Consolidated Financial Results for the Nine Months Ended December 31, 2013
Mitsubishi Materials Corporation
Tokyo, Japan

February 12, 2014
Stock code:
Shares listed:
URL:
Representative:
For further information please contact:

5711
Tokyo Stock Exchange
http://www.mmc.co.jp/
Mr. Hiroshi Yao, President
Mr. Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
Filing date of Quarterly Report:
February 13, 2014
Scheduled date of start of dividend payment:－
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results:
Yes (For Corporate Investors)

1. Results of the nine months ended December 31, 2013 (From April 1, 2013 to December 31, 2013)(1) Results of operations (cumulative):(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales

Operating profit

Nine months ended Dec.31, 2013

¥1,050,319

Nine months ended Dec.31, 2012

¥956,898-12.1(%) ¥39,684
Nine months ended Dec. 31, 2013:
Nine months ended Dec. 31, 2012:(Note) Comprehensive income

9.8(%)¥51,041

Ordinary income

28.6(%)¥58,433

Net income

6.0(%)¥40,63432.8(%)-9.2(%)¥55,100
2.0(%)
67,719 million yen (55.6%)
43,524 million yen (145.9%)¥30,59115.6(%)(Yen)

Nine months ended Dec.31, 2013
Nine months ended Dec.31, 2012

Net income per share

Diluted net income per share¥31.00¥23.33－－(2) Financial position:(Millions of yen)
Total assets¥1,809,919

As of December 31, 2013
As of March 31, 2013

(Reference) Shareholders’ equity¥1,811,767
As of Dec. 31, 2013:
As of Mar. 31, 2013:

Shareholders’ equity ratio

Net assets¥523,574

25.2(%)¥466,231

22.4(%)

456,957 million yen
405,230 million yen

2. Dividend payments(Yen)(Record date)Year ended March 31, 2013
Year ending March 31, 2014

First Quarter－－

Dividends per Share
Second Quarter
Third Quarter
¥0.00
－
¥2.00
－

Year ending March 31, 2014 (Forecast)Year-End¥4.00

Annual
¥4.00

¥4.00

¥6.00

(Note) Revisions to dividend forecast in the current period: None

3. Forecast (From April 1, 2013 to March 31, 2014)(Millions of yen)
(Percentage changes relative to previous corresponding period)

Operating
Net sales

Net income
Ordinary income

Net income

profitYear ending March
31, 2014¥1,480,000 15.0 (%)¥72,000 37.1 (%)(Note) Revisions to forecast in the current period: None

per share¥80,000 7.5 (%)¥45,000 21.8 (%)¥34.33 (yen)* Notes(1) Significant changes of subsidiaries during the period (including changes in scope of consolidation): None
(2) Application of specific accounting treatment: Yes(Note) For details, please see “(1) Application of Specific Accounting Treatment” under “2. Summary Information (Notes)” on
page 5.

(3) Changes in accounting policies; changes in accounting estimates; restatements(i) Changes in accounting policies due to amendment of accounting standards: None(ii) Other changes in accounting policies: None(iii) Changes in accounting estimates: None(iv) Restatements: None
(4) Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury shares)
Nine months ended December 31, 2013: 1,314,895,351 sharesYear ended March 31, 2013:
1,314,895,351 shares(ii) Number of treasury shares at end of year
Nine months ended December 31, 2013: 4,398,856 sharesYear ended March 31, 2013:
4,193,557 shares(iii) Average number of shares during the period (quarterly cumulative period)
Nine months ended December 31, 2013: 1,310,607,391 shares
Nine months ended December 31, 2012: 1,310,990,121 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial Instruments and Exchange Act.
As of the disclosure of these financial results, the procedures for reviewing quarterly financial statements pursuant to the Financial
Instruments and Exchange Act are in progress.

