MITSUBISHI MATERIALS CORPORATION

Transcription

1 MITSUBISHI MATERIALS CORPORATION Supplementary Explanation for the fiscal year ended March 31, 2018 May 10,

2 Performance Overview (Full Year) 1, , , , , , , Net Sales Operating Profit Ordinary Income Net income attributable to owners of parent 1, , FY2014 FY2015 FY2016 FY2017 2

3 Performance Overview (Quarterly) Net Sales Operating Profit Ordinary Income Net income attributable to owners of parent FY2017 1Q FY2017 2Q FY2017 3Q FY2017 4Q 1Q 2Q 3Q 4Q 3

4 Consolidated Statements of Operations (Full Year) 4 FY2017 Result Result Difference (a) (b) (b)-(a) Net sales 1, , Operating profit Net interest and dividends income Equity in earnings of affiliates Other / Non-operating profit / loss Ordinary income Extraordinary income / loss Income taxes Net income attributable to non-controlling interests Net income attributable to owners of parent Exchange rate (USD) JPY / $ Exchange rate (EUR) JPY / Copper price (LME) / lb Dividend per share (yen) Reason Cement +14.8, Metals , AM&T +17.7, EM&C +10.3, etc. Cement -1.4, Metals +6.6, AM&T +6.7, EM&C +0.9, etc. Dividend income +4.7, etc. Gain on sales of non-current assets -9.7, Gain on sales of investment securities -13.4, Loss on Non- Conforming Products -3.2, Provision for environmental measures +14.8, etc. * The Company consolidated its shares at a 10:1 ratio of its common stock, with an effective date of October 1, Accordingly, dividend per share is calculated on the assumption that the consolidation of its shares was conducted at the beginning of the FY2017.

5 Factor Analysis of Net Sales, Operating Profit and Ordinary Income by Segment 5 Cement Metals Advanced Materials & Tools FY2017 Differences Exchange Price Quantity Electricity Dividends Equity in Others Other principal reasons Result Result rate differences variation price effect income earnings of (Operating profit) (a) (b) (b)-(a) differences affiliates Net sales Operating profit Ordinary income Net sales Operating profit Ordinary income Net sales Operