption for FY2017 was revised to 41.70 million
tons, -2.3% decline from the previous year’s result, reflecting
sluggish demand in the first half.

15.0
10.0

◆ Export environment

5.0
0.0
FY15

FY16

Operating profit

Exports are affected by falling prices in Asia. In the medium to longterm, the sales volume is planned to be increased, notably in
Oceania.

FY17 Forecast

Ordinary income◆ Waste disposal processing
Demand trends (domestic / export)
70
60

14

(Millions of tons)

Domestic demand (left axis)
Exports (right axis)

Increased processing prices and greater acceptance of items thatare difficult to dispose of.
Waste Processing Effect and Forecast

12

50

10

40

8

(billions of yen)
25.0

Environmental sales

Alternativ e effect

20.0

30

6

20

4

10

2

0

0

15.0

10.0

5.0

0.0

(Source: Japan Cement Association, the forecast announced at the beginning of FY2017)

FY11

FY12

FY13

FY14

FY15

FY16

FY17

17

Initiatives to Expand Waste Disposal Processing◆ Coal ash- Share information closely with thermal power plants, which emit coal ash, about
operations, and focus on stable acceptance and securing a certain processing quantity.
- Work to accept increasing quantities from new power plants where high processing prices
are expected.
◆ Soil from Construction- Seek to achieve stable sourcing and increases in sales by tapping into high-priceprocessing projects.
◆ Sewage sludge- Expand operating areas, seeking to source sewage sludge from new local governments.
◆ Waste plastic- Enhance the waste plastic facilities and chlorine bypass at the Kyushu Plant to increase
the processing quantity (construction work to be completed in FY2018).
◆ Waste related with the Kumamoto earthquakes- Accept as much waste as possible and contribute to reconstruction in the affected areas.
(According to Kumamoto prefecture’s processing plan, 1.95 million tons will finish toprocess in two years.)

18

Overseas BusinessNorth America

Long Beach Terminal◆ Expansion of cement supply system
Preparing to expand import terminal(Considering restarting the Long Beach Terminal at the existing capacity first, expanding
the capacity in accordance with future demand, and operating a new terminal)

RRM Ready-mixed
concrete plant◆ Further increase in ready-mixed concrete operations- Expanding operation areas through the construction and acquisition of ready-mixed
concrete plants- Maintaining a high self-procurement rate of aggregate resources

Demand trend for cement in Southern California(Thousands of metric tons)
12,000

Domestic productsLine of local cement supply shortage (MMC assumption)

Import products

10,000
8,000

6,000
4,000

Prices of cement and ready-mixed
concrete also continue to recover

2,000
0
95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17 18 19 20(Source: PCA)

19

RRM - Quarry Development /Ready Mixed Concrete Business Expansion☆Aggregates Supply▶Hubbs Quarry (operated since 2015)
Enhance capacity of supply to big markets suchas Los Angels and Orange county.

Palmdale Quarry▶Palmdale Quarry(area expansion & upgraded)
Enhance capacity of supply to North Los Angels
area.

▶San Diego (El Cajon) Quarry (upgraded)
Enhance capacity of supply to San Diego area.

Hubbs Quarry: > 200 kcy Batch Plants: 200 kcy > 100 kcy: 100 kcy >* 2015 actual: New Batch Plant: Existing Quarries / Terminal: New / Expansion / Upgrade☆Ready-mixed Concrete Operation▶Area Expansion
New batch plants in Northwestern area of
Los Angels (e.g. Simi Valley plant)▶Sales increase in existing markets
Market share up taking advantage of costcompetitivenessSan Diego (El Cajon) Quarry

20

Trend of Self-Procurement Rate of Aggregate Resources in the United States
Sourcing aggregate resources (stone, gravel, etc.), which are indispensable for
producing ready-mixed concrete, is the key to expanding business.

The self-procurement rate remains high owing to the full-scale operation of Hubbs
quarry and other initiatives.
The Company will maintain a high self-procurement rate by considering andimplementing the expansion of existing quarries, and will increase cost competitiveness.
Hubbs Quarry
Needs for aggregate resources in 2010 = 100

160
140

100.0%

Needs for aggregate resources
Self-procurement rate

95.0%

120
90.0%

100
80

85.0%

60

80.0%

40
75.0%

20
0

70.0%
2010

2011

2012

2013

2014

2015

21

Metals Business

22

Mining
Performance (Metals)

Mining(Billions of yen)

32.8

35.0
30.0
25.0

27.0

24.8

25.2

24.2
19.2

20.0

◆ Investigation for copper mines- Ongoing promotion of Zafranel project in Peru
(preparing start of F/S)

15.0
10.0

- The Company will actively consider inquiries of goodprojects after conducting a sufficient analysis of the risks
involved