* Appropriate use of business forecasts and other special items(Notes regarding descriptions of earnings forecasts and other forward-looking statements, etc.)
Earnings forecasts and other forward-looking statements in this document are based on information currently available
to the Company’s management and certain assumptions judged rational, and we do not promise that the forecasts inthis report will be achieved. Accordingly, there might be cases in which actual results materially differ from forecastsof this report.
To use assumptions for forecasts and to refer to specific revisions on consolidated financial forecasts, see (3)Explanation of Forecast and Other Future Predictions (page 5) under “1. Qualitative Information Regarding theConsolidated Performance”.
(Method of obtaining supplementary information to and contents of the first three quarters financial results briefing)
Mitsubishi Materials Corporation is scheduled to hold a first three quarters financial results briefing for institutional
investors on February 12, 2014 (Wednesday). Supplementary information to the quarterly financial results to be usedin this briefing is being released on TDnet and on the Company’s website with the announcement of the consolidated
financial results for the nine months ended December 31, 2013.

Contents

1. Qualitative Information Regarding the Consolidated Performance ............................................................... P2(1) Explanation of Business Performance .................................................................................................... P2(2) Explanation of Financial Position ........................................................................................................... P5(3) Explanation of Forecast and Other Future Predictions ........................................................................... P5
2. Summary Information (Notes) ..................................................................................................................... .P5(1) Application of Specific Accounting Treatment ....................................................................................... P5
3. Consolidated Financial Statement................................................................................................................ P6(1) Consolidated Balance Sheets .................................................................................................................. P6(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations ................................................................................................. P8
Consolidated Statement of Comprehensive Income ............................................................................. P9(3) Notes on Consolidated Financial Statement ........................................................................................... P10
Notes on Assumptions for Going Concern ............................................................................................ P10
Segment Information ............................................................................................................................. P10
Notes in Event of Significant Changes in Shareholders’ Equity............................................................. P11
Important Subsequent Events ............................................................................................................... P11

11. Qualitative Information Regarding the Consolidated Performance(1) Explanation of Business Performance1) Overview of period under review
In the nine months ended December 31, 2013, world economy on the whole started on the path of improvement.
In addition to the United States, where the economic recovery trend is continuing, China showed signs ofstabilization in economic expansion pace.
Conditions of the Japanese economy have gradually improved driven by an increase in public investment
and housing construction on the one hand and a steady personal consumption supported by improvements in theemployment and income conditions on the other.
Regarding the operating environment for the Mitsubishi Materials Group, while copper price continued on
the lower levels than it was in the corresponding period of last year, demand for cement continued strong due toreasons including an increase in housing construction and restoration work required in areas, which fell victim
to earthquakes and other disasters. Also, our entire business was impacted by the influence of correction of the
yen appreciation.
In this environment, we embarked on the medium-term management plan (FY2012-2014), entitled“Materials Premium 2013—Aiming for New Value Creation”. The plan embraces the basic concept of“Simultaneously implementing growth strategies and financial improvements,” with two initiatives stated as
growth strategies: “Business advancement in overseas markets, especially emerging markets” and “Generationof distinctive synergies as an integrated business entity.” In order to promote this recognition, we havecontinued to implement various measures.
As a result, consolidated net sales for the period totaled ¥1,050,319 million, up 9.8% from the previous
corresponding period. Operating profit increased 28.6%, to ¥51,041 million, and ordinary income increased
6.0%, to ¥58,433 million. Net income for the period increased 32.8%, to ¥40,634 million.
2) Overview of Segment(Cement)
Net sales
Operating profit
Ordinary income

FY 2013 Q1-Q3¥122.611.1¥10.4

FY 2014 Q1-Q3¥139.014.3¥14.1(Billions of yen)
Increase/decrease (%)¥16.4(13.4%)
3.2(29.6%)¥3.6(35.0%)In the domestic Cement business, sales volume increased due to such factors as reconstruction demand forfollowing the earthquake on the one hand and a stable demand across the country in other disaster relief work,
redevelopment construction, housing construction such as condominium buildings. Overseas, sales volume
increased due to strong United States demand for private-sector capital spending and housing-related, as well as
increased China demand due to the reopening of high-speed rail construction in Shandong and the constructionof the new airport. Total cement production for the period was 9.3 million tons, up 0.4 million tons from theprevious corresponding period.
As a result, the entire Cement business posted year-on-year increases in both net sales and operating profit.
Ordinary income rose from the previous corresponding period due to an increase of operating profit.

