December 19, 2017
To: AllCompany
Mitsubishi Materials Corporation
Representative
Akira Takeuchi, President(Securities Code: 5711 on the First Section of the Tokyo Stock Exchange)
Nobuyuki Suzuki, General Manager,Inquiries to:
Corporate Communications Dept., General
Affairs Dept.
(TEL: 03-5252-5206)
Progress on Addressing Non-Conforming Products at MMC Subsidiaries ②
Mitsubishi Materials Corporation (“MMC”) sincerely apologizes for the difficulties that we havecaused to all concerned parties, including our customers and shareholders, in connection with Mitsubishi Cable
Industries, Ltd.’s (“MCI”) and Mitsubishi Shindoh Co., Ltd.’s (“MSC”) delivery of products that deviated fromcustomer or internal specifications and other issues due to misconduct, including the rewriting of data (“NonConforming Products”). MCI and MSC are consolidated subsidiaries of MMC.
We last reported the status of our progress on December 1, 2017. We prepared today’s report because
we identified additional issues relating to MCI’s Non-Conforming Products. In addition, we are reporting on
the results of an emergency quality compliance review of all MMC plants and subsidiaries (excludingsubsidiaries that have already disclosed quality issues).
1.

Addressing Non-Conforming Products at MCI1) Rectangular Magnet Wires (MCI Product Name: “Mexcel”)
On December 12, 2017, we received a report concerning the rewriting of data with respect to MCI’s

Mexcel products. We therefore reviewed internal data for Mexcel products shipped during a one year period,
from December 1, 2016 to November 30, 2017. Based on this review, we identified 43 lots (constituting
approximately 1% of total sales of ¥784 million for Mexcel products during the applicable period) of potential
products that may have had data rewritten with respect to the thickness of coating and other data, and 5
customers that received such products. MCI has notified all identified customers and, with their cooperation,is evaluating the safety of the affected products.
We confirmed that there have been no non-conforming Mexcel products shipped on or after December
13, 2017.
In addition, as part of the review discussed above, we learned that, although not covered under theagreements with customers, we needed to confirm certain testing methodologies for Mexcel products withcustomers. We will also confirm this with customers.

2) Seal Products
MCI is notifying the 229 customers identified as of November 23 to which MCI may have shipped
Non-Conforming Products. With the cooperation of customers, we are evaluating the safety of the affected
products.
However, we learned on November 25 that there may be additional customers who received NonConforming Products due to insufficient testing of certain products (“Partial Non-Testing”). For this reason,
we are reviewing all seal products (approximately 21,400 items) shipped during the verification period (April1, 2015 to September 30, 2017) and the customers to whom such products were shipped (462 customers,including the previously mentioned 229 customers) to confirm the details of the Partial Non-Testing issue andidentifying Non-Conforming Products and the customers who received such products.
As of December 18, we have completed our review of approximately 90% of all items. We identified
approximately 230 customers to which MCI may have shipped Non-Conforming Products due to Partial NonTesting and, with the cooperation of those customers, we are evaluating the safety of the affected products.
We aim to complete our review by the end of December.
The customers identified as of November 23 to which MCI may have shipped Non-Conforming
Products and the customers to which MCI may have shipped Non-Conforming Products due to Partial NonTesting partially overlap.
We have confirmed that no non-conforming seal products have been shipped on or after November 27.
To address these issues at MCI in a timely manner, MMC group employees and external staff(approximately 80 people in total) have been detailed to MCI’s Minoshima Works to assist in this matter.
2.

Safety Confirmation at MSC
MSC has already notified all MSC customers that may have been shipped Non-Conforming Products

during the one year period of October 18, 2016 through October 17, 2017 due to the rewriting of data and otherissues. With the cooperation of our customers, we are evaluating the safety of the affected products.
As of December 18, 2017, MSC’s progress in evaluating the safety of affected products is set forthbelow.

2ProductNumber ofABCDCustomersBrass-strip and copper-strip
29products

611012(Note) The above categories, reflecting the status of MSC’s progress in evaluating the safety of affected
products, are as follows:A.

The customer has completed its confirmation that there are no safety concerns.

B.

The customer has determined that there are no immediate safety concerns, but is conducting
further review.

C.

MSC has communicated to the customer its decision that, from a technical perspective, there is ahigh probability that safety of the affected products can be assumed.

D.

MSC has provided notification that Non-Conforming Products may have been delivered to thecustomer.

3.

Results of Emergency Review on Quality Compliance
As an emergency quality compliance review, we distributed a written survey and established anemergency internal whistle-blower hotline. The results of the emergency review are as follows.
1) Written Survey
We provided a written survey to all of MMC’s plants and subsidiaries (excluding subsidiaries that havealready disclosed quality issues), concerning any quality compliance issues arising over the past two years,
through November 2, 2017.

Through this survey, we identified 11 cases of additional quality complianceissues (8 cases at MMC plants and 3 cases at its subsidiaries).
The 11 cases included delays and failures to comply with procedures on amending manufacturing steps,
and the use of incorrect measuring and analyzing methods.

All affected customers have confirmed that there

were no problems with quality with respect to the products relating to these 11 cases.
2) Reports to MMC’s Internal Whistleblower Hotline
In addition to our standard internal whistleblower hotline for employees, in order to enhance theeffectiveness of our review by collecting information from a wide-range of employees, we established aninternal whistleblower hotline, that was fully devoted to quality concerns for a limited period (open from
November 6, 2017 through December 5, 2017).

One report was made to this hotline.
3Although we cannot

disclose the details of the report (in order to protect the reporting employee), we confirmed that the report wasbased on a general misunderstanding of internal measuring procedures, and that there were no issues with thequality of the final product.
4.

Policy for Handling the Issues Going Forward
In order to complete our identification of Non-Conforming Products and affected customers, and toconfirm product safety in a timely manner, MMC will continue to guide and supervise MCI and MSC andprovide any necessary cooperation and support.
5.

Outlook on Financial Results
The impact of this matter on MMC’s financial results is currently unknown.

We plan to make aseparate announcement when the extent of the impact is known.
END
Direct any questions to:Corporate Communications Dept., General Affairs Department, Mitsubishi Materials Corporation
TEL: 03-5252-5206
Corporate Administration & Personnel Section, Administrative Division, Mitsubishi Cable Industries, Ltd.
TEL: 03-3216-1551
Corporate Administration & Personnel Division, Mitsubishi Shindoh Co., Ltd.
TEL: 03-6629-5850

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