Consolidated Financial Results for the Three Months Ended June 30, 2014
Mitsubishi Materials Corporation
Tokyo, Japan

August 7, 2014
Stock code:
Shares listed:
URL:
Representative:
For further information please contact:

5711
Tokyo Stock Exchange
http://www.mmc.co.jp/
Mr. Hiroshi Yao, President
Mr. Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
Filing date of Quarterly Report:
August 8, 2014
Scheduled date of start of dividend payment:－
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results:
Yes (For Corporate Investors)

1. Results of the three months ended June 30, 2014 (From April 1, 2014 to June 30, 2014)(1) Results of operations (cumulative):(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net sales¥366,932(Note) Comprehensive income

2.2 (%)¥14,013

Ordinary income-17.6 (%)

¥17,439

Net income¥9,509-46.4 (%)

¥359,130 16.0 (%) ¥17,002
50.9 (%)¥16,790 -1.7 (%) ¥17,334
Three months ended Jun 30, 2014: 4,688 million yen (-84.4%)
Three months ended Jun 30, 2013: 30,134 million yen (3,975.3%)(Yen)

228.5 (%)

Three months ended June 30, 2014
Three months ended June 30, 2013

Operating profit

3.9 (%)Net income per share

Diluted net income per share¥7.26¥13.53－－Three months ended June 30, 2014
Three months ended June 30, 2013

(2) Financial Position:(Millions of yen)
Total assets

Net assets¥1,802,769

As of June 30, 2014
As of March 31, 2014

(Reference) Shareholders’ equity¥1,778,505
As of June 30, 2014: 452,947 million yen
As of March 31, 2014: 456,749 million yen

Shareholders’ equity ratio¥520,659

25.1(%)¥525,707

25.7(%)

2. Dividend payments(Yen)(Record date)

First quarter－－

Year ended March 31, 2014
Year ending March 31, 2015

Dividends per share
Second quarter
Third quarter¥2.00－

Year-end¥4.00

Annual
¥6.00

－

¥5.00

¥8.00

¥3.00

Year ending March 31, 2015 (Forecast)(Note) Revisions to dividend forecast in the current period: No

3. Forecast (From April 1, 2014 to March 31, 2015)
Net sales
Six months ending
September 30, 2014

¥760,000

Year ending March
31, 2015¥1,500,000 6.0 (%)

8.0 (%)

Operating profit¥33,000-1.0 (%)¥74,000 11.6 (%)(Note) Revisions to forecast in the current period: No(Millions of yen)
(Percentage changes relative to previous corresponding period)
Net income
Ordinary income
Net income
per share¥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) 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: Yes(iii) Changes in accounting estimates: Yes(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, 2014: 1,314,895,351 sharesYear ended March 31, 2014:
1,314,895,351 shares(ii) Number of treasury shares at end of year
Three months ended June 30, 2014: 4,496,885 sharesYear ended March 31, 2014:
4,449,074 shares(iii) Average number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2014: 1,310,427,052 shares
Three months ended June 30, 2013: 1,310,675,352 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial Instruments and Exchange Act.
As of the disclosure of these financial results, the procedures for reviewing quarterly financial statements pursuant to the Financial
Instruments and Exchange Act are in progress.

* Appropriate use of business forecasts and other special items(Notes regarding descriptions of earnings forecasts and other forward-looking statements, etc.)
Earnings forecasts and other forward-looking statements in this document are based on information currently available
to the Company’s management and certain assumptions judged rational, and we do not promise that the forecasts inthis report will be achieved. Accordingly, there might be cases in which actual results materially differ from forecastsof this report.
To use assumptions for forecasts, see (3) Explanation of Forecast and Other Future Predictions (page 5) under “1.
Qualitative Information Regarding the Consolidated Performance”.
(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 7, 2014 (Thursday). Supplementary information to the quarterly financial results to be used in thisbriefing is being released on TDnet and the Company’s website with the announcement of the consolidated financial
results for the three months ended June 30, 2014.

