Consolidated Financial Results for the Year Ended March 31, 2014
Mitsubishi Materials Corporation
Tokyo, JapanMay 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
June 27, 2014
June 2, 2014
June 27, 2014
Yes
Yes (For Corporate Investors)

Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date of start of dividend payment:
Scheduled date of filing of financial statements:
Supplementary materials for the financial results:
Investor conference for the financial results:

1. Results of the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(1) Results of operations:(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales

Operating profit
9.9 (%)¥66,28126.3 (%)

Ordinary income

Net income

Year ended Mar. 31, 2014

¥1,414,796¥76,902

3.3 (%)¥52,55142.2 (%)

Year ended Mar. 31, 2013
(Note) Comprehensive income¥1,287,251 -10.7 (%) ¥52,500
0.4 (%) ¥74,414
Year ended Mar. 31, 2014:
84,565 million yen (-6.3%)
Year ended Mar. 31, 2013:
90,252 million yen (543.2%)

75.1 (%)¥36,948286.3 (%)(Yen)
Net income per
share

Diluted net
income per share

Year ended Mar. 31, 2014¥40.10Year ended Mar. 31, 2013¥28.19(Reference) Equity losses and earnings of affiliates

Net income/shareholders’ equity

Ordinary income/total assets－
12.2 (%)－
9.8 (%)
Year ended Mar. 31, 2014:
Year ended Mar. 31, 2013:

4.3 (%)
4.2 (%)
4,377 million yen
5,193 million yen

Net assets

Shareholders’ equity
ratio

Operatingprofit/net sales
4.7 (%)
4.1 (%)(2) Financial position:
Total assets
As of Mar. 31, 2014
As of Mar. 31, 2013
(Reference) Shareholders’ equity¥1,778,505¥1,811,767
As of Mar. 31, 2014:
As of Mar. 31, 2013:¥525,707¥466,231
456,749 million yen
405,230 million yen

25.7 (%)
22.4 (%)(Millions of yen)
Shareholders’ equity
per share¥348.54(yen)¥309.17(yen)(3) Cash flows:
Cash flows fromoperating activities

Cash flows frominvesting activities

Year ended Mar. 31, 2014

¥102,932¥(44,863)¥(69,329)(Millions of yen)
Cash and cash
equivalents at endof Year¥62,078

Year ended Mar. 31, 2013

¥101,616¥(88,514)¥(36,316)¥63,299

Cash flows fromfinancing activities

2. Dividend payments(Yen)
Dividends per shareFirst
quarter

Secondquarter

Third
quarterYear-end

AnnualTotal dividends(Annual)Dividend ratio(Consolidated)

Dividends/
net assets(Consolidated)Year ended
Mar. 31, 2013

－

¥0.00

－

¥4.00

¥4.00

¥5,242 million

14.2 (%)

1.4 (%)

Year ended
Mar. 31, 2014

－

¥2.00

－

¥4.00

¥6.00

¥7,863 million

15.0 (%)

1.8 (%)

Year ending
Mar. 31, 2015
(Forecast)

－

¥3.00

－

¥5.00

¥8.00

3. Forecast (From April 1, 2014 to March 31, 2015)(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net income
Ordinary income
Net income
per Share

OperatingprofitNet sales

21.0 (%)

Six months ending
September 30, 2014

¥760,000 8.0 (%)¥33,000

Year ending March
31, 2015¥1,500,000 6.0 (%)¥74,000 11.6 (%)-1.0 (%)¥34,000-4.2 (%)¥17,000-41.9 (%)

¥12.97 (yen)¥84,000 9.2(%)¥50,000-4.9 (%)¥38.15 (yen)*Notes(1) Significant changes of subsidiaries during the period (including changes in scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury shares)
Year ended March 31, 2014:
1,314,895,351 sharesYear ended March 31, 2013:
1,314,895,351 shares(ii) Number of treasury shares at end of year
Year ended March 31, 2014:
4,449,074 sharesYear ended March 31, 2013:
4,193,557 shares(iii) Average number of shares during the period
Year ended March 31, 2014:
1,310,573,898 sharesYear ended March 31, 2013:
1,310,926,644 shares(Reference) Summary of nonconsolidated financial results
Nonconsolidated results of operations of the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(1) Nonconsolidated results of operations:(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales

Operating profit

Ordinary income

Net income

Year ended Mar. 31, 2014

735,558

9.2 (%)

23,18026.8 (%)

42,134-22.5 (%)

42,377-5.3 (%)

Year ended Mar. 31, 2013

673,632-12.4 (%)

18,28127.7 (%)

54,332102.6 (%)

44,738145.9 (%)

Year ended Mar. 31, 2014
Year ended Mar. 31, 2013

Net Income per share

Diluted net income per share

32.33 (yen)34.13 (yen)－－(2) Nonconsolidated financial position:(Millions of yen)

As of Mar. 31, 2014
As of Mar. 31, 2013
(Reference) Shareholders’ equity

Shareholders’ equity
ratio

Shareholders’ equity
per share

Total assets

Net assets

1,177,558

398,674

33.9 (%)

304.22 (yen)373,683
398,674 million yen
373,683 million yen

29.8 (%)

285.10 (yen)1,256,038
As of Mar. 31, 2014:
As of Mar. 31, 2013:*Indication regarding the situation of audit procedures
As of the disclosure of these financial results, audit procedures of the 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, see (3) Outlook for the Year Ending March 31, 2015 (page 4) under“1.Analysis of Business Results and Financial Position (1) Analysis of Business Results”.
(Method of obtaining supplementary information to and contents of the financial results briefing)
Mitsubishi Materials Corporation is scheduled to hold financial results briefing for institutional investors on May 14,
2014 (Wednesday). Supplementary information to the financial results to be used in this briefing is being released on
TDnet and on the Company’s website with the announcement of the consolidated financial results for the year ended
March 31, 2014.

Contents

1. Analysis of Business Results and Financial Position ........................................................................................ P2(1) Analysis of Business Results .................................................................................................................. P2(2) Analysis of Financial Position ................................................................................................................ P4(3) Basic Profit Distribution Policies and Dividend Payments..................................................................... P5(4) Business and Other Risks ........................................................................................................................ P6
2. Management Policies ......................................................................................................................................... .P8(1) Basic Group Management Policies ......................................................................................................... P8(2) Target Management Indicator, Medium- and Long-term Management Strategies
and Issues to Be Addressed ................................................................................................................... .P8
3. Consolidated Financial Statement ................................................................................................................... P11(1) Consolidated Balance Sheets ..................................................................................................................... P11(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations ............................................................................................... P13
Consolidated Statement of Comprehensive Income ........................................................................... P14(3) Statement of Changes in Consolidated Shareholders’ Equity .................................................................. P15(4) Consolidated Statements of Cash Flows ..................................................................................................... P18(5) Segment Information .................................................................................................................................. P20(6) Per-share Information ................................................................................................................................. P25(7) Important Subsequent Events ...................................................................................................................... P25

