September 26, 2014
To All Concerned Parties:
Mitsubishi Materials Corporation
Hitachi Metals, Ltd.
Share purchase agreement for Hitachi Tool Engineering, Ltd.
Mitsubishi Materials Corporation (President: Hiroshi Yao; hereinafter referred to as“Mitsubishi Materials”) hereby announces that on September 26, 2014, Mitsubishi Materials
and Hitachi Metals, Ltd. (Chairman and CEO: Kazuyuki Konishi; hereinafter referred to as“Hitachi Metals”) consummated a share purchase contract and agreed to a transaction in which
Mitsubishi Materials will acquire 51% of the issued shares (hereinafter referred to as “theTransaction”) in Hitachi Tool Engineering, Ltd. (hereinafter referred to as “Hitachi Tool”), a
wholly-owned subsidiary of Hitachi Metals. The transaction is intended to strengthen the baseof the cemented carbide products (cutting tools) business at Mitsubishi Materials and HitachiMetals.
Please note that, after the Transaction, Hitachi Tool will become a consolidated subsidiary of
Mitsubishi Materials. Hitachi Metals will remain as a shareholder holding 49% of the issued
shares of Hitachi Tool. Mitsubishi Materials and Hitachi Metals will cooperate to manage
Hitachi Tool, working to create synergy and enhance corporate value.
Details
1. Purpose of the Transaction
The Advanced Materials & Tools Company of Mitsubishi Materials mainly conducts
manufacturing and sales of cemented carbide products required in the processing of metalparts used in automobiles, aircrafts and other industrial devices. As a comprehensive cemented
carbide product manufacturer that possesses an integrated supply chain ranging from raw
materials and finished products to recycling of used cemented carbide products, Mitsubishi
Materials utilizes its strengths of materials development and production technology to offer abroad lineup of cemented carbide products with outstanding abrasion resistance and chippingresistance. We supply these products to our customers through a solid sales network spanningmore than 60 countries throughout the world.
In the future, by expanding our overseas sales network and production bases centered indeveloping nations, Mitsubishi Materials will increase sales in automotives, aerospace andmedical fields for which sustained demand growth is forecasted on a global level. The target ofMitsubishi Materials is to capture a global share of 10% or more in the cemented carbide
products market.
On the other hand, Hitachi Metals conducts global business in the automotive, electronics,industrial infrastructure and aerospace fields as a manufacturer of highly functional materials
based on materials technology and development capability. Recently, actions for realizing a
low-carbon society are being implemented in countries and regions throughout the world.
Amidst such circumstances, in addition to concentrating its management resources inenvironment-friendly products and accelerating market entry, Hitachi Metals is working tostrengthen its corporate condition and ensure sustained growth. In particular, in its specialty
steel business, Hitachi Metals is working to enhance its business foundation for tool steelthrough unique materials technology and development capability. The company is also
expanding business by targeting aerospace and energy-related products as growth fields.
Based on its company philosophy of contributing to customers and society through development
technology, Hitachi Tool is a cemented carbide product manufacturer of advanced tools thatenable high-precision, high-efficiency and high-speed processing. In particular, based onstrengths in surface modification and shape technology, Hitachi Tool specializes in theprocessing of difficult-to-cut material and complicated shapes such as three-dimensional moldprocessing and parts for power-generation equipment and aerospace engine. Over a period ofmany years, Hitachi Tool has captured a high domestic market share in the field of complicatedshape processing by utilizing product development capability gained by making proposals andproviding solutions to customers. In the future, the company is seeking to expand its businessby enhancing overseas sales.
In recent years, materials used in the automotive, aerospace and medical fields are becoming
increasingly diverse and difficult to machine. For example, CFRP, titanium and super heat
resistant alloys are being used with the main goal of decreasing weight while increasing
functionality. Furthermore, in the automotive industry, it is necessary to use metallic molding
to realize shapes which are close to the final product. As a result, high-level quality andtechnical support is now essential for mold processing as well.
In the future, there will be even greater demand for cemented carbide products which are
optimal for processing of diverse material which have complicated shapes and are difficult tomachine. Therefore, in addition to expanding our lineup of high-performance and high-quality
products, there is also the need for high-level technical proposal capability related to theprocessing of diverse materials.
Amidst these circumstances, Mitsubishi Materials and Hitachi Metals seek to securecompetitive ability and quickly realize an enhanced business foundation in our respective main
fields of cemented carbide products and specialty steel. To achieve these goals, we havedetermined that it is essential to make mutual use of the management resources of Hitachi
Tool, a company which possesses unique capabilities in material and part processing with afocus on automotive, aerospace and energy-related fields.
2. Future Outlook
After purchase of shares based on the Transaction, Mitsubishi Materials will expand the lineupof advanced cemented carbide products by acquiring Hitachi Tool’s products which enablehigh-precision, high-efficiency and high-speed processing, as well Hitachi Tool’s proposal ability
for processing complicated shapes for a variety of materials. Through this expansion,
Mitsubishi Materials will supply a broader range of products and services for which long-term
market demand exists. Also, Mitsubishi Materials will solidify our business foundation byacquiring the No. 1 share in the domestic market for cemented carbide products. Furthermore,through synergy with Hitachi Tool, Mitsubishi Materials will capture a global share of 10% or
higher in the overseas market for cemented carbide products, a market in which demand isforecasted to increase.
Through joint management of Hitachi Tool with Mitsubishi Materials, Hitachi Metals will
expand its customer base by integrating not only with Hitachi Tool but also with the cemented

