Consolidated Financial Results for the Three Months Ended June 30, 2015
Mitsubishi Materials Corporation
Tokyo, Japan

August 6, 2015
Stock code:
Shares listed:
URL:
Representative:
For further information please contact:

5711
Tokyo Stock Exchange
http://www.mmc.co.jp/
Mr. Akira Takeuchi, President
Mr. Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
Filing date of Quarterly Report:
August 7, 2015
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 three months ended June 30, 2015 (From April 1, 2015 to June 30, 2015)(1) Results of operations (cumulative):

Net sales
Three months ended June 30, 2015
Three months ended June 30, 2014

(Note) Comprehensive income¥360,773-1.7 (%)(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net income
Operating profit
Ordinary income
attributable toowners of the parent¥16,387
16.9 (%)¥17,102 -1.9 (%) ¥29,604 211.3 (%)¥366,932
2.2 (%) ¥14,013
Three months ended Jun 30, 2015:
Three months ended Jun 30, 2014:-17.6 (%)
¥17,439
3.9 (%)¥9,50936,434 million yen (677.1%)
4,688 million yen (-84.4%)(Yen)

Net income per share

Diluted net income per share¥22.60¥7.26-

Three months ended June 30, 2015
Three months ended June 30, 2014-46.4 (%)

(2) Financial Position:(Millions of yen)
Total assets¥1,927,020

As of June 30, 2015
As of March 31, 2015

(Reference) Shareholders’ equity

Shareholders’ equity ratio

Net assets¥668,993¥1,898,157
As of June 30, 2015: 579,801 million yen

30.1(%)¥629,514
29.0(%)
As of March 31, 2015: 550,762 million yen

2. Dividend payments(Yen)(Record date)

First quarter-

Year ended March 31, 2015
Year ending March 31, 2016

Dividends per share
Second quarter
Third quarter
¥3.00
¥5.00

Year ending March 31, 2016 (Forecast)-Year-end¥5.00

Annual
¥8.00

¥5.00

¥10.00(Note) Revisions to dividend forecast in the current period: No

3. Forecast (From April 1, 2015 to March 31, 2016)
Net sales
Six months ending
September 30, 2015

¥740,000

Year ending March
31, 2016¥1,580,000 4.1 (%)-1.5 (%)(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net income
Net income
Operating profit
Ordinary income
attributable toper shareowners of the parent¥34,000-0.1 (%)¥85,000 18.3 (%)(Note) Revisions to forecast in the current period: Yes¥37,500-6.4 (%)¥41,000 76.4 (%)¥31.29 (yen)¥92,000 13.4 (%)¥65,000 15.8 (%)¥49.61 (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: Yes(ii) Other changes in accounting policies: None(iii) Changes in accounting estimates: None(iv) Restatements: None
(Note) For details, please see “(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements” under “2.
Summary Information (Notes)” on page 5.
(4) Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury shares)Three months ended June 30, 2015: 1,314,895,351 sharesYear ended March 31, 2015:
1,314,895,351 shares(ii) Number of treasury shares at end of year
Three months ended June 30, 2015: 4,743,681 sharesYear ended March 31, 2015:
4,677,305 shares(iii) Average number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2015: 1,310,187,321 shares
Three months ended June 30, 2014: 1,310,427,052 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 in thisreport will be achieved. Accordingly, there might be cases in which actual results materially differ from forecasts of thisreport.
To use assumptions for forecasts, see (3) Explanation of Forecast and Other Future Predictions under “1. Qualitative
Information Regarding the Consolidated Performance” on page 5.
(Method of obtaining supplementary information to and contents of the first quarter financial results briefing)
Mitsubishi Materials Corporation is scheduled to hold a first quarter financial results briefing for institutional investors
on August 6, 2015 (Thursday). Supplementary information to the quarterly financial results to be used in this briefing
is being released on TDnet and the Company’s website with the announcement of the consolidated financial results forthe three months ended June 30, 2015.

