New Medium-Term
Management Plan
FY2012-FY2014
Materials Premium 2013
Aiming for New Creation
August 10, 2011
Mitsubishi Materials Corporation
Hiroshi Yao, President and Chief Executive Officer

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Materials Premium 2013

Contents
1. Review of Previous Medium-Term
Management Plan (FY08-10)
2. Overview of New Medium-Term
Management Plan (FY12-14)
3. Growth Strategy
4. Business Strategy by Segment
2|

Materials Premium 2013

1. Review of Previous Medium-Term
Management Plan (FY08-10)

3|

Materials Premium 2013

Previous Medium-Term Plan (FY08-10) Review (1)Management
Management
Objectives
Objectives(FY2010)

Ordinary income

Over ¥110 billion

ROA (Ordinary income/total assets)

Over 5%

Debt/equity ratio

1.5 times

Results
Results
Billions of yen

FY08

FY09

FY10

FY11

Debt/equity ratio¥135.9
7.5%
1.5

¥40.0
2.2%
1.9

- ¥9.5- 0.5%
2.3

¥56.4
3.1%
2.3

(Net debt/equity ratio)

(1.3)

(1.7)

(2.1)

(2.0)

Ordinary income
ROA

Goals were not reached in fiscal 2009 and fiscal 2010 because of a worse-than-anticipated business environment
resulting from the global financial crisis.
In fiscal 2011, achieved ordinary income of ¥56.4 billion, reflecting both a recovery in the market and cost reduction
efforts and overall management countermeasures to enhance Mitsubishi Materials’ business foundation implemented
since fiscal 2009.
4|

Materials Premium 2013

Previous Medium-Term Plan (FY08-10) Review (2)Expansion
Expansion andand reinforcement
reinforcement ofof fourfour core
core
businesses
businesses constituting
constituting integrated
integrated management
management
Segment
CementMain investment project
Acquired shares in Robertson’s Ready Mix, Ltd.

Metals(Billions of yen)

Investment amountby segment

120

Similco mine investment
Integrated two copper processing companies, strengthened
production capabilities
Construction of Onahama S-furnace
Advanced Materials Increased production of inserts& Tools
Increased tungsten smelting capacity

120

Electronic Materials Increased production of polycrystalline silicon& Components

50

Others

50

50
Total

390

Strategic investment in growth drivers to establish growth foundation in four core businesses
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Materials Premium 2013

2. Overview of New Medium-Term
Management Plan (FY12-14)

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Materials Premium 2013

Corporate Philosophy/Vision: New Medium-Term
Management Plan
Corporate Philosophy“Contribute to people, society andthe Earth” through a code of
conduct consisting of ten articles

VisionAim to be the strongest multi-faceted business grouppromoting value creation by providing unique materials and products
from the customer’s perspective in a resource recycling and advanced informationoriented society.

New Medium-Term Management Plan (FY12-FY14)

Materials Premium 2013
Aiming for New Creation
Twin focus on growth strategy and enhancement of financial position
Materials Premium: Exploit synergies from our uniquely integrated businesses
7|

Materials Premium 2013

New Medium-Term Management Plan
(FY12-FY14) Management Objectives
Twin
Twin focus
focus onon growth
growth strategy
strategy andand enhancement
enhancement ofof financial
financial position
position

Ordinary income
ROA
Net debt/equity ratio

Net sales(Overseas net sales

Note: Excludes gold ingots exports.

8|

Materials Premium 2013

FY2011FY2014¥56.4 billion¥110.0 billion

3.1%

6%

2.0 times

Under 1.5 times¥1,333.9 billion¥1,570.billion¥510 billion)¥391.8 billion(Assumptions)
Forex in FY14:¥85 = US $1
Price of copper in FY14: 320 cents/poundConsolidated Financial Plan
(Billions of yen)
（億円）

売上高
Net
sales
1,452.1
14,521984.7
9,847

1,659.2
16,592

1,570.0
15,7001,421.1
14,241
1,119.4
11,194

1,143.6
11,436

1,333.9
13,33920,0002,000
15,0001,500
10,0001,000

ROA (ordinary income)ROA
ROA（経常利益）
6.3

5.3

3.6

（％）

7.5

6.0
2.2

3.1
-0.5

(Billions（億円）
of yen)

1,359
135.9

1,400
140
1,200
120

Operatingprofit 経常損益
Ordinary Income (loss)
営業利益
110.0
1,100

107.1
1,071
100.1
1,001

1,000
110
80.7
807

800
80
600
60

830
83.0

78.7
787

689
68.9
540
54.0

57.2
572 56.4
564

50.5
505
35.1
351

400
40

400
40.0

12.6
126

200
20
00

(9.5)

