Consolidated Financial Results for the Three Months Ended June 30, 2016
(Japanese Accounting Standards)
August 8, 2016
Name of Listed Company: Mitsubishi Materials Corporation
Listing:
Tokyo Stock Exchange
Stock Code:
5711
URL:
http://www.mmc.co.jp/
Representative: Akira Takeuchi, President
Contact:
Naoya Sasaki, Manager, Corporate Communications & IR Dept.
Tel: +81-3-5252-5206
Scheduled filing date of Quarterly Report:
August 9, 2016
Scheduled date of start of dividend payment:–
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results:
Yes (For Institutional Investors)(Amounts of less than million yen are omitted.)

1. Results of the first three months ended June 30, 2016 (From April 1, 2016 to June 30, 2016)(1) Results of Operations (cumulative)(Figures in percentages denote the year-on-year change.)
Net salesFirst three months ended June 30, 2016
First three months ended June 30, 2015
(Note) Comprehensive income:Operating profit

Net income
attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

298,828
360,773

-17.2
-1.7

13,19016,387-19.5
16.9

12,066
17,102-29.4-1.9

10,766
29,604

-63.6
211.3

The first three months ended June 30, 2016: -13,538 million yen (-137.2%)
The first three months ended June 30, 2015: 36,434 million yen (677.1%)

Net income
per share

Diluted net income
per share
YenFirst three months ended June 30, 2016
First three months ended June 30, 2015

Yen

–
–

8.22
22.60

(2) Financial Position
Total assets
As of June 30, 2016
As of March 31, 2016
(Reference) Shareholders’ Equity:

Shareholders’Equity ratio

Net assets

Million yen

Million yen%

1,767,133
1,793,375

623,061
645,01730.5
31.0

As of June 30, 2016: 539,187 million yen

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

2. Dividend Payments
Dividends per share(Record date)

First quarter

Second quarter

Yen

Year ended March 31, 2016–

Year ending March 31, 2017–

Third quarter

Yen

Year ending March 31, 2017 (Forecast)Year-end

Yen

Annual
Yen

Yen

5.00

–

5.00

10.00

2.00

–

4.00

6.00

(Note) Revision of dividend forecast published most recently: No

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

Net sales

Six months ending
September 30, 2016
Year ending March 31, 2017

Operating profit

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

630,000-11.2

27,000-25.4

23,000-41.0

24,000

-47.6

18.32

1,330,000-6.2

65,000-7.7

64,000-11.7

25,000

-59.2

19.08

(Note) Revision to forecast published most recently: Yes

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

Yes(Note) For details, please see “(1) Application of specific accounting treatment in the preparation of the quarterly consolidated
financial statements” under “2. Matters Related to Summary Information (Notes)” on page 5(3) Changes in accounting policies, changes of accounting estimates and restatement(i)
Changes in accounting policies due to amendments to accounting standards:(ii) Other changes in accounting policies:(iii) Changes in accounting estimates:(iv) Restatements:

Yes
None
None
None

(Note) For details, please see “(2) Changes in accounting policies, changes of accounting estimates and restatement” under “2.
Matters Related to Summary Information (Notes)” on page 5(4) Numbers of issued shares (common stock)(i)
Numbers of issued shares at end of terms (including treasury shares):Three months ended June 30, 2016: 1,314,895,351 sharesYear ended March 31, 2016:
1,314,895,351 shares(ii)
Numbers of treasury shares at end of terms:
Three months ended June 30, 2016:
4,911,259 sharesYear ended March 31, 2016:
4,886,174 shares(iii) Average number of shares issued during terms (quarterly cumulative period):
Three months ended June 30, 2016: 1,309,996,726 shares
Three months ended June 30, 2015: 1,310,187,321 shares* Indication regarding the status of a quarterly review
This financial summary for the three months ended June 30, 2016 is not subject to a quarterly review under the Financial
Instruments and Exchange Law. The review of the quarterly consolidated financial statements under the aforementioned
act is in progress at the time of the announcement of this financial summary.
* Explanation about the proper use of financial forecasts and other special notes(Notes concerning forward-looking statements, etc.)
The operating results forecasts and other forward-looking statements contained in this report are based on information
currently available to the Company, as well as certain assumptions that the Company has judged to be reasonable. As
such, they do not constitute an assurance that the Company promises to achieve these projected results. Therefore, readers
are advised to note that the actual results may vary materially from the forecasts due to a variety of factors.
Please see “(3) Information on the consolidated earnings forecasts and other future forecasts” of “1. Qualitative
Information on Financial Results for the First Quarter Ended June 30, 2016” on page 4 for the assumptions about
consolidated earnings forecasts.
(Procedure for obtaining supplementary information on quarterly financial results and quarterly financial briefing)
Mitsubishi Materials Corporation plans to hold a quarterly financial briefing for institutional investors on Monday, August
8, 2016. The materials used at this briefing are disclosed on the TDnet and the Company’s web page at the time that thequarterly financial results are announced.