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(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements ................................. P5(3) Additional Information ................................................................................................................................. P6(4) Contingent Liabilities .................................................................................................................................... P6
3. Consolidated Financial Statement ..................................................................................................................... P7(1) Consolidated Balance Sheets ....................................................................................................................... P7(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations ................................................................................................. P9
Consolidated Statement of Comprehensive Income ........................................................................... P10(3) Notes on Consolidated Financial Statement ............................................................................................... P11
Notes on Assumptions for Going Concern ............................................................................................... P11
Segment Information ................................................................................................................................... P11
Notes in Event of Significant Changes in Shareholders’ Equity .......................................................... P12
Business Combinations ............................................................................................................................... P12

11. Qualitative Information Regarding the Consolidated Performance(1) Explanation of Business Performance1) Overview of period under review
During the consolidated cumulative first quarter under review, the overall global economy headed towardmodest recovery thanks to signs showing that the U.S. and some other economies continue to recover, while
there was a continuing slowdown in the economies of China and other countries in Asia.
The Japanese economy also continued to improve gradually, thanks to increased corporate earnings andimproved employment and income conditions.
Regarding the operating environment for the Mitsubishi Materials Group, public-sector investment activity
showed signs of weakness, but overall operations continued to benefit from foreign exchange adjustments
stemming from yen depreciation.
Under these circumstances, consolidated net sales for the period totaled ¥360,773 million, down 1.7% fromthe previous corresponding period. Operating profit increased 16.9% to ¥16,387 million, while ordinary income
decreased 1.9%, to ¥17,102 million. Net income attributable to owners of the parent increased 211.3%, to¥29,604 million.
2) Overview of Segment(Cement)
Net sales
Operating profit
Ordinary income

FY 2015 Q1
¥43.6
2.3
¥1.9

FY 2016 Q1
¥46.8
3.8
¥3.4

(Billions of yen)
Increase/Decrease (%)¥3.2(7.5%)
1.5(67.6%)¥1.5(79.3%)In Japan, the Cement segment was significantly affected by sluggish growth in public-sector demand. Regional
demand was down except in the Tohoku and Hokuriku regions, leading to a decline in overall demand, lower
domestic sales volume and reduced net sales. However, we secured export sales volume on a par with the same
period of the preceding fiscal year. This factor, plus the impact of yen depreciation, resulted in a year-on-yearincrease in entire domestic sales. In the United States, with cement demand on a recovery trend in Southern
California, sales volumes increased. In China, while demand continued to grow, thanks to the highway
construction in Shandong and the new airport construction, sales volumes decreased substantially due to fallingdemand for real estate investment. In the overall Cement business, cement production amounted to 2.8 million
tons, equivalent to the first quarter of the preceding fiscal year.
As a result, the entire Cement business posted a year-on-year increase in net sales and operating profit.
Ordinary income rose from the previous corresponding period due to an increase in operating profit.

(Metals)

Net sales
Operating profit
Ordinary income

FY 2015 Q1¥200.4
4.6¥6.1

FY 2016 Q1¥183.6
6.4¥5.4(Billions of yen)
Increase/Decrease (%)¥(16.8)(-8.4%)
1.7(37.5%)¥(0.6)(-10.1%)In the copper business, sales of purchased items fell, and operations have been temporarily suspended due toequipment trouble since mid-June at PT. Smelting in Indonesia, but the impacts of yen depreciation, lower
operating costs and increased domestic production has led to a decrease in net sales but higher operating profit.
In the entire Metals business, copper cathode production amounted to 141 thousand tons, down 2 thousand tons
from the previous corresponding period.
In the gold and other valuable metals business, both net sales and operating profit increased due toincreased production volume, stemming from higher ore grades.
In the copper and copper alloy products business, both net sales and operating profit decreased, because
sales of products for automobiles and others fell.
As a result, the entire Metals business posted a year-on-year decrease in net sales but an increase inoperating profit.
Ordinary income for the overall segment was down year on year, due to lower dividend income and equity
in earnings of affiliates.
2

(Advanced Materials & Tools)
Net sales
Operating profit
Ordinary income

FY 2015 Q1
¥36.4
4.4
¥4.3

FY 2016 Q1
¥39.1
4.4
¥4.4

(Billions of yen)
Increase/Decrease (%)¥2.7(7.4%)
0(1.8%)¥0.1(2.6%)In the cemented carbide products business, demand was robust in Japan and overseas, particularly in Europe andthe United States. Against this backdrop, we conducted proactive sales promotions. These factors, plus the
addition of Mitsubishi Hitachi Tool Engineering, Ltd. (formerly Hitachi Tool Engineering, Ltd.) as aconsolidated subsidiary in April 2015, led to increases in net sales and operating profit.
In the high-performance alloy products business, although sales of products for the automobile sector
hovered at a steady level overseas, both net sales and operating profit decreased as sales volumes in Japandeclined. Among other factors, Hitachi Metals MMC Superalloy, Ltd. (formerly MMC Superalloy Corporation)transitioned to an equity-method affiliate of the Group from a consolidated subsidiary in July 2014.
As a result, the overall Advanced Materials & Tools business recorded a year-on-year increase in both net
sales and operating profit.
Ordinary income increased due to an increase in operating profit.

3

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

FY 2015 Q1
¥13.6
0.7
¥1.1

FY 2016 Q1
¥18.4
0.8
¥2.0

(Billions of yen)
Increase/Decrease (%)¥4.8(35.6%)
0.1(16.9%)¥0.9(88.0%)In the advanced materials and chemical products business, despite the steady progress in sales of semiconductor
manufacturing equipment-related products, sales of LSI products for smartphones and products for hybrid
automobiles decreased, causing net sales to increase but operating profit to fall.
In the electronic components business, sales of products for household appliances were solid, and sales of
products for telecommunications equipment expanded. However, costs rose due to investments in new products.
As a result, net sales were up but operating profit fell.
In the polycrystalline silicon business, operations were temporarily suspended at the Yokkaichi Plant fromearly January to late-June of 2014. In the first quarter under review, however, the plant resumed activity andcontinued with normal operations, leading to an increase in sales. As a result, both net sales and operating profit
rose.
As a result, the entire Electronic Materials & Components business reported year-on-year increases in both
net sales and operating profit.
Ordinary income increased due to an increase in equity in earnings of affiliates.

(Aluminum)
Net sales
Operating profit
Ordinary income

FY 2015 Q1
¥39.8
1.8
¥1.7

FY 2016 Q1
¥41.6
1.0
¥0.9

(Billions of yen)
Increase/Decrease (%)¥1.8(4.5%)(0.8)(-43.3%)¥(0.7)(-46.2%)In the aluminum cans business, demand for both regular cans and bottle cans hovered at the same level with thecorresponding period of the previous year.
In the rolled aluminum and processed aluminum products business, demand was down for products forautomobiles and products used in solar cells. However, net sales were up as a result of higher prices on
aluminum ingots.
The aluminum segment saw an overall upturn in material cost.
As a result, the entire Aluminum business posted a year-on-year increase in net sales, despite a decreasein operating profit.
Ordinary income decreased due to a decrease in operating profit.

4

(Others)
Net sales
Operating profit
Ordinary income

FY 2015 Q1
¥53.6
0.9
¥2.9

FY 2016 Q1
¥52.8
0.6
¥1.5

(Billions of yen)
Increase/Decrease (%)¥(0.8)(-1.6%)(0.3)(-37.1%)¥(1.4)(-47.7%)In the energy-related business, both net sales and operating profit decreased as stagnant market conditions
caused coal sales to fall, and sales of the electric power department declined as a result of ongoing construction
projects to upgrade power plants.
In the “E-waste” (used electronics and electrical products) recycling business, net sales and operating
profit were down, due to a reduction in the handling volume owing to reduced impact from last-minute demand
after the increase in the consumption tax rate.
Orders for nuclear energy and engineering services amounted to ¥15.1 billion, down ¥6.1 billion from theprevious corresponding period. The order backlog at the end of the period was ¥34.7 billion, down ¥3.0 billion
from a year earlier.

(2) Explanation of Financial Position
As of June 30, 2015, the Group’s consolidated total assets stood at ¥1,927.0 billion, up ¥28.8 billion from March
31, 2015. This was mainly due to an increase in inventories during the period.
Total liabilities decreased ¥10.6 billion, to ¥1,258.0 billion, due primarily to a decline in the current portionof bonds payable during the period.

(3) Explanation of Forecast and Other Future Predictions
In our consolidated earnings forecast, we have revised the net sales, operating profit and ordinary income figures
for the six months ending September 30, 2015, , from the forecast announced on May 12, 2015, due to suchconsiderations as the temporary suspension of operations at PT. Smelting in Indonesia. Revisions to previously
announced figures are as follows.
As tax expense is expected to decrease, net income attributable to owners of the parent has not been revised
from the previously announced figure.
Also, our consolidated earnings forecast for the full fiscal year ending March 31, 2016, remains unchanged,
based on our considerations of operating performance trends outside the Metals segment.
Revised Consolidated Earnings Forecast for the First Six Months of the Fiscal Year Ending March 31, 2016 (April
1, 2015 to September 30, 2015)(Billions of yen)Previous forecast
Current forecast
Increase/Decrease (%)
Net sales

770.0

740.0

-3.9%

Operating profit

36.0

34.0

-5.6%

Ordinary income

38.5

37.5

-2.6%

41.0

41.0

Net income attributableto owners of the parent-

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.
(2) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements
Changes in Accounting Policies(Adoption of the Accounting Standard for Business Combinations)
5

The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
September 13, 2013), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.
22, September 13, 2013) and the “Accounting Standard for Business Divestures” (ASBJ Statement No. 7,
September 13, 2013) from the first quarter under review, causing differences resulting from changes in the
Company’s ownership of subsidiaries of which ownership continues to be recorded in capital surplus andchanging the method of recording acquisition-related expenses in the fiscal year in which such expenses are
incurred. Also, for corporate combinations occurring after the beginning of the first quarter under review, theallocation of acquisition costs as determined after review of provisional accounting treatment is reflected in
the consolidated quarterly financial statements for the consolidated quarterly financial period to which thebusiness combination date belongs. Furthermore, the presentation of quarterly net income has been changed,
and the presentation of minority interests has been changed to non-controlling interests. The consolidated
quarterly financial statements for the first quarter of the preceding fiscal year and the consolidated financial
statements for the previous fiscal year have been revised to reflect these changes in presentation.
With regard to application of the Accounting Standard for Business Combinations, etc., as Clause 58-2
(4) of the Accounting Standard for Business Combinations, Clause 44-5 (4) of the Accounting Standard forConsolidated Financial Statements and Clause 57-4 (4) of the Accounting Standard for Business Divestures
stipulate transitional treatment, these standards will be applied going forward from the beginning of the firstquarter under review.
As a result, operating profit, ordinary income and income before income taxes each decreased ¥303
million during the three months under review.

(3) Additional Information(Reserve for Environmental Measures)
The Company has recorded estimated amounts for losses related to waste processing and losses due totreatment of contaminated soil in the Kazuno region of Akita Prefecture. In addition, with regard to abandoned
mines managed by the Company, the Company has recorded estimated expenses related to a specificcountermeasure work for preventing mining-induced pollution and expenses for the countermeasure work tostabilize a collection site.
Construction expenses for these specific measures related to abandoned mines are for executing
countermeasures to stabilize a large-scale collection site as well as to avoid hazards at such sites
accompanying the revised technical guidelines of the Mining Safety Act. In response to recent changes in thenatural environment, these also include drastic measures to control mine-induced pollution, mainly increasingwater treatment capacity to prevent runoff of untreated water. During the first quarter under review, thecontent of construction and estimates were determined. Accordingly, the Company recorded extraordinary
losses of ¥10,841 million as a provision for environmental measures.
This reserve is included within “reserves” under “noncurrent liabilities.
(4) Contingent Liabilities
Current Consolidated First Quarter (As of June 30, 2015)
Our consolidated subsidiary, PT. Smelting in Indonesia (hereafter “the Consolidated Subsidiary”) received anotice of correction dated December 30, 2014, from the Indonesian taxation authorities concerning sales
transaction amounts, etc., of the Consolidated Subsidiary for the fiscal term ended December 31, 2009,assessing an additional US$47 million (¥5,861 million at the exchange rate as of June 30, 2015). On January
28, 2015, the Consolidated Subsidiary made a provisional payment of US$14 million (¥1,714 million at thesame exchange rate) as part of the tax penalty.
However, the matter pointed out by the Indonesian taxation authorities, that the amount of reported sales
has been underestimated based on a comparison of profit margins with a company identified by the said
authorities, is deemed extremely irrational. As the subsequent order for a correction is considered totally
unacceptable, on March 25, 2015, the Company and its Consolidated Subsidiary submitted a written
opposition to the Indonesian taxation authorities.

63. Consolidated Financial Statement(1) Consolidated Balance Sheets[June 30, 2015 and March 31, 2015](Millions of yen)
As of March 31, 2015

As of June 30, 2015

ASSETS
Current Assets:
Cash and deposits

93,15273,554

Notes and accounts receivable-trade

230,874

239,566

Merchandise and finished goods

85,10096,701Work in process

107,093

111,452

Raw materials and supplies

104,539

117,418

Other

249,772

247,817

Allowance for doubtful accounts(2,129)(2,129)Total Current Assets

868,403884,381

Machinery and equipment, net

185,119

187,705

Land, net

273,589274,376

Other, net

196,326

200,424

Total Property, Plant and Equipment

655,034

662,506

Goodwill

41,24952,096

Other

11,68618,322

Total Intangible Assets

52,93670,419Investment securities

265,052

249,041

Other

63,706

67,814

Allowance for investment loss

(1,168)(1,168)

Allowance for doubtful accounts(5,807)(5,974)

Total Investments and Other Assets

321,783

309,713

1,029,753

1,042,639

1,898,157

1,927,020

Noncurrent Assets:
Property, Plant and Equipment:

Intangible Assets:

Investments and Other Assets:

Total Noncurrent Assets
Total Assets

7

(Millions of yen)
As of March 31, 2015

As of June 30, 2015

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade128,375

116,710

Short-term loans payable

252,197

269,021

Current portion of bonds payable

20,04040

Commercial papers

5,000

-

Income taxes payable
Provision

9,545

4,977

13,206

7,309

Gold payable

227,505

232,181

Other

121,946

126,324

Total Current Liabilities

777,817756,564

Bonds payable

65,10065,100Long-term loans payable
Other provision

288,534

282,597

7,763

18,174

Net defined benefit liability

39,66242,306

Other

89,764

93,283

Total Noncurrent Liabilities

490,825

501,462

1,268,643

1,258,027

Capital stock

119,457

119,457

Capital surplus

92,272

92,271Retained earnings

252,858

277,023

Treasury stock(1,865)(1,895)

Total Shareholders’ Equity

462,723

486,857

Valuation difference on securities available for sale

42,71744,930

Deferred gains or losses on hedges(1,025)

61

Revaluation reserve for land

33,85633,895

Foreign currency translation adjustment
Remeasurements of defined benefit plans

15,746

16,504(3,256)(2,448)