11. Analysis of Business Results and Financial Position(1) Analysis of Business Results
1) Results for the Year Ended March 31, 2014
During the fiscal year under review, the world economy on the whole headed toward recovery, as although there
was a continuing slowdown in the economies of China, India, and other emerging nations, there were also signsof improvement such as a gradual change for the better in business conditions in the U.S.
Conditions of the Japanese economy have gradually improved driven by an increase in public
investment, there was also an increase in personal consumption driven by such factors as an improvement of
the employment/income environment, and a rush of demand before a raise implemented in the consumption tax
rate.
Regarding the operating environment for the Mitsubishi Materials Group, although overseas market prices
fell for key metals, notably copper, operations were affected overall by a correction in the exchange rate of theJapanese yen. Furthermore, earthquake disaster recovery projects reached a strong tempo and housing
construction increased, leading firm demand for cement.
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 states as
growth strategies: “Business advancement in overseas markets, especially emerging markets” and “Generationof distinctive synergies as an integrated business entity.” Based on this recognition, we have continued to
implement various measures, expanded its network of production and sales sites, principally in Asia ex-Japan,
and selected and focused on projects.
As a result, consolidated net sales for the fiscal year amounted to ¥1,414,796 million, up 9.9% from theprevious fiscal year. Operating profit increased 26.3% to ¥66,281 million, and ordinary income increased 3.3%
to ¥76,902 million. Net income increased 42.4% to ¥52,551 million.
2) Overview of Segment(Cement)
Net sales
Operating profit
Ordinary income

FY 2013¥164.714.2¥14.0

FY 2014¥190.1
19.1¥18.8(Billions of yen)
Increase/decrease (%)¥25.4(15.4%)
4.8(34.3%)¥4.7(34.2%)In the domestic Cement business, a stable, nation-wide increase in demand caused by the full-scalereconstruction efforts from the earthquake, as well as an increase in other disaster relief work, redevelopment
construction, and housing construction for condominiums and the like, increased sales volumes. 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 high-speed rail construction in Shandong and the construction of the
new airport. In the entire Cement business, cement production amounted to 12.4 million tons, up 0.6 million
tons from the previous fiscal year.
As a result, in the entire Cement business, both net sales and operating profit rose year-on-year.
Ordinary income also rose due to an increase in operating profit.

(Metals)

Net sales
Operating profit
Ordinary income

FY 2013¥622.717.7¥39.1

FY 2014¥696.3
23.2¥36.5(Billions of yen)
Increase/decrease (%)¥73.5(11.8%)
5.5(31.0%)¥(2.5)(-6.6%)In the copper business, the overseas copper market prices decreased, but there was also impact from correctionof yen appreciation. At PT Smelting in Indonesia, operational trouble at the mines from which the company
sources its ore and operation shutdown associated with periodic furnace repairs affected results. At Naoshima
Smelter & Refinery, however, there were no periodic furnace repairs during the period. This resulted inincreased production, which in turn led to an increase in net sales and operating profit. In the entire Metals
business, copper cathode production amounted to 513 thousand tons, up 4 thousand tons from the previous
fiscal year.
In the gold and other valuable metals business, despite the impact from correction of yen appreciation, both2

net sales and operating profit decreased as a result of reduced production partly due to a decrease in the amountof metals contained in the raw material ore.
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, in the entire Metals business, both net sales and operating profit increased year-on-year.
Ordinary income decreased due to a decrease in dividend income.

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

FY 2013¥136.610.7¥10.6

FY 2014¥145.814.0¥13.9(Billions of yen)
Increase/decrease (%)¥9.2(6.8%)
3.3(30.7%)¥3.3(31.8%)

In cemented carbide products business, sales increased because of sales promotion measures implemented byour overseas subsidiaries and correction of yen appreciation. Furthermore, costs were reduced because of
improved productivity. As a result, there was an increase in net sales and operating profits.
In the high-performance alloy products business, although there was an increase in demand for theaircraft-related market and in sales of products for automobile sector, purchase costs increased as a result ofcorrection of yen appreciation. Also, as the Group continued to select and focus its operations, Tamadai
Corporation ceased to be subsidiary in December 2013, and Mitsubishi Materials C.M.I. Corporation ceased tobe subsidiary in January 2014, resulting in a decrease both in net sales and operating profit.
As a result, in the entire Advanced Materials & Tools business, both net sales and operating profit
increased year-on-year.
Ordinary income also increased due to an increase in operating profit.

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

FY 2013
¥68.6
4.8
¥3.4

FY 2014
¥67.7
4.0
¥2.1

(Billions of yen)
Increase/decrease (%)¥(0.8)(-1.3%)(0.8)(-16.8%)¥(1.2)(-36.6%)

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 an increase 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.
The polycrystalline silicon and functional materials business posted a decrease in both net sales andoperating profit, as sales of polycrystalline silicon decreased as a result of suspension of operation at the
Yokkaichi Plant after an explosion and fire, which occurred there on January 9, 2014.
As a result, in the entire Electronic Materials & Components business, both net sales and operating profit
decreased year-on-year.
Ordinary income also fell due to a decline in operating profit and a decrease in equity in earnings ofaffiliates.

(Aluminum)
Net sales
Operating profit
Ordinary income

FY 2013¥146.66.1¥5.5

FY 2014¥151.5
5.5¥4.7(Billions of yen)
Increase/decrease (%)¥4.8(3.3%)(0.6)(-9.9%)¥(0.7)(-14.3%)In the aluminum cans business, demand increased for regular cans mainly for beer or beer-like beverages, but
demand for bottle cans decreased for black coffee and tea-based beverages.
In rolled aluminum and processed aluminum products, demand for aluminum can materials and products
for solar battery sector lifted. After a decrease in demand in the first half of the period under review, promptedby the end of an Eco-car subsidy, product demand for automobile sector rose again, influenced by thelast-minute rush before the increase in the consumption tax.
3

Overall the aluminum segment saw an upturn in energy cost and material cost, due to the correction of
yen appreciation.
As a result, in the entire Aluminum business, net sales increased year-on-year but operating profit
decreased.
Ordinary income decreased due to a decrease in operating profit.

(Others)
Net sales
Operating profit
Ordinary income

FY 2013¥348.96.9¥10.8

FY 2014¥380.1
8.0¥9.5(Billions of yen)
Increase/decrease (%)¥31.1(8.9%)
1.0(15.6%)¥(1.3)(-12.0%)In the energy-related business, although coal sales were up, costs increased in the field of nuclear energy which
experienced an increase in sales for decontamination business. In addition to that, survey costs for new
geothermal power development proposals increased. As a result, there was an increase in net sales but adecrease in operating profit.
In the "e-waste" (used electronics and electrical products) recycling business posted increases in both net
sales and operating profit due to an increase in the amount of throughput influenced by the last-minute rush
before the increase in the consumption tax, the increase in the amount of collection of valuable resources andthe effects of cost reduction.
In the precious metal business, although sales decreased for jewelry-related items, sales volumes of goldbullion increased because of a major drop in the price of gold in overseas markets in the first quarter, leading toincreases in both net sales and operating profit.
Orders for nuclear energy and engineering services amounted to ¥65.4 billion, up ¥6.4 billion from theprevious fiscal year. The order backlog at the end of the period was ¥28.7 billion, up ¥10.7 billion from a year
earlier.

