Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
(Japanese Accounting Standards)
May 10, 2018
Name of Listed Company: Mitsubishi Materials Corporation
Listing:
Tokyo Stock Exchange
Stock Code:
5711
URL:
http://www.mmc.co.jp/
Representative: Akira Takeuchi, President
Contact:
Nobuyuki Suzuki, General Manager, Corporate Communications Dept., General Affairs Dept.,
Human Resources & General Affairs Div.
Tel: +81-3-5252-5206
Scheduled date for ordinary general meeting of shareholders: June 22, 2018
Scheduled date of start of dividend payment:
June 1, 2018
Scheduled date of submission of securities report:
June 22, 2018
Supplementary materials for the financial results:
Yes
Investor conference for the financial results:
Yes (For Institutional Investors)(Amounts of less than million yen are omitted.)

1. Results of the Consolidated Fiscal Year Ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(1) Consolidated Results of Operations(Figures in percentages denote the year-on-year change.)
Net salesYear ended March 31, 2018Year ended March 31, 2017

Operating profit

Net income attributableto owners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

1,599,533
1,304,068

22.7
-8.0

72,81959,76121.9-15.1

79,621
63,925

24.6-11.8

34,59528,35222.0-53.8(Note) Comprehensive income: Year ended March 31, 2018: 80,068 million yen (16.5%) Year ended March 31, 2017: 68,723 million yen (249.5%)

Net income
per share

Diluted net
income per share
Yen

Year ended March 31, 2018Year ended March 31, 2017

Yen

–
–

264.15216.44

Ordinary income
to total assets

Return on equity(Reference) Equity in earnings of affiliates: Year ended March 31, 2018: -1,336 million yen

Operating profit
to net sales

%

%

%

5.3
4.8

4.1
3.5

4.6
4.6

Year ended March 31, 2017: 1 million 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 that the consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year.

(2) Consolidated Financial Position
Total assets
As of March 31, 2018
As of March 31, 2017

Shareholders’equity ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

2,015,084
1,896,939

768,495
710,19533.9
32.8

5,211.20
4,743.27(Reference) Shareholders’ equity: As of March 31, 2018: 682,471 million yen

As of March 31, 2017: 621,281 million 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 assets per share is calculated on theassumption that the consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year.

(3) Consolidated cash flows
Cash flow fromoperating activities
Year ended March 31, 2018Year ended March 31, 2017

Cash flow frominvesting activities

Cash flow fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

50,715
115,552-83,957-26,557-11,034-15,70387,355
132,616

2. Dividend Payments
Dividends per share(Record date)Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31,
2019 (Forecast)First
quarter

Secondquarter

Third
quarterYear-end

Yen

Yen

Yen

Yen

AnnualTotal dividend
amount(annual)Dividend payout
ratio(consolidated)

Dividends to net
assets(consolidated)

Yen

Million yen

%

%

–
–

2.00
30.00

–
–

40.00
50.00

–
80.00

7,859
10,477

27.7
30.3

1.3
1.6

–

40.00

–

40.00

80.00

29.9

* The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016. For the amount of dividends at the end of the second
quarter of the fiscal year ended March 31, 2017, the amount prior to the consolidation of shares is stated because the dividends were paid based on the number of shares
before the consolidation of shares.
For the year-end dividend per share in the fiscal year ended March 31, 2017, the amount after the consolidation of shares is stated and a hyphen is written for the annual
dividend because it cannot be simply combined.

3. Consolidated earnings forecast (From April 1, 2018 to March 31, 2019) (Figures in percentages denote the year-on-year change.)
Net sales
Six months ending
September 30, 2018Year ending March 31,
2019

Operating profit

Net income
attributable toowners of parent

Ordinary income

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

800,000

10.3

32,000-12.3

33,500-15.3

19,000-5.7

145.06

1,660,000

3.8

67,000-8.0

79,000-0.8

35,0001.2

267.23

* Notes(1) Significant changes of subsidiaries during the term under review (changes in specific subsidiaries accompanied bya change in the scope of consolidation):
Yes
New: 1 company (Company name: MMC Copper Products Oy)(2) Changes in accounting policies, changes of accounting estimates and restatement(i)
Changes in accounting policies due to amendments to accounting standards:(ii) Other changes in accounting policies:(iii) Changes in accounting estimates:(iv) Restatements:

None
Yes
None
None

(3) Numbers of issued shares (common stock)(i)
Numbers of issued shares at end of terms (including treasury shares):Year ended March 31, 2018:
131,489,535 sharesYear ended March 31, 2017:
131,489,535 shares(ii)
Numbers of treasury shares at end of terms:
Year ended March 31, 2018:
527,089 sharesYear ended March 31, 2017:
507,863 shares(iii) Average number of shares issued during terms:
Year ended March 31, 2018:
130,972,453 sharesYear ended March 31, 2017:
130,993,050 shares(Note) The Company consolidated its shares at a rate of one share for every 10 shares of its common stock, with October 1, 2016 as the effective
date. Subsequently, the number of issued shares at the end of the term, the number of treasury shares at the end of the term, and theaverage number of shares issued during the term are calculated based on the assumption that the consolidation of shares was conductedat the beginning of the previous consolidated fiscal year.

(Reference) Summary of Non-Consolidated Financial Results
1. Results of the Non-Consolidated Fiscal Year Ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(1) Non-Consolidated Results of Operations(Figures in percentages denote the year-on-year change.)
Net salesYear ended March 31, 2018Year ended March 31, 2017

Operating profit

Net income%

Million yen%

Million yen%

Million yen%

869,677
674,515

28.9-8.3

13,732
12,12013.3-54.2

31,37027,202

15.3-23.2

25,53019,701

29.6-40.3

Net income
per share

Diluted net
income per share
Yen

Year ended March 31, 2018Year ended March 31, 2017

Ordinary income

Million yen

194.93150.40Yen––* 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 pershare is calculated on the assumption that the consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year.

(2) Non-Consolidated Financial Position
Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Shareholders’equity ratio

Net assets per share

Million yen

Million yen%

Yen

1,358,233
1,265,120

533,103477,706

39.2
37.8

4,070.58
3,647.06(Reference) Shareholders’ equity:
As of March 31, 2018: 533,103 million yen
As of March 31, 2017: 477,706 million 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 assets per
share is calculated on the assumption that the consolidation of its shares was conducted at the beginning of the previous consolidated fiscal year.

* These financial results are outside the scope of audit procedures by certified public accountants and audit firms.
* Explanation about the proper use of financial forecasts and other special notes(Notes concerning forward-looking statements, etc.)
The operating results forecasts and other forward-looking statements contained in this report are based on information currently
available to the Company, as well as certain assumptions that the Company has judged to be reasonable. As such, they do notconstitute an assurance that the Company promises to achieve these projected results. Therefore, readers are advised to note that theactual results may vary materially from the forecasts due to a variety of factors.
Please see “(1) Overview of operating results, Outlook for the year ending March 31, 2019” of “1. Overview of Operating Resultsand Financial Position” on page 5 for the assumptions about consolidated earnings forecasts.
(Procedure for obtaining supplementary information on financial results and financial briefing)
Mitsubishi Materials Corporation plans to hold a financial briefing for institutional investors on Thursday, May 10, 2018. The
materials used at this briefing are disclosed on the TDnet and the Company’s web page at the time that the financial results areannounced.

Contents
1. Overview of Operating Results and Financial Position ...................................................................................... 2(1) Overview of operating results ........................................................................................................................2(2) Overview of financial position .......................................................................................................................5(3) Basic profit distribution policies and dividend payments for the current and next fiscal years .....................6(4) Business and other risks .................................................................................................................................6
2. Management Policies ........................................................................................................................................ 11(1) Basic Policy for the Group Management ..................................................................................................... 11(2) Target Management Indicators and Medium- to Long-term Management Strategy and Issues to Be
Addressed ..................................................................................................................................................... 11
3. Basic Concept of Selection of Accounting Standards ....................................................................................... 17
4. Consolidated Financial Statements ................................................................................................................... 18(1) Consolidated balance sheet .......................................................................................................................... 18(2) Consolidated statement of income and consolidated statements of comprehensive income ........................ 20
Consolidated statement of income ............................................................................................................. 20
Consolidated statements of comprehensive income ................................................................................... 21(3) Consolidated statement of changes in equity ............................................................................................... 22(4) Consolidated statement of cash flows .......................................................................................................... 24
Segment Information .................................................................................................................................. 26
Per-share Information................................................................................................................................. 32
Important Subsequent Events ..................................................................................................................... 33–1–