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) Changes in Representation ........................................................................................................................... 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

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 European economies were on the course of recovery,
while there was a continuing slowdown in the economies of China, India, and other Asian countries.
In spite of negative impact of the last minute demand after the increase in the consumption tax rate, theJapanese economy also continued to improve gradually thanks to increased corporate earnings, and improved
employment and income conditions.
Regarding the operating environment for the Mitsubishi Materials Group, while public investment hoveredat a steady level, we suffered from some negative factors such as fall of copper prices in the overseas markets
and rise of raw material, fuel and electricity prices.
Under these circumstances, consolidated net sales for the period totaled ¥366,932 million, up 2.2% fromthe previous corresponding period. Operating profit decreased 17.6% to ¥14,013 million while ordinary income
increased 3.9%, to ¥17,439 million. Net income for the period decreased 46.4%, to ¥9,509 million.
2) Overview of Segment
The Mitsubishi Materials Group has revised the reporting segments since the first quarter accounting period
under review. Detailed information about this revision is described in “(3) Notes on Consolidated Financial
Statement (Segment Information).” Please take note that the comparison with the corresponding period of theprevious year in the following segments was made based on the figures after the said revision of the segments
was made.
(Cement)
Net sales
Operating profit
Ordinary income

FY 2014 Q1
¥42.3
3.3
¥3.2

FY 2015 Q1
¥43.6
2.3
¥1.9

(Billions of yen)
Increase/decrease (%)¥1.2(3.0%)(0.9)(-30.1%)¥(1.3)(-41.1%)In the Cement segment, although there were unsuccessful bids for and delays of public works in the Tohoku
region and the Tokyo metropolitan area, Japanese gross domestic demand hovered at the same level with thecorresponding period of the last year and sales volumes also remained almost in line with the corresponding
period of the previous year, thanks to steady progress of redevelopment construction in the areas surrounding
railway stations and housing construction for condominiums in the Kinki and Tokai regions. In the United States,
although some construction works were delayed due to negative impact of bad weather in Southern California,
sales volumes stayed in line with the corresponding period of the previous year. In China, while demand
increased, thanks to the high-speed rail construction in Shandong and the new airport construction, sales
volumes decreased due to negative impact of bad weather. In the overall Cement business, cement production
amounted to 2.8 million tons, down 0.1 million tons from the previous corresponding period.
We saw a sales increase in the United States as the price of cement and ready-mixed concrete was revised.
Also operating cost increased.
As a result, the entire Cement business posted a year-on-year increase in net sales, despite a decrease inoperating profit.
Ordinary income fell from the previous corresponding period due to a decrease in operating profit.

2

(Metals)

Net sales
Operating profit
Ordinary income

FY 2014 Q1¥192.86.6¥6.8

FY 2015 Q1¥200.4
4.6¥6.1(Billions of yen)
Increase/decrease (%)¥7.6(4.0%)(1.9)(-29.2%)¥(0.6)(-10.3%)In the copper business, although production increased because of stable operation of PT Smelting in Indonesia,
the price of copper fell in overseas market and operating cost such as electricity cost at domestic smelters andrefineries rose. As the result, net sales of the business increased, but operating profit decreased. In the entire
Metals business, copper cathode production amounted to 143 thousand tons, up 10 thousand tons from theprevious corresponding period.
In the gold and other valuable metals business, both net sales and operating profit decreased due to smaller
sales volume of gold bullions caused by price fluctuations within a narrow range.
In the copper and copper alloy products business, net sales increased, but operating profit decreased,because a sales decrease of products for nuclear power stations offset a sale increase in the automobile sector.
As a result, the entire Metals business posted a year-on-year increase in net sales but a decrease inoperating profit.
Despite an increase in dividends income, ordinary income decreased from the previous corresponding
period due to a decrease in operating profit.

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

FY 2014 Q1
¥36.0
3.6
¥3.6

FY 2015 Q1
¥36.4
4.4
¥4.3

(Billions of yen)
Increase/decrease (%)¥0.3(1.0%)
0.7(19.3%)¥0.7(19.2%)

In cemented carbide products business, both net sales and operating profit increased, thanks to demand increasein Japan and other overseas countries, especially in the countries in Europe and Southeast Asia, as well as
aggressive sales promotion efforts.
In the high-performance alloy products business, although sales of products for the aircraft-related market
and automobile sector hovered at a steady level, both net sales and operating profit decreased as the cost for
expansion of our production capacity increased, and the Mitsubishi Materials C.M.I. Corporation was excluded
from Mitsubishi Materials Group’s subsidiaries in January 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 from the previous corresponding period due to an increase in operating profit.