5.0
0.0
FY15

Operating profit

FY16

FY17 Forecast

Ordinary income

Trend of Copper Price and Dividends from Copper Mines
50.0

500
Dividends from copper mines (billions of yen, left axis)
Copper price (¢/lb, right axis)

Los Pelambres mine (Chile)

40.0

400

30.0

300

20.0

200

10.0

100

0.0

0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Forecast

Zafranal area (Peru)

23

Smelting
Logistics Flow of E-Scrap from the Netherlands

Smelting

Now

Sampling◆ Expansion of the recycling business
Becoming a world's top-ranked E-Scrap receiving
and processing capacity
Completed expansion of annual receiving andprocessing capacity at the Naoshima Smelter andRefinery from 80,000 tons to 110,000 tons
(total capacity of 140,000 tons, including Onahama
Smelting and Refining Co.,Ltd)
Plan to establish an E-Scrap sampling facility forreceiving, inspecting, and sampling in the
Netherlands(Slated to completion in the summer of 2017)

Analysis
Generation

Raw materials

Processing

Smelters(Naoshima,
Onahama)

After the establishment of the facility
Samples for analysis
Sampling
Generation New company

Raw materials

Analysis
Smelters(Naoshima,
Onahama)
Processing

The assessment and the settlement period can beshortened significantly, and customer service can be
improved in Europe.
⇒ Increase the quantity of E-Scrap to be collected千(Thousandsof tons)
140

E-Scrap processing volume trend(Naoshima and Onahama)

120
100
80

Example of E-Scrap

60
40
20

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17
Forecast

E-Scrap sampling facility in the Netherlands(Completed Image)24

Copper Processing
Copper
Processing◆ Accelerate the strengthening of the overseas
business following the acquisition of Luvata

Topics: Acquisition of Luvata Special Products division
Overview of Luvata SP
President

Jussi Helavirta

Location

Pori, Finland

Overview and Scheduleof the Transaction
AcquiredBusiness
SellerEstablishment

May 2006

Business Fields

Copper processing and distribution

Total Sales

Approx. € 585 million (2015, Actual)

Total EBITDA

Approx. € 43 million (2015, Actual)

Number of
Employees
Main Business
Entities

1,209 (At the end of Dec. 2015)
Finland, United States, United
Kingdom, China, Malaysia, Russia,
and Brazil

Outstanding interests of Luvata SP
owned by the Sellers
Luvata Group(Parent company of Luvata SP)

Execution Dateof SPA

September 28, 2016

Effective Dateof theTransaction

During the 4th quarter of the fiscal
year ending March 2017 to 1stquarter of the fiscal year ending
March 2018
* Subject to the satisfaction ofcustomary closing conditions set
forth under SPA, including anti-trust
approvals in the United States,
Germany and the RussianFederation25

Major Products of Luvata SP

Related Market

Holds the top-ranked share in the world in the markets ofsuperconducting wires & cables for MRI and welding electrodes
for the automotive industry; strong in high value-added products

Strong in markets that are
expected to grow sustainably- Automotive- Healthcare
Welding electrodes

Superconducting
wire & cables

NMR / MRI wire

- Electronics- Metals & Mining- Power Generation- Energy, etc.

Copper ball anodes
for plating

Busbars

Photovoltaic ribbon

Battery wire

Hollow conductors

Cooling elements

26

Comparison of
MMC & Luvata SP

Strengthening Global Operation for
Copper Processing Business

Enhance production and sales bases globally and location achieve the vertical and horizontal
expansion of the product lineup

MMC

Production /Sales Site

Key Features

Total Sales(FY2016)

Luvata SP

Total 12 sites

Total 14 sites(including 4 in overseas locations）- Mainly Japan & Southeast Asia

- Global supply chain including
Europe, United States, SouthAmerica, China and Malaysia- Strength: Copper-based alloys andmaterials engineering, and wrought
copper products for automobiles
such as terminal connectormaterials- Weakness: Product portfolio may
not be well balanced- Cover wide range of value chain,processing, manufacturing anddistribution- Offers wide range of products invarious end-market including
medical, energy and automotive

Approximately JPY 688.7 billion(* Total sales of Metals business)

Approximately JPY 78.0 billion(€ 585 million / Exchange rate: € 1 =JPY133*)* Yearly Average TTM for 201527

Realizing Synergies

To Be The Most Profitable
Copper Processing Company Globally

Pursue and generate synergies steadily in the short, medium and long term, and aim to expand thecopper processing business◆More Product Line-ups- Incorporate wide range of products in various end-market.
e.g.
(i) Medical: Superconducting wire and cable for MRI(ii) Energy: Photovoltaic wire(iii) Automotive: Welding electrodes, Battery wire and Cooling elements for metalsmelters◆Establishment of Global Production & Sales Structure- Complementary business area of two companies will accelerate MMC’s global
operations
Luvata SP has the manufacturing and distribution facilities as well as client marketing
capabilities not only in Japan and Asia, where are primary areas of Mitsubishi Materials,
but also in Europe and the United States.