1. Overview of Operating Results and Financial Position(1) Overview of operating results1) Overview of performance
During the consolidated fiscal year under review, signs of recovery were seen in the Asian economies ofChina, Thailand and Indonesia. In the United States, the economy remained on a moderate recovery track.
In Japan, corporate earnings, employment, and income conditions were on the road to recovery and capital
expenditure and industrial production also increased modestly during the consolidated fiscal year underreview.
Regarding the business environment for the Mitsubishi Materials Group, although energy prices rose, copper
prices increased and demand in cement-related business in the United States and demand for products used in
the automotive and electronics industries remained strong.
Under these circumstances, the Company formulated a Long-Term Management Policy for the next 10 years
and a Medium-Term Management Strategy (FY2018-2020) that focuses on the planning and implementationof growth strategies, and we implemented various measures as a theme of “Transformation for Growth” toachieve group-wide policies for the enhancement of corporate value, namely “optimization of businessportfolio,” “comprehensive efforts to increase business competitiveness,” and “creation of new products andbusinesses.”
As a result, consolidated net sales for the fiscal year under review totaled ¥1,599,533 million, up 22.7% year
on year. Operating profit rose 21.9% year on year, to ¥72,819 million, and ordinary income climbed 24.6%,
to ¥79,621 million. Net income attributable to owners of parent was ¥34,595 million, up 22.0% year on year.
The Company has made prior announcements about the matter in which the Company’s consolidated
subsidiaries Mitsubishi Cable Industries, Ltd., Mitsubishi Shindoh Co., Ltd., Mitsubishi Aluminum Co., Ltd.,
Tachibana Metal Manufacturing Co., Ltd., and Diamet Corporation had delivered products, etc. that deviatedfrom customer standards or internal company specifications (“Non-Conforming Products”) due tomisconduct, including the rewriting of inspection records data, concerning some of the products
manufactured and sold in the past (the “Incident”).
The Company sincerely apologizes to its shareholders, customers and all other parties affected by the
Incident for all and any inconvenience and difficulties it has caused. The Company understands the gravity
and seriousness of the situation and will implement measures quickly and properly to strengthen the group
governance framework, including quality control. In order to prevent such a situation again in the future, wewill endeavor to further improve the group governance. In addition, the Company has decided partial
relinquishment of the six Representative Directors’ remuneration.
The Incident had the effect of reducing operating profit by around ¥1.4 billion in the consolidated fiscal year
under review, causing the Company to record an extraordinary loss of ¥3,202 million.
2) Overview by business segments(Cement)

Net sales
Operating profit
Ordinary income

FY 2017
177.5
20.9
20.5

FY 2018
192.3
19.4
21.0

(Billion yen)
Increase / Decrease (%)
14.8(8.3%)-1.4(-7.1%)
0.5(2.6%)

Sales volumes rose in Japan due to the firm performance of construction work of facilities related to theTokyo Olympic and Paralympic Games in the Tokyo metropolitan area, as well as disaster restoration work–2–

and road-related work in Kyushu. However, mainly rising energy costs resulted in a decline in operating
profit, even as net sales increased.
In the United States, the sales volumes of ready-mixed concrete increased thanks to strong private-sector
demand related to housing and commercial facilities in Southern California. In addition, the selling price of
cement grew year on year. As a result, both net sales and operating profit increased.
As a result, net sales for the entire Cement business increased year on year, but operating profit decreased.
Ordinary income increased mainly through an increase in equity in earnings of affiliates.
(Metals)

Net sales
Operating profit
Ordinary income

FY 2017
629.4
17.3
27.5

FY 2018
862.7
24.0
36.2

(Billion yen)
Increase / Decrease (%)
233.2(37.1%)
6.6(38.5%)
8.7(31.8%)In the copper business, both net sales and operating profit rose, reflecting an increase in the amountcontracted by Onahama Smelting and Refining Co., Ltd., higher production volume and higher copper prices
despite periodic furnace repairs conducted at Naoshima Smelter & Refinery.
In the gold and other valuable metals business, both net sales and operating profit grew, mainly due toincreased production as a result of a rise in the amount of gold and other valuable metals contained in the raw
material ore.
In the copper and copper alloy products business, net sales and operating profit were up, chiefly due to anincrease in sales of products for automobiles and the inclusion of the business results of MMC Copper
Products Oy in the consolidated statements of income since the second quarter of the fiscal year.
As a result, overall the Metals business posted year-on-year increases in net sales and operating profit.
Ordinary income increased due to a rise in operating profit and dividend income.
(Advanced Materials & Tools)

Net sales
Operating profit
Ordinary income

FY 2017
143.4
11.7
9.9

FY 2018
161.1
18.5
16.8

(Billion yen)
Increase / Decrease (%)
17.7(12.4%)
6.7(57.7%)
6.8(69.6%)In the cemented carbide products business, net sales and operating profit increased as a result of aggressive
efforts for sales promotion, in addition to higher demand in the automotive and aerospace industries, which
are the main customers for cemented carbide products, mainly in Japan, Europe, United States and Southeast
Asia.
In the high-performance alloy products business, net sales increased and the operating loss narrowed due toincreased sales in Japan, Europe and the United States as a result of growth in demand for mainstay sinteringparts and the launch of new products, despite costs, etc. associated with shipments of non-conforming
products.
As a result, overall the Advanced Materials & Tools business recorded year-on-year increases in net sales
and operating profit. Ordinary income also rose due to higher operating profit.

–3–

(Electronic Materials & Components)

Net sales
Operating profit
Ordinary income

FY 2017
63.0
2.4
2.8

FY 2018
73.4
3.4
4.5

(Billion yen)
Increase / Decrease (%)
10.3(16.4%)
0.9(38.6%)
1.7(64.0%)In the advanced materials and chemical products business, net sales and operating profit increased, reflecting
a rise in sales of products related to semiconductor manufacturing equipment, products for displays and otherproducts.
In the electronic components business, both net sales and operating profit also increased thanks to a higher
volume of sales of products for home appliances and other products.
The polycrystalline silicon business recorded an increase in net sales and a decrease in operating profit, due
to a fall in selling prices, despite an increase in sales volume based primarily on higher demand backed by thestrong semiconductor market.
As a result, the entire Electronics Materials & Components business registered year-on-year increases in net
sales and operating profit. Ordinary income rose as a result of higher operating profit and dividend income.
(Aluminum)

Net sales
Operating profit
Ordinary income

FY 2017
155.9
7.8
7.4

FY 2018
148.5
3.7
3.0

(Billion yen)
Increase / Decrease (%)-7.3(-4.7%)-4.1(-52.1%)-4.4(-59.6%)In the aluminum can business, net sales and operating profit declined due to a fall in sales of both regularcans and bottle cans and rising costs of raw materials.
In the rolled aluminum and processed aluminum products business, net sales and operating profit fell as aresult of lower sales, principally of can materials and plate products for litho sheets, despite higher sales
volume of heat exchanger materials for automobiles.
In the business as a whole, energy costs rose.
As a result, the entire Aluminum business posted year-on-year decreases in net sales and operating profit.
Ordinary income also declined due to a fall in operating profit.
(Others)

Net sales
Operating profit
Ordinary income

FY 2017
218.2
10.1
7.1

FY 2018
249.5
13.1
8.3

(Billion yen)
Increase / Decrease (%)
31.2(14.3%)
3.0(30.2%)
1.1(15.8%)In the energy-related business, net sales and operating profit increased due to expansion in sales increase ofcoal and nuclear energy-related products.
In the “E-waste” (used electronics and electric products) recycling business, both net sales and operating
profit increased with a rise in the recycling unit cost of valuable, in addition to continued firmness in–4–

recycling volumes.
Total net sales and operating profit in the Others business excluding the energy-related business and the“E-waste” (used electronics and electric products) recycling business increased.
As a result, overall the Others business posted year-on-year increases in net sales and operating profit.
Ordinary income increased due to the rise in operating profit despite increase in equity in losses of affiliates.
3) Outlook for the year ending March 31, 2019
Although the U.S. economy is expected to grow steadily, the future of the global economy is uncertain,reflecting concern over the political situation in the Korean Peninsula, a downturn in the Chinese economy,
and the political trends in Europe and the United States.
We believe the Japanese economy will continue its modest recovery, buoyed by improvements in theemployment and income conditions, but recognize that there may be a downside risk due to overseas politicaland economic trends.
Turning to the Group’s operating environment, the Japanese economy appears to be recovering on the back ofgrowth in exports, etc. However, the recent yen appreciation, rising energy prices and worsening labor
shortages give cause for concern.
Against this backdrop, the Group will implement measures such as to strengthen the group governanceframework, including quality control outlined in “2. Management Policies.”
For the fiscal year ending March 31, 2019, our consolidated operating performance forecasts predict net salesof ¥1,660.0 billion, operating profit of ¥67.0 billion, ordinary income of ¥79.0 billion and net income
attributable to owners of parent of ¥35.0 billion on the assumption of average exchange rates of ¥107/USD
and ¥130/EUR and a copper price of 310¢/lb.