3

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

FY 2014 Q1
¥17.7
1.1
¥0.7

FY 2015 Q1
¥13.6
0.7
¥1.1

(Billions of yen)
Increase/decrease (%)¥(4.0)(-23.0%)(0.3)(-33.6%)¥0.3(40.7%)In the advanced materials business, both net sales and operating profit decreased due to a decrease in sales of
LSI products for smartphones.
The electronic components business posted an increase in both net sales and operating profit due toincreased sales of products for household appliances.
The polycrystalline silicon and chemical products 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.
As a result, the entire Electronic Materials & Components business reported year-on-year decreases in both
net sales and operating profit.
Ordinary income increased from the previous corresponding period due to an increase in equity in earnings
of affiliates.

(Aluminum)
Net sales
Operating profit
Ordinary income

FY 2014 Q1
¥39.6
2.5
¥2.4

FY 2015 Q1
¥39.8
1.8
¥1.7

(Billions of yen)
Increase/decrease (%)¥0.2(0.5%)(0.6)(-27.1%)¥(0.7)(-29.8%)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.
Demand for rolled aluminum and processed aluminum products increased, driven by strong demand fromthe automobile sector.
The aluminum segment saw an overall upturn in energy cost and material cost.
As a result, the entire Aluminum business posted a year-on-year increase in net sales, despite of adecrease in operating profit.
Ordinary income decreased from the previous corresponding period due to a decrease in operating profit.

4

(Others)
Net sales
Operating profit
Ordinary income

FY 2014 Q1
¥56.8
0.8
¥1.0

FY 2015 Q1
¥53.6
0.9
¥2.9

(Billions of yen)
Increase/decrease (%)¥(3.1)(-5.5%)
0.0(9.8%)¥1.9(193.4%)In the energy-related business, both net sales and operating profit decreased due to a decrease of coal sales andsales for nuclear-related decontamination business in Fukushima.
Both net sales and operating profit of "e-waste" (used electronics and electrical products) recycling
business hovered at the same level with the corresponding period of the previous year.
Orders for nuclear energy and engineering services amounted to ¥21.2 billion, up ¥7.8 billion from theprevious corresponding period. The order backlog at the end of the period was ¥37.7 billion, up ¥17.2 billion
from a year earlier.

(2) Explanation of Financial Position
As of June 30, 2014, the Group’s consolidated total assets stood at ¥1,802.7 billion, up ¥24.2 billion from March
31, 2014. This was mainly due to an increase in inventories during the period.
Total liabilities increased ¥29.3 billion, to ¥1,282.1 billion, due primarily to an increase notes and accounts
payable-trade during the period.

(3) Explanation of Forecast and Other Future Predictions
Although business performance of the Group may be largely affected by some variable factors such as currency
exchange rates and electricity cost, we do not change our consolidated earnings forecasts for the six-month period
ending September 30, 2014 and for the full-year period ending March 31, 2015 announced in the earnings
summary released on May 12, 2014, considering the performance during the consolidated cumulative first quarter
under review and our projection for the future business environment.