2

(Metals)

Net sales
Operating profit
Ordinary income

FY 2013 Q1-Q3¥459.612.2¥29.4

FY 2014 Q1-Q3¥510.5
17.9¥26.6(Billions of yen)
Increase/decrease (%)¥50.9(11.1%)
5.6(46.1%)¥(2.7)(-9.5%)In the copper business, the overseas copper market prices decreased, but there was also impact from correctionof yen appreciation. Additionally, the business of PT Smelting in Indonesia was also impacted by the operation
trouble at mines supplying ore to the company. However, in the nine months ended December 31, 2013, there
was no operation shutdown associated with periodic furnace repairs. This resulted in increased production,
which in turn led to an increase in net sales and operating profit. Total production of copper cathode for theperiod was 398 thousand tons, up 3 thousand tons from the previous corresponding period.
Gold and other metals experienced decreased production due to a decrease in the amount of metals
contained in the raw material ore. However, there was also impact from the correction of yen appreciation. As aresult, there was a decrease in net sales and an increase in operating profit.
In the processed copper products business, sales of products for the automobile sector increased, and there
was an increase in net sales and operating profit.
As a result, the entire Metals business reported year-on-year increases in both net sales and operating
profit.
Despite an increase in operating profit, ordinary income decreased from the previous corresponding period
due to a decrease in dividend income.

(Advanced Materials & Tools)

Net sales
Operating profit
Ordinary income

FY 2013 Q1-Q3¥103.28.2¥7.4

FY 2014 Q1-Q3¥110.2
10.8¥10.6(Billions of yen)
Increase/decrease (%)¥7.0(6.8%)
2.6(31.9%)¥3.1(42.2%)

In cemented carbide products business, as a result of sales promotion measures implemented by our overseas
subsidiaries and also correction of yen appreciation, there was an increase in sales resulting in an increase bothin net sales and operating profit.
In the high-performance alloy products business, there was an increase in net sales but a decrease inoperating profit as although there was an increase in demand for the aircraft-related market and in sales of
products for automobile sector, as a result of correction of yen appreciation, purchase costs increased.
As a result, the entire Advanced Materials & Tools business posted year-on-year increases in both net sales
and operating profit.
Ordinary income increased from the previous corresponding period due to an increase in operating profit.

3

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

FY 2013 Q1-Q3
¥50.9
3.8
¥2.1

FY 2014 Q1-Q3
¥52.8
3.3
¥1.8

(Billions of yen)
Increase/decrease (%)¥1.8(3.5%)(0.5)(-14.4%)¥(0.2)(-13.4%)

Although sales of products for smartphone displays were steady, as demand in the semiconductor-related
markets was low, the advanced materials business recorded a decrease in both net sales and operating profit.
The electronic devices business posted increases in both net sales and operating profit due to increased
sales of products for household appliances, results of cost reductions, and impact from correction of yen
appreciation.
Polycrystalline silicon and chemical products recorded an increase in net sales and a decrease in operating
profit. This was due to increased sales of polycrystalline silicon and decreased sales of chemical products.
Furthermore, regarding the suspended operation of some production lines at Yokkaichi Plant from April 2012 toMarch 2013, an amount equivalent to fixed costs associated with the suspended production lines which had
been allocated to extraordinary losses in the nine months ended December 31, 2012 were posted as operating
expenses in the corresponding period under review.
As a result, the entire Electronic Materials & Components business reported a year-on-year increase in net
sales but a decrease in operating profit.
Ordinary income decreased from the previous corresponding period due to a decrease in operating profit.