◆Expanding the Value Chain- By adding Luvata SP’s business, ranging from processing, manufacturing anddistribution, the combined company will have a broader portfolio and an expanded
value chain to better cater to the customers with various applications and needs.

28

Business Expansion Through Acquisition of Luvata(Globalization, Downstream Processing)
MMC Group

LuvataPotential expansion

Globalization

Japan
Roll processing

Manufacture and sale ofterminal materials forautomobiles andelectronic materials

Extrusion
Processed products

Downstream processing- Manufacture and sale ofcopper bars, busbars,
ECO BRASS® bars, UR
series wires- Manufacture and sale ofalloy for welding
electrodes, high-grade
oxygen-free copper for
superconducting wire andcablesManufacture and sale ofcopper ball anodes,
processed products forsteel, etc.

Asia
Exporting copper
intermediates product(Thailand), slitting

North America

EuropeLicensing to manufacturers
in the same business

Licensing to manufacturers
in the same businessAlloy casting at Pori plantof Luvata (Finland) andsale of the products(China) ECO BRASS®
bars

Licensing to manufacturers
in the same business

Licensing to manufacturers
in the same business(Malaysia) Manufactureand sale of busbars
Manufacture and sale of extrusion products of MMC (busbars, ECO BRASS® bars, UR
series wires, etc.) using Luvata’s overseas bases and manufacturing techniquesExporting copper ballanodes to China andSoutheast Asia
Supplying copper cathodes, alloy for welding electrodes, and high-grade oxygen-freecopper for superconducting wire and cables to overseas bases of Luvata

Horizontal expansion
into Japan

Welding electrodes,
superconducting wires andcables, copper ball anodes,
photovoltaic ribbon, etc.

Welding electrodes,
superconducting wire andcables, photovoltaic ribbon,
etc.

Superconducting wire andcables, photovoltaic ribbon,
copper ball anodes,
processed products for steel,hollow conductors, etc.

29Advanced Materials & Tools
Business

30

Cemented Carbide Products
Performance (Advanced Materials & Tools)(Billions of yen)
20.0

16.7 16.5
15.0◆ Expand global production and sales bases

16.0 14.9
12.4
10.1

10.0

Cemented Carbide Products

5.0- Expanding production bases in North America, Spain, and Indonesia instages- Established eight overseas sales bases from FY2015◆ Enhance expansion technical bases

0.0
FY15

Operating profit

FY16

FY17 Forecast

Ordinary income- “A Cutting Academy” provides cutting work technology, techniques, andexpertise to customers- Provide “3D CAD data for Industry 4.0” to customers- “The Chubu Machining Technology Center (Gifu Prefecture)” isscheduled to open in the Chubu area, where facilities in the automotive
industry and aerospace industry are concentrated◆ Strengthen sales capabilities with industryspecific teams
Cutting tools (Cemented Carbide Products)- Select three focus sectors: automobiles, aerospace and medical
equipment◆ Aggressive sales promotion- Will exhibit in the 28th Japan International Machine Tool Fair
(JIMTOF 2016) (Thursday, November 17 through Tuesday, November
22, at Tokyo Big Sight)

The Chubu Machining Technology Center (Completed Image)

31

Key Industry: Focus on expanding into Automotive,
Aerospace and Medical market.
Gradual increase in contracts
with a major aerospacecomponents manufacturer inEuropeImportance analysis of each industry(Billion of yen / year)

High
Industrial machinery
220.4

Market Growth Ratio(Cemented Carbide Tools)

Rail
45.8
Motorcycle
17.5

345.0
Heavy Industry
73.3

5.1%:
Market growth ratio of Aerospace

Aerospace
Medical
63.6

4.2%:

Construction &Mining Equipment
69.3

Market growth ratio of Medical

Oil &Gas Mold
134.7
150.7

3.6%: Average growth ratio of
Cemented carbide tools’ market

569.8
Automotive

1.7%:
Market growth ratio of Automotive

Low
Low

High

First orders from major
automobile manufacturers in
China

Superiority (Accumulation volume of R&D, Production, Sales,
technical service and etc.)* Size of plot shows market size (charge) of cutting tools in FY 2026.
Market growth ratio is defined as market average growth ratio of cutting tools from 2013 to 2025.
Market size and growth ratio are MMC’s assumption.