(2) Overview of financial position
Total assets at the end of the consolidated fiscal year under review stood at ¥2,015.0 billion, up ¥118.1 billion
from the end of the previous consolidated fiscal year. This result was mainly due to an increase in inventories.
Total liabilities were ¥1,246.5 billion, an increase of ¥59.8 billion from the end of the previous consolidated
fiscal year. This was mainly due to an increase in notes and accounts payable-trade.
The cash flows during the consolidated fiscal year under review and their causes are as follows.
(Cash flow from operating activities)
Net cash provided by operating activities amounted to ¥50.7 billion (a decrease in net cash provided of ¥64.8
billion). This fall was primarily due to an increase in inventories despite strong business results.
(Cash flow from investing activities)
Net cash used in investing activities totaled ¥83.9 billion (an increase in net cash used of ¥57.4 billion from theprevious fiscal year). This cash was primarily used for outlays related to capital expenditure(Cash flow from financing activities)
Together operating and investing activities produced a net outflow of ¥33.2 billion and the Company raised
these funds through borrowing and the issuance of bonds but also applied some funds to the repayment oflong-term loans payable. Accordingly, net cash used in financing activities was ¥11.0 billion (a decrease in net
cash used of ¥4.6 billion).
As a result of the above, as well as effect of exchange rate change and other factors, the balance of cash andcash equivalents at March 31, 2018 stood at ¥87.3 billion, down ¥45.2 billion from March 31, 2017.

–5–

Below is a summary of the major cash flow indicators.
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
Shareholders’ equity ratio (%)
25.7
29.0
31.0
32.8
33.9
Shareholders’ equity ratio on a
21.6
27.9
23.2
23.3
20.8
market-value basis (%)
Ratio of interest-bearing debt to
6.5
6.0
4.6
4.7
10.6
cash flow
Interest coverage ratio
10.2
12.9
16.5
23.3
10.0
Shareholders’ equity ratio:
Shareholders’ equity / Total assets
Shareholders’ equity ratio on a market-value basis: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flow:
Interest-bearing debt / Cash flow
Interest coverage ratio:
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 sharesissued and outstanding at year-end (after deducting Treasury share).
(Note 3) Cash flow is based on the cash flow from operating activities in the Consolidated Statements ofCash 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 for the current and next fiscal years
Based on its Articles of Incorporation, the Company is to distribute surpluses following resolutions at Board of
Directors meetings. We regard the distribution of profits to shareholders as one of our most important priorities.
Accordingly, our policy is to make decisions on profit appropriation based on comprehensive consideration ofvarious factors related to overall management, such as income over the relevant period, retained earnings, andfinancial position.
During the period of the Medium-Term Management Strategy, from FY2018 to FY2020, the Company isemphasizing the distribution of consecutive dividends even if the Company’s performance is changed. The
Company will pay annual dividends 80 yen per share during the FY2018-2020 period. If the consolidated
dividend payout ratio is lower than 25%, however, the Company will temporarily increase the dividend orpurchase treasury stock.
Based on this policy, the Board of Directors, at its meeting on May 10, 2018, decided to distribute a year-end
dividend of ¥50, which, combined with the interim dividend of ¥30, brings the annual dividend for the fiscal
year under review to ¥80 yen per share. Taking the share consolidation conducted on October 1, 2016 into
consideration, the dividend for the previous consolidated fiscal year is equivalent to ¥60, which means that thedividend for the fiscal year under review of ¥80 represents an increase of ¥20 per share compared to this.
The Company plans to pay a dividend of ¥80 per share (¥40 interim dividend and ¥40 year-end dividend) for
the fiscal year ending March 31, 2019.

(4) Business and other risks
Because the Group, as stated in “4. Consolidated Financial Statements, Segment Information,” is engaged in a
broad variety of business activities, its business results and financial position are influenced by all kinds offactors such as political affairs, economy, weather, market conditions, currency movements, and laws andordinances, both inside and outside the country. Listed below are factors that may have a particularly
substantial impact on the Group.
Please note that although the matters listed in this section contain items related to the future, these items havebeen chosen as of May 10, 2018.

–6–1) Corporate reorganization
The Group is always engaged in selection and concentration of its various businesses, actively investing
management resources in businesses with high profitability, while at the same time actively conducting
revisions, reorganizations, and restructuring of its businesses, always ready to consider possibilities regarding
collaboration with other companies. The business results and financial position of the Group may be
influenced by this process.
2) Market and customer trends
The Group provides products and services to all kinds of industries, and factors such as changes of theconditions of the world economy, rapid changes in customers’ markets, changes in customers’ market share,
and changes in customers’ business strategies or product development trends may influence the sales of the
products of the Group. Especially the automobile industry and IT-related industry are exposed to intensecompetition in the area of prices and technical development, and while the Group takes every precaution
endeavoring to reduce the costs and develop new products and technologies, in cases where we cannot
appropriately respond to the changes in industries and customers’ markets, the business results of the Groupmay 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 denominatedin foreign 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 thearea of inventories, there is the risk of rates for nonferrous metals and exchange fluctuation influencing thematerial costs in the 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 rate, 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 thebusiness results and financial position of the Group may be influenced by conditions of the semiconductor
market.
5) Interest-bearing debt
In the term ended March 31, 2018, the interest-bearing debt of the Group of ¥521.4 billion (which is the sum
total of short-term loans payable, current portion of bonds payable, bonds payable, and long-term loans
payable; same below if there are no explanatory notes) accounts for 25.9% of the total assets. Although weare making efforts to improve the financial position by reducing inventories, asset sales, etc., the futurefinancial situation may affect the business results and financial position of the Group.
6) Guaranty of liabilities
In the term ended March 31, 2018, the Group has undertaken ¥21.0 billion guaranty of liabilities 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, thismay affect business results and financial position of the Group.

–7–7) Fluctuations of the market value of assets
The business results and financial position of the Group may be influenced by fluctuations in the market
value of securities, land, and other assets possessed.
8) Retirement benefit expenses and obligations
Employees’ retirement benefit expenses and obligations are calculated based on assumptions and conditions
mainly derived from actuarial calculations. In setting these assumptions and conditions, we take into
consideration employees’ average remaining length of service, long-term interest on the Japanese
government bonds, as well as the status of pension assets including shares contributed to trust funds, butlosses caused by declines in the discount rate or operations with pension assets may affect the future
expenses and obligations posted by the Group.
9) Environmental regulations, etc.
In each business establishment in and outside the country, the Group makes efforts to control pollution,
including air pollution, waste water pollution, soil pollution, and groundwater pollution, in accordance withenvironmental 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 the dumps in accordance with the Mine Safety Act. However, in cases where related laws arerevised or permissible greenhouse gas emission volumes are limited, the Group may need to bear new
expenses.
10) Overseas operations, etc.
The Group has production bases, sales bases, and other bases in 31 countries and regions abroad and foreign
sales account for 45.9% of its consolidated net sales. Business results and financial position of the Groupmay 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 ofmanagement policies of local cooperators and partners.
11) Intellectual property rights
The Group fully recognizes the importance of intellectual property rights and makes efforts to protect them,but in cases where the measures to protect the same are insufficient, or in cases where our rights are illegally
infringed on, this may affect the business results and financial position of the Group. At the same time,
although the Group handles the intellectual property rights held by other companies with the greatest possiblecare, in cases where it is established that we have infringed on the intellectual property rights held by othercompanies and have to pay liabilities, such as compensation for damages, this may also affect the businessresults and financial position of the Group.
12) Quality of the products
The Group takes all possible measures regarding quality control, striving to provide our customers productsof high quality. However, in cases where due to unforeseen circumstances we need to conduct a large-scale
recall, this may affect the business results and financial position of the Group.
13) Occupational health and safety, equipment accidents, etc.
The Group takes thoroughgoing measures to prevent occupational accidents and incidents involving
production machinery. Our efforts span both intangible aspects such as management frameworks foroccupational health, safety, security and accident prevention, and tangible approaches such as operational and–8–maintenance management and improving the safety of equipment. In the event of a major accident at work or
an accident to the equipment, this may affect business results and financial position of the Group.
14) Management of information
The Group strives to ensure thoroughness in the management of information, including the handling of
personal information, but in cases where a leak of information or some other accident to information occurs,
damage to our reputation in society or other factors may affect the business results and financial position of
the Group.
15) Lawsuits, etc.
The business results and financial position of the group may be influenced by rulings, amicable settlements,
verdicts, etc. related to lawsuits, disputes, and other legal procedures, in which the Group is one of the parties
concerned at present, or will be one of the parties concerned in the future in relation to the businessconducted by the Group presently or in the past within the country or in foreign countries.
16) Procurement of electricity
The business results and financial position of the Group may be influenced by increases in the prices forelectricity resulting from such factors as cost increases of imported fossil fuels due to the suspension ofoperation of nuclear power stations and increases in charges for renewable energy.
17) Response to the matters concerning Non-Conforming Products
In November 2017, the Company announced that the Company’s consolidated subsidiaries Mitsubishi Cable
Industries, Ltd. and Mitsubishi Shindoh Co., Ltd. had delivered products, etc. that deviated from customer
standards or internal company specifications due to misconduct, including the rewriting of inspection records
data, concerning some of the products manufactured and sold in the past, and in February 2018, the Company
announced that the Company’s consolidated subsidiaries Mitsubishi Aluminum Co., Ltd., Tachibana Metal
Manufacturing Co., Ltd., and Diamet Corporation were likewise involved in a similar incident (collectively,
the “Incident”). The Company has been taking action, including explanations to customers by each company
and confirmation of safety, and the Company has also been conducting extraordinary quality audits of all of
the Group’s manufacturing locations and checking that there are no quality issues at other locations.
The Company established a Special Investigation Committee, the majority of which consists of external
directors and outside experts, on December 1, 2017. The Committee investigated the facts and root causes of
the Incident and issued its final report to the Company’s Board of Directors on March 28, 2018.
Extraordinary quality audits were completed on May 8, 2018. In cases where matters with quality control
methods, etc. were identified in the audits, corrective action has been taken. No cases in which there werematters with product quality were identified.
The Company is providing direction and supervision to each company in order to achieve early completion of
the task of confirming the safety of products that have already delivered and, with the cooperation of its
customers, it will continue to make every effort to resolve quality issues.
In light of the facts and issues uncovered, the Company formulated and began to implement the measures(the “Measures”) sequentially, to enhance the Group governance framework including quality control. The
Special Investigation Committee has expressed the opinion that these measures are appropriate as measuresin response to the Incident.
In addition, the “Committee for Monitoring of Measures to Enhance Governance” consisting of external
directors and outside experts was established on May 10, 2018, for the purpose of supervising the progress,
results and operations of the Measures, etc. from a position that is independent from the business execution–9–