(Aluminum)
Net sales
Operating profit
Ordinary income

FY 2013 Q1-Q3¥113.26.0¥5.6

FY 2014 Q1-Q3¥114.85.4¥4.8(Billions of yen)
Increase/decrease (%)¥1.5(1.4%)(0.6)(-11.1%)¥(0.8)(-14.2%)In the aluminum cans business, demand increased for regular cans mainly for beer or beer-like beverages, but
demand decreased for bottle cans for black coffee and tea-based beverages.
In rolled aluminum and processed aluminum products, in addition to the influence of correction of yen
appreciation, product demand for solar battery sector was increased due to the influence of feed-in tariff forrenewable energy, however, product demand for the automobile sector was decreased due to the termination of
Eco-car subsidy.
As a result, the entire Aluminum business posted a year-on-year increase in net sales but a decrease inoperating profit.
Ordinary income declined due to a decrease in operating profit from the previous corresponding period.

4

(Others)
Net sales
Operating profit
Ordinary income

FY 2013 Q1-Q3¥250.1
3.5¥6.3

FY 2014 Q1-Q3¥286.3
4.3¥5.6(Billions of yen)
Increase/decrease (%)¥36.2(14.5%)
0.8(22.7%)¥(0.7)(-11.0%)In the energy-related business, both net sales and operating profit increased due to increased sales of coal andincreased sales of decontamination business related to nuclear power.
The e-waste (used electronics and electrical products) recycling business posted increases in both net
sales and operating profit, since although the amount of throughput was the same level as the same period of theprevious year, the amount of collection of valuable resources increased and cost reduction had a positive
influence.
The precious metal business posted increases in both net sales and operating profit since, although thejewelry-related sales decreased, the trading volume of gold bullion increased due to large fluctuation in overseas
gold market.
Orders for nuclear energy and engineering services amounted to ¥44.4 billion, up ¥1.3 billion from theprevious corresponding period. The order backlog at the end of the period was ¥27.7 billion, up ¥4.7 billion
from a year earlier.

(2) Explanation of Financial Position
As of December 31, 2013, the Group’s consolidated total assets stood at ¥1,809.9 billion, down ¥1.8 billion fromMarch 31, 2013. This was mainly due to a decrease in machinery and equipment, net.
Total liabilities decreased ¥59.1 billion, to ¥1,286.3 billion, due primarily to a decrease in gold payable
owing to a falling gold price.

(3) Explanation of Forecast and Other Future Predictions
Regarding business environment surrounding the Group, domestic economy is in a recovery trend and demand for
cement is continued to be promising due to reasons including increase of housing construction and full swing
demand for reconstruction from the earthquake disaster. On the other hand, an explosion and a fire occurred at our
Yokkaichi Plant on January 9, 2014, and we have voluntarily suspended the plant operation in order to ensure
safety. The timing for the recommencement of operation remains to be determined and will be decided inconsideration with the guidance from the relevant authorities.
Under these circumstances, for the consolidated earnings forecast of the full fiscal year ending March, 2014,
although the Group does at present expect a decrease in production and sales, which shall be inevitable if the
Yokkaichi Plant operation is suspended until the end of this term, taking into account such factors as the earnings
performance of other businesses and the correction of yen appreciation, it was decided that no changes arenecessary to the figures announced in the earnings summary released on May 10, 2013.
In the medium-term management plan, the Group will seek to become the strongest integrated business entity
in this resource-recycling society by developing overseas markets, especially newly emerging markets, andexploiting synergy created from the distinct features of an integrated management structure (“Materials
Premium”) while focusing on both our growth strategy and enhancement of our financial position.

2. Summary Information (Notes)(1) Application of Specific Accounting Treatment
The Group rationally assumes an effective tax rate after applying tax-effect accounting to income before
income taxes for the consolidated fiscal year, including the period under review, and multiplies such effective
tax rate by quarterly income before income taxes to arrive at the tax expense.