carbide products business of Mitsubishi Materials. Moreover, in high-grade special steel fields
such as tool steel and materials/products for the aerospace and energy industries, Hitachi
Metals will strengthen and expand its total solutions from material development tomanufacturing, processing and sales.
While continuing a partnership with the tool steel business of Hitachi Metals, Hitachi Tool will
accelerate its global expansion by utilizing the strengths of Mitsubishi Materials; namely,materials development and production technology for cemented carbide products, as well as avast global sales network. Furthermore, Hitachi Tool’s raw materials procurement will becomplemented by Mitsubishi Material’s integrated supply chain and recycle network, whichspans from raw material to finished products. Therefore, Hitachi Tool will further strengthen
its business foundation for cemented carbide products.
Through joint management of Hitachi Tool, Mitsubishi Materials and Hitachi Metals will
construct a “win-win-win” relationship by exerting the strengths of each company while
utilizing each other’s management resources. We shall strive to become a trusted “best partner”
to our customers.
3. Schedule(1) Execution date of share
September 26, 2014
purchase agreement(2) Effective date of theApril 1, 2015 (scheduled)Transaction**Note: The effective date of the Transaction is scheduled for April 1, 2015, pending
necessary preparations for the Antimonopoly Act in Japan, competition laws in China,
competition laws in Europe, and competition laws in the United States.
4. Impact on Future Business Performance
As a result of the share purchase agreement, Hitachi Tool will become a consolidated subsidiaryof Mitsubishi Metals. However, since the effective date of the Transaction is scheduled for April
1, 2015, there is no impact on the consolidated business performance of Mitsubishi Materials
and Hitachi Metals for the period ending March 31, 2015.
5. Overview of Companies Involved in the Transaction(1) Company name
Hitachi Tool Engineering, Ltd.
(2) Location
1-2-1 Shibaura, Minato-ku, Tokyo(3) Name and title ofHirokazu Tanaka, President and Representative Director
representative
Manufacturing and sales of tips, cutting tools, wear-resistant(4) Business fields
products, tools for urban development, and various machine
tools made of specialty steels, carbide alloys etc.
(5) Capital
1,455 million yen(6) Established
September 23, 1933
(7) Major shareholders
Hitachi Metals, Ltd.: 100%and shareholdingratio(8) Number ofemployees(9) Most recent businessresults(1) Company name(2) Location(3) Name and title ofrepresentative(4) Business fields(1) Company name(2) Location(3) Name and title ofrepresentative(4) Business fields

722 (As of March 31, 2014. Non-consolidated base.)
Net sales: 18,966 million yen
Ordinary income: 3,430 million yen (Results for FY2013. Simpleconsolidated base.)

Mitsubishi Materials Corporation
1-3-2 Otemachi, Chiyoda-ku, Tokyo
Hiroshi Yao, President and Chief Executive Officer
Manufacturing and sales of cement and cement-related products;
refining, processing and sales of copper, gold and silver;
manufacturing and sales of cemented carbide tools;
manufacturing and sales of electronic material and electroniccomponents; manufacturing and sales of aluminum cans forbeverage, rolled aluminum, and processed aluminum products

Hitachi Metals, Ltd.
1-2-1 Shibaura, Minato-ku, Tokyo
Kazuyuki Konishi, Chairman and Chief Executive Officer
Manufacture and marketing of high-grade metal products andmaterials, magnetic materials and applications, high-grade
functional components and equipment, wires, cables, and relatedproducts[Inquiries regarding this release]
Mitsubishi Materials Corporation
Corporate Communications & IR Dept., Corporate Strategy Div. TEL +81-3-5252-5206
Hitachi Metals, Ltd.
Corporate Communications Div.

TEL +81-3-5765-4079