of the Company, and providing necessary advice and proposals to the Board of Directors with respect toissues and others.
Moreover, the Company decided to establish the “Committee for Nomination and Compensation,” themajority of whose members are external directors, on June 22, 2018, to guarantee the transparency andobjectivity of judgment on the election and removal of directors and executive officers of the Company andjudgement of remuneration by the Board of Directors.
Depending on the future progress of the Incident, the business results and financial position of the Group may
be affected due to the impact of the loss of trust or changes in orders received on sales activities or theoccurrence of losses, including expenses necessary to strengthen the quality control framework and the costof compensation for customers, etc.
* For details of the Measures, please see “1) Measures to Enhance the Group Governance Framework Including Quality Control” in “(2)Target Management Indicators and Medium- to Long-term Management Strategy and Issues to Be Addressed” under “2. Management
Policies.

18) Other matters
In addition to the above, the business results and financial position of the Group may be influenced bychanges in trade practices, terrorist attacks, wars, epidemics, earthquakes, flood and other natural disasters,
and other unexpected circumstances.

– 10 –

2. Management Policies(1) Basic Policy for the Group Management
The vision of the Group is “We will become the leading business group committed to creating a sustainable
world through materials innovation, with the use of our unique and distinctive technologies, for People,
Society and the Earth.” based on a corporate philosophy of “for People, Society and the Earth.”(2) Target Management Indicators and Medium- to Long-term Management Strategy and Issues
to Be Addressed
The Group will pursue a number of measures based on the Long-Term Management Policy, which looks ahead
10 years, and the Medium-Term Management Strategy for FY2018-FY2020, starting with initiatives toenhance the group governance framework including quality control.
1) Measures to Enhance the Group Governance Framework Including Quality Control
In November 2017, the Company announced that the Company’s consolidated subsidiaries Mitsubishi Cable
Industries, Ltd. and Mitsubishi Shindoh Co., Ltd. had delivered products, etc. that deviated from customer
standards or internal company specifications due to misconduct, including the rewriting of data, concerningsome of the products manufactured and sold in the past, and in February 2018, the Company announced that
the Company’s consolidated subsidiaries Mitsubishi Aluminum Co., Ltd., Tachibana Metal ManufacturingCo., Ltd., and Diamet Corporation were likewise involved in a similar incident (collectively, the “Incident”).
The Company has been taking action, including explanations to customers by each company andconfirmation of safety, and the Company has also been conducting extraordinary quality audits of all of theGroup’s manufacturing locations and checking that there are no quality issues at other locations.
The Company established a Special Investigation Committee, the majority of which consists of external
directors and outside experts, on December 1, 2017. The Committee investigated the facts and root causes of
the Incident and issued its final report to the Company’s Board of Directors on March 28, 2018.
Extraordinary quality audits were completed on May 8, 2018. In cases where matters with quality control
methods, etc. were identified in the audits, corrective action has been taken. No cases in which there werematters with product quality were identified.
The Company is providing direction and supervision to each company in order to achieve early completion of
the task of confirming the safety of products that have already delivered and, with the cooperation of its
customers, it will continue to make every effort to resolve quality issues.
In light of the facts and issues uncovered, the Company formulated and began to implement the measures(the “Measures”) sequentially, to enhance the Group governance framework including quality control. The
Special Investigation Committee has expressed the opinion that these measures are appropriate as measuresin response to the Incident.
In addition, the “Committee for Monitoring of Measures to Enhance Governance” consisting of external
directors and outside experts was established on May 10, 2018, for the purpose of supervising the progress,
results and operations of the Measures, etc. from a position that is independent from the business executionof the Company, and providing necessary advice and proposals to the Board of Directors with respect toissues and others.
Moreover, the Company decided to establish the “Committee for Nomination and Compensation,” themajority of whose members are external directors, on June 22, 2018, to guarantee the transparency andobjectivity of judgment on the election and removal of directors and executive officers of the Company andjudgement of remuneration by the Board of Directors.

– 11 –

(i) Restructuring Measures of the Group Governance Framework for Quality Control
The Group is implementing the following measures sequentially in regards to the governance framework for
quality control announced on December 2017.
A) Implementation of a Front Loading System for Order Receiving
Currently, we are planning to implement a system (a Front Loading System) for making decisions on
specifications and receiving orders after considering whether the order can be accepted taking into accountmanufacturing capability at various department within the business division including development anddesign, manufacturing, inspections and sales.
Currently, according to the new guidelines for the front loading system, each business is installing the frontloading system. Some businesses have begun considering of products in new orders at receiving orders,
based on the guidelines.
B) Enhancement of the Framework and Authority of the Quality Control Department
Under the leadership of the Quality Management Dept. which was established in December 2017, thequality management system of each business is being investigated. By the end of July 2018, a draft policy
for the improvements required of each business will be formulated to enable those improvements.
C) Expansion of Quality Training
We will expand quality training aiming to have our group employees at all levels and in all areas understandthe importance of quality and what should be done to maintain and improve quality. We will use theIncident in this training.
After April 2018, training of quality management personnel of the Group (about 300 persons) will be
provided by inviting outside experts, and a meeting will be held for personnel responsible for quality in theGroup. In addition, a new handbook for quality management will be developed and used for training andother purposes.
D) Promoting Automated Inspection Equipment
For all product inspection data, from when it is obtained during the manufacturing process though the final
inspections, by promoting initiatives such as automating acquisition of inspection data, we will aim toestablish a system that will prevent misconduct, including the rewriting of data, and will establish a systemthat allows for more accurate and prompt confirmation that inspection data is consistent with customer
specifications.
Currently, the locations where the Incident occurred are installing equipment for automated processing assoon as it is ready and some locations have already started operating the equipment. In addition, the detailsof the process to install the equipment for automated processing for the entire Group are being discussed.
We will formulate a three-year plan to be prepared for this installation.
E) Enhancement of Quality Audits
With the Quality Management Department and Internal Audit Department in the Governance Division
taking the lead, we will implement the following measures, etc.:
a. Improving the independence of our group’s internal audit departments and strengthening their authority;b. Increasing internal audit staff and increasing the frequency of audits;c. Training human resources to become experts in quality audits;
d. Applying audit methods for the prevention of misconduct;e. Enhancing coordination among the Company’s Internal Audit Department and the internal audit
departments of our subsidiaries and associates; and– 12 –