3) Outlook for the Year Ending March 31, 2015
As for the global economy, while the future is uncertain for the economies of China and other emerging countries,
economies are expected to recover in leading industrial countries.
With regard to the Japanese economy, although a rebound is forecasted because of the last-minute rush
before the increase in consumption tax, a sustained, gradual recovery of the Japanese economy is anticipatedbecause of firm trends in domestic demand thanks to improvements in corporate profits, and employment andincome environments.
As for the business environment in which the Group operates, while the domestic economy has showed atrend toward recovery, demand for cement is anticipated to continue because of demand in the full-scalereconstruction efforts. On the other hand, with the pace of prices in overseas markets for major metals, including
copper, there is some concern for a downward trend.
Amid such situation, the Group will implement the measures as described in “2. Management Policies”
for our growth.
In this environment, our consolidated performance forecasts for the year ending March 31, 2015 are as
follows: net sales of ¥1,500.0 billion, operating profit of ¥74.0 billion, ordinary income of ¥84.0 billion, and net
income of ¥50.0 billion.
(2) Analysis of Financial Position
At March 31, 2014, total assets amounted to ¥1,778.5 billion, down ¥33.2 billion from a year earlier. This was
mainly due to the decrease of investment securities.
Total liabilities decreased ¥92.7 billion, to ¥1,252.7 billion. This stemmed mainly from a decrease in
short-term loans payable.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥102.9 billion, up ¥1.3 billion from the previous fiscal
year. This was due mainly to a stable performance.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥44.8 billion, down ¥43.6 billion from the previous fiscal year.
This was due mainly to outlays related to capital investments.
4

(Cash Flows from Financing Activities)
Together, operating activities and investing activities produced a net inflow of ¥58.0 billion, which was
mainly applied to the repayment of bank borrowings. Accordingly, net cash used in financing activities was ¥69.3
billion, up ¥33.0 billion from the previous fiscal year.
As a result of the above, as well as exchange rate changes and other factors, the balance of cash and cash
equivalents at March 31, 2014, stood at ¥62.0 billion, down ¥1.2 billion from March 31, 2013.
Below is a summary of major cash flow indicators.

Equity ratio (%)
Equity ratio on amarket-value basis (%)
Ratio of interest-bearing
debt to cash flow
Interest coverage ratio

March 31,
2010
18.7

March 31,
2011
18.7

March 31,
2012
20.0

March 31,
2013
22.4

March 31,
2014
25.7

19.3

20.1

19.6

19.4

21.6

18.6

7.1

8.0

7.1

6.5

3.4

7.8

8.3

9.0

10.2

Equity ratio:
Equity ratio on a market-value basis:
Ratio of interest-bearing debt to cash flow:
Interest coverage ratio:

Shareholders’ equity/Total asset
Total value of shares at market price/Total assets
Interest-bearing debt/Cash flow
Operating cash flow/Interest payments(Note 1) All indicators are calculated on a consolidated basis.
(Note 2) Market capitalization is based on the year-end share price multiplied by the number of shares issued andoutstanding at year-end (after deducting treasury stock).
(Note 3) Cash flow is based on the net cash provided by operating activities in the Consolidated Statements ofCash Flows.
(Note 4) Interest-bearing debt covers all interest-bearing debt in the Consolidated Balance Sheets. Interest
payments are based on the amounts shown in the Consolidated Statements of Cash Flows.

(3) Basic Profit Distribution Policies and Dividend Payments
At its 81st General Meeting of Shareholders held on June 29, 2006, the Company changed its Articles ofIncorporation to distribute the surplus following the resolution at the Board of Directors Meeting. We regard the
distribution of profits to all shareholders as one of our most important priorities. Accordingly, our policy is tomake decisions on profit appropriation based on comprehensive consideration of various factors related to overallmanagement, such as income over the relevant period, retained earnings, and financial position. Based on thispolicy, the Board of Directors, at its meeting on May 12, 2014, it was decided to distribute the year-end dividendof 4 yen and the interim dividend of 2 yen, thus making the full-year dividend for the fiscal year under review of
6 yen per share (with an increase by 2 yen from the last fiscal year).
Dividend payments for the year ending March 31, 2015 expected to amount to ¥8 per share (¥3 interim dividendplus ¥5 year-end dividend).

5(4) Business and Other Risks
Because the Group, as stated in "3. Consolidated Financial Statement a. Segment Information", is engaged in a
broad variety of business activities, its business results and financial standing are influenced by all kinds of factors,
such as political affairs, economy, weather, market conditions, currency movements, and laws and ordinances bothin and outside the country. Listed below are the factors that may have particularly substantial impact on theGroup.
Please note that although the matters listed in this section contain items related to the future, these items havebeen chosen as of May 12, 2014.
1) Corporate reorganization
The Group is always engaged in selection and concentration of its various businesses, actively throwing inmanagement resources in businesses with high profitability, at the same time actively conducting revisions,reorganizations, and restructuring of its businesses always ready to consider possibilities regarding collaboration
with other companies. Business results and financial standing of the Group may be influenced by this process.
2) Market and customer trends
The Group offers products and services to all kinds of industries, and due to such factors as changes of theconditions of the world economy, rapid changes of the clients' markets, changes of the clients' market share, andchanges of clients' business strategies or product development trends may influence the sales of the products of
the Group. Especially the automobile industry and the IT-related industry are exposed to intense competition in
the area of prices and technical development, and while the Group takes every precaution endeavoring to reducethe costs and develop new products and technologies, in cases where we cannot appropriately respond to thechanges of the industries and the clients' markets, business results of the Group may be affected.
3) Rates for nonferrous metals, exchange fluctuation, etc.
In the Metals business, dividends from mines the Group made capital subscriptions into that are denominated inforeign currency, which are the main sources of profits, as well as smelting expenses, etc., are influenced by rates
for nonferrous metals, exchange fluctuations, and conditions of ore purchasing. Furthermore, in the area of
inventories, there is a risk of rates for nonferrous metals and exchange fluctuation influencing the material costs inthe period from the procurement of the ore to the production and sales of the metals.
Also, such items as nonferrous metals used as raw materials in the Aluminum business and the Advanced
Materials & Tools business as well as coal in the Cement business are international merchandise, and theacquisition cost of these raw materials and mineral fuel can be influenced by fluctuation of market prices,
exchange rates, ocean freight, etc. for nonferrous metals and coal.
4) Trends in the conditions of the semiconductor market
The Group supplies electronic materials, polycrystalline silicon, etc. for the semiconductor industry, and is also
engaged in the silicon wafer business for semiconductors in the SUMCO Corporation, which is an equity-method
affiliate, and business results and financial standing of the Group may be influenced by conditions of thesemiconductor market.
5) Interest-bearing debt
In the term ended March 31, 2014, the interest-bearing debt of the Group was ¥649.8 billion yen (which is thesum total of short-term loans payable, current portion of bonds payable, commercial papers, bonds payable, andlong-term loans payable; same below if there are no explanatory notes) amounting to 36.5% of the total assets.
And although we are making efforts to improve the financial standing by reducing inventories, asset sales, etc., thefuture financial situation may affect business results and financial standing of the Group.
6) Important matters related to fund procurement
Among the loans payable of the Group such as syndicated loans there are some loans, for which we contractuallypromised the maintenance of shareholders' equity above a certain level. In cases where the Company or the Group
cannot keep these assurances due to changes for the worse of our financial situation or some other factors, there isa risk of a duty to repay such loans before the term of payment being generated, and depending on the subsequent
steps these situations may impact the fund procurement of the Group.
7) Guaranty of liabilities, etc.
In the term ended March 31, 2014, the Group has undertaken a ¥33.0 billion yen guaranty of liabilities, etc.
against monetary liabilities of affiliated companies, which are not included in the scope of consolidation. In cases,
where a situation arises in the future, in which we are requested to fulfill these guaranties of liabilities, this may
6