Contents
1. Qualitative Information on Financial Results for the First Quarter Ended June 30, 2016 .................................. 2(1) Details of operating results .............................................................................................................................2(2) Details of financial position ...........................................................................................................................4(3) Information on the consolidated earnings forecasts and other future forecasts ..............................................4
2. Matters Related to Summary Information (Notes) .............................................................................................. 6(1) Application of special accounting treatment in the preparation of the quarterly consolidated financial
statements ............................................................................................................................................................6(2) Changes in accounting policies, changes of accounting estimates and restatement .......................................6(3) Additional information ...................................................................................................................................6(4) Contingent liabilities ......................................................................................................................................7
3. Consolidated Financial Statements ..................................................................................................................... 9(1) Consolidated balance sheet ............................................................................................................................9(2) Consolidated statement of income and consolidated statements of comprehensive income ........................ 11
Consolidated statement of income ............................................................................................................. 11
Consolidated statements of comprehensive income ................................................................................... 12(3) Notes to consolidated quarterly financial statements ................................................................................... 13
Notes on assumptions for a going concern ................................................................................................. 13
Segment information .................................................................................................................................. 13
Notes on significant changes in the amount of Shareholders' equity, if any .............................................. 14–1–

1. Qualitative Information on Financial Results for the First Quarter Ended June 30, 2016
(1) Details of operating results1) Overview of operating results
During the first quarter of the consolidated fiscal year under review, the economy slowed down in China, butpicked up in Thailand, Indonesia in Asia. In the United States, the economic growth slowed down.
The Japanese economy showed signs of improvement in the employment and income conditions. However,consumer spending grew at a sluggish pace, and the improvement in corporate earnings came to a temporary
standstill.
Regarding the business environment for the Mitsubishi Materials Group, foreign exchange markets werecharacterized by year-on-year yen appreciation, and the Group was affected by such factors as a decrease incopper prices, as well as a fall in the overall demand for cement in Japan.
Under these circumstances, consolidated net sales for the first quarter under review totaled ¥298,828 million,
down 17.2% year on year. Operating profit declined 19.5% year on year, to ¥13,190 million, and ordinary
income decreased 29.4%, to ¥12,066 million. Net income attributable to owners of parent was ¥10,766 million,
down 63.6% year on year.
2) Overview by segments(Cement)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
46.8
3.8
3.4

FY 2017 Q1
40.1
2.8
2.5

(Billion yen)
Increase / Decrease (%)-6.7(-14.3%)-1.0(-27.3%)-0.9(-26.3%)In the Cement business, the sales volume decreased in Japan because of a decline in demand throughout themarket, chiefly reflecting a delay in construction work mainly due to labor shortages and sluggish growth indemand from public sector. In the United States, the sales volume of ready-mixed concrete declined, reflecting
decreased demand for cement in Southern California due to the effect of bad weather. However, the sales
volume of cement increased, because of strengthening sales to companies outside the Group. In China, thesales volume declined mainly due to a delay in the start of large construction work. In the overall Cementbusiness, cement production amounted to 2.6 million tons, down 0.1 million tons from the first quarter of theprevious fiscal year.
As a result, net sales and operating profit declined year on year for the entire Cement business. Ordinary income
also decreased because of the decline in operating profit.
(Metals)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
183.6
6.4
5.4