f. Improving internal audit operations with the use of IT
During FY 2019, quality audits will be conducted, covering about 70 locations in Japan and overseas.
F) Utilization of Outside Consultant
In order to introduce third party perspective in quality control, we will utilize outside consultants on an
ongoing basis specializing in quality control matters. Since January 2018, outside consultants have visited
locations where the Incident occurred and provided guidance and advice on quality management andassurance. The number of locations these consultants visit will be increased in the future to prevent
complacency in the Group’s quality management activities and to firmly establish effective quality
management activities.
(ii) Group Governance Framework Enhancement Measures
The Company considers further enhancement of the Group governance framework is necessary after it
became clear that the background and root causes of the Incident include the fact that recognition of quality
and issues of corporate culture and risk information was not grasped and reported in a timely and appropriatemanner and that issues were not discovered in the internal audit. Therefore, the Company is implementing thefollowing measures sequentially.
A) Enhancement of Framework for Discussion, Reporting and Follow-up of Governance-Related Matters
The Governance Deliberative Council, which was newly established in April 2018, have been held and thepolicy for addressing matters relating to the governance of the entire Group, the annual plan and the statusof the actions taken were discussed and shared. The measures decided at the meeting will be carried out ona group-wide basis.
In addition, the reporting system of the Company and its subsidiaries will be restructured and the Group’s
safety and health, CSR, environment, compliance, quality and other matters relating to governance will bemonitored regularly by the Board of Directors and the Corporate Strategy Committee of the Company.
B) Improvement of Functions of Management Divisions and its Collaboration with Operating Divisions
In order to improve administrative divisions’ control and support functions for governance-related matters,
the Company reorganized its structure as of April 1, 2018 and launched the Governance Division(comprising the CSR Department, Safety & Environment Dept., Quality Management Dept. and Internal
Audit Dept.)
In addition, the Company will specify departments and persons responsible for the promotion of
governance-related matters in each department within operating divisions, each business establishment, andeach subsidiary, with the aim of facilitating communication of information and to enhance the promotion
framework.
C) Improvement of Human Resources Training and Encouragement of Active Interaction
The Company will expand training regarding governance-related matters provided to the Group’s
management and other employees. In addition to promoting human resources interactions in the Group andendeavoring to deepen communication, the Company plans to provide human resources training throughout
the Group.
Since January 2018, there were total of four education sessions for Executive Officers of the Company,
Presidents of its subsidiaries and other management executives of the Group in matters to strengthen thegovernance framework, legal liability of directors and other related matters, resulting in 290 persons in total
attending the sessions.

– 13 –D) Internal Audit Strengthening
With respect to the Company’s internal audits of business establishments and subsidiaries, the frequency
and content of audits will be enhanced through cooperation with each department within the Governance
Division. The Company will also strengthen cooperation with the Corporate Auditor such as joint audits,
etc.
E) Studies with a Business Optimization Focus
When considering the Group’s business optimization, whether the governance framework can sufficiently
function is also one of the important decision-making criteria. On that basis, we will seek to achieve anappropriate business portfolio and management framework that match the Group’s governance capabilities.
The Company’s Audit & Supervisory Board has reported that it will implement the following measures for
improving the effectiveness of audits by Audit &Supervisory Board members, and the Company will make anecessary response to such efforts.
a. For subsidiaries having Standing Corporate Auditor, the members of the Audit & Supervisory Board
Member Assistance Dept. will concurrently serve as part-time Corporate Auditor of those subsidiaries
and cooperation between the Company’s Corporate Auditor and the Standing Corporate Auditor of thesubsidiaries will be enhanced.
b. For the subsidiaries having only part-time Corporate Auditor, information will be made known at an
early stage through the monthly report from those part-time Corporate Auditor to enable a response.
c. A new consultation contact method liaising directly with the Company’s Standing Audit & Supervisory
Board members will be established.
d. Enhancement cooperation by joint audits and other activities with the Internal Audit Dept., GovernanceDiv.
2) Long-term Management Policy
The businesses of the Group have set the Medium- to Long-Term Targets (the company in the future) and theGroup-wide Policy as the Long-Term Management Policy as described below, to realize the vision describedin the Basic Policy for the Group Management in (1) above.
<Medium- to Long-term Targets (the company in the future)>- Leading company in domestic and overseas key markets- Achieving high profitability and efficiency- Achieving growth that exceeds the market growth rate
<Group-wide Policy>- Optimization of business portfolio- Comprehensive efforts to increase business competitiveness- Creation of new products and businesses
3) Management Policies in the Medium-Term Management Strategy (for FY2018-FY2020)
In the Medium-Term Management Strategy, we will pursue the Group-Wide Policy set in the Long-termManagement Policy. To achieve a “accommodation to changes in the external environment” and the “Build astructure focusing on strategy,” which were the issues in the previous Medium-Term Management Plan, we
have made the shift from the “Medium-Term Management Plan” centering on financial plans in the past to
the “Medium-Term Management Strategy” focusing on the planning and implementation of growthstrategies.

– 14 –

(i) Optimization of business portfolio
The Company will classify its business into three categories: “stable growth business,” “growth promotion
business” and “profitability restructuring business,” and will promote selection and concentration andimprove capital efficiency after determining a direction geared to the characteristics of each business andclarifying any issues. Stable growth business consists of the Cement, Metals (smelting), Recycling andrenewable energy businesses, and in this category, the Company will aim to strengthen its businessfoundations by maintaining and improving cost competitiveness. Growth promotion business consists of theMetals (copper and copper alloy products) and Advanced materials & tools businesses, and here theCompany will seek business development in adjacent fields and global markets to outperform market growth.
Profitability restructuring business consists of the Electronic materials & components and Aluminumbusinesses. In this category, the Company will work promptly to solve issues and define the future directionof growth.
(ii) Comprehensive efforts to increase business competitivenessWe will improve and innovate “manufacturing” in the business divisions through the optimal use oftechnology management resources by enhancing the support system by the corporate divisions. With this, wewill make comprehensive efforts to increase our business competitiveness by promoting “Differentiation”
and “New development,” such as the development of new products and new manufacturing technologies, tobecome an entity that is one step ahead of other companies through early responses to changes in the businessenvironment.
(iii) Creation of new products and businesses
To foster businesses that will become a future revenue foundation and create new businesses, we will create
and foster new products and new businesses that will become the core for sustainable growth by positioning
important social needs the Company should meet are identified as “next-generation vehicles,” “internet ofthings (IoT) and artificial intelligence (AI),” and “building a rich, sustainable society.” The Company plans tocreate and develop new products and new businesses that are vital for sustainable development.
In addition, we will promote specific measures, with the following items as key strategies.
- Achieve growth through innovation- Create value by building a recycling-oriented society- Increase the company’s market presence through investment for growth- Increase efficiency through continuous improvement– 15 –

<Issues in each business>● Cement Business
In Japan, domestic demand for cement in FY2019 is expected to slightly exceed the year-earlier level and standat approximately 42.5 million tons, as while the construction of large projects including those related to theTokyo Olympic and Paralympic Games in 2020 and the linear Chuo Shinkansen (in some sections) are
expected to gain momentum, there is also concern over delays owing to labor shortages. In these circumstances,
we will strive to secure sales volumes by steadily taking in demand for cement for the large projects.
In the United States, the economy is expected to grow at a modest pace, buoyed by an improvement in theemployment situation and the impact of the Trump administration’s fiscal package, including tax cuts. Demandfor cement and ready-mixed concrete is also expected to remain firm, driven by rising demand in the private
housing and non-residential sectors. While rising labor costs and energy costs will be a factor affecting
profitability, we will pass cost increases on to customers as appropriate. We will also realize stable and efficient
operations at cement plants through renovations, reduce the cost of ready-mixed concrete production by
expanding production capacity and increasing the ratio of our own aggregates, and aim for further
improvement in profitability.
● Metals Business
The supply capacity of mines is not expected to be able to keep pace with rising demand for copper ore incountries such as China and India and purchasing conditions of copper ore are also expected to deteriorate.
While copper prices currently remain high, the existing supply-demand condition may change as a result of theconstruction of new smelters in China and India, and we will keep a close watch on the market trends going
forward, along with the foreign exchange and the stock market conditions.
In copper & copper alloy products, demand of products for automobiles and other products is expected toremain stable.
In this environment, we will continue to seek a shift toward a more solid structure less susceptible to pricefluctuations by lowering the breakeven point through a reduction in energy costs and fixed cost.
In copper smelting and refining, we will ensure earnings through measures such as endeavoring to achieve
stable operations at smelters in Japan and overseas and increasing the processing volume of E-Scrap. In copper& copper alloy products, we will continue to increase profitability by creating business synergy with MMC
Copper Products Oy, which was included in the scope of consolidation from the current fiscal year, and byenhancing sales competitiveness through the accelerated development of alloys, drawing on our technologicaland development capabilities.
● Advanced Materials & Tools Business
As in FY2018, market conditions for cemented carbide products are expected to be favorable in FY2019.
Under these conditions, we will conduct effective sales operations, focusing on industries and regions withhigh growth potential. In particular, we will prioritize the investment of our management resources in theaerospace industry, which is in the growth stages, and seek to strengthen manufacturing, R&D and sales
functions. In the area of cutting tools, we have launched and begun marketing two brands DIAEDGE(Mitsubishi Materials Corporation) and MOLDINO (Mitsubishi Hitachi Tool Engineering, Ltd.). Under thesebrands, we will work on providing customer-oriented solutions that will build customer trust as a true partner.
Regarding the sourcing of key materials, tungsten and cobalt, we will continue working to reduce sourcing
risks by improving the recycling ratio and diversifying procurement sources.
Turning to the high-performance alloy products, we expect demand for our mainstay sintering parts to remain
firm in the automobile industry, as in FY2018. The Group will continue working to increase earnings byenhancing quality and productivity.