affect business results and financial standing of the Group.
8) Fluctuations of the market value of assets
Business results and financial standing of the Group may be influenced by fluctuations of the market value of the
securities, land, and other assets possessed.
9) Retirement benefit expenses and obligations
The employees' retirement benefit expenses and obligations are calculated based on the assumptions andconditions mainly derived from mathematical calculations. In setting these assumptions and conditions we take
into consideration the employees' average remaining length of service, long-term interests of the Japanese
government bonds, as well as the status of pension assets including the shares contributed to trust funds, but losses
caused by decline in the discount rate or operations with pension assets may affect the future expenses andobligations posted by the Group.
10) Environmental regulations, etc.
In each business establishment in and outside the country, the Group makes efforts to control pollution such as the
air pollution, wastewater pollution, soil pollution, and ground water pollution, in accordance with environmental
laws and ordinances, and in dealing with abandoned mines within the country is endeavoring to control mine
pollution by for example preventing water pollution from mine water or conducting security management of thedumps in accordance with the Mine Safety Law. However, in cases where related laws are revised or the volumeof permissible emission of greenhouse gas is changed, the Group may need to bear new expenses.
11) Overseas operations, etc.
The Group has production bases, sales bases, and other bases in 26 countries and regions abroad, and foreign sales
amount to 34.8% of its consolidated sales. Business results and financial standing of the Group may be influenced
by political/economic conditions, exchange rates at each country as well as changes of trading/commercial
regulations, mining policies, environmental regulations, systems of taxation, other unforeseen changes of laws or
regulations as well as differences of interpretation thereof, and changes of management policies of local
cooperators and partners.
12) Intellectual property rights
The Group fully recognizes the importance of intellectual property rights and makes efforts to protect them, but incases, where the measures to protect the same are insufficient, or in cases where our rights are illegally infringed
on, this may affect business results and financial standing of the Group. At the same time, although the Grouphandles the intellectual property rights held by other companies with the greatest possible care, in cases where it isestablished that we have infringed on the intellectual property rights held by other companies and have to pay
liabilities, such as compensation for damages, this also may affect business results and financial standing of theGroup.
13) Quality of the products
The Group takes all possible measures regarding the quality control, striving to offer our clients products of highquality. However, in cases where due to some unforeseen circumstances we need to conduct a large-scale recall,this may affect business results and financial standing of the Group.
14) Occupational health and safety, equipment accidents, etc.
The Group takes thoroughgoing measures to prevent occupational accidents and accidents to production
machinery. Our efforts span both “software” aspects such as management frameworks for occupational health,safety, security and accident prevention, and “hardware” approaches such as operational and maintenancemanagement and improving the safety of equipment. In the event of a major accident at work or an accident to theequipment occurs, this may affect business results and financial standing of the Group.
15) Management of information
The Group strives to ensure thoroughness of management of information including handling of personal
information, but in cases, where a leak of information or some other accident to information occurs, due todamage to our reputation in the society or other factors this may affect business results and financial standing of
the Group.
16) Lawsuits, etc.
Business results and financial standing of the Group may be influenced by rulings, amicable settlements, verdicts,
etc. related to lawsuits, disputes, and other legal procedures, in which the Group is one of the parties concerned at7

present, or will be one of the parties concerned in the future in relation to the business conducted by the Group
presently or in the past within the country and in foreign countries.
17) Procurement of electricity
Business results and financial standing of the Group may be influenced by increases of prices for electricity
resulting from such factors as instabilities in supply of electricity due to suspension of operation of nuclear power
stations, cost increases of imported fossil fuels, and increases in charges for renewable energy18) Other matters
In addition to the above, business results and financial standing of the Group may be influenced by changes oftrade practices, terrorist attacks, wars, epidemics, earthquakes and other natural disasters, and other unexpectedcircumstances.

2. Management Policies(1) Basic Group Management Policies
In order to accelerate our corporate philosophy “For people, society and the Earth” in a stable way, the Group
sets out the objective “to become the number one corporate group that creates the new earth-friendly
materials with the unique technologies and contributes to a recycling-oriented society by the early 2020s.”(2) Target Management Indicator, Medium- and Long-Term Management Strategies and Issues to be
Addressed
Each operation of the Group commits to create valuable products and services with our unique technologies
and to take an important position in the industry and market, so that we can become the “the No. 1
Corporate Group” defined in the above “(1) Basic Group Management Policies.” In addition, for the purposeof focusing on foundation strengthening to accomplish the above objective, we have set the followings as thegrowth strategies for the overall Group in the “Materials Premium 2016– Taking up the Challenge of
Becoming the No. 1 Corporate Group”
1) Strengthening the base for growth
Setting the motto “Safety and Health is the First” as our first priority, we will strengthen our security
management system and cultivate corporate philosophy and culture to value safety and will structure stable
operational frameworks that contribute to the growth of the Group business.
2) Strengthening global competitivenessBy focusing on strengthening our existing production and sale facilities in the overseas countries anddeveloping the new production and sales bases mainly in the emerging countries, we will acquire the new
growth markets on a global basis.
In particular, the Mitsubishi Materials Group will conduct strategic marketing in the automotive andelectronics industries, to boost its competitive position by gaining access to new customers and markets.
3) Pursuing a recycling-based business model
The Group operates business widely across the upstream (sources), midstream (materials) and downstream(processed products) markets. In addition, we will pursue the business model to circulate wastes to the
upstream market for utilization.
We will also facilitate recycling of the wastes that have so far been hard to process through our “Material
Premium,” the policy characteristic for a complex corporation like use, in order to contribute to sustainablegrowth of the society.
<Priorities in each business>● Cement
In the domestic cement business, demand in the public and private sectors was strong. This is evidenced bysome recovery signs represented by public investments for economic policies including the reconstruction
efforts in the wake of the earthquake, and private equipment investments with improved corporate profits.
Nevertheless, manpower constraints at construction sites, and the like, are forecasted to continue. For thatreason, domestic (Japanese) cement demand in FY2015is forecasted to only be slightly above the previous
fiscal year at 48,000 thousand tons. Under such circumstances, we will strive to ensure sales volumes by8