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

As of December 31, 2013

Cash and deposits¥64,416¥54,702

Notes and accounts receivable-trade211,748

243,751

Merchandise and finished goods

79,941

89,047Work in process

98,948112,463

Raw materials and supplies

103,463

108,835

Other

222,342

192,349

Allowance for doubtful accounts(1,929)(2,257)

Total Current Assets

778,931

798,891

Machinery and equipment, net

190,682

172,725

Land, net

271,517272,678

Other, net

196,774

199,478

Total Property, Plant and Equipment

658,974

644,882

Goodwill

38,76040,832

Other

9,520

9,140

Total Intangible Assets

48,281

49,972

Investment securities

271,754

258,084

Other

61,245

65,148

Allowance for investment loss

(1,748)(1,168)

Allowance for doubtful accounts(5,672)(5,890)Total Investments and Other Assets

325,579

316,173

1,032,835

1,011,028¥1,811,767¥1,809,919

ASSETS
Current Assets:

Noncurrent Assets:
Property, Plant and Equipment:

Intangible Assets:

Investments and Other Assets:

Total Noncurrent Assets
Total Assets

6

(Millions of yen)
As of March 31, 2013

As of December 31, 2013

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¥105,889
287,942
26,0006,653
13,654232,002124,194¥112,156
282,702
30,00011,011
7,689
203,098
110,935

Total Current Liabilities

796,337

757,594

Noncurrent Liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Other provision
Other

110,040
268,998
59,601
7,745
102,813

95,140281,473
39,425
7,637
105,075

Total Noncurrent Liabilities

549,198

528,751

1,345,535

1,286,345

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

119,457
92,272
195,078(1,765)368,495

405,043

Accumulated Other Comprehensive Income:
Valuation difference on securities available for sale
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

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

37,817(2,516)33,266(16,653)

Total Accumulated Other Comprehensive Income

36,73551,914

Minority interests

61,001

66,616

Total Net Assets

466,231523,574¥1,811,767¥1,809,919

LIABILITIES

Total Liabilities
NET ASSETS
Shareholders’ Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ Equity

Total Liabilities and Net Assets

7

(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations[For the Nine Months Ended December 31, 2012 and 2013](Millions of yen)
Nine months ended Dec. 31, 2012

Nine months ended Dec. 31, 2013

(Apr. 1, 2012―Dec. 31, 2012)(Apr. 1, 2013―Dec. 31, 2013)

Net Sales¥956,898¥1,050,319

Cost of sales

815,796

892,648

Gross Profit

141,101

157,670

Selling, General and Administrative Expenses

101,416

106,629

Operating Profit

39,68451,041

Interest income

421

369

Dividends income

23,464

14,099Equity in earnings of affiliates

1,984

3,254

Rent income on noncurrent assets

3,550

3,484

Other

2,086

1,948

Total Non-Operating Profit

31,50723,156

Interest expenses

7,903

7,424

Other

8,189

8,339

Total Non-Operating Expenses

16,092

15,764

55,10058,433

1,956

27,335-

10,949

Other

4,370

5,447

Total Extraordinary Income

6,326

43,733719

27,260Loss on valuation of investment securities

5,356

12

Other

5,045

3,317

Total Extraordinary Loss

11,12130,590

Income before Income Taxes

50,30571,576

Income taxes

12,09626,985

Income before minority interests

38,20844,590Minority interests in income

7,617

3,955

¥30,591¥40,634

Non-Operating Profit:

Non-Operating Expenses:

Ordinary Income
Extraordinary Income:Gain on sales of investment securities
Gain on contribution of securities to retirement
benefit trust

Extraordinary Losses:
Loss on impairment

Net Income8Consolidated Statement of Comprehensive Income[For the Nine Months Ended December 31, 2012 and 2013](Millions of yen)
Nine months ended Dec. 31, 2012 Nine months ended Dec. 31, 2013
(Apr. 1, 2012―Dec. 31, 2012)