Total Accumulated Other Comprehensive Income

88,03992,944Non-controlling interests

78,751

89,191

Total Net Assets

629,514

668,993

1,898,157

1,927,020

Noncurrent Liabilities:

Total Liabilities
NET ASSETS
Shareholders’ Equity:

Accumulated Other Comprehensive Income:

Total Liabilities and Net Assets8(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations[For the Three Months Ended June 30, 2014 and 2015](Millions of yen)Three Months Ended Jun. 30, 2014 Three Months Ended Jun. 30, 2015
(Apr. 1, 2014―Jun. 30, 2014)(Apr. 1, 2015―Jun. 30, 2015)

Net Sales

366,932

360,773

Cost of sales

320,000

308,319

Gross Profit

46,93152,453

Selling, General and Administrative Expenses

32,91836,066

Operating Profit

14,013

16,387

Interest income

152

132

Dividends income

3,820

1,782

Equity in earnings of affiliates

2,567

1,496

Rent income on noncurrent assets

1,142

1,236

564

603

8,248

5,249

Interest expenses

2,255

1,834

Other

2,566

2,700

Total Non-Operating Expenses

4,822

4,534

17,43917,102

115

19,182Gain on change in equity-

10,464Gain on redemption of investment securities

-

1,234

Other

94

435

Total Extraordinary Income

209

31,316

Provision for environmental measures

1,300

10,841

Loss on suspension of operations

1,043

-

339

348

Total Extraordinary Loss

2,682

11,190

Income before Income Taxes

14,96637,229

Income taxes

4,531

6,724

Net Income

10,43430,504

925

900

9,509

29,604

Non-Operating Profit:

Other
Total Non-Operating Profit
Non-Operating Expenses:

Ordinary Income
Extraordinary Income:Gain on sales of investment securities

Extraordinary Losses:

Other

Net Income Attributable to Non-Controlling
Interests
Net Income Attributable to Owners of the Parent
9Consolidated Statement of Comprehensive Income[For the Three Months Ended June 30, 2014 and 2015](Millions of yen)Three Months Ended Jun. 30, 2014 Three Months Ended Jun. 30, 2015
(Apr. 1, 2014―Jun. 30, 2014)

Net Income
Other comprehensive income

10,434(Apr. 1, 2015―Jun. 30, 2015)

30,504

Valuation difference on available-for-sale securities

(401)

2,460

Deferred gains or losses on hedges

(321)

1,265

Foreign currency translation adjustment(4,298)2,346

Remeasurements of defined benefit plans

545

994

Equity in earnings of affiliates(1,270)(1,138)

Total other comprehensive income(5,746)

5,929

4,688

36,434

4,785

34,551

(97)

1,883

Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to noncontrolling interests10(3) Notes on Consolidated Financial Statement
Notes on Assumptions for Going Concern: N/A
Segment Information[Segment Information]
I. For the three months ended June 30, 2014 (From April 1, 2014 to June 30, 2014)
1. Sales and Income of Reporting Segments(Millions of yen)
Electronic
Materials &Components

Aluminum

Others

Total

Adjustment
amountAmountindicated inthestatements ofincomeCementMetalsAdvanced
Materials &Tools

42,795

198,328

29,47812,59039,29744,442366,932－

366,932

825

2,130

6,941

1,047

533

9,230

20,709(20,709)－

Total

43,620200,459

36,42013,63839,83153,672

387,642(20,709)366,932

Segment
income

1,942

6,103

4,362

1,100

1,703

2,980

18,193(753)

17,439Net sales(1)Outside
Customers(2)Within
Consolidated
Group

Notes:
1. “Others” includes nuclear energy-related services, environmental and recycling-related business, realestate business, and engineering-related services.
2. Included in the segment income adjustment (-¥753 million) are segment eliminations (¥100 million) andcorporate expenses that cannot be allocated to specific segments (-¥853 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 income.