certainly supporting increases in cement demand beyond what was envisioned by organizing our sales andsupply system.
In the US cement business, demand is anticipated to recover around the private sector, continuing fromthe gradual recovery in the US economy. For that reason, we will strive to increase sales volumes and reform
prices through sales centering on the Robertson’s Ready Mix, Ltd. that provides the ready-mix cementbusiness, in the Mitsubishi Cement Corp., and will also strive to increase profitability by efficient work
management of the US cement and ready-mixed concrete businesses by maximizing the use of the businesses
and assets at Robertson’s Ready Mix, Ltd.
In the Chinese cement business, while firm public and private sector demands are forecasted to continue
in Shandong Province, we will strive to implement stable supplies, and incorporate sales price revisions, andstrength earning power.
● Metals
The supply-demand situation of copper concentrates is expected to become easy due to the enhanced supply
capacity of mines. Copper market price is currently on a downward trend. However, we will watch this trend
closely in the future together with currency exchange rates and stock market trends.
In the processed copper products business, demand for products for automobiles and electronic materials
is forecasted temporarily to decrease because of the rise in consumption tax, but later, a gradual recovery is
expected.
The Group will respond actively to these conditions. In copper operations overall, we will continue toraise the efficiency of energy use and squeeze fixed costs, to lower our break-even point, thereby building arobust constitution that is not vulnerable to fluctuations in the price environment. In copper smelting, we will
work to deliver stable operations at smelters both in Japan and overseas while expanding recycling
operations by constructing a treatment framework that can manage difficult-to-handle waste. By boosting
revenues from waste treatment, the Group will bolster its profitability. In the processed copper products
business, we will continue to increase profitability by enhancing sales competitiveness through accelerated
development of alloys, drawing on our technological and development capabilities.
Also, as of April 1, 2014, sales of precious metals bullion that had been classified in the precious metals
business were integrated into the Metals business. The Metals business changed its name to the Metals
business in line with that change. In the future, production and sales of the precious metals bullion will be
managed in an integrated fashion to make work more efficient and to strengthen profitability.
● Advanced Materials & Tools
In the cemented carbide products business, in addition to an overall continuing sense of a slowdown ineconomic growth in emerging countries, the pace of the recovery of demand in the US and Europe wasuneven throughout the country. Nevertheless, there was a trend toward overall recovery for the ordering
environment. Demand is expected to expand particularly in the automobile-related and aircraft-related
markets, where our main customers are, in the medium- and long-term.
Amid such circumstances, we will further strengthen high-performance, high-precision productdevelopment and scale up our engineering service organization, to support the needs of our customers as a
general tool manufacturer. On the sales side, we will build out our array of sales bases, focusing on emerging
economies, thereby extending our sales network and invigorating sales activities. In addition, we willcontinue to promote the diversification of raw material procurement sources, such as by improving therecycling ratio in order to stably procure tungsten, which is a main raw material of cemented carbide
products.
Turning to high-performance alloy products business, Tamadai Corporation and Mitsubishi Materials
C.M.I. Corporation ceased to be subsidiaries, while MMC Superalloy Corporation will change from being a
consolidated subsidiary to being an equity-method affiliate because of becoming a joint venture company,
targeting July, 2014. While these moves are forecast to reduce revenues and earnings over the short term,
demand for sintered products is forecast to expand due to growth in automobile-related industries. Against
this background, the Group will start smooth operations at sintered-products plants overseas, launch fresh
products at existing plants, and strengthen production technology in Japan. This latter initiative will improve
quality and pare costs by raising productivity. In this way the Group will strive to expand earnings.
● Electronic Materials & Components
In the advanced materials business, sales of products for smartphone displays and for solar battery are
expected to be firm, but demand for semiconductor-related products is opaque. Also, in addition to a positive
trend in demand for products for hybrid automobiles, demand is expected to increase for products inindustries other than for automobiles. In the markets, we will continue to increase profitability by using coretechnological capabilities, and enhancing sales competitiveness and proposal capabilities to clients.
9

In the electronic devices business, although sales of products for household appliances have a firm trend,
there is some concern for decelerated growth in the future for the Chinese economy; demand is opaque. In
the future, we will strength our sales organizations in emerging countries, implement early introductions of
new products and further reduce costs in our efforts to strengthen the business structure.
In polycrystalline silicon and chemical products, the Group will draft measures to prevent recurrence ofthe explosion and fire at Yokkaichi Plant, in consideration of the recommendations of the committee
investigating the accident. The Group is also working to restart safe operations, soliciting guidance from
related governmental authorities.
● Aluminum
In the aluminum cans business, although we cannot expect a major increase in demand for the overall
domestic drink market, we are working more stably to take orders for regular cans, and actively making
efforts to expand sales of aluminum bottle cans, which is our strategic product, for black coffee andtea-based beverages. We will also actively promote advantageous procurement of raw materials, stableproduct quality and cost reductions.
In the rolled aluminum and processed aluminum products business, although no dramatic increase indomestic demand is expected, we will work toward securing orders for can materials, and products forautomobiles and electronic materials. We will also undertake efforts to expand sales for the automobile
market which is forecasted to have increased demand overseas.
We will also contribute to establish a resource-recycling society by actively promoting the recycling
business of used aluminum cans, which the Group has long worked on.

10

3. Consolidated Financial Statement(1) Consolidated Balance Sheets[March 31, 2014 and 2013](Millions of yen)
As of March 31, 2013

As of March 31, 2014

Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred income taxes
Gold bullion on loan
Other
Allowance for doubtful accounts
Total Current Assets

64,416
211,748
79,941
98,948103,463
15,622
99,548107,171(1,929)778,93163,486
219,016
81,516100,280
103,155
10,924
93,635104,293(1,843)
774,465

Noncurrent Assets:
Property, Plant and Equipment:
Building and structures, net
Machinery and equipment, net
Land, net
Construction in progress
Other, net
Total Property, Plant and Equipment

156,929
198,220
271,517
18,96813,337
658,974

153,369
187,634
273,048
22,51014,009650,571

38,7609,520
48,281

38,816
9,410
48,226

271,754
29,18332,061(1,748)(5,672)
325,579
1,032,835
1,811,767

250,576
31,25530,375(1,168)(5,797)305,241
1,004,039
1,778,505

ASSETS

Intangible Assets:
Goodwill
Other
Total Intangible Assets
Investments and Other Assets:
Investment securities
Deferred income taxes
Other
Allowance for investment loss
Allowance for doubtful accounts
Total Investments and Other Assets
Total Noncurrent Assets
Total Assets

11

(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Current Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Commercial papers
Income taxes payable
Deferred tax liabilities
Accrued bonuses
Gold payable
Allowance for loss on disposal of inventories
Other
Total Current Liabilities

105,889
287,942－
26,0006,653
734
12,097232,002
1,557
123,460
796,337

106,656
256,098
40,000－9,576
648
11,975
212,760
923
99,878738,518

Noncurrent Liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Reserve for directors’ retirement benefits
Reserve for loss on subsidiaries and affiliates
Reserve for environmental measures
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other
Total Noncurrent Liabilities
Total Liabilities

110,040
268,998
59,601
1,470
2,035
4,238
32,77133,683－36,358549,198
1,345,535

85,140268,605
－
1,740
1,698
4,117
31,65032,53252,78736,007514,279
1,252,797

119,457
92,272
158,456(1,692)
368,495

119,457
92,272
207,354(1,782)
417,30240,516(1,189)34,830(37,422)－
36,73561,001
466,231
1,811,767

31,972
218
32,907(12,348)(13,302)39,447
68,957525,707
1,778,505

LIABILITIESNET ASSETS
Shareholders’ Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ Equity
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
Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive Income
Minority interests
Total Net Assets
Total Liabilities and Net Assets

12(2) Consolidated Statement of Operations and Consolidated Statement of Comprehensive Income
Consolidated Statement of Operations[For the year ended March 31, 2013 and 2014](Millions of yen)
Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