(95)

(20)
(200)
FY05
04年度

9

|

FY06
05年度

FY07
06年度

Materials Premium 2013

FY08
07年度

FY09
08年度

FY10
09年度

FY11
10年度

FY14
13年度

8.0
6.0
4.0
2.0
0.0

Factors Behind Increase in Ordinary Income
ExpectExpect significantly
significantly improved
improved earnings
earnings as
as aa result
result ofof increased
increased sales,
sales,
improved
improved equity
equity losses/earnings
losses/earnings ofof affiliates
affiliates(Billionsof yen)（億円）¥110
billion
1,100億円

110
1,100
100
1,000

17.0
170

90
900

110
11.0

80
800
70
700
¥56.4

60
600

564億円
billionHigher fuelcosts, lower
燃料コス
product
unitト
prices,
増、製品
fluctuations
単価下落、
in銅価影響copperprices, etc.

Costコスト
cutting
ダウン

等

390
39.0

-13.5
-135

米国セメント、
U.S. cement,
新興国向、
new product
新製品等の
and
other sales
for販売増developing

Improved
持分法
equity
損益、
losses/その他
earnings
ofaffiliates,
etc.

50
500
40
400
30
300
20
200

10

|

countries, etc.
increased

FY2011
10年度

Materials Premium 2013

FY201413年度

Investment Plan
Twin
Twin focus
focus onon growth
growth strategy
strategy andandenhancement
enhancement ofof financial
financial position
position(FY12-FY14)
Cash flows for three
years

Cash flow from operations¥325 billion(Depreciation/amortization)(¥205 billion)

Cash flow from investment(¥275 billion)

Free cash flows¥50 billion

By Application

By Business¥275
billion11|

Materials Premium 2013¥275
billionConsolidated Financial Improvement Plan
(Billions of yen)(Times)

800

600

400

200

FY05

12

|

FY06

FY07

Materials Premium 2013

FY08

FY09

FY10

FY11

FY14

Plan Breakdown by Segment
Fiscal 2011
(Billions ofyen)

Fiscal 2014
Net sales

Operatingprofit(loss)

Ordinary
income(loss)

5.2

198.0

23.5

23.0

25.9

43.2

746.0

27.0

48.5

143.0

16.0

15.1

179.0

24.0

21.5

64.7

4.7

(11.5)

87.0

6.5

13.0

Aluminum

136.0

4.9

3.8

167.0

10.5

9.0

Other/
elimination

128.9

(1.9)

0.5

193.0

(8.5)

(5.0)

Total

1,333.9

57.2

56.4

1,570.0

83.0

110.0

Net sales

Operatingprofit(loss)

Ordinary
income(loss)

Cement153.2

7.4

Metals707.9

Advancedmaterials
Electronicmaterials

Exchange rate sensitivity (consolidated ordinary income)¥1 = US $1 (strong yen)
13|

Materials Premium 2013-¥0.5 billion

3. Growth Strategy

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Materials Premium 2013

Structural Changes in the Business Environment
Stagnation in developed markets, expansion and intensifying competition in
emerging markets
Resource costs remain highIncreasing global demand for society to have a lower environmental impact
Automobile and electronics industries growing in a global market led
primarily by developing countries
Heightened global concerns over energy
Development of new social capital formation in line with disaster relief
efforts

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Materials Premium 2013

Growth Strategy for New Medium-Term Plan
(1)(1) Develop
Develop overseas
overseas markets,
markets,
especially
especially emerging
emerging markets
markets
Focus development efforts on overseas markets, particularly
regions with growth potential such as Asia

(2)(2) Realize
Realize “Materials“Materials Premium”
Premium”
Exploit synergy created from distinct features of integrated
management structure, make use of proprietary technology andbusiness infrastructure across entire Company

16|

Materials Premium 2013

Development of Overseas/Emerging Markets
Cross-divisional
Cross-divisional development
development ofof overseas
overseas businessbusiness
focusedfocused on
on developing
developing countries
countries in
in Asia
Asia
Asia (developing)

Organization

Market/Sales/
Strategy

Production
strategy
New businessdevelopment

17

|

U.S.