– 16 –

● Electronic Materials & Components BusinessIn the advanced materials and chemical products, sales of products related to semiconductor manufacturing
equipment are expected to remain firm. In addition, demand of products for power modules for next-generation
vehicles and chemical products used in glass is also expected to increase. We will strive to enhance
profitability by using our core technological capabilities and strengthening our sales competitiveness and ourability to make proposals to customers, always remaining a step ahead of customers’ needs in each market.
In the electronic components, sales of products for home appliances, especially air conditioning andrefrigerators, are strong. We will work to strengthen our production system to meet growing demand and will
also accelerate the development of temperature sensors for automotive for which the market is expected to
expand in the future and aim for their early launch to the market. Meanwhile, we will continue working tostrengthen our business structure by introducing new products quickly and continuing to reduce costs.
In the polycrystalline silicon, business environment is expected to face difficult conditions. However, we will
make efforts for further improvement quality and reducing costs to establish the stable business foundation,
while top priority will be placed on safety and stable operation to supply high quality products in a timely
manner in response to the changing environment.
● Aluminum BusinessIn the aluminum beverage cans, we will endeavor to maintain and increase competitiveness with seeking toachieve stable orders for regular cans and expand sales of aluminum bottle cans, our strategic products, anddevelop and launch cans with new shapes. In addition, we will promote to consider overseas businessexpansion, while further promote the advantageous procurement of raw materials, stable product quality andcost reduction.
In the rolled and processed aluminum products, sales of heat exchange sheet materials for automobiles andproducts for electronic materials are expected to remain strong. Under these circumstances, we will makeefforts to strengthen quality control, develop high value-added products and increase customer satisfaction. In
addition, establishment of new manufacturing locations for products for automobiles, demand for which is
expected to increase overseas, will be considered for sales expansion.

3. Basic Concept of Selection of Accounting Standards
The Group’s policy is to prepare its consolidated financial statements in accordance with Japanese AccountingStandards for the time being, taking into consideration the comparability of consolidated financial statements
between different accounting periods and against different companies.
We plan to act appropriately in adopting International Financial Reporting Standards (IFRS), taking various
circumstances into consideration.

– 17 –

4. Consolidated Financial Statements(1) Consolidated balance sheet
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Gold receivable
OthersAllowance for doubtful accounts(Million yen)
As of March 31, 2018

141,264
213,343
85,878
101,643
100,757
9,375
110,458
107,284(2,537)

93,389260,427
91,772132,043
142,275
9,068
88,862
138,824(2,518)867,469

954,146

Non-current assets
Property, plant and equipment
Buildings and improvements, net
Machinery, equipment and vehicles, net
Land, net
Construction in progress
Other, net

154,828
213,586
260,805
23,091
13,914

153,490
217,620
236,709
23,105
14,632

Total property, plant and equipment

666,226

645,559

43,43615,13844,636
19,93858,57464,574

252,067
393
26,42531,332(5,549)303,924449
17,91432,813(4,297)

304,669

350,804

1,029,470

1,060,938

1,896,939

2,015,084

Total current assets

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets– 18 –

As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Gold payable
Provision for loss on disposal of inventories
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Provision for directors' retirement benefits
Provision for loss on business of subsidiaries andassociates
Provision for environmental measures
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other(Million yen)
As of March 31, 2018

114,502203,819
15,00016,154352
12,880241,406
637
101,910

158,369
206,142
25,0009,151
79
13,228
246,227783
118,097

706,665

777,080

55,000254,4111,365

50,000240,292
1,384

4,137

986

32,56823,52625,59056,03727,44337,83340,03924,162
51,647
23,162

480,079

469,508

1,186,744

1,246,589

119,457
92,422
333,526(2,017)

119,457
92,422
361,430(2,089)543,390571,222

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

55,226888
34,930(1,418)(11,735)

95,487
1,068
33,071(10,312)(8,066)

Total accumulated other comprehensive income

77,891

111,249

88,91386,023

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets– 19 –

710,195

768,495

1,896,939

2,015,084

(2) Consolidated statement of income and consolidated statements of comprehensive income
Consolidated statement of income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Rent income on non-current assets
Share of profit of entities accounted for using equity
methodOther
Total non-operating profit
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodLoss on retirement of non-current assets
Rent expenses on non-current assets
Settlement expenses of remaining business in mines
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance income
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Provision for environmental measures
Loss on non-conforming products
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

Year Ended March 31, 2017
(Apr. 1, 2016–Mar. 31, 2017)
1,304,068
1,104,402
199,665
139,904
59,761– 20 –

Year Ended March 31, 2018
(Apr. 1, 2017–Mar. 31, 2018)
1,599,533
1,379,877
219,655
146,835
72,819587
14,692
4,863

812
19,447
4,866

1

–

2,666
22,811

2,657
27,784

4,922

5,058

–

1,336

4,076
3,061
3,565
3,020
18,64663,925

4,494
2,867
4,098
3,127
20,982
79,621

16,545
19,0722,400
503
38,522

6,760
5,667
–
1,752
14,1799,977
23,912
–
5,049
3,924
42,86359,584
24,594(583)
24,01135,5737,220
28,352

11,035
9,092
3,202
400
2,291
26,02367,777
18,941
4,698
23,63944,137
9,542
34,595

Consolidated statements of comprehensive income(Million yen)
Year Ended March 31, 2017
(Apr. 1, 2016–Mar. 31, 2017)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of profit of entities accounted for using equity
methodTotal other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests– 21 –

Year Ended March 31, 2018
(Apr. 1, 2017–Mar. 31, 2018)35,573

44,13733,676635–(6,009)4,758

40,535490(147)(9,165)
3,578

88

637

33,15035,93068,72380,06862,77773,000

5,946

7,067

(3) Consolidated statement of changes in equity
Year Ended March 31, 2017 (Apr. 1, 2016–Mar. 31, 2017)(Million yen)
Shareholders’ equity

Capital stock
Balance at beginning of current
periodChanges of items during period
Dividends of surplus
Net income attributable toowners of parent
Reversal of revaluation
reserve for land
Increase associated withchange in accounting periodof consolidated subsidiaries
Increase associated with theincrease in number ofconsolidated subsidiaries
Increase associated with thedecrease in number of equity
method affiliates
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity

Capital surplus

Retained earnings

92,266

303,026

119,457

Treasury share

Total shareholders’equity(1,953)

512,797(9,170)(9,170)28,35228,352(1,165)(1,165)

127

127

12,355

12,355
(65)
2

(0)

(65)
1

157

–
119,457

Total changes of items during period

Balance at end of current period

157

156
92,42230,499333,526(63)(2,017)30,592
543,390

Accumulated other comprehensive income
Valuation
Deferred
Revaluationdifference on
gains or losses reserve foravailable-foron hedges
landsale securities

Balance at beginning of current
periodChanges of items during period
Dividends of surplus
Net income attributable toowners of parent
Reversal of revaluation
reserve for land
Increase associated withchange in accounting periodof consolidated subsidiaries
Increase associated with theincrease in number ofconsolidated subsidiaries
Increase associated with thedecrease in number of equity
method affiliates
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during period

Balance at end of current period

21,645(199)

34,282Foreigncurrencytranslation
adjustment

3,647

Total
NonRemeasureaccumulated controllingments ofother
definedinterests
comprehensive
benefit plansincome(16,946)

42,43089,789Total net
assets645,017(9,170)28,352(1,165)

127

12,355(65)
1
157
33,581

1,087

647(5,066)

5,211

35,460(876)

34,58433,581
55,226

1,087
888

647
34,930(5,066)(1,418)5,211(11,735)