Net Sales
Cost of sales
Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-Operating Profit:
Interest income
Dividends income
Equity in earnings of affiliates
Rent income on noncurrent assets
Other
Total Non-Operating Profit
Non-Operating Expenses:
Interest expenses
Expenses for rent in undertaking
Loss on disposal of property, plant and equipment
Expenses for settlement of remaining business in mine
Other
Total Non-Operating Expenses
Ordinary Income
Extraordinary Income:Gain on sales of marketable securities and investments insecurities
Gain on contribution of securities to retirement benefit trust
Gain on sales of noncurrent assets
Other
Total Extraordinary Income
Extraordinary Losses:
Loss on impairment
Loss on valuation of investment securities
Other
Total Extraordinary Loss
Income before Income Taxes
Corporate income taxes and business tax
Income taxes adjustments
Total Income taxes
Income before minority interests
Minority interests in income
Net Income

13Year Ended Mar. 31, 2014
(Apr. 1, 2013―Mar. 31, 2014)

1,287,251
1,094,588
192,663
140,163
52,5001414,796
1,199,192
215,604
149,322
66,281597
29,399
5,193
4,705
3,408
43,304916
18,964
4,377
4,559
3,221
32,03810,453
3,300
2,941
2,370
2,323
21,38974,414

9,686
3,399
2,755
2,704
2,873
21,41876,902

2,457

32,078

－
3,061
3,904
9,423

10,9494,334
3,796
51,15810,551
4,524
10,987
26,063
57,774
16,481(5,690)10,79046,983
10,03536,94832,308850
9,555
42,71485,346
16,5099,956
26,46558,8806,328
52,551

Consolidated Statement of Comprehensive Income[For the Year Ended March 31, 2013 and 2014](Millions of yen)
Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

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 attributable to minority
interests

14

Year Ended Mar. 31, 2014
(Apr. 1, 2013―Mar. 31, 2014)

46,98358,8809,256
595
31,0972,318
43,26890,252(8,513)572
28,032
5,594
25,68584,56573,28270,864

16,97013,701

(3) Statement of Changes in Consolidated Shareholders’ Equity
Year Ended Mar. 31, 2013 (Apr. 1, 2012―Mar. 31, 2013)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

119,457

Capital surplus
113,566

Retained earnings

Treasury stock

Total
shareholders’equity116,890(1,443)

348,471

Change during the year
Cash dividends from retained
earnings
Net income
Decrease from write-downsof land revaluation excess(2,623)(2,623)36,94836,948

1,177

1,177

122

122

44

44

1,070

1,070

4,698

4,698

135

135

Increase due to change offiscal term of consolidated
subsidiaries
Increase due to change offiscal term of equity method
affiliate
Increase from rise in numberof consolidated subsidiaries
Increase from rise in numberof equity method affiliate
Increase resulting frommerger of non-consolidated
subsidiaries
Acquisition of treasury stock
Disposition of treasury stock(0)

Retirement of treasury stock

(0)

(251)

(251)

2

1

(8)

(8)

Decrease in capital surplus(21,292)

resulting from acquisition of(21,292)

non-controlling interest
Net change in items otherthan shareholders’ equity
Total change during the year
Balance at end of period－(21,293)

41,565(248)

20,023

119,457

92,272

158,456(1,692)

368,49515

Accumulated other comprehensive income
Valuationdifference
on securities
available forsale

Balance at beginning of period

31,316

Deferred
gains orlosses onhedges(768)

Revaluati
on reserve
for land

36,008Foreigncurrencytranslation
adjustment(63,945)

Total
Accumulated

Minority

Total netof defined

otherinterests

assetsbenefit planscomprehensive

57,991

409,074

Remeasurements

income－2,611

Change during the year
Cash dividends from retained(2,623)earnings
Net income

36,948Decrease from write-downs

1,177

of land revaluation excess
Increase due to change of122

fiscal term of consolidated
subsidiaries
Increase due to change of44

fiscal term of equity method
affiliate
Increase from rise in number

1,070

of consolidated subsidiaries
Increase from rise in number

4,698

of equity method affiliate
Increase resulting from135

merger of non-consolidated
subsidiaries
Acquisition of treasury stock(251)

Disposition of treasury stock

1

Retirement of treasury stock(8)

Decrease in capital surplus(21,292)

resulting from acquisition of
non-controlling interest
Net change in items other

9,199

(421)

(1,117)

26,523－34,1233,009

37,133

Total change during the year

9,199

(421)

(1,117)

26,523－34,1233,009

57,157

Balance at end of period

40,516(1,189)34,830(37,422)－

36,73561,001

466,231than shareholders’ equity

16

Year Ended Mar. 31, 2014 (Apr. 1, 2013―Mar. 31, 2014)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period
Change during the year
Cash dividends from retained
earnings
Net income
Decrease from write-downsof land revaluation excess
Increase due to change offiscal term of consolidated
subsidiaries
Increase from rise in numberof consolidated subsidiaries
Acquisition of treasury stock
Disposition of treasury stock
Net change in items otherthan shareholders’ equity
Total change during the year
Balance at end of period

Capital surplus

119,457

Retainedearnings

92,272－
119,457

Treasury stock

158,456(1,692)

Total
shareholders’equity368,495(7,864)(7,864)52,551

52,551

1,923

1,923

281

281

2,005

2,005

(0)

(0)

(92)
2

(92)
1

(0)
92,272

48,897
207,354(90)(1,782)48,806417,302

Accumulated other comprehensive income
Valuationdifference
on securities
available forsale

Balance at beginning of period
Change during the year
Cash dividends from retained
earnings
Net income
Decrease from write-downsof land revaluation excess
Increase due to change offiscal term of consolidated
subsidiaries
Increase from rise in numberof consolidated subsidiaries
Acquisition of treasury stock
Disposition of treasury stock
Net change in items otherthan shareholders’ equity
Total change during the year
Balance at end of period

40,516

Deferred
gains orlosses onhedges(1,189)

Revaluation
reserve forland

34,830Foreigncurrencytranslation
adjustment(37,422)

Remeasur

Total

ements of

Accumulated

Minority

Total net

definedotherinterests

assetsbenefitcomprehensive

plansincome61,001

466,231－

36,735(7,864)52,551
1,923
281
2,005
(92)
1
(8,543)

1,407(1,923)25,073(13,302)

2,711

7,956

10,668(8,543)
31,972

1,407
218(1,923)32,90725,073(12,348)(13,302)(13,302)

2,711
39,447

7,956
68,95759,475525,70717

(4) Consolidated Statements of Cash Flows[For the year ended March 31, 2013 and 2014](Millions of yen)
Year Ended Mar. 31, 2013
Year Ended Mar. 31, 2014
(Apr. 1, 2012―Mar. 31, 2013) (Apr. 1, 2013―Mar. 31, 2014)

Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts andreserves
Increase (decrease) in severance and pension benefit of
employees and employers
Increase (decrease) in allowance for investment loss
Increase (decrease) in reserve for loss on business of affiliate
Increase (decrease) for environmental measures
Increase (decrease) in net defined benefit liability and reserve fordirectors’ retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Loss on impairment
Loss (gain) on sales of marketable securities and investments insecurities
Loss (gain) on valuation of investment securities
Gain on contribution of securities to retirement benefit trust
Decrease (increase) in notes and accounts receivables-trade
Decrease (increase) in inventories
Proceeds from sales of gold bullion deposited from customers
under consuming bailment My Gold Plan
Payment for purchases of gold bullion from market for customer
under My Gold Plan
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued expenses
Increase (decrease) in other current liabilities
Increase (decrease) in other noncurrent liabilities
Equity losses (earnings) of affiliates
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund (paid)
Net Cash Provided by Operating Activities