Latin America

Europe・Strengthen local integration function
・Make use of existing facilities laterally across divisions

・Execute regional strategy/marketing laterally across divisions
・Develop business for non-Japanese customers
・Expand sales of automobile, electronics and new energy related products
・Develop
customized
products

・Increase sales ofaircraft andmedical products

・Expand existingproduction
facilities, establish
new production
facilities
・Develop an
environmental
recycle business・Strengthen the
Cement business’
link in the value
chain throughvertical integration

Materials Premium 2013

・Strengthen sales
network・Enter Eastern
Europe/Russian
market・Expand existingproduction
facilities

Development of Overseas/Emerging Markets
FY2014FY2014 overseas
overseas company
companynet
netsalessales ofof ¥510¥510 billion*
billion*Overseas Market Development
Attempt to expand sales in overseas markets through enhancement of existing overseas facilities andthe aggressive development of new business and facilities.

Overseas Net Sales by Region*

Overseas Net Sales by Segment*(Billions of yen)

（億円）
6,000
600

(Billions（億円）of yen)

6,000
600

510
5,000
500

403
4,000
400

その他
Others欧州
Europe

U.S.
米国

510

500
5,000

403
400
4,000

Others
その他
Aluminum
アルミ
Electronics
電子材料
Advanced
Materials
加工

300
3,000

3,000
300

アジア
Asia
Developing
新興国

2,000
200

Metals
銅

200
2,000
100
1,000

1,000
100

Cement
セメ
ント

0

0
FY11
Results
10年度実績

FY14
Objectives
13年度目標(Includes Aluminum new consolidation plan)* Excludes exports of gold ingots
18|

Materials Premium 2013

FY11
Results
10年度実績

FY14
Objectives
13年度目標(Includes Aluminum new consolidation plan)Development of Overseas/Emerging Markets
Growing
Growing net
net sales
sales byby 60%
60% compared
compared to
to FY11
FY11 over
over next
next three
three
years
years byby selling
selling parts
parts andand materialmaterial products
products to
to Asia
Asia
Focused on increasing sales of parts and material products to Asia
Increase sales of high added-value parts and material products to automotive and electronics markets in developing
Asian countries with growth potential(Billionsof yen)（億円）

Parts/Material Products Asia Net Sales

1,200
120

110

100
1,000

アルミ
Aluminumproducts
製品

80
800

電子
材料
製品

Electronic
Materials
products

69

60
600

加工
製品

Lead frame elements

Cemented carbide (inserts)

Surge absorbers

Multi-port flat aluminum tubes

Advanced
Materials
products

400
40
Metals
銅加工
process
products
製品

20
200

00
FY11 Results
10年度実績

FY14 Objectives
13年度目標(Includes Aluminum new consolidation plan)

19|

Materials Premium 2013

Development of Overseas/Emerging Markets
InvestInvest primarily
primarily inin overseas
overseas growth
growth businesses
businesses
60% of investment for new business, expansion and rationalization will take place overseas
Promote new business and enhancement of facilities developing Asian regions as well as
investment in overseas mines
Asian facility enhancement,
new establishment: ¥45 billion
Overseas mine investment: ¥35 billion

Regional breakdown of
new/expansion/rationalization investment

Total Investment

Equipment
maintenance
48%

設備
更新
4 8%

¥275
billion¥133
1,330
billion
億円

20

|

New/
新規
expansion/
rationalization
増産

合理化
52%
5 2%

¥142
1,420
billion億円

Materials Premium 2013

海外
Overseas
61%

国内
Japan

¥142
billion39%¥56
billion¥86
billionRealizing Materials Premium
Making use of Mitsubishi Materials Group materials, products and technologies and ourstrengths in global development focused in developing countries, we will use our distinctive
integrated management structure to generate synergy and create value only Mitsubishi
Materials Group can deliver.

Extensive
materials, products andtechnologies

Global business
infrastructure

Value creation unique to Mitsubishi Materials Group

Materials
Premium
Expand/strengthen existing shared domains

21|

Materials Premium 2013

Create new business domains

Realizing Materials Premium: Strengthening
Existing Shared Domains
Strengthening
Strengthening Resources
Resources andand Environmental
Environmental Recycling
Recycling Businesses
Businesses
High raw material and fuel prices, uneven resource distribution heighten
need to protect resources
Demand for Society with an Environmentally-Sound Material Cycle grows
stronger across the globe

Aim to strengthen existing shared domains and for mediumto long-term growth through the realization of Materials
Premium
Smelting-Cement business synergy enables the recycling of 26 chemicalelements, the top in Japan
Value chains among Mining and Copper-Smelting, Coal-mining-and
Cement businesses are driver of Group growth in the Resources business
22|