35,46077,891(876)
88,91365,177710,195– 22 –

Year Ended March 31, 2018 (Apr. 1, 2017–Mar. 31, 2018)(Million yen)
Shareholders’ equity

Capital stock
Balance at beginning of current
periodChanges of items during period
Dividends of surplus
Net income attributable toowners of parent
Reversal of revaluation
reserve for land
Increase associated withchange in accounting periodof consolidated subsidiaries
Increase associated with theincrease in number ofconsolidated subsidiaries
Increase associated with thedecrease in number of equity
method affiliates
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity

Capital surplus

Retained earnings

92,422

333,526

119,457

Treasury share

Total shareholders’equity(2,017)543,390(9,168)(9,168)34,59534,595

1,711

1,711

83

83

681

681

(72)
0

(0)

(72)
0

(0)

(0)
92,422

Total changes of items during period

Balance at end of current period(0)119,457

27,903
361,430(71)(2,089)27,831
571,222

Accumulated other comprehensive income
Valuation
Deferred
Revaluationdifference on
gains or losses reserve foravailable-foron hedges
landsale securities

Balance at beginning of current
periodChanges of items during period
Dividends of surplus
Net income attributable toowners of parent
Reversal of revaluation
reserve for land
Increase associated withchange in accounting periodof consolidated subsidiaries
Increase associated with theincrease in number ofconsolidated subsidiaries
Increase associated with thedecrease in number of equity
method affiliates
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during period

Balance at end of current period

55,226888

34,930Foreigncurrencytranslation
adjustment(1,418)

Total
NonRemeasureaccumulated controllingments ofother
definedinterests
comprehensive
benefit plansincome(11,735)

77,891

88,913

Total net
assets710,195(9,168)34,595
1,711
83

681

(72)
0
(0)
40,260180(1,858)(8,894)

3,669

33,358(2,889)30,46840,26095,487180
1,068(1,858)33,071(8,894)(10,312)

3,669(8,066)33,358111,249(2,889)86,02358,300768,495– 23 –

(4) Consolidated statement of cash flows
Year Ended March 31, 2017
(Apr. 1, 2016–Mar. 31, 2017)
Cash flow from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on business of
subsidiaries and associates
Increase (decrease) in provision for environmental
measures
Increase (decrease) in net defined benefit liability anddirectors' retirement benefits
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Impairment loss
Loss on non-conforming products
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Proceeds from sales of gold bullion
Purchase of gold bullion
Decrease (increase) in other 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 non-current liabilities
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Loss on non-conforming products paid
Net cash provided by (used in) operating activities– 24 –(Million yen)
Year Ended March 31, 2018
(Apr. 1, 2017–Mar. 31, 2018)

59,58456,748
4,048

67,77757,025
4,395

(173)

(187)

3,021

23

19,210

5,265

(761)

(1,548)(15,279)
4,922(20,260)
5,058

(1)

1,336

(16,431)
4,076
9,977
–
(19,014)
5,049(6,368)4,494
11,0353,202(5,064)(736)

14,498(37,337)(32,982)
79,991(79,599)9,374(65,635)
119,985(99,460)(20,182)

8,818

34,764(2,202)
1,961
697
4,870
120,406
16,426(4,962)(16,317)–
115,552

2,853
7,010
(3,386)(1,247)62,811
22,043(5,057)(27,365)(1,716)50,715

(Million yen)
Year Ended March 31, 2017
(Apr. 1, 2016–Mar. 31, 2017)
Cash flow from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Proceeds from sales of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Payments for transfer of business
Proceeds from transfer of business
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flow from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Increase (decrease) in cash and cash equivalents resulting
from change in accounting period of consolidated
subsidiaries
Cash and cash equivalents at end of period– 25 –

Year Ended March 31, 2018
(Apr. 1, 2017–Mar. 31, 2018)(76,838)
24,359(1,283)(494)
32,915(2,224)0(71,494)
10,048(1,431)
(757)
7,168
(863)
0

–

(38,829)

–

273

2,157

14,903–
2,176(2,253)
128(5,199)(26,557)(1,541)–(6,202)
4,615
154(83,957)

11,15542,066(54,488)
30,000(25,100)(65)(9,170)(6,201)(3,899)(15,703)

20,98147,358(66,251)
20,000(15,000)(72)(9,168)(6,546)(2,334)(11,034)(55)(2,927)73,23758,482(47,204)
132,616

896

714

–

1,228

132,616

87,355

Segment Information[Segment Information]
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 review by the Board of Directors todetermine the allocation of management resources and evaluate business results.
The Company has adopted an internal-company structure, and each internal company and each businessdivision and department carry out their business activities by formulating comprehensive strategies in Japanand overseas for the products and services they handle.
Therefore, the Company consists of segments according to products and services based on the internal
companies and positions five businesses, namely “Cement,” “Metals,” “Advanced Materials & Tools,”“Electronic Materials & Components,” and “Aluminum” with high importance in the business divisions anddepartments as the reporting segments.
(2) Types of products and services belonging to each reporting segment
The main products in each business are as follows.
(i) Cement
Cement, cement-related products, ready-mixed concrete, aggregates(ii) Metals
Copper smelting and refining (copper, gold, silver, sulfuric acid,etc.), copper & copper alloy products(iii) Advanced Materials & Tools
Cemented carbide products, high-performance alloy products(iv) Electronic Materials & Components Advanced materials, chemical products, electronic components,
polycrystalline silicon,(v) Aluminum
Aluminum beverage cans, rolled and processing aluminum products
2. Method of calculating the amounts of net sales, income and losses, assets, liabilities and other items for eachreporting segment
Figures for income in the reporting segments are based on ordinary income.
Internal revenues and transfers between segments are based on actual market prices.
(Change in the depreciation method of property, plant and equipment)
As the depreciation method applied to production facilities for electronic materials and components of theCompany and its consolidated subsidiaries in Japan, the declining balance method was mainly used, but themethod has been changed to the straight-line method from the consolidated fiscal year under review.
As a result of changing the depreciation method, segment income has increased ¥331 million in the
consolidated fiscal year under review, compared with the case in which the past method is used.

– 26 –

3. Information relating the amounts of net sales, income and losses, assets, liabilities and other items for eachreporting segment
Year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(Million yen)
AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

174,361

621,313

126,834

56,472(2) Within consolidated
group

3,205

8,157

16,581

Total

Amountreported in
Adjustment
consolidated
amountfinancialstatements

OthersTotal

154,017

171,069

1,304,068–

1,304,068

6,614

1,944

47,177

83,680(83,680)–
1,304,068

Net sales

177,566

629,470

143,415

63,087

155,962

218,246

1,387,748(83,680)

Segment income

20,52027,513

9,913

2,802

7,480

7,177

75,407(11,481)

63,925

Segment assets

345,604

685,941

212,347

134,817150,770

183,453

1,712,934

184,005

1,896,939

Segment liabilities

168,274

520,075

120,358

85,767

111,069

133,179

1,138,725

48,0181,186,744

Depreciation

11,463

16,041

11,873

3,442

7,323

3,706

53,851

2,896

56,748

Amortization of
goodwill

2,798

–

1,243

–

–

6

4,048

–

4,048

Other items

Interest income

93

340

21

163

13

323

956

(369)

587

Interest expenses

1,513

1,686

934

840

672

744

6,391

(1,469)4,922

Share of profit or lossof entities accounted
for using equity
method

914

357

158

1,293

118

(2,878)

(35)

36

1

Investment in equity
method affiliates

20,65314,143

5,922

1,768

840

10,94954,277(155)

54,122

Increase in property,
plant and equipment
and intangible assets

20,517

19,33914,719

2,946

8,658

4,185

70,367

5,318

75,685

Notes: 1. “Others” includes nuclear energy-related services, environmental and recycling-related business, real estatebusiness, and engineering-related services.
2. “Adjustment amount” of segment income of -¥11,481 million includes the elimination of intersegment transactionsof -¥44 million and corporate expenses of -¥11,436 million which are not distributed to the reporting segments.
Corporate expenses consist mainly of general and administrative expenses that do not belong to the reporting
segments, basic experiment and research expenses, and financial revenue and expenses.
3. “Adjustment amount” of segment assets of ¥184,005 million includes the elimination of intersegment transactionsof -¥31,781 million and corporate assets of ¥215,786 million which are not distributed to the reporting segments.
Corporate assets consist mainly of assets pertaining to the administrative divisions that do not belong to thereporting segment and assets for basic experiment and research.
4. “Adjustment amount” of segment liabilities of ¥48,018 million includes the elimination of intersegment
transactions of -¥26,673 million and corporate liabilities of ¥74,692 million which are not distributed to thereporting segments. Corporate liabilities consist mainly of liabilities pertaining to the administrative divisions that
do not belong to the reporting segment and liabilities in basic experiment and research.
5. “Adjustment amount” of the increase in property, plant and equipment and intangible assets of ¥5,318 million
consists mainly of capital expenditure of Central Research Institute.
6. Segment income has been adjusted together with ordinary income on the consolidated statements of income.