FY 2017 Q1
139.5
4.5
4.3

(Billion yen)
Increase / Decrease (%)-44.0(-24.0%)-1.9(-30.0%)-1.1(-20.3%)In the copper business, net sales and operating profit declined, primarily reflecting falling copper prices as wellas production cutbacks by PT. Smelting in Indonesia due to lower copper content in copper concentrates.
Copper cathode production for the entire Metals business amounted to 137 thousand tons, down 4 thousand–2–

tons from the previous corresponding period.
In the gold and other valuable metals business, net sales and operating profit declined, mainly affected by afall in palladium prices.
In the copper and copper alloy products business, both net sales and operating profit were down, due largely
to falling copper prices, despite an increase in the sales of products for automobiles, semiconductors, and otheruse.
As a result, the entire Metals business posted year-on-year decreases in net sales and operating profit. Ordinary
income for the segment also declined because of the decrease in operating profit.
(Advanced Materials & Tools)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
39.1
4.4
4.4

FY 2017 Q1
36.4
3.6
2.9

(Billion yen)
Increase / Decrease (%)-2.6(-6.9%)-0.8(-18.2%)-1.5(-35.2%)In the cemented carbide products business, net sales and operating profit declined due to the deteriorating
market conditions primarily attributable to the slowdown in the Chinese economy. Another contributing factor
was the effect of the yen appreciation compared with the exchange rate in the first quarter of the previous fiscal
year.
In the high-performance alloy products business, sales of products for automobiles remained firm in North
America, but lower sales in Japan caused net sales and operating profit to decline.
As a result, the overall Advanced Materials & Tools business recorded year-on-year decreases in net sales andoperating profit. Ordinary income declined due to the decrease in operating profit and recorded exchange losses.
(Electronic Materials & Components)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
18.4
0.8
2.0

FY 2017 Q1
15.0
0.2
0.2

(Billion yen)
Increase / Decrease (%)-3.4(-18.6%)-0.6(-70.3%)-1.7(-86.5%)In the advanced materials and chemical products business, net sales declined while operating profit increased
because sales of products for automotive glass and other items remained solid, although sales of the products
for hybrid vehicles, etc. were down.
In the electronic components business, net sales and operating profit declined, reflecting a lower volume ofsales of products for home appliances and telecommunications equipment.
The polycrystalline silicon business recorded a decline in net sales and operating profit.
As a result, the entire Electronic Materials & Components business registered year-on-year declines in net sales
and operating profit. Ordinary income dropped as a result of decreases in operating profit and equity in earnings
of affiliates.

–3–

(Aluminum)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
41.6
1.0
0.9

FY 2017 Q1
40.2
2.3
2.2

(Billion yen)
Increase / Decrease (%)-1.3(-3.3%)
1.2(120.4%)1.3(144.0%)In the aluminum cans business, demand for both of bottles cans and regular cans increased, and raw material
costs declined.
In the rolled aluminum and processed aluminum products business, demand of products for solar cells declined,
while demand of products for automobiles increased. While sales price declined due to falling market metal
prices.
As a result, the entire Aluminum business posted a decrease in net sales and an increase in operating profit year
on year. Ordinary income increased due to the rise in operating profit.
(Others)

Net sales
Operating profit
Ordinary income

FY 2016 Q1
52.8
0.6
1.5

FY 2017 Q1
45.4
1.0
0.9

(Billion yen)
Increase / Decrease (%)-7.4(-14.1%)
0.4(66.3%)-0.6(-40.9%)In the energy-related business, net sales declined, but operating profit increased thanks to a rise in electricity
sales volume because hydroelectric power plants, which was being renewed during the previous corresponding
period, returned to ordinary operation, while sales of coal declined due to the weak market conditions.
In the "E-waste" (used electronics and electrical products) recycling business, net sales and operating profit
declined, reflecting lower sales due to the falling unit price of valuables.
Orders received for nuclear energy and engineering-related services amounted to ¥20.6 billion, up ¥5.4 billion
year on year. The order backlog at the end of the period was ¥30.1 billion, down ¥4.6 billion from a year earlier.