Materials Premium 2013

Realizing Materials Premium: Strengthening
Existing Shared Domains
Unity
Unity ofof Resource
Resource andand Environmental
Environmental Recycling
Recycling Businesses
Businesses
Establish Mineral Resource & Recycling Business Unit

Unify Resources (natural resources) and Environmental Recycling
businesses (urban mining) under single management structure, executeresource strategy based on a long-term perspective
Collect resource technologies to expand and strengthen business foundation
Resources/Recycling Business Unified Management

Copper mining
Resources

Environmental
recycling

TungstenminingCopperSmelting

Coal mining

CementRecycling

Cemented
CarbideWaste disposal
Raw materials

23|

Materials Premium 2013

Fuel

Realizing Materials Premium: Strengthening
Existing Shared Domains
New
New Initiatives
Initiatives inin thethe Environmental
Environmental Recycling
Recycling BusinessBusinessStrengthening new initiatives in each division

Accelerating initiatives involving recovering rare earth magnets anddeveloping emerging markets through Home Appliance Recycling
business
Advanced proprietary smelting/cement recycling system can disposeof wide variety of waste elements, including wastes from a final
processing reclamation space, which enable the space to expand its
capacity
Recycle of rare earth metals
Recovering rare earthmagnets from air
conditioning
compressors andrefrigerator motors.
(The portions circled inyellow are rare earth
metals)Smelting/cement recycling system
Nonferrous
metal
smelting

Smelting/Cement
Recycling
SystemGypsumWaste
By-products

Waste
By-products

Clinker dust

24|

Materials Premium 2013

CementCopper slag

Realization of Materials Premium: Creation of New
Business Domains
GlobalGlobal businessbusiness promotion
promotion
Growth of emerging markets
Growth of emerging markets
Increased demand in automotive/electronics
markets
Develop local procurement for Japanesecompanies
High barriers to entry(country and business risks)
Intense price competition

Established Overseas Business Strategy Dept.
and Corporate Marketing Dept.

Strengths of the Mitsubishi Materials Group
Developing business at approx. 100 facilities in
25 countries (as of April 2011)
Focus on Asia emerging markets(East Asia: 29, Southeast Asia: 32 locations)
Developing facilities in response toautomotive/electronics markets
Abundant local/customer information

AimingAimingfor
forAsia
Asianetnetsalessalesofof¥370¥370billion
billionin
infiscalfiscal2014,
2014,aastronger
strongermarketingmarketingfunction
functionand
andthetheformulation
formulationof
ofaaheadquarters
headquartersstrategy
strategy
that
thatincorporates
incorporatesChina,
China,ASEAN
ASEANand
andIndia
India
Attempting
Attemptingto
tostrengthen
strengthenlink
linkwith
withexisting
existingfacilities
facilities

25|

Materials Premium 2013

Companywide Strategy to Support Growth
Companywide
Companywide initiatives
initiatives
Personnel
training anduse

Recruit, train and use global professionals, institutevarious systems
Staffing that supersedes divisions or company, createhuman network

Change to lowcost structure

Create global procurement system to cut costs
Reduce process costs through ＳＣＭ/quality engineering
deployment

Furtherpromotion of
CSR

Focus attention of business activities that cause major
influences on corporate value (materiality), contribute tomain business through ongoing development ofsustainable society

26|

Materials Premium 2013

4. Business Strategy by Segment

27|

Materials Premium 2013

Cement (1)Objective
Objective
By strengthening our earnings base in Japan and expanding business in the
United States, we aim to become a major player in the Pacific Rim region.

Business
Business Environment
Environment

Forecast Demand for Cement inSouthern California, United States

Cement Demand Forecast
Japan(FY2011) 41.60 million tons
(FY2014) 43.00 million tons
Southern California, United States(FY2011) 4.05 million tons
(FY2014) 5.70 million tons
U.S.
U.S.demand
demandexpected
expectedtotoriserisesharply
sharplyasaseconomyrecovers
economy recovers
28|

Materials Premium 2013

Cement (2)Basic
Basic Strategy
StrategyStrengthen our earnings base in Japan・Establish an efficient production, sales and distribution system
Create a vertical value chain in the United States
Expand the recycling and resource businesses

FY2014FY2014 Forecast
Forecast
Operating Profit

Net Sales(Billions of yen)

Ordinary Income(Billions of yen)(Billions of yen)