18

57,77456,442
3,928

85,34657,428
3,070

(228)

(402)

(2,423)

－

(472)
(182)
(173)

(580)
(27)
(139)

－

(1,837)(29,997)
10,453(2,793)
2,941
10,551(19,880)
9,686(4,254)2,755
32,308(2,457)(31,553)4,524－
28,402(11,318)

850(10,949)751
3,296

138,627

76,961(129,801)(82,771)(423)(23,075)(16,870)
2,178(1,054)(5,193)
8,041
97,401
30,621(11,239)(15,166)
101,616(10,486)(3,290)(6,439)3,247(341)(4,377)
7,277
105,597
21,438(10,046)(14,056)
102,932(Millions of yen)
Year Ended Mar. 31, 2013
Year Ended Mar. 31, 2014
(Apr. 1, 2012―Mar. 31, 2013) (Apr. 1, 2013―Mar. 31, 2014)

Cash Flows from Investing Activities:
Purchase of investment securities
Proceeds from sales of investment securities
Payments for lending
Proceeds from repayment of lending
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for purchase of consolidated subsidiaries’ shares
Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Other, net
Net Cash Used in Investing Activities
Cash Flows from Financing Activities:
Net increase (decreases) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Increase (decrease) in commercial papers
Payments for redemption of bonds payable
Proceeds from issuance of bonds
Cash dividends paid
Purchase of treasury stock
Cash dividends paid to minority shareholders
Proceeds from stock issuance to minority shareholders
Other, net
Net Cash Used in Financing Activities
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Increase (Decrease) in Cash and Cash Equivalents Resulting
from Change of Scope of Consolidation
Increase in Cash and Cash Equivalents Resulting from
MergerIncrease (Decrease) in Cash and Cash Equivalents Resulting
from Change of Fiscal Term of Subsidiaries
Cash and Cash Equivalents at End of Period

19(15,225)
4,681(2,576)
4,074(51,432)
3,674(1,545)(30,509)(3,678)40,213(1,433)
1,152(63,816)
11,400(1,303)(31,289)

－

4,335

420

－

(75)

(442)

(88,514)(44,863)(16,240)
49,499(83,463)
24,000(40,000)
35,040(2,623)(251)(7,067)
7,494(2,703)(36,316)(30,544)
100,057(111,075)(26,000)－
15,100(7,864)(106)(5,652)－(3,242)(69,329)

6,988

8,094

(16,225)
69,499(3,165)63,299

1,434

2,007

106

－

8,484

(62)

63,29962,078(5) Segment Informationa. Segment Information
1. Overview of reporting segments(1) Method of determining reporting segments
The reporting segments of Mitsubishi Materials Corporation are those units of the Company for which
separate financial statements are available and which are subject to regular inspection for the use of theBoard of Directors in determining the allocation of resources and evaluating business results.
The Company has adopted an internal-company structure. As such, each internal company,
department and office proposes comprehensive strategy for operations both in Japan and overseas withrespect to the products and services it handles, and carries out operations on that basis.
Therefore, the Company divides its reporting segments according to individual products andservices, based on the internal-company structure. These reporting segments are Cement, Metals,
Advanced Materials & Tools, Electronic Materials & Components, and Aluminum, the latter being
particularly important among the operations of each division and office.
(2) Types of product and service belonging to each reporting segment
The main products in each business are as follows.
① Cement
Cement, cement-related-products, ready-mixed concrete, aggregates② Metals③ Advanced
Materials & Tools④ Electronic
Materials &Components⑤ Aluminum

Copper smelting (copper, gold, silver, sulfuric acid,processed-copper products
Cemented carbide products, high-performance alloy products
Advanced materials,
chemical products

electronic devices,etc.),

polycrystalline silicon,

Aluminum cans, rolled-aluminum products, processed aluminumproducts

2. Method of calculation of amounts in net sales, income/loss, assets, liabilities and other items for eachreporting segment
The accounting methods used in reporting business segments are the same as applied in “Basic important
items for preparation of the consolidated financial statements.”
Figures for income from reporting segments are based on ordinary income.
Internal income and transfers between segments are based on actual market prices.

20

3. Information related to sales, income/loss, total assets, total liabilities, and other items for reporting segment
For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersAdjustment
amountTotal

Amountindicated inthestatements ofincomeCementMetals(1)Outside
Customers

161,908

507,198

108,769

62,094

145,641

301,639

1,287,251－

1,287,251(2)Within
Consolidated
Group

2,856

115,543

27,883

6,508

1,034

47,307201,134(201,134)

－

Total

164,764

622,742

136,653

68,602

146,675

348,947

1,488,385(201,134)

1,287,251

Segment
income14,02339,134

10,622

3,465

5,530

10,864

83,640(9,226)

74,414

Segment assets

322,005

505,627

180,572

144,308

145,459

361,372

1,659,346

152,421

1,811,767

Segment
liabilities

204,657

392,672

117,752

169,564

116,385

299,177

1,300,210

45,324

1,345,535

Depreciation
andamortization

9,409

17,242

8,792

6,940

8,245

3,017

53,6472,794

56,442

Amortization of
goodwill

2,180

1,551

46

－

173

7

3,960

(32)

3,928

204

297

51

58

12

414

1,040

(442)

597

2

－

56

－

－

22

81

(0)

80

2,362

4,232

1,031

2,654

941

518

11,742(1,289)10,453

1,514

1,606

39

921

206

908

5,197

(4)

5,193

15,886

13,465299

50,354621

26,257

106,865(192)

106,673

8,888

13,458

14,520

3,409

6,332

4,212

50,822

2,153

52,975Net sales

Other items

Dividend
incomeAmortization ofnegativegoodwillInterest
expenses
Equity inearnings ofaffiliates
Investment toequity method
affiliate
Increase intangible andintangible
noncurrent
assets

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 (-¥9,226 million) are segment eliminations (¥168
million) and corporate expenses that cannot be allocated to specific segments (-¥9,394 million).
Corporate expenses consist mainly of management-related costs, basic experimental research costs, andfinancial income/expenses.
3. Included in the segment assets adjustment amounted (¥152,421 million) are segment eliminations(-¥35,384 million) and corporate assets that cannot be allocated to specific segments (¥187,805 million).
Corporate assets consist mainly of management-related assets and basic experimental research assets.
4. Included in the segment liabilities adjustment amounted (¥45,324 million) are segment eliminations(-¥35,213 million) and corporate liabilities that cannot be allocated to specific segments (¥80,538
million). Corporate liabilities consist mainly of management-related liabilities and basic experimental
research liabilities.
5. Adjustment of increase of property, plant and equipment and intangible assets (¥2,153 million) consist
mainly of investment in Central Research Institute.
6. Segment income has been adjusted together with ordinary income on the consolidated quarterly
statements of income.
21

For the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersAmountindicated inthestatements ofincomeAdjustment
amountCementMetals