– 27 –

Year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Million yen)
AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

188,612853,615

149,635

64,535(2) Within consolidated
group

3,766

9,144

11,542

Total

Amountreported in
Adjustment
consolidated
amountfinancialstatements

OthersTotal

147,753

195,381

1,599,533–

1,599,533

8,927

834

54,122

88,337(88,337)–
1,599,533

Net sales

192,378862,759

161,177

73,462

148,588249,503

1,687,870(88,337)

Segment income

21,04436,263

16,808

4,595

3,025

8,312

90,049(10,428)

79,621

Segment assets

323,857

835,532

217,735

179,701

155,074

163,442

1,875,342

139,7412,015,084

Segment liabilities

150,384

652,683

118,773

101,859

113,318

106,939

1,243,959

2,629

1,246,589

Depreciation

11,533

17,420

11,227

2,646

7,401

3,663

53,893

3,131

57,025

Amortization of
goodwill

2,873

288

1,230

–

–

2

4,395

–

4,395

Other items

Interest income

80

540

41

245

16

329

1,253

(441)

812

Interest expenses

1,233

2,525

892

543

568

513

6,277

(1,218)

5,058

Share of profit or lossof entities accounted
for using equity
method

1,891

2,242

43

409

8

(5,940)(1,343)

7(1,336)

Investment in equity
method affiliates

21,56913,421

–

1,786

869

4,948

42,594(150)

42,444

Increase in property,
plant and equipment
and intangible assets

16,81822,037

16,516

4,125

7,343

5,106

71,948

4,283

76,231

Notes: 1. “Others” includes nuclear energy-related services, environmental and recycling-related business, real estatebusiness, and engineering-related services.
2. “Adjustment amount” of segment income of -¥10,428 million includes the elimination of intersegment transactionsof ¥2 million and corporate expenses of -¥10,431 million which are not distributed to the reporting segments.
Corporate expenses consist mainly of general and administrative expenses that do not belong to the reporting
segments, basic experiment and research expenses, and financial revenue and expenses.
3. “Adjustment amount” of segment assets of ¥139,741 million includes the elimination of intersegment transactionsof -¥32,459 million and corporate assets of ¥172,200 million which are not distributed to the reporting segments.
Corporate assets consist mainly of assets pertaining to the administrative divisions that do not belong to thereporting segment and assets for basic experiment and research.
4. “Adjustment amount” of segment liabilities of ¥2,629 million includes the elimination of intersegment transactionsof -¥31,417 million and corporate liabilities of ¥34,047 million which are not distributed to the reporting segments.
Corporate liabilities consist mainly of liabilities pertaining to the administrative divisions that do not belong to thereporting segment and liabilities in basic experiment and research.
5. “Adjustment amount” of the increase in property, plant and equipment and intangible assets of ¥4,283 million
consists mainly of capital expenditure of Central Research Institute.
6. Segment income has been adjusted together with ordinary income on the consolidated statements of income.

– 28 –

[Related information]
Year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)
1. Information by product and service
The note is omitted because the same information is disclosed in the Segment Information.
2. Information by region(1) Net sales
Japan(Million yen)

United States

752,169

133,646

EuropeAsia

37,851

366,916

Other
13,484(2) Property, plant and equipment
Japan

United States

538,516

86,544

Total
1,304,068(Million yen)

Europe

Asia

1,982

37,525

Other
1,656

Total
666,226

1. Categories of country and region are based on geographical proximity.
2. Main countries and regions belonging to categories other than the United States(1) Europe
Germany, the United Kingdom, Spain and France(2) Asia
Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong and Thailand(3) Other
Australia, Canada and Brazil

3. Information by main customer
The note is omitted because there is no customer who accounts for 10% or more of net sales in the
consolidated statement of income.
Year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)
1. Information by product and service
The note is omitted because the same information is disclosed in the Segment Information.
2. Information by region(1) Net salesJapan
865,373(Million yen)

United States
144,243

EuropeAsia

52,315

520,350

Other
17,250(2) Property, plant and equipment
Japan523,681

United States
80,496

Total
1,599,533(Million yen)

Europe

Asia

5,383

34,254

Other
1,742

Total
645,559

1. Categories of country and region are based on geographical proximity.
2. Main countries and regions belonging to categories other than the United States(1) Europe
Germany, the United Kingdom, Spain, France and Finland(2) Asia
Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong and Thailand(3) Other
Australia, Canada and Brazil

3. Information by main customer
The note is omitted because there is no customer who accounts for 10% or more of net sales in the
consolidated statement of income.

– 29 –

[Information relating to impairment losses of non-current assets by reporting segment]
Year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(Million yen)
CementImpairment
loss

AdvancedElectronic
Materials & Materials &Tools
Components

Metals

36

183

7,045

Aluminum–

1,699

OthersCorporate orGrand totalelimination

Total

519

9,484

493

9,977

(Note) Adjustment of impairment loss of ¥493 million consists mainly of the impairment loss of assets for rent.

Year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Million yen)
CementImpairment
loss

AdvancedElectronic
Materials & Materials &Tools
Components

Metals

31

171

4,785

Aluminum–

5,875

OthersCorporate orGrand totalelimination

Total

165

11,0296

11,035(Note) Adjustment of impairment loss of ¥6 million consists mainly of the impairment loss of idle assets.

[Information relating to amortization and unamortized balance of goodwill by reporting segment]
Year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(Million yen)
CementMetalsAdvancedElectronic
Materials & Materials &Tools
Components

Aluminum

OthersCorporate orGrand totalelimination

Total

Amortizationin the fiscal
year ended
March 31,
2017

2,798

–

1,243

–

–

6

4,048

–

4,048

Unamortizedbalance at theend of the
fiscal year
ended March
31, 2017

33,676

–

9,756

–

–

2

43,436–43,436

The amortization and the unamortized balance of negative goodwill arising from business combination, etc.
conducted before April 1, 2010 are as follows.
(Million yen)
CementAdvancedElectronic
Materials & Materials &Tools
Components

Metals

Aluminum

OthersCorporate orGrand totalelimination

Total

Amortizationin the fiscal
year ended
March 31,
2017

–

–

–

–

–

–

–

–

–

Unamortizedbalance at theend of the
fiscal year
ended March
31, 2017

–

2,221

–

–

–

–

2,221

–

2,221

– 30 –

Year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Million yen)
CementMetalsAdvancedElectronic
Materials & Materials &Tools
Components

Aluminum

OthersCorporate orGrand totalelimination

Total

Amortizationin the fiscal
year ended
March 31,
2018

2,873

288

1,230

–

–

2

4,395

–

4,395

Unamortizedbalance at theend of the
fiscal year
ended March
31, 2018

27,405

8,697

8,525

–

–

7

44,636–44,636

The amortization and the unamortized balance of negative goodwill arising from business combination, etc.
conducted before April 1, 2010 are as follows.
(Million yen)
CementAdvancedElectronic
Materials & Materials &Tools
Components

Metals

Aluminum

OthersCorporate orGrand totalelimination

Total

Amortizationin the fiscal
year ended
March 31,
2018

–

–

–

–

–

–

–

–

–

Unamortizedbalance at theend of the
fiscal year
ended March
31, 2018

–

2,221

–

–

–

–

2,221

–

2,221

– 31 –

Per-share Information

Net assets per share
Net income per share

Year ended March 31, 2017(from April 1, 2016
to March 31, 2017)
4,743.27 yen
216.44 yen

Year ended March 31, 2018(from April 1, 2017
to March 31, 2018)
5,211.20 yen
264.15 yen(Notes) 1. Diluted net income per share is not stated because there are no dilutive shares.
2. A consolidation of shares of the Company’s common stock at a 10:1 ratio was conducted, with aneffective date of October 1, 2016. Associated with this, net assets per share and net income per share
are calculated on the assumption that the consolidation of shares was conducted at the beginning of
the previous fiscal year.
3. The basis for the calculation of net income per share is as follows.
Year ended March 31, 2017
Year ended March 31, 2018(from April 1, 2016
(from April 1, 2017
to March 31, 2017)
to March 31, 2018)
Net income per share
Net income attributable to owners of parent
28,352
34,595(million yen)Amount not attributable to ordinary shareholders––(million yen)
Net income attributable to owners of parent
28,352
34,595pertaining to common stock (million yen)
Average number of shares issued during terms
130,993
130,972(thousand shares)– 32 –

Important Subsequent Events
Not applicable– 33 –