20
200

20
200

15
150

15
150

200
150
100

10
100

50

5
50

FY2011FY2011|FY2014

Materials Premium 2013

FY2011
10年度

00
FY2014
13年度

23.0

10
100

50
5

7.4

00

0

29

23.5

5.2
10年度
FY2011

13年度
FY2014

Cement (3)Overseas
Overseas Market
Market Strategy
Strategy
United States
Create a vertical value chain

China
Strengthen our earnings foundation atexisting base (Yantai)

Reinforce
Reinforcethe
theterminal
terminalbusiness,business,expand
expandarea
areaofof
operations
inready-mixed
concrete
operations in ready-mixed concrete

ExpandExpandsales
salesofofhigh-quality,
high-quality,high-value-added
high-value-added
products
products

Diversify
Diversifyproductproductofferings
offeringsininline
linewithwithenvironmental
regulations
environmental regulations

CenteredCenteredon
onYantai,
Yantai,expand
expandourourenvironmental
environmental
andready-mixed
concretebusinesses
and ready-mixed concrete businesses

Develop our U.S. cement business(Southern California)

Overseas Cement Segment Sales by Region

100

OthersEurope(Billions of yen)
United States
Emerging Asian markets 88.0

80
60

Cushenbury plant

56.0

40
20

Long Beach Terminal

0
FY2011 Actual

30|

Materials Premium 2013

FY2011 Actual

FY2014 Target

Metals (1)Objective
Objective
Achieve growth through investment in mine development, increasing costcompetitiveness in smelting business, and through strategic expansion in
growth fields in the processed copper business.

Business
Business Environment
Environment

Sensitivity to Copper Price Fluctuations(Billions of yen)

Copper price assumptions(FY2014)
US$3.20/lb
Rolled copper product demand
Expected to increase inJapan and overseas

31|

Materials Premium 2013

Copper Price(Up 10￠/lb)

Operating Profit

0.5

Dividend Income

0.5

Earnings in equity of affiliates

0.1

Metals (2)Basic
Basic Strategy
Strategy
MiningRaise own-mine ratio through stable operation of existing mines andsteady development of new projects and mines under exploration (Fiji)
Smelting
Stabilize earnings by reinforcing a low-cost structure and expanding
the recycling business
Processed copper Expand earnings in downstream growth fields by strengthening
relations with Mitsubishi Shindoh Co., Ltd. and Mitsubishi Cable
Industries, Ltd.

FY2014FY2014 Forecast
Forecast
Net Sales

Operating Profit（億円） of yen)(Billions250
25(Billions of yen)

150
15

400
4,000

707.9
707.9

746.0
746.0

200
2,000

FY2011
10年度

|

300
30
25.9
259

27.0
270

100
10

200
20

50
5

100
10

00

00

00

32

400
40

200
20

600
6,000

Ordinary Income（億円）(Billions of yen)

FY201413年度

Materials Premium 2013

FY2011
10年度

FY2014
13年度

43.2
432

485
48.5

FY2011
10年度

FY2014
13年度

Metals (3)Overseas
Overseas Market
Market Strategy
Strategy
Smelting
Copper Smelting in Indonesia (PTS)
Maintain/increase
Maintain/increasehighhighoperating
operatingrates
ratesatatPTS
PTS
Develop
Developdownstream
downstreambusiness,business,centeredcenteredon
onPTS
PTS

Rolled Copper Manufacturing Bases in Asia
Qingdao Ecobrass Co., Ltd.
(Ecobrass ingot production)
SDI Corporation(Operational tie-up related tocontour strips)

Affiliatedcompany

Business tie-up

Processed Copper
Strategic development in growthmarkets and fields
Boost
Boostsales
sales(Mitsubishi(MitsubishiShindoh
ShindohCo.,
Co.,Ltd.)Ltd.)bybyleveraging
andreinforcing
existing
emerging
leveraging and reinforcing existing emerging
marketmarketproduction
productionbases
basesforforcontour
contourstrips
stripsandandecobrass
ecobrass
Increase
Increaseoverseas
overseassales
salesofofhigh-performancehigh-performancecables,andsealproducts(Mitsubishi
cables, and seal products (MitsubishiCable
Cable
Industries,
Industries,Ltd.)
Ltd.)
Overseas Metals Segment Sales by Region

300
3,000

Gotoh Philippines Corp.
(Pressings for lead frames)

2,500
250

Sambo Shindo Thailand(Air conditioner parts)

1,500
150

Ryoshindoh Manufacturing Sdn.
Bhd. (Slits, contour strips)

500
50

Others
その他(Billions of yen)
Europe欧州
United米国 States
Emerging
アジア新興国Asian markets
268.0

239.0

200
2,000

1,000
100

00
FY2011
Actual10年度実績

33|

Materials Premium 2013

FY2014
Target13年度目標Advanced Materials and Tools (1)Objective
Objective
Centered on global expansion of the cemented carbide business, achieve
growth through strategic marketing, a robust sales network, overwhelming
technical development expertise and through progress and innovations inon-the-ground strength.