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 Accounting Standard for Retirement Benefits)
We have adopted “Accounting Standard for Retirement Benefits” (Corporate Accounting Standards No. 26 of
May 17, 2012, hereinafter referred to as “Retirement Benefits Accounting Standards”) and “Implementation
Guidance on Accounting Standard for Retirement Benefits” (Corporate Accounting Standards No. 25 of May
17, 2012, hereinafter referred to as “Implementation Guidance on Retirement Benefits”) in the consolidated
first quarter under the provisions stipulated in the texts of the Section 35 of the Retirement Benefits
Accounting Standards and of the Section 67 of the Implementation Guidance on Retirement Benefits: we haverevised the accounting method for retirement benefit obligations and service cost, and have changed our
method of attributing projected retirement benefits from a straight-line basis to a benefit formula basis alongwith changing the method of discount determination to a method that uses single-weighted average discountrate reflecting the estimated timing and amounts, either than the discount rate based on the average remaining
years of service.
To apply the Retirement Benefits Accounting Standards, we comply with the transitional handlingstipulated in the Section 37 of Retirement Benefits Accounting Standards, and effect of the revision of themethod for calculation of retirement benefit obligations and service cost, financial effects are added to or
subtracted from retained earnings at the beginning of this consolidated first quarter.
As the result, net defined benefit liability increased by ¥4,617 million while retained earnings decreasedby ¥3,611 million as of the beginning of this consolidated first quarter. Please take note that the expected5effect this change has on our operating profit, ordinary income and income before income taxes during thefirst consolidated quarter under review is negligible.
(Change in Method for Calculation of Depreciation of Property, Plant and Equipment)
The Company and its Japanese domestic subsidiaries have adopted the straight-line method for depreciation of
manufacturing facilities of cemented carbide products in domestic consolidated subsidiaries in the first
consolidated quarter under review, instead of the declining-balance method that had been mainly used. Thischange of the depreciation method was decided when we increased productive capacity of the Tsukuba Plant
by introducing the manufacturing facilities for increased production of cemented carbide products anddeveloped the medium-term management plan (for FY 2015 through 2017); we estimated that, according to
the forecast for the global demand of cemented carbide products in the future, the facilities would be usedconsistently and that the investment would be returned more steadily than before, without being exposed to therisk of technological obsolescence. For the above reason, we decided that to employ the straight-line method
was more rational.
In comparison with the method used before, operating profit, ordinary income and income before
income taxes during the first consolidated quarter under review respectively increased by ¥302 million.
In addition, the Group has adopted the straight-line method for depreciation of manufacturing facilitiesof aluminum cans in domestic consolidated subsidiaries in the first consolidated quarter under review, insteadof the declining-balance method that had been mainly used. This change of the depreciation method was
decided when we developed the medium-term management plan (for FY 2015 through 2017); we estimatedthat, according to the expected demand of aluminum cans in the future, the facilities would be usedconsistently and that the investment would be returned more steadily than before, without being exposed to therisk of technological obsolescence. For the above reason, we decided that adopting the straight-line method
was more rational.
In comparison with the method used before, operating profit, ordinary income and income before
income taxes during the first consolidated quarter under review increased by ¥215 million respectively.

(3) Changes in Representation(Consolidated Income Statement)
Although some U.S. consolidated subsidiaries in the Cement business have been using the representation titled“selling, general and administrative expenses” to show the cost associated with transportation of ready-mixed
concrete, we have replaced such representation with “cost of sales” starting from the first consolidated quarter
under review.
We made this change to properly represent cost of sales and selling, general and administrative expenses
respectively, alongside with reexamining the correspondence between earnings and behavior of costs
generated over transportation of ready-mixed concrete. Said reexamination was due to forecast that earnings ofthe ready-mixed concrete business in the U.S. would increase in the medium-term management plan (fiscal
years 2015 through 2017) having this first consolidated quarter as the base point.
In order to reflect this change in representation, we have reclassified the quarterly consolidated income
statements of the consolidated cumulative first quarter of the previous year.
Please take note that ¥3,241 million represented as “selling, general and administrative expenses” in thequarterly consolidated financial statements of the consolidated cumulative first quarter of the previous year
was reclassified as “cost of sales.”63. Consolidated Financial Statement(1) Consolidated Balance Sheets[June 30, 2014 and March 31, 2014](Millions of yen)
As of March 31, 2014

As of June 30, 2014

Cash and deposits

63,486

63,700Notes and accounts receivable-trade219,016

239,895

Merchandise and finished goods

81,51687,340Work in process

100,280

113,369

Raw materials and supplies

103,155

107,262

Other

208,853

196,602

Allowance for doubtful accounts(1,843)(1,873)

Total Current Assets

774,465

806,297

Machinery and equipment, net

178,296

179,927

Land, net

273,048

272,551

Other, net

199,226

193,552

Total Property, Plant and Equipment

650,571646,030

Goodwill

38,81637,220

Other

9,410

9,421

Total Intangible Assets

48,226

46,641

Investment securities

250,576

249,656

Other

61,63061,162

Allowance for investment loss

(1,168)(1,168)

Allowance for doubtful accounts(5,797)(5,850)Total Investments and Other Assets

305,241

303,799

1,004,039

996,471

1,778,505

1,802,769

ASSETS
Current Assets:

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, 2014

As of June 30, 2014

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds payable
Commercial papers
Income taxes payable
Provision

106,656
256,098
40,000－9,576
12,899129,697
246,768
60,00010,0003,370
7,312Gold payable
Other

212,760
100,526

213,830
102,740

Total Current Liabilities

738,518

773,720

Noncurrent Liabilities:
Bonds payable
Long-term loans payable
Other provision

85,140268,605
7,556

65,140280,497
8,646

52,787100,190

56,25997,846514,279

508,389

1,252,797

1,282,110

119,457
92,272
207,354(1,782)