Total(1)Outside
Customers

186,545582,733

116,516

49,882150,296

328,821

1,414,796－

1,414,796(2)Within
Consolidated
Group

3,653

113,577

29,381

17,842

1,267

51,288217,012(217,012)

－

Total

190,199

696,311

145,898

67,724

151,564

380,110

1,631,808(217,012)

1,414,796

Segment
income18,81336,54913,999

2,195

4,739

9,556

85,854(8,951)

76,902

Segment assets

353,263

520,459

184,998

118,325

146,698

339,478

1,663,223

115,281

1,778,505

Segment
liabilities

209,216

392,712116,088

142,896

114,466

279,3111,254,690(1,893)

1,252,797

Depreciation
andamortization

10,45818,401

9,316

5,827

8,015

3,170

55,1892,238

57,428

Amortization of
goodwill

2,431

654

24

－

－

20

3,131

(60)

3,070

Dividend
income

208

602

53

66

10

295

1,237

(321)

916

Amortization ofnegativegoodwill

－

－

38

－

－

－

38

－

38

2,705

4,002

1,153

2,178

876

267

11,184(1,498)

9,686

1,663

2,561

28

159

212

(250)

4,375

2

4,377

17,66818,028312

52,498656

25,973

115,137(224)

114,912

13,144

19,435

16,775

3,189

7,374

3,681

63,6002,344

65,944

Net sales

Other items

Interest
expenses
Equity inearnings ofaffiliates
Investment toequity method
affiliate
Increase intangible andintangible
noncurrent
assets

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 (-¥8,951 million) are segment eliminations (¥859
million) and corporate expenses that cannot be allocated to specific segments (-¥9,810 million).
Corporate expenses consist mainly of management-related costs, basic experimental research costs, andfinancial income/expenses.
3. Included in the segment assets adjustment amounted (¥115,281 million) are segment eliminations(-¥39,799 million) and corporate assets that cannot be allocated to specific segments (¥155,080 million).
Corporate assets consist mainly of management-related assets and basic experimental research assets.
4. Included in the segment liabilities adjustment amounted (-¥1,893 million) are segment eliminations(-¥34,130 million) and corporate liabilities that cannot be allocated to specific segments (¥32,237
million). Corporate liabilities consist mainly of management-related liabilities and basic experimental
research liabilities.
5. Adjustment of increase of property, plant and equipment and intangible assets (¥2,344 million) consist
mainly of investment in Central Research Institute.
6. Segment income has been adjusted together with ordinary income on the consolidated quarterly
statements of income.

22

b. Reference information
I. For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)
1. Information by Product/Service
Omits because the same information is written in the Segment Information.
2. Information by Region(1) Net sales(Millions of yen)Japan
840,094

U.S.
66,883

Europe36,538

Asia
331,715

Other
12,019Total
1,287,251(2) Property, plant and equipment(Millions of yen)Japan
555,062

U.S.
66,366

EuropeAsia
34,331

893

Other
2,321

Total
658,974

1. Categories for the countries and regions are geographically proximity-based.
2. Main countries and regions belong to the categories other than U.S.
(1) Europe: Germany, United Kingdom, Spain, France(2) Asia: Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong, Thailand(3) Other: Australia, Canada, Brazil
3. Information by Customer
Omits because no customers account for 10% or more of net sales in the Consolidated Statement of Operations.
II.

For the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)

1. Information by Product/Service
Omits because the same information is written in the Segment Information.
2. Information by Region(1) Net sales(Millions of yen)Japan
922,214U.S.
86,519Europe25,352

Asia
368,404

Other
12,305

Europe1,272

Asia
37,111

Other
2,349

Total
1,414,796(2) Property, plant and equipment(Millions of yen)Japan
530,631

U.S.
79,206

Total
650,571

1. Categories for the countries and regions are geographically proximity-based.
2. Main countries and regions belong to the categories other than U.S.
(1) Europe: Germany, United Kingdom, Spain, France(2) Asia: Indonesia, South Korea, Malaysia, Singapore, China, Taiwan, Hong Kong, Thailand(3) Other: Australia, Canada, Brazil

3. Information by Customer
Omits because no customers account for 10% or more of net sales in the Consolidated Statement of Operations.

23

c. Information related to Impairment Loss of Noncurrent Assets by Reported Segment
For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Millions of yen)
CementMetalsAdvanced
Materials &Tools

Electronic
Materials &Components

Corporate
Aluminum

OthersTotal

orGrand totalelimination

Loss on impairment
413
98
－
5,368
7
1,381
7,270
(Note) Adjustments of loss on impairment (¥3,281 million) consist mainly of that of assets for lease.

3,281

10,551For the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Millions of yen)
CementMetalsAdvanced
Materials &Tools

Electronic
Materials &Components

Corporate
Aluminum

OthersTotal

orGrand totalelimination

Loss on impairment
203
4,077
－
27,261
21
833
32,398(Note) Adjustment of loss on impairment (-¥90 million) consist mainly of that of goodwill.

(90)

32,308d. Information related to Amortization of Goodwill and Unamortized Balance by Reported Segments
For the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2013
Balance on Mar. 31,
2013

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2,180

1,551

46

－

173

7

3,960

(32)

3,928

34,547

4,578

63

－

－

23

39,212(451)

38,760

Amortization of negative goodwill and unamortized balance incurred from a business combination before April 1,2010 are as below.
(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2013
Balance on Mar. 31,
2013

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2

－

56

－

－

22

81

(0)

80

－

2,221

68

－

－

－

2,289

－

2,289

For the year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2014
Balance on Mar. 31,
2014

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

2,431

654

24

－

－

20

3,131

(60)

3,070

38,727

－

67

－

－

38

38,833(16)

38,816

Amortization of negative goodwill and unamortized balance incurred from a business combination before April 1,2010 are as below.
(Millions of yen)
CementAmortization for theyear ended Mar. 31,
2014
Balance on Mar. 31,
2014

MetalsCorporate

Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

orGrand totalelimination

－

－

38

－

－

－

38

－

38

－

2,221

29

－

－

－

2,250

－

2,250

24

e. Information on goodwill in liabilities for each reporting segment
For the year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
None
For the year ended March 31, 2014 (April 1, 2013 to March 31, 2014)
None(6) Per-Share Information
Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

Year Ended Mar. 31, 2014
(Apr. 1, 2013―Mar. 31, 2014)

Net assets per share: ¥309.17
Net income per share: ¥28.19
Net income per share after dilution is not indicated, as
no undiluted shares exist.

Net assets per share: ¥348.54
Net income per share: ¥40.10
Net income per share after dilution is not indicated, as
no undiluted shares exist.

Note: The standards used to calculate net income per share are as follows.
Year Ended Mar. 31, 2013
(Apr. 1, 2012―Mar. 31, 2013)

Net income per share
Net income per share(Millions of yen)Amounts not belonging to ordinary
shareholders (millions of yen)
Net income per share belonging toordinary shareholders(Millions of yen)
Average number of shares
outstanding during the period(thousands of shares)(7) Important Subsequent Events: N/A

25

Year Ended Mar. 31, 2014
(Apr. 1, 2013―Mar. 31, 2014)

36,94852,551－－

36,94852,551

1,310,926

1,310,573