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

9(Apr. 1, 2013―Dec. 31, 2013)¥38,208¥44,590(5,477)(1,881)
12,023651
5,315
43,524(2,641)(2,421)
24,238
3,953
23,12867,71933,61057,753

9,913

9,966

(3) Notes on Consolidated Financial Statement
Notes on Assumptions for Going Concern: N/A
Segment Information[Segment Information]
I. For the nine months ended December 31, 2012 (From April 1, 2012 to December 31, 2012)
Sales and Income of Reporting Segments(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

CementMetals¥120,592¥376,297¥81,995

2,072

83,345

Total

122,664

Segment
income¥10,448

Adjustment
amountAmountindicated inthestatements ofoperations

Aluminum

OthersTotal¥46,742¥112,533¥218,735¥956,898－¥956,898

21,2644,250

760

31,401

143,094(143,094)－

459,642103,260

50,993

113,294

250,137

1,099,992(143,094)

956,898¥29,415¥7,463¥2,170¥5,631¥6,359¥61,489¥(6,388)¥55,100

Net sales(1)Outside
Customers(2)Within
Consolidated
Group

Notes:
1. “Others” includes nuclear energy-related services, precious metals, environmental and recycling-related
business, real estate business, and engineering-related services.
2. Included in the segment income adjustment amounted (-¥6,388 million) are segment eliminations (¥242
million) and corporate expenses that cannot be allocated to specific segments (-¥6,631 million).
Corporate expenses consist mainly of management-related costs, basic and experimental research costs,
and financial income/expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly
statements of operations.

10II. For the nine months ended December 31, 2013 (From April 1, 2013 to December 31, 2013)
1. Sales and Income of Reporting Segments(Millions of yen)
Advanced
Materials &Tools

CementMetals(1)Outside
Customers(2)Within
Consolidated
Group¥136,375¥425,487¥87,943

2,694

85,089Total

139,070

Segment
income¥14,102

Electronic
Materials &Components

Adjustment
amountAmountindicated inthestatements ofoperations

Aluminum

OthersTotal¥36,191¥114,081¥250,239¥1,050,319－¥1,050,319

22,34016,611746

36,130163,612(163,612)－

510,576

110,283

52,803

114,828

286,370

1,213,931(163,612)

1,050,319¥26,620¥10,614¥1,879¥4,829¥5,659¥63,705¥(5,272)¥58,433

Net sales

Notes:
1. “Others” includes nuclear energy-related services, precious metals, environmental and recycling-related
business, real estate business, and engineering-related services.
2. Included in the segment income adjustment amounted (-¥5,272 million) are segment eliminations (¥683
million) and corporate expenses that cannot be allocated to specific segments (-¥5,956 million).
Corporate expenses consist mainly of management-related costs, basic and experimental research costs,
and financial income/expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly
statements of operations.

2. Information Related to Loss on Impairment for Noncurrent Assets and Goodwill by Reporting Segment(Significant loss on impairment relating to noncurrent assets)
In the Electronic Materials & Components Business, following an aggravation of business conditions of thepolycrystalline silicon business, the book value of the assets of our Yokkaichi Plant was reduced to thecollectable amount and the decrease was posted as loss on impairment among extraordinary losses. The
amount of the loss on impairment posted in the first three quarters under review is ¥27,179 million.
Notes in Event of Significant Changes in Shareholders’ Equity: N/A
Important Subsequent Events
An explosion and a fire occurred at our Yokkaichi Plant on January 9, 2014, and the operation of the Plant’s
production facility is suspended in order to ensure safe operation. Timing for the recommencement ofoperations will be decided in consideration with the guidance from the relevant authorities and remains to be
determined. The impact of the said event on the Company’s consolidated financial position and businessperformance has not been determined.
The operating results of the Plant for the first three quarters under review are as follows.
Net sales¥12,541 million
Operating profit¥608 million
Polycrystalline silicon production quantity
1,370 tons

11