(2) Details of financial position
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at ¥1,767.1 billion,
down ¥26.2 billion from the end of the previous consolidated fiscal year. This result was mainly due to a decline
in notes and accounts receivable - trade.
Total liabilities were ¥1,144.0 billion, a decrease of ¥4.2 billion from the end of the previous consolidated fiscal
year. This decrease was chiefly attributable to a decline in provisions during the first quarter under review.

(3) Information on the consolidated earnings forecasts and other future forecasts
In our consolidated earnings forecasts for the first half and the full year of the fiscal year ending March 31, 2017,
we have revised the previous forecasts (announced on May 12, 2016) for net sales, operating profit, and ordinary
income as follows because exchange rate remains yen appreciation than expected. We have not changed theprevious forecasts for net income attributable to owners of parent, because we have recorded a gain on the salesof assets which was not factored in, and tax expenses are expected to decline.

–4–Revised Consolidated Earnings Forecasts for the First Half of the Fiscal Year Ending March 31, 2017
(April 1, 2016 to September 30, 2016)(Billion yen)Previous forecast
Current forecast
Increase / Decrease (%)
Net sales
645.0
630.0
-2.3%
Operating profit
29.0
27.0
-6.9%
Ordinary income
25.0
23.0
-8.0%
Net income attributable to
24.0
24.0
–
owners of parent
Revised Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2017
(April 1, 2016 to March 31, 2017)

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

Previous forecast
1,360.0
68.0
68.0

Current forecast
1,330.0
65.0
64.0

25.0

25.0

–5–

(Billion yen)
Increase / Decrease (%)
-2.2%
-4.4%
-5.9%
–

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

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

(3) Additional information(Provision for environmental measures)
In regards to expenses for specific countermeasure work to prevent mining-induced pollution and expenses forcountermeasure work to stabilize collection sites in abandoned mines managed by the Group, we have recorded a
provision for the expenses whose estimated amount has been fixed because the details of the construction work
have been determined, and have included it in the “provision” under “non-current liabilities”. However, there aresome forms of countermeasure work for which the amount cannot be calculated reasonably because the details of
construction work are undecided due to the fact that the most appropriate construction method for the landscapeand existing equipment have yet to be selected, even though specific countermeasure work is necessary.
(Application of implementation guidance on recoverability of deferred tax assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26 dated March 28, 2016) from the first quarter of the consolidated fiscal year under review.
(Change of the number of unit shares and consolidation of shares)
At the 91st ordinary general meeting of shareholders held on June 29, 2016, the change in the number of unit
shares (from 1,000 shares to 100 shares) of the Company and consolidation of shares at a 10:1 ratio with effective
date of Oct. 1, 2016 were passed and approved. As a result, the total number of shares outstanding will be changed
from 1,314,895,351 shares to 131,489,535 shares.
Impact on per-share information
The per-share information which assumes that this consolidation of shares was implemented on thecommencement date of the previous consolidated fiscal year is as follows.
FY 2016 Q1
FY 2017 Q1(From April 1, 2015 to June 30, 2015)(From April 1, 2016 to June 30, 2016)
Net income per share
225.95 yen
82.18 yen
(Note) Fully diluted net income per share is not stated because there are no dilutive shares.

–6–

(Transfer of important assets)
The Company resolved to transfer non-current assets at the meeting of the Board of Directors held on June 29,2016 as described below. It concluded a transfer agreement on June 30, 2016.
1. Reason for the transfer
The Company has decided to transfer part of the land it owns for the purpose of effectively using its management
resources.
2. Details of the asset to be transferred(1) Type of asset: Land
(2) Location: 297-3 Kitabukuro-cho 1-chome, Omiya ward, Saitama city, Saitama prefecture and other locations(3) Present state: Enforcement area of a land rezoning project
3. Overview of the transferee, etc.
The transferee is a business company in Japan. There are no capital, personnel, and business relationships
between the Company and the transferee, and the transferee does not fall under the category of a related party.
4. Time of transfer
September 2016 (planned)
5. Impact on profits and losses
In association with the transfer, the Company will record extraordinary income of ¥12.7 billion as a gain on salesof non-current assets in the Second Quarter Ended September 30, 2016.

(4) Contingent liabilities
Previous consolidated fiscal year (As of March 31, 2016)
On December 30, 2014, PT. Smelting in Indonesia, a consolidated subsidiary of the Company (hereinafter the“Consolidated Subsidiary”), received a notice of reassessment in an amount of US$47 million (¥5,393 million
based on the exchange rate at the end of the previous consolidated fiscal year) from the Indonesian National Tax
Authority regarding the sales transaction pricing of the Consolidated Subsidiary for the year ended December 2009.
On January 28, 2015, the Consolidated Subsidiary made a provisional deposit of US$14 million (¥1,577 million)
as a part of the additional collection.
However, the Consolidated Subsidiary submitted a written objection to the Indonesian National Tax Authority on
March 25, 2015, because this assessment, which claimed there was a sales shortage on the part of the Consolidated
Subsidiary based on a comparison of the profit margin ratio with other companies selected by the Indonesian
National Tax Authority, was highly unreasonable and found to be unacceptable by the Company and theConsolidated Subsidiary.
The written objection submitted by the Consolidated Subsidiary on March 25, 2015 was dismissed by theIndonesian National Tax Authority on March 16, 2016. Therefore, the Consolidated Subsidiary filed a complaint
to the Tax Court in Indonesia on June 6, 2016 to present the fairness of the view of the Company and theConsolidated Subsidiary.
First quarter of the consolidated fiscal year under review (As of June 30, 2016)
On December 30, 2014, PT. Smelting in Indonesia, a consolidated subsidiary of the Company (hereinafter the“Consolidated Subsidiary”), received a notice of reassessment in an amount of US$47 million (¥4,926 million
based on the exchange rate at the end of the first quarter of the consolidated fiscal year under review) from the–7–Indonesian National Tax Authority the regarding sales transaction pricing of the Consolidated Subsidiary for theyear ended December 2009. On January 28, 2015, the Consolidated Subsidiary made a provisional deposit of
US$14 million (¥1,440 million) as a part of the additional collection.
However, the Consolidated Subsidiary submitted a written objection to Indonesian National Tax Authority on
March 25, 2015, because this assessment, which claimed there was a sales shortfall on the part of the Consolidated
Subsidiary based on a comparison of the profit margin ratio with other companies selected by the Indonesian
National Tax Authority, was highly unreasonable and found to be unacceptable by the Company and theConsolidated Subsidiary.
The written objection submitted by the Consolidated Subsidiary on March 25, 2015 was dismissed by theIndonesian National Tax Authority on March 16, 2016. Therefore, the Consolidated Subsidiary filed a complaint
to the Tax Court in Indonesia on June 6, 2016 to present the fairness of the view of the Company and theConsolidated Subsidiary.

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

60,123233,09385,082
83,69489,875
232,817(2,155)73,868207,791
83,757
95,943
94,293
233,244(2,109)782,530

786,789

196,085
268,634
205,517

192,348
263,102200,413670,237

655,864

48,986
17,032

45,696
16,19166,01961,887

212,606
68,052(6,070)201,941
66,738(6,089)274,588262,591

1,010,845

980,343

1,793,375

1,767,133

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

110,596
200,527
25,1007,037
13,740231,667
107,649

111,288
204,069
40,1005,458
6,733
228,795
105,439

Total current liabilities

696,319

701,883

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

40,000260,681
16,74663,54471,06625,000270,782
15,78761,876
68,741452,038

442,188

1,148,358

1,144,072

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

119,457
92,423
307,853(1,961)

512,797

517,773

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

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

16,221
1,277
33,807(14,203)(15,689)

Total accumulated other comprehensive income

42,43021,413

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

Non-controlling interests

89,78983,874

Total net assets

645,017623,061

1,793,375

1,767,133

Total liabilities and net assets– 10 –

(2) Consolidated statement of income and consolidated statements of comprehensive income
Consolidated statement of income
Consolidated first three quarters

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Equity in earnings of affiliates
Rent income on non-current assets
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on change in equity
Gain on redemption of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Provision for environmental measures
Other
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent(Million yen)Three Months Ended
June 30, 2015
(Apr. 1, 2015–Jun. 30, 2015)
360,773
308,319
52,45336,066
16,387– 11 –

Three Months Ended
June 30, 2016
(Apr. 1, 2016–Jun. 30, 2016)
298,828
249,788
49,04035,84913,190

132
1,782
1,496
1,236
603
5,249

117
1,182
714
1,227
531
3,773

1,834
2,700
4,534
17,102

1,335
3,562
4,898
12,066435
19,182
10,464
1,234–
31,316

3,209
600
–
–
2
3,812

2
10,841
345
11,19037,2296,724
30,504900
29,604

132
–
17
150
15,728
4,033
11,695929
10,766

Consolidated statements of comprehensive income
Consolidated first three quarters(Million yen)Three Months Ended
June 30, 2015
(Apr. 1, 2015–Jun. 30, 2015)

Net income
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 ofparentComprehensive income attributable to noncontrolling interests– 12 –

Three Months Ended
June 30, 2016
(Apr. 1, 2016–Jun. 30, 2016)

30,504

11,695

2,460
1,265
2,346
994
(1,138)(5,380)1,479(21,404)
1,290(1,218)5,929(25,233)

36,434(13,538)

34,551(9,633)

1,883(3,905)

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

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

AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

46,116

181,222

34,24914,405(2) Withinconsolidated group

767

2,400

4,879

4,093

Total

46,884

183,622

39,128

3,483

5,484

4,476

Amountindicated intheAdjustment
consolidated
amountquarterlystatements
of income

OthersTotal

41,253

43,526

360,773–

360,773

387

9,309

21,837(21,837)–

18,49941,64052,835

382,610(21,837)

360,773

2,069

916

1,559

17,988(885)

17,102

Net sales

Segment income

Notes: 1. “Others” includes nuclear energy-related services, environmental and recycling-related business, real estate business,and engineering-related services.
2. “Adjustment amount” of segment income of -¥885 million includes the elimination of intersegment transactions of¥12 million and corporate expenses of -¥898 million which are not distributed to the reporting segments. Corporate
expenses consist mainly of general and administrative expenses that do not belong to the reporting segments, basic
experiment and research expenses, and financial revenue and expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly statements of income.

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

AdvancedElectronic
Materials & Materials & Aluminum
Tools
Components

CementMetals(1) Outside customers

39,492

137,794

32,34913,785(2) Withinconsolidated group

681

1,776

4,084

Total

40,174

139,570

2,566

4,369

Amountindicated intheAdjustment
consolidated
amountquarterlystatements
of income

OthersTotal

39,73735,668298,828–

298,828

1,282

532

9,736

18,093(18,093)–

36,43315,06740,27045,405

316,922(18,093)

298,828

2,900

278

2,235

921

13,272(1,206)

12,066

Net sales

Segment income

Notes: 1. “Others” includes nuclear energy-related services, environmental and recycling-related business, real estate business,and engineering-related services.
2. “Adjustment amount” of segment income of -¥1,206 million includes the elimination of intersegment transactionsof -¥37 million and corporate expenses of -¥1,168 million which are not distributed to the reporting segments.
Corporate expenses consist mainly of general and administrative expenses that do not belong to the reporting
segments, basic experiment and research expenses, and financial revenue and expenses.
3. Segment income has been adjusted together with ordinary income on the consolidated quarterly statements of income.

– 13 –

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

Notes on significant changes in the amount of Shareholders' equity, if any
N/A– 14 –