Business
Business Environment
Environment
World Automobile Production Forecast(Millions ofvehicles)（万台）
14,000140
12,000
120

8,000
80

(FY2011)(FY2014)

6,000
60(FY2011)(FY2014)34|

28.00 million units
37.90 million units

Materials Premium 2013

48%
39%

4,000
40
2,000
20

Emerging markets

Emerging
markets (China, India, South America, Asia,
新興市場（中国、インド、南米、アジア、中東、
MiddleEast, Africa)
アフリカ）
Maturemarkets (Europe, US., Japan, South Korea)
成熟市場（欧州、北米、日本、韓国）

10,000100

Mature markets
43.90 million units
55.00 million units

Automobile Production Forecast(Light Vehicles, 3.5 Tons or Less)

61%

0

0

2010
2011
2012
2013
2014
2015
2016
2017
Source: IHS Automotive, June 2011 (All rights reserved).
Figures for 2010 are actual, from 2011 to 2017 are forecasts

Automobile
Automobileproduction
productionto
toexpand,expand,centeredonemerging
markets
centered on emerging markets

52%Advanced Materials and Tools (2)Basic
Basic Strategy
Strategy
Cemented carbide products
・Expand global sales routes and production capacity
・In addition to the mainstay automobile industry, expand sales in fields such as aircraft,infrastructure and healthcare
・Stable procurement of tungsten: Increase supplier diversity and raise recycling ratio
High-performance products
・Boost revenues in aircraft, environmental and new energy fields (MMC Superalloy Corp.)
・Increase sales of eco-friendly car parts (Diamet Corp.)

FY2014FY2014 Forecast
Forecast
Net Sales

Operating Profit(Billions of yen)(Billions of yen)

Ordinary Income(Billions of yen)

200
2,000

250
25

250
25

150
1,500

20
200

200
20

150
15

100
1,000
143.0
1,430

50
500

179.0
1,790

10
100

16.0
160

5
50

0

0

|

FY201413年度

Materials Premium 2013

10
100
5
50

00
FY2011
10年度

35

150
15
240
24.0

21.5
215
15.1
151

00
FY2011

10年度

FY2014

13年度

FY2011
10年度

FY201413年度

Advanced Materials and Tools (3)Overseas
Overseas Market
Market Strategy
Strategy
Cemented Carbide Products
Increase global sales by expanding
overseas bases

High-Performance Products
Increase global sales by expanding
overseas bases

ExpandExpandsales
salesnetwork
networkininChina
Chinaand
andotherotheremerging
markets
emerging markets

Boost
Boostoverseas
overseassales
salesofofeco-friendly
eco-friendlycar
car
parts
parts

ExpandExpandproduction
productionbases
basesininAsian
Asianemerging
markets
emerging markets

ExpandExpandproduction
productionbases
basesininAsian
Asianemerging
markets
emerging markets

Sales Network for Cemented
Carbide Products in China
Sales management company(head office, branches)

Overseas Advanced Materials andTools Segment Sales by Region

Agency/retailer
Technical center

Beijing
Tianjin
Shanghai
Chongqing
Guangzhou

80
800
70
700
60
600
50
500
40
400
30
300
20
200
10
100
00

(Billions of yen)
Othersその他
Europe欧州
United米国 States
75.0
Emerging
Asianmarkets
アジア新興国52.0

FY2011
Actual10年度実績

36|

Materials Premium 2013

FY2014
Target13年度目標Electronic Materials & Components (1)Objective
Objective
Centered on silicon-related businesses that lend themselves to the verticalvalue chain and based on technology development expertise, become ahighly profitable business group with a leading portfolio of differentiatedproducts

Business
Business Environment
Environment

Global Semiconductor Market Forecast(Billions of U.S. dollars)Market Forecast
Segment products overall
Firm demand, centered on energy
savings, alternative energy andenvironment-related products
Polycrystalline silicon
Expanding demand for use in
semiconductors

400
4,000

3,000
300
200
2,000
100
1,000

0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: World Semiconductor Trade Statistics (WSTS)