II. For the three months ended June 30, 2015 (From April 1, 2015 to June 30, 2015)
1. Sales and Income of Reporting Segments(Millions of yen)
Electronic
Materials &Components

Aluminum

Others

Total

Adjustment
amountAmountindicated inthestatements ofincomeCementMetalsAdvanced
Materials &Tools(1)Outside
Customers(2)Within
Consolidated
Group

46,116

181,222

34,24914,40541,253

43,526

360,773－

360,773

767

2,400

4,879

4,093

387

9,309

21,837(21,837)－

Total

46,884

183,622

39,12818,49941,64052,835

382,610(21,837)

360,773

Segment income

3,483

5,484

4,476

2,069

916

1,559

17,988(885)

17,102

Net sales

Notes:
1. “Others” includes nuclear energy-related services, environmental and recycling-related business, realestate business, and engineering-related services.
2. Included in the segment income adjustment (-¥885 million) are segment eliminations (¥12 million) andcorporate expenses that cannot be allocated to specific segments (-¥898 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 income.

11

2. Information Related to Loss on Impairment of Noncurrent Assets and Goodwill by Reporting Segment(Significant changes in Goodwill Amounts)
In the Advanced Materials & Tools segment, in accordance with the April 1, 2015, acquisition of shares in
Mitsubishi Hitachi Tool Engineering, Ltd. (formerly Hitachi Tool Engineering, Ltd.) and conversion of thecompany to a consolidated subsidiary, goodwill was recorded during the three months ended June 30, 2015. The
amount of goodwill consequently increased by ¥11,752 million.

Notes in Event of Significant Changes in Shareholders’ Equity: N/A(Business Combinations)
Business Combination through Acquisition
1. Overview of the Business Combination(1) Name and business of the acquired company
Name of the acquired company: Hitachi Tool Engineering, Ltd.
Business: Manufacturing and sales of tips, cutting tools, wear-resistant products, tools for urban development,
and various machine tools made of specialty steels, carbide alloys, etc.
(2) Principal purpose of the business combination
The purpose of this combination is to strengthen the base of the Company’s cemented carbide products
business through expansion of Hitachi Tool’s leading-edge lineup of cemented carbide products, whichenable high-precision, high efficiency and high-speed processing, as well as its proposal ability forprocessing complicated shapes for a variety of materials.
(3) Date of the business combination
April 1, 2015(4) Legal form of the business combination
Acquisition of shares for consideration of cash and deposits(5) Name following the business combination
Mitsubishi Hitachi Tool Engineering, Ltd.
(6) Ratio of voting rights acquired
51%(7) Grounds for deciding on the company to be acquired
By acquiring shares in Hitachi Tool Engineering, Ltd., the Company holds 51% of voting rights.
2. Period during which Performance of the Acquired Company is Included in the Quarterly Consolidated Fiscal
Statements
From April 1, 2015 to June 30, 2015
3. Acquisition Cost and Consideration of Acquired Company by Item
Cash and deposits: ¥22,016 million
Acquisition cost: ¥22,016 million
4. Items Related to the Allocation of the Acquisition Cost
(1) Breakdown of principal amounts of assets acquired and liabilities assumed on the date of the combination
AssetsCurrent assets: ¥14,710 million
Noncurrent assets: ¥18,436 million
Total: ¥33,147 million
Liabilities
Current liabilities: ¥7,704 million
Noncurrent liabilities: ¥5,317 million
Total: ¥13,022 million(2) Amounts of intangible assets other than goodwill, their content, and their weighted-average amortization
periodAmount of intangible assets allocated: ¥6,077 million
Content: Patent rights
Weighted-average amortization period: 8 years(3) Amount of goodwill generated, grounds for generation, amortization method and amortization period
Amount of goodwill: ¥11,752 million
Grounds for generation: The investment amount reflecting expected future earnings at the time of theacquisition was assessed exceeded the fair value of net assets as of the businesscombination date. That difference is recognized as goodwill.
Amortization method and amortization period: 10 years, using the straight-line method12