119,457
92,272
208,423(1,797)417,302418,356

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

31,972
218
32,907(12,348)(13,302)31,56970
32,773(16,807)(13,014)

Total Accumulated Other Comprehensive Income

39,447

34,590Minority interests

68,95767,711

Total Net Assets

525,707

520,659

1,778,505

1,802,769

Net defined benefit liability
Other
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Shareholders’ Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total 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, 2013 and 2014](Millions of yen)Three Months Ended Jun. 30, 2013 Three Months Ended Jun. 30, 2014
(Apr. 1, 2013―Jun. 30, 2013)(Apr. 1, 2014―Jun. 30, 2014)

Net Sales

359,130

366,932

Cost of sales

309,721320,000

Gross Profit

49,40946,931

Selling, General and Administrative Expenses

32,40632,918Operating Profit

17,002

14,013

Interest income

113

152

Dividends income

2,270

3,820

Equity in earnings of affiliates

866

2,567

Rent income on noncurrent assets

1,146

1,142

743

564

5,140

8,248

Interest expenses

2,515

2,255

Other

2,836

2,566

Total Non-Operating Expenses

5,352

4,822

16,79017,439Gain on sales of investment securities

1,360

115

Gain on sales of noncurrent assets

4,016

63

－

30

5,376

209

Provision for environmental measures

－

1,300

Loss on suspension of operations

－

1,043

Loss on valuation of investment securities

122

67

Other

659

271

Total Extraordinary Loss

781

2,682

Income before Income Taxes

21,385

14,966

Income taxes

2,901

4,531

Income before minority interests

18,483

10,434749

925

17,734

9,509

Non-Operating Profit:

Other
Total Non-Operating Profit
Non-Operating Expenses:

Ordinary Income
Extraordinary Income:

Other
Total Extraordinary Income
Extraordinary Losses:

Minority interests in income
Net Income

9Consolidated Statement of Comprehensive Income[For the Three Months Ended June 30, 2013 and 2014](Millions of yen)Three Months Ended Jun. 30, 2013 Three Months Ended Jun. 30, 2014
(Apr. 1, 2013―Jun. 30, 2013)

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

10(Apr. 1, 2014―Jun. 30, 2014)

18,483

10,434(3,033)678
12,205－
1,801
11,65130,134(401)(321)(4,298)545(1,270)(5,746)
4,688

26,219

4,785

3,915

(97)

(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, 2013 (From April 1, 2013 to June 30, 2013)
Sales and Income of Reporting Segments(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

Aluminum

OthersTotal

Amountindicated inthestatements ofincomeAdjustment
amountCementMetals41,546

190,005

28,794

12,07039,372

47,341

359,130－

359,130

810

2,800

7,278

5,636

242

9,479

26,247(26,247)－

Total

42,356

192,806

36,072

17,706

39,61456,820385,377(26,247)

359,130

Segment
income

3,296

6,802

3,659

782

2,428

1,015

17,984(1,194)

16,790Net 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 (-¥1,194 million) are segment eliminations (¥365 million)
and corporate expenses that cannot be allocated to specific segments (-¥1,559 million). Corporate
expenses consist mainly of management-related costs, basic and experimental research costs, andfinancial 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, 2014 (From April 1, 2014 to June 30, 2014)
1. Sales and Income of Reporting Segments(Millions of yen)
Advanced
Materials &Tools

Electronic
Materials &Components

CementMetals(1)Outside
Customers(2)Within
Consolidated
Group

42,795

198,328

29,47812,590

825

2,130

6,941

Total

43,620200,459

Segment
income

1,942

6,103

Aluminum

Adjustment
amountAmountindicated inthestatements ofincomeOthersTotal

39,29744,442366,932－

366,932

1,047

533

9,230

20,709(20,709)－36,42013,63839,83153,672

387,642(20,709)366,932

4,362

1,100

1,703

2,980

18,193(753)

17,439Net 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 (-¥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.

112. Notes on Change in Reporting Segment
As of April 1, 2014, we reclassified the business handling precious metals bullions into the “Metals”
segment, instead of the “Others” segment into which the business has been classified before.
Please take note that we disclose the segments reported in the three months ended June 30, 2013 on
the basis of the reporting segments after the modification.
Notes in Event of Significant Changes in Shareholders’ Equity: N/A

12