32

Dealing with KAs* in the Aerospace Industry,
Which is Expected to Grow, Making Steady Progress* KA: key accounts
Challenge

Expand sales in the aerospace industry, which is
attractive in terms of market size and growth rate

• High degree of expertise on leading-edge
materials
KSF inaerospace • Close relationships with customers
industry • Promptness in presenting and evaluating
prototypes

Establishment of Aerospace Dept.
A department to focus on accumulating expertise,promoting collaboration with customers, andstrengthening the ability to deal with matters in theaerospace industry was established. (Oct. 1, 2016)

Sales by industry (FY2015 ⇒ FY2016)

Automotive

Automotive
Other

Other

Aerospace

Aerospace
Medical

MedicalTrend of sales to RollsRoyce (Europe)(monthly average)

Dealing with Boeing(US)- 2015: Received immense
praise in Boeing Challenge(competition on improving
processing)⇒Won orders- 2016 1H: Orders from thePortland plant and the St.
Louis R&D center increased.

33

Synergy Associated with the Acquisition of
Mitsubishi Hitachi Tool Engineering , Ltd.
Considering synergies with Mitsubishi Hitachi Tool Engineering◆Step 1: From April 2015, exchange meetings were held in each division*◆Step 2: Determine items where synergy will be considered and quantify synergy
Items where synergy will be generated and expected effects◆Major items where synergy will be generated- Development:

Developing new products making the most of each other’s strengths(MMC’s materials technology, Mitsubishi Hitachi Tool Engineering’s coating
and forming technology)- Manufacturing: Improving production efficiency by using each other’s facilities(Elimination of bottlenecks, etc)
- Sales:

Expanding sales globally mainly through mutual sales channels(United States, Southeast Asia)- Other:

Integrated purchasing of materials, integrating and sharing IT systems & logistics◆Expected effects of synergies (from FY2018 to FY2021)⇒Effects of 0.5 to 1.0 billion yen annually are planned.

34

Electronic Materials &Components BusinessAluminum Business

35

Electronic Materials & Components Business
Performance (Electronic Materials & Components)(Billions of yen)
8.0

7.0
5.0

◆Advanced Materials
Sputtering Target *

7.2

6.3

6.0

Electronic Materials & Components

4.4

Establish a new “Manufacturing and technical center”

4.0

3.1

3.0

2.4
2.1

2.0

1.0

Market: Make progress in upsizing substrates for flat-panel
displays and solar cells

0.0
FY15

FY16

Operating profit

FY17 Forecast

Ordinary income

Needs: Expand demand for cylindrical targets that can be usedefficiently for large substrates
Measures: Enhance development and manufacturing systems
for cylindrical and large planner sputtering targets at
the manufacturing and technical center* The sputtering target is an electronic material that attaches alloys and metal oxides
substance to substrates at the atomic level and forms a thin film.

◆Electronic Components
Manufacturing and technical center in Sanda Plant

Centering on thermistor sensors, promote configuration of optimal
production and sales system, and expand sales to air conditioner,
refrigerator and other markets◆Silicon
Cylindrical sputteringtargetLarge planner sputteringtargetAchieve world-leading quality in polycrystalline silicon and boost
customer satisfaction to augment sales

36

Aluminum Business
Performance (Aluminum)

Aluminum(Billions of y en)

9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

8.0
5.6

7.4

◆ Rolled and extruded products

5.1(Mitsubishi Aluminum Co.,Ltd.)
Enhance expansion of overseas production bases for heatexchanger materials⇒ Expanded into the United States, Thailand, China, and India

4.3 3.6

FY15

FY16

Operating profit

FY17 Forecast◆ Can production

Ordinary income(Universal Can Corporation)
Increasing sales of bottle cans, for which demand expanding⇒ Boost production capacity and increase sales through measures
such as accelerating existing production lines

Can production: Increasing Demand for Bottle Cans
Domestic Demand for Aluminum Bottle Cans
(billion cans per year)

4.0

Rolled and extruded products: extruded heatexchanger materials for automobiles

3.0
2.0
1.0
0.0
2010

2011

2015
2016
Estimate Forecast(Source: Japan Aluminum Can Recycling Association)
2012

2013

2014

37

5. Recap

38

◆Execution of Medium-term Management
Plan’s Growth Strategies
Continue financial constitutional improvement alongwith steady strategic investment for sustained growth,and strengthen the basis for growthMaterials Premium 2016
Challenge to Become the World’s
Leading Business Group39

For further information, please contact at:
Mitsubishi Materials Corporation
Corporate Communications & IR Dept.
Corporate Strategy Div.
1-3-2, Otemachi, Chiyoda-ku,
Tokyo 100-8117, Japan
E-mail: ml-mmcir@mmc.co.jp
URL : http://www.mmc.co.jp/corporate/en/index.html
These projected performance figures are based on information available to theCompany’s management as of the day for releasing this material. There aremany uncertain or risk factors inherent in projections, and there might becases in which actual results materially differ from projections of this material.