37|

Materials Premium 2013

Electronic Materials & Components (2)Basic
Basic Strategy
Strategy
SiliconIncrease cost competitiveness in high-quality parts forsemiconductors
Advanced materials
Boost sales, centered on precision-mounted
materials and target materials
Devices
Bolster sales by strengthening sales network in global markets

FY2014FY2014 Forecast
Forecast
Net Sales

Operating Profit(Billions of yen)(Billions of yen)

100
1,000

(Billions of yen)
15
150

60

10
100

80
800

40
400

64.7
647

87.0
870

6.5
65

20

47
4.7

00
(5)
-50

(11.5)
-115

(10)
-100

20
200

(15)
-150

0

00
FY2011
10年度

38

13.0
130

5
50

40

60
600

Ordinary Income (Loss)|

FY201413年度

Materials Premium 201310年度
FY2011

13年度
FY2014

10年度
FY2011

13年度
FY2014

Electronic Materials & Components (3)Overseas
Overseas Market
Market Strategy
StrategyElectronic Devices
Increase sales in the high-end volume zone
in emerging markets
Reinforce
Reinforceproduction
productionbases
basesininThailand
Thailandand
Malaysia
and Malaysia
Develop
Developstrategic
strategicproducts
productsfor
foremerging
emerging
markets
markets

Bases in the Electronic Devices
Business in Asian Emerging Markets
MMC Electronics Thailand(Manufacture and sale ofelectronic devices)

MMC Electronics
Korea(Sale of electronic devices)

Advanced Materials
Cultivate differentiated technologies
and respond with new products
ExpandExpandsales
salesofofprecision-mounted
precision-mounted
materials
materialsand
andtargets
targetsininTaiwan
TaiwanandandAsianAsianemerging
emergingmarkets
markets
Overseas Electronic Materials &Components Segment Sales by Region
Others
その他
400
40

300
30

(Billions of yen)

Europe欧州
UnitedStates
米国

36.0

Emerging
アジア新興国 Asian markets

24.0

200
20

MMC Electronics Malaysia

MMC Electronics Hong Kong

(Manufacture and sale ofelectronic devices)(Sale of electronic devices)

100
10

00
FY2011 Actual
10年度実績

39|

Materials Premium 2013

FY2014FY2014Target
Target13年度目標Aluminum (1)Basic
Basic Strategy
Strategy
Rolled and processed aluminum products: Mitsubishi Aluminum Co., Ltd.
・Bolster competitiveness in automobile heat exchanger materials, extrusionmaterials and fin materials
・Increase sales of solar cell back-sheets
Can production: Universal Can Corp.
・Promote efforts to make thin-walled can materials stronger and more
lightweight・Boost sales of bottle cans

FY2014FY2014 Forecast
Forecast
Net Sales(Billions of yen)

Operating Profit(Billions of yen)

200
2,000

100
10

8
80

80
8

6
60
136.0
1,360

50
500

167.0
1,670

10.5
105

4
40
2
20

4.9
49

FY2011
10年度|

FY201413年度

Materials Premium 2013

60
6
9.0
90

4
40
2
20

3.8
38

00

00

0
0

40

(Billions of yen)

10
100

150
1,500
100
1,000

Ordinary Income

FY2011
10年度

FY2014
13年度

FY2011
10年度

FY201413年度

Aluminum (2)Overseas
Overseas Market
Market Strategy
Strategy
Rolled and processed aluminum products (Mitsubishi Aluminum Co., Ltd.)
Promote overseas business for automotive products, centered on emerging markets
PromotePromoteproduction
productionand
andsalessalesincreases
increasesforheat
exchanger
extrusionmaterials
for heat exchanger extrusion materials(multi-port(multi-portflat
flattubes),
tubes),plate
platematerials
materials(fins)(fins)
ininChina,
Thailand,the
UnitedStatesandChina, Thailand, the United States andotherothercountries
countries

Mitsubishi Aluminum’s Overseas Bases
MA China Extrusion (Suzhou) Co.,Ltd.
(manufacture and sales of aluminum
extrusion)

Thermalex, Inc.
(manufacture and sales ofaluminum extrusion)

Increase
Increasesales
salesofofsolarsolarcell
cellback-sheets
back-sheets

Overseas Aluminum Segment Sales by Region
30
300

20
200
Muan-Max (Thailand) Co., Ltd.

その他
Others(Billions of yen)

Europe欧州
United米国 States
Emerging Asian markets
アジア新興国22.0

16.0(manufacture and sales of aluminum extrusion)

10100
Varopakorn Plc. Ltd(Business tie-up)(Plate production)

Malc-Thai Co., Ltd(Sales of aluminum products)

00
FY2011 Actual
FY2014 Target
10年度実績
13年度目標(Including entities expected to be newly consolidated)

41|

Materials Premium 2013

New Medium-Term Business Plan (FY2011-2014)

Materials Premium 2013
Aiming for New Creation−Twin focus on growth strategy
and enhancement of financial position−
Expand into overseas markets,particularly emerging markets
Createnew value
Realize a materials premium

42|

Materials Premium 2013

Contributing to People, Society and the Earth

In addition to addressing the problem of global warming, we of the
Mitsubishi Materials Group seek to apply our diverse management
resources to the task of turning the tide on energy-related issues, brought
into relief by the Great East Japan Earthquake, and respond to the pressing
societal requirement of rebuilding in the aftermath of the disaster.

43|

Materials Premium 2013

Contributing to Earthquake Reconstruction
Processing
Processing Waste
Waste fromfrom thethe
Earthquake
Earthquake

Contribute
Contributeon
onmanymanyfronts
frontsbybyapplying
applyingthe
theGroup’sGroup’s
waste-processing
waste-processingexpertise
expertise
Process wood
Aomori Plant
and plastic
waste byIwate Plant
recycling themat cement plants
Kyushu Plant

In the region contaminated byradioactivity, participate in andcooperate with thedecontamination business
Mineral Resources &Recycling Business Unit
Group companies

At copper smelter,
recycle automobile
shredder dust and nonferrous metal waste
Onahama Smelter & Refinery

Yokoze Plant

Process waste fromelectronic appliances
East Japan Recycling Systems Corp.

Panasonic Eco Technology Kanto Co., Ltd

44|

Materials Premium 2013

Initiatives in New Energy Fields (1)Initiatives
Initiatives inin New
New Energy
Energy Fields
FieldsIn
Inaddition
additionto
tothe
theproblem
problemof
ofglobal
globalwarming,
warming,thetheGreat
GreatEast
EastJapan
Japan
Earthquake
Earthquakeprompted
promptedan
anincrease
increaseininawarenessawarenessof
ofenergy
energyproblems.
problems.
AgainstAgainstthis
thisbackdrop,
backdrop,thetheGroupGroupplans
planstotomeetmeetsocietal
societaldemands
demandsby
byaccelerating
acceleratingits
itsongoingongoingefforts
effortsinindiverse
diversenew
newenergy-related
energy-related
businesses
businessesover
overthethemediummediumto
tolonglongterm.
term.
Group Businesses Related to New Energy
Sell and develop a host of
products that leveraged ourmaterials and parts technologies
Supply energy by employing ourtechnology for developing
subterranean resources

45|

Materials Premium 2013

Energy creation
Energy storage
Energy savings

Initiatives in New Energy Fields (2)DiverseDiverse Products
Products thatthat Leverage
Leverage Our
Our Materials
Materials andand Parts
Parts Technologies
Technologies
Energy Creation

Energy Storage

Energy Savings

Solar cell related products

Products for lithium
secondary batteries

Products related to energy savings

Back-sheets
Chemical compound sputteringtargets
Single-crystal silicon pullers

Back-sheets

Tin alloy anodematerials
Thermistor sensors

Tin alloy anode materials

Heat shield coated film
DBA substrates
Semiconductor power transistor materials(contour strips)

Heat shield coated film

Semiconductor powertransistor materials(contour strips)

Single-crystal silicon puller

Chemical compound
sputtering targets

46|

Materials Premium 2013

Thermistor sensors

DBA substrates

Initiatives in New Energy Fields (3)SupplySupply Energy
Energy by
by Employing
Employing Our
Our Technology
Technology forfor Developing
Developing
Subterranean
Subterranean Resources
Resources
Energy Creation
Geothermal power generation
Operation of two geothermal power plants (including
steam supply)
Feasibility study underway on new site (Yuzawa, Akita
Prefecture), resource surveys and studies underway atseveral other locations

Onuma Geothermal Power Plant(Kazuno, Akita Prefecture)

47|

Wasabizawa
Geothermal Steam Test
(Yuzawa, Akita
Prefecture)

Materials Premium 2013

Energy Savings
Geothermal heat pump systems
Employ design technologies optimally suited
to the location’s characteristics
Experience with numerous projects (public
facilities, commercial facilities, homes, melting
snow on roadways, etc.)

Construction of in-ground heat exchanger
well at Tokyo Sky Tree