Consolidated Financial Results for the Six Months Ended September 30, 2016
(Japanese Accounting Standards)
November 9, 2016
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:
Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
Scheduled filing date of Quarterly Report:
November 10, 2016
Scheduled date of start of dividend payment:
December 5, 2016
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results:
Yes (For Institutional Investors)(Amounts of less than million yen are omitted.)

1. Results of the first six months ended September 30, 2016 (From April 1, 2016 to September 30, 2016)(1) Results of Operations (cumulative)(Figures in percentages denote the year-on-year change.)
Net salesFirst six months ended September 30,
2016
First six months ended September 30,
2015

Operating profit

Net income
attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

603,137-15.0

27,320-24.5

26,026-33.2

29,555-35.4

709,564-5.5

36,195

6.3

38,976-2.7

45,76696.9

Six months ended September 30, 2016: -1,715 million yen (–%)
Six months ended September 30, 2015: 36,407 million yen (19.0%)(Note) Comprehensive income:Net income
per share

Diluted net income
per share
YenFirst six months ended September 30,
2016
First six months ended September 30,
2015

Yen

225.62–349.32–* 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) Financial Position
Total assets

As of September 30, 2016
As of March 31, 2016
(Reference) Shareholders’ Equity:

Shareholders’equity ratio

Net assets

Million yen

Million yen%

1,732,046
1,793,375

632,805
645,017

31.9
31.0

As of September 30, 2016: 552,716 million yen

As of March 31, 2016: 555,227 million yen

2. Dividend Payments
Dividends per share(Record date)

First quarter
Yen

Second quarter

Year ended March 31, 2016

–

5.00

Year ending March 31, 2017

–

2.00

Year ending March 31, 2017 (Forecast)Third quarter

Yen

Yen

Year-end

Annual
Yen

Yen

–

5.00

10.00

–

40.00

–

(Note) Revision of dividend forecast published most recently: Yes* 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 atthe end of the second quarter of the fiscal year ended March 31, 2016, 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 ending March 31, 2017 (forecast), the amount after the consolidation of shares is stated and ahyphen is written for the annual dividend because it cannot be simply combined.

3. Forecast (From April 1, 2016 to March 31, 2017)(Figures in percentages denote the year-on-year change.)

Net salesYear ending March 31,
2017

Operating profit

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,280,000-9.7

61,000-13.4

61,000-15.8

22,000-64.1

167.97(Note) Revision to forecast published most recently: Yes* 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 current consolidated fiscal year.

* Notes(1) Significant changes of subsidiaries during the term under review (changes in specific subsidiaries accompanied bya change in the scope of consolidation):
None(2) Application of specific accounting treatment:

Yes(Note) For details, please see “(1) Application of special accounting treatment in the preparation of the quarterly consolidated
financial statements” under “2. Matters Related to Summary Information (Notes)” on page 7.

(3) 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:

Yes
None
None
None

(Note) For details, please see “(2) Changes in accounting policies, changes of accounting estimates and restatement” under “2.
Matters Related to Summary Information (Notes)” on page 7.

(4) Numbers of issued shares (common stock)(i)
Numbers of issued shares at end of terms (including treasury shares):Six months ended September 30, 2016:
131,489,535 sharesYear ended March 31, 2016:
131,489,535 shares(ii)
Numbers of treasury shares at end of terms:
Six months ended September 30, 2016:
494,207 sharesYear ended March 31, 2016:
488,618 shares(iii) Average number of shares issued during terms (quarterly cumulative period):
Six months ended September 30, 2016:
130,998,123 shares
Six months ended September 30, 2015:
130,015,358 shares* The Company consolidated its shares at a rate of one share for every 10 shares of its common stock, with October 1, 2016as the effective date. Subsequently, the number of issued shares at the end of the term, the number of treasury shares at theend of the term, and the average number of shares issued during the term are calculated based on the assumption that theconsolidation of shares was conducted at the beginning of the previous consolidated fiscal year.

* Indication regarding the status of a quarterly review
This financial summary for the six months ended September 30, 2016 is not subject to a quarterly review under the
Financial Instruments and Exchange Law. The review of the quarterly consolidated financial statements under the
aforementioned act is in progress at the time of the announcement of this financial summary.
* 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 not constitute an assurance that the Company promises to achieve these projected results. Therefore,
readers are advised to note that the actual results may vary materially from the forecasts due to a variety of factors.
Please see “(3) Information on the consolidated earnings forecasts and other future forecasts” of “1. Qualitative
Information on Financial Results for the Six Months Ended September 30, 2016” on page 5 for the assumptions about
consolidated earnings forecasts.
(Operating Results Forecast after the Consolidation of Shares)
The consolidation of shares and the revisions in the number of shares constituting one share unit of the Company werepassed and approved at the 91st Ordinary General Meeting of Shareholders held on June 29, 2016, and the Company
consolidated the shares at a 10:1 ratio of its common stock and changed the number of shares constituting one share unit
from 1,000 to 100 shares with effective date of October 1, 2016. Accordingly, net income per share is calculated on theassumption that the consolidation of its shares was conducted at the beginning of the current consolidated fiscal year.
(Procedure for obtaining supplementary information on quarterly financial results and quarterly financial briefing)
Mitsubishi Materials Corporation plans to hold a quarterly financial briefing for institutional investors on Friday,
November 11, 2016. The materials used at this briefing are disclosed on the TDnet and the Company’s web page at thetime that the quarterly financial results are announced.

Contents
1. Qualitative Information on Financial Results for the Six Months Ended September 30, 2016........................... 2(1) Details of operating results .............................................................................................................................2(2) Details of financial position ...........................................................................................................................4(3) Information on the consolidated earnings forecasts and other future forecasts ..............................................5
2. Matters Related to Summary Information (Notes) .............................................................................................. 7(1) Application of special accounting treatment in the preparation of the quarterly consolidated financial
statements .....................................................................................................................................................7(2) Changes in accounting policies, changes of accounting estimates and restatement .......................................7(3) Additional information ...................................................................................................................................7(4) Contingent liabilities ......................................................................................................................................8
3. Consolidated Financial Statements ................................................................................................................... 10(1) Consolidated balance sheet .......................................................................................................................... 10(2) Consolidated statement of income and consolidated statements of comprehensive income ........................ 12
Consolidated statement of income ............................................................................................................. 12
Consolidated statements of comprehensive income ................................................................................... 13(3) Consolidated statement of cash flows .......................................................................................................... 14(4) Notes to consolidated quarterly financial statements ................................................................................... 16
Notes on assumptions for a going concern ................................................................................................. 16
Segment information .................................................................................................................................. 16
Notes on significant changes in the amount of Shareholders’ equity, if any .............................................. 17
Significant subsequent events .................................................................................................................... 17–1–

1. Qualitative Information on Financial Results for the Six Months Ended September 30, 2016
(1) Details of operating results1) Overview of operating results
During the first half of the consolidated fiscal year under review, there was an economic slowdown in China,
but the economies of Thailand and Indonesia in Asia improved. In the United States, the economic growth
showed signs of recovery.
In the Japanese economy, the employment and income conditions were on the road to recovery. However,consumer spending and public investments grew at a sluggish pace, and the improvement in capital
expenditures and corporate earnings came to a temporary standstill.
Regarding the business environment for the Mitsubishi Materials Group, foreign exchange markets werecharacterized by year-on-year yen appreciation, and the Group was affected by such factors as a decrease incopper prices, as well as a fall in the overall demand for cement in Japan.
Under these circumstances, consolidated net sales for the first half of the year under review totaled ¥603,137
million, down 15.0% year on year. Operating profit declined 24.5% year on year, to ¥27,320 million, andordinary income decreased 33.2%, to ¥26,026 million. Net income attributable to owners of parent was¥29,555 million, down 35.4% year on year.
2) Overview by segments(Cement)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
96.9
9.4
8.9

FY 2017 Q1-Q2
83.8
8.1
7.5

(Billion yen)
Increase / Decrease (%)-13.0(-13.5%)-1.2(-13.8%)-1.3(-14.9%)In the Cement business, the sales volume decreased in Japan because of a decline in demand throughout themarket, chiefly reflecting a delay in construction work mainly due to labor shortages and sluggish growth indemand from public sector. In the United States, the sales volume of cement increased, thanks to strengthen
in sales to companies outside of the Group in Southern California. The sales volume of ready-mix concrete
increased, reflecting strong sales related to housing and commercial properties in Nevada. In China, the sales
volume declined due to a fall in demand related to real estate investment in the Shandong Province. In theoverall Cement business, cement production amounted to 5.5 million tons, down 0.2 million tons from thefirst half of the previous fiscal year.
As a result, net sales and operating profit declined year on year for the entire Cement business. Ordinary
income also decreased because of the decline in operating profit.
(Metals)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
345.3
12.2
14.1

FY 2017 Q1-Q2
278.8
7.9
9.3

(Billion yen)
Increase / Decrease (%)-66.4(-19.2%)-4.2(-34.9%)-4.8(-33.9%)In the copper business, net sales and operating profit declined, primarily reflecting a fall in copper prices,
despite the return to ordinary operations at PT. Smelting in Indonesia were temporarily suspended in the firsthalf of the previous fiscal year due to equipment issues. Copper cathode production for the entire Metals–2–business amounted to 272 thousand tons, up 37 thousand tons from the previous corresponding period.
In the gold and other valuable metals business, net sales decreased while operating profit increased, mainly
thanks to a rise in gold prices, despite the production cutback due to a fall in the contained amount in ore.
In the copper and copper alloy products business, both net sales and operating profit were down, due largely
to falling copper prices, despite an increase in the sales of products for automobiles, semiconductors, andother use.
As a result, the entire Metals business posted year-on-year decreases in net sales and operating profit.
Ordinary income for the segment also declined because of the decrease in operating profit.
(Advanced Materials & Tools)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
77.7
9.0
8.7

FY 2017 Q1-Q2
71.1
6.5
4.9

(Billion yen)
Increase / Decrease (%)-6.6(-8.5%)-2.4(-27.6%)-3.7(-43.4%)In the cemented carbide products business, net sales and operating profit declined due to the deteriorating
market conditions primarily attributable to the slowdown in the Chinese economy. Another contributing
factor was the effect of the yen appreciation compared with the exchange rate in the second quarter of theprevious fiscal year.
In the high-performance alloy products business, sales of products for automobiles remained firm in North
America, but lower sales in Japan caused net sales and operating profit to decline.
As a result, the overall Advanced Materials & Tools business recorded year-on-year decreases in net sales
and operating profit. Ordinary income declined due to the decrease in operating profit and recorded exchange
losses.
(Electronic Materials & Components)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
35.3
1.5
3.7

FY 2017 Q1-Q2
29.8
0.9
0.9

(Billion yen)
Increase / Decrease (%)-5.5(-15.7%)-0.6(-41.2%)-2.8(-75.9%)In the advanced materials and chemical products business, net sales decreased, while operating profit
increased because sales of chemical products for mobile devices remained solid, although sales of products
for LSIs for smartphones and for power modules were down.
In the electronic components business, net sales and operating profit declined, reflecting a lower volume ofsales of products for home appliances and the effect of the yen appreciation compared with the exchange ratein the second quarter of the previous fiscal year..
The polycrystalline silicon business recorded a decline in net sales and operating profit.
As a result, the entire Electronic Materials & Components business registered year-on-year declines in net
sales and operating profit. Ordinary income dropped as a result of decreases in operating profit and equity inearnings of affiliates.

–3–

(Aluminum)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
82.5
2.9
2.6

FY 2017 Q1-Q2
80.6
5.0
5.1

(Billion yen)
Increase / Decrease (%)-1.8(-2.3%)
2.1(74.8%)
2.5(95.6%)In the aluminum cans business, demand for both of bottles cans and regular cans increased, and raw material
costs declined.
In the rolled aluminum and processed aluminum products business, demand of products for solar cells
declined, while demand of products for automobiles increased. While sales price declined due to fallingmarket metal prices.
As a result, the entire Aluminum business posted a decrease in net sales and an increase in operating profit
year on year. Ordinary income increased due to the rise in operating profit.
(Others)

Net sales
Operating profit
Ordinary income

FY 2016 Q1-Q2
115.4
3.3
3.9

FY 2017 Q1-Q2
95.6
2.7
2.5

(Billion yen)
Increase / Decrease (%)-19.8(-17.2%)-0.6(-18.7%)-1.4(-36.2%)In the energy-related business, net sales declined, but operating profit increased thanks to a rise in electricity
sales volume because hydroelectric power plants, which was being renewed during the previous
corresponding period, returned to ordinary operation, while sales of coal declined due to the weak market
conditions.
In the “E-waste” (used electronics and electrical products) recycling business, net sales and operating profit
declined, reflecting lower sales due to the falling unit price of valuables.
Orders received for nuclear energy and engineering-related services amounted to ¥37.4 billion, up ¥8.0
billion year on year. The order backlog at the end of the period was ¥34.6 billion, up ¥1.6 billion from a year
earlier.
(2) Details of financial position
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at ¥1,732.0 billion,
down ¥61.3 billion from the end of the previous consolidated fiscal year. This result was mainly due to a decline
in notes and accounts receivable - trade.
Total liabilities were ¥1,099.2 billion, a decrease of ¥49.1 billion from the end of the previous consolidated
fiscal year.. This was mainly due to a decrease in short-term loans payable.
The status of cash flow and factors contributing to these amounts in each category for the first half under review
are as follows:(Cash Flow from Operating Activities)
Net cash provided by operating activities totaled ¥42.9 billion (an increase of ¥17.6 billion from the first half ofthe previous fiscal year) mainly due to a decrease in notes and accounts receivable – trade, in addition to income
before income taxes.

–4–

(Cash Flow from Investing Activities)
Net cash used in investing activities totaled ¥14.8 billion (net cash provided of ¥21.5 billion in the first half ofthe previous fiscal year) chiefly attributable to cash used for capital expenditures.
(Cash Flow from Financing Activities)
Net cash used in financing activities totaled ¥20.8 billion (a decrease in cash used by ¥49.6 billion from the firsthalf of the previous fiscal year) as a result of appropriating ¥28.0 billion cash provided by operating activities
and investing activities for the repayment of loans payable.
As a result of adding net increase (decrease) in cash and cash equivalents mainly due to the effect of theexchange rate changes to the above, cash and cash equivalents at the end of the second quarter under review
stood at ¥61.6 billion, up ¥3.1 billion from the end of the previous fiscal year.

(3) Information on the consolidated earnings forecasts and other future forecasts
1) Revised Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2017
(April 1, 2016 to March 31, 2017)
Taking into account that the sales of cemented carbide products in the Advanced Materials & Tools businesshave been below the planned amount, among other factors, we have revised the consolidated financial forecasts
for the fiscal year ending March 31, 2017, announced on August 8, 2016, as presented below.
Revised Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2017
(April 1, 2016 to March 31, 2017)

Net sales
Operating profit
Ordinary income
Net income attributable toowners of parent

Previous forecast
1,330.0
65.0
64.0

Current forecast
1,280.0
61.0
61.0

25.0

22.0

(Billion yen)
Increase / Decrease (%)
-3.8%
-6.2%
-4.7%
-12.0%

2) Revised Dividend Payments
At the 91st Ordinary General Meeting of Shareholders held on June 29, 2016, a proposal for amendment to the
Articles of Incorporation to change the number of shares constituting one unit share and the total number ofissuable shares, etc. and a proposal for the consolidation of shares were passed and approved. Accordingly, theCompany consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, 2016.
The year-end dividend per share for the fiscal year ending March 31, 2017, is forecast to increase from 4.00 yen
in the previous forecast to 40.00 yen; however, the expected dividend per share will not change substantially.

–5–

(Record date)Previous forecast
Current forecast
Year ending March 31, 2017
(Result)
Year ending March 31, 2016
(Result)

Dividends per shareFirst quarter Second quarter Third quarter
Year-end
Yen
Yen
Yen
Yen
–
2.00
–
4.00
–
–
–
40.00
–

2.00

–

–

5.00

–

Annual
Yen
6.00
–

–

–
5.00

* For the amount of dividends at the end of the second quarter of the fiscal year ended March 31, 2016, theamount prior to the consolidation of shares is stated because the dividends were paid based on the number ofshares before the consolidation of shares.
For the year-end dividend per share in the fiscal year ending March 31, 2017 (forecast), the amount after the
consolidation of shares is stated and a hyphen is written for the annual dividend because it cannot be simply
combined.
(Note) The above forecast has been prepared on assumed economic conditions, market trends, and otherfactors foreseeable as of the date of this announcement, and the results may differ from the forecasts due tovarious factors arising in the future.

–6–

10.00

2. Matters Related to Summary Information (Notes)(1) Application of special accounting treatment in the preparation of the quarterly consolidated
financial statements
The Company calculates tax expenses by rationally assuming an effective tax rate after applying the tax effectaccounting to income before income taxes for the consolidated fiscal year, including the second quarter underreview, and multiplying income before income taxes for the second quarter by the estimated effective tax rate.

(2) Changes in accounting policies, changes of accounting estimates and restatement
Changes in accounting policies(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In association with the revision of the Corporation Tax Act, the Company has applied the “Practical Solution ona change in depreciation method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32
dated June 17, 2016) from the second quarter of the consolidated fiscal year under review. It also changed thedepreciation method for facilities attached to buildings and structures that were acquired on or after April 1,
2016, switching from the declining-balance method to the straight-line method.
The impact of this change on profits and losses for the first half of the consolidated fiscal year under review isminor.

(3) Additional information(Provision for environmental measures)
In regards to expenses for specific countermeasure work to prevent mining-induced pollution and expenses forcountermeasure work to stabilize collection sites in abandoned and suspended mines managed by the Group, we
have recorded a provision for the expenses whose estimated amount has been fixed because the details of theconstruction work have been determined, and have included it in the “provision” under “non-current liabilities”.
However, there are some forms of countermeasure work for which the amount cannot be calculated reasonably
because the details of construction work are undecided due to the fact that the most appropriate construction
method for the landscape and existing equipment have yet to be selected, even though specific countermeasure
work is necessary.
(Application of implementation guidance on recoverability of deferred tax assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26 dated March 28, 2016) from the first quarter of the consolidated fiscal year under review.
(Business Combination by Acquisition Method)
The Company signed a share transfer agreement dated September 28, 2016, with Luvata Espoo Oy and its two
subsidiaries, for the acquisition of the Special Products Division (“Luvata SP”) of the Luvata Group throughequity acquisition and business transfer.
Overview of the business combination(i) The acquired company and the description and size of its business
Acquired company:
14 companies belonging to Luvata SP
Business: Manufacture and sale of copper processed products
Net Sales: Approximately 78.0 billion yen (approximate amount of consolidated net sales recorded by
Luvata SP in the fiscal year ended December 31, 2015)(ii) Main reason for the business combination
The purpose of the business combination is to accelerate the global expansion of the Copper & Copper–7–

Alloy Products business of the Company by pursuing various synergies though the business and customer
bases of the Special Products Division of Luvata and to lead it to the establishment of a high-profitablebusiness structure(iii) Date of the business combination
This transaction will be implemented without delay upon the completion of acquisition, etc. of approval andauthorization pursuant to the laws and regulations required for its implementation, which is scheduled forthe period between the fourth quarter of fiscal year 2017 and the first quarter of fiscal year 2018.
(iv) Legal form of the business combination
Acquisition of shares and business transfer in exchange for cash and deposits.
(v) Name of the companies after the business combination
No change(vi) Percentage of voting rights to acquire
100%(4) Contingent liabilities
Previous consolidated fiscal year (As of March 31, 2016)
On December 30, 2014, PT. Smelting in Indonesia, a consolidated subsidiary of the Company (hereinafter the“Consolidated Subsidiary”), received a notice of reassessment in an amount of US$47 million (¥5,393 million
based on the exchange rate at the end of the previous consolidated fiscal year) from the Indonesian National Tax
Authority regarding the sales transaction pricing of the Consolidated Subsidiary for the year ended December
2009. On January 28, 2015, the Consolidated Subsidiary made a provisional deposit of US$14 million (¥1,577
million) as a part of the additional collection.
However, the Consolidated Subsidiary submitted a written objection to the Indonesian National Tax Authority
on March 25, 2015, because this assessment, which claimed there was a sales shortage on the part of theConsolidated Subsidiary based on a comparison of the profit margin ratio with other companies selected by theIndonesian National Tax Authority, was highly unreasonable and found to be unacceptable by the Company andthe Consolidated Subsidiary.
The written objection submitted by the Consolidated Subsidiary on March 25, 2015 was dismissed by theIndonesian National Tax Authority on March 16, 2016. Therefore, the Consolidated Subsidiary filed a complaint
to the Tax Court in Indonesia on June 6, 2016 to present the fairness of the view of the Company and theConsolidated Subsidiary.
Second quarter of the consolidated fiscal year under review (As of September 30, 2016)
On December 30, 2014, PT. Smelting in Indonesia, a consolidated subsidiary of the Company (hereinafter the“Consolidated Subsidiary”), received a notice of reassessment in an amount of US$47 million (¥4,840 million
based on the exchange rate at the end of the second quarter of the consolidated fiscal year under review) from theIndonesian National Tax Authority the regarding sales transaction pricing of the Consolidated Subsidiary for theyear ended December 2009. On January 28, 2015, the Consolidated Subsidiary made a provisional deposit of
US$14 million (¥1,415 million) as a part of the additional collection.
However, the Consolidated Subsidiary submitted a written objection to Indonesian National Tax Authority on
March 25, 2015, because this assessment, which claimed there was a sales shortage on the part of theConsolidated Subsidiary based on a comparison of the profit margin ratio with other companies selected by theIndonesian National Tax Authority, was highly unreasonable and found to be unacceptable by the Company andthe Consolidated Subsidiary.
The written objection submitted by the Consolidated Subsidiary on March 25, 2015 was dismissed by theIndonesian National Tax Authority on March 16, 2016. Therefore, the Consolidated Subsidiary filed a complaint–8–to the Tax Court in Indonesia on June 6, 2016 to present the fairness of the view of the Company and theConsolidated Subsidiary.

–9–3. Consolidated Financial Statements(1) Consolidated balance sheet
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery and equipment, net
Land, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets– 10 –(Million yen)
As of September 30, 2016

60,123233,09385,082
83,69489,875
232,817(2,155)64,168
192,923
81,455
99,48998,439225,342(2,272)

782,530

759,546

196,085
268,634
205,517

192,110
255,479
202,517670,237

650,107

48,986
17,032

41,39015,61166,01957,001

212,606
68,052(6,070)208,868
62,608(6,086)

274,588265,390

1,010,845

972,499

1,793,375

1,732,046

As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Commercial papers
Income taxes payable
Provision
Gold payable
Other(Million yen)
As of September 30, 2016

110,596
200,527
25,100–7,037
13,740231,667
107,649

110,420
181,174
25,00016,00011,461
12,382
229,085
85,779Total current liabilities

696,319

671,303

Non-current liabilities
Bonds payable
Long-term loans payable
Provision
Net defined benefit liability
Other

40,000260,681
16,74663,54471,06625,000261,356
13,53660,716
67,327452,038

427,936

1,148,358

1,099,240

119,457
92,266
303,026(1,953)

119,457
92,423
328,271(1,969)512,797

538,183

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

21,645(199)
34,282
3,647(16,946)

21,943352
32,184(24,985)(14,960)

Total accumulated other comprehensive income

42,43014,53389,78980,089Total 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– 11 –

645,017

632,805

1,793,375

1,732,046

(2) Consolidated statement of income and consolidated statements of comprehensive income
Consolidated statement of income
Consolidated first six months

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Equity in earnings of affiliates
Rent income on non-current assets
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on change in equity
Gain on redemption of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Provision for environmental measures
Loss on suspension of operations
Other
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent(Million yen)
Six Months Ended
September 30, 2015
(Apr. 1, 2015–Sep. 30, 2015)
709,564
601,691
107,872
71,67736,195– 12 –Six Months Ended
September 30, 2016
(Apr. 1, 2016–Sep. 30, 2016)
603,137
505,708
97,42870,10827,320

273
5,791
3,477
2,533
2,885
14,961

255
2,966
1,213
2,499
1,117
8,051

3,575
8,604
12,17938,976

2,655
6,689
9,345
26,026

5,861
19,182
10,464
1,234
1,768
38,511

16,026602––
459
17,0882
10,841
2,587
2,268
15,70061,787
14,39847,3891,623
45,766

589
–
–
288
878
42,236
10,191
32,0452,490
29,555

Consolidated statements of comprehensive income
Consolidated first six months(Million yen)
Six Months Ended
September 30, 2015
(Apr. 1, 2015–Sep. 30, 2015)

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
Equity in earnings of affiliates
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests– 13 –Six Months Ended
September 30, 2016
(Apr. 1, 2016–Sep. 30, 2016)

47,38932,045(13,408)
2,595
59
(527)
1,007
(708)

332
505
–
(32,921)
2,012(3,690)(10,982)(33,760)

36,407(1,715)34,175

3,899

2,231

(5,614)

(3) Consolidated statement of cash flows(Million yen)
Six Months Ended
September 30, 2015
(Apr. 1, 2015–Sep. 30, 2015)
Cash flows from operating activities
Income before income taxes
Depreciation
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
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 (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on change in equity
Loss (gain) on redemption of investment securities
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
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
Proceeds from transfer of business
Other
Net cash provided by investing activities– 14 –Six Months Ended
September 30, 2016
(Apr. 1, 2016–Sep. 30, 2016)

61,78728,007
9,876(677)(6,065)
3,575

42,236
27,776(4,639)318(3,222)
2,655(3,477)(1,213)(5,444)(19,182)2(10,464)(1,234)(16,038)
(602)
589
–
–

4,295

30,397534(29,957)(31,133)

8,366

1,761
32,162
7,478(4,027)(10,346)
25,267(7,473)49,192
3,975(2,694)(7,543)42,929(29,526)
18,217(522)
32,84318,000(37,232)
22,991(401)
264–(15,572)

–

–

2,035

–
(1,910)21,5282,176(4,705)(14,871)Six Months Ended
September 30, 2015
(Apr. 1, 2015–Sep. 30, 2015)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable

Six Months Ended
September 30, 2016
(Apr. 1, 2016–Sep. 30, 2016)(7,521)
13,166(40,868)

6,676
23,302(40,115)

Redemption of bonds
Increase (decrease) in commercial papers
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate change on cash and cash
equivalents(20,000)(5,000)(90)(6,551)(1,847)(1,793)(70,506)(15,100)
16,000(16)(6,550)(2,905)(2,157)(20,866)(439)(4,931)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at the end of period(24,150)
92,0792,260
58,482980

896

68,91061,639– 15 –

(4) Notes to consolidated quarterly financial statements
Notes on assumptions for a going concern
N/A

Segment information[Segment Information]
I. For the six months ended September 30, 2015 (from April 1, 2015 to September 30, 2015)
1. Sales and income of reporting segments(Million yen)

AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

95,296

340,884

68,30728,549(2) Withinconsolidated group

1,653

4,437

9,456

6,833

Total

96,950345,322

77,763

8,915

14,1938,710

Amountindicated intheAdjustment
consolidated
amountquarterlystatements
of income

OthersTotal

81,902

94,622

709,564–

709,564

647

20,87343,901(43,901)–

35,38282,550115,495

753,465(43,901)

709,564

3,742

2,640

3,931

42,134(3,157)38,976

Net sales

Segment income

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 -¥3,157 million includes the elimination of intersegment transactionsof -¥12 million and corporate expenses of -¥3,144 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. Segment income has been adjusted together with ordinary income on the consolidated quarterly statements ofincome.

II. For the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)
1. Sales and income of reporting segments(Million yen)

AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

82,424

275,367

63,324

27,113(2) Withinconsolidated group

1,425

3,530

7,822

Total

83,850278,897

7,588

9,378

Amountindicated intheAdjustment
consolidated
amountquarterlystatements
of income

OthersTotal

79,57575,331

603,137–

603,137

2,697

1,094

20,32136,891(36,891)–

71,14629,81080,66995,653640,028(36,891)

603,137

4,932

901

5,163

2,508

30,473(4,447)26,026

Net sales

Segment income

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 -¥4,447 million includes the elimination of intersegment transactionsof -¥85 million and corporate expenses of -¥4,361 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. Segment income has been adjusted together with ordinary income on the consolidated quarterly statements ofincome.

– 16 –

2. Matters relating to the change in the reporting segments, etc.
(Application of Practical Solution on a change in depreciation method due to Tax Reform 2016)
As stated in “Changes in accounting policies,” the Company has applied the “Practical Solution on a change indepreciation method due to Tax Reform 2016” from the first quarter of this consolidated fiscal year. It alsochanged the depreciation method for facilities attached to buildings and structures that were acquired on or after
April 1, 2016, switching from the declining-balance method to the straight-line method.
The impact of this change on segment income for the first half of the consolidated fiscal year under review isminor.

Notes on significant changes in the amount of Shareholders’ equity, if any
N/A

Significant subsequent events(Change in the number of unit shares and the consolidation of shares, etc.)(1) Details
At the 91st Ordinary General Meeting of Shareholders held on June 29, 2016, a proposal for amendment to
the Articles of Incorporation to change the number of shares constituting one unit share and the total number
of issuable shares, etc. and a proposal for the consolidation of shares were passed and approved.
Accordingly, on October 1, 2016, the number of shares constituting one unit share was changed from 1,000
shares to 100 shares, 10 shares of the common stock was consolidated to one share, and the total number ofauthorized shares was changed from 3.4 billion shares to 340 million shares.
(2) Impact on per-share information
The impact is calculated on the assumption that the consolidation of shares was conducted at the beginningof the previous consolidated fiscal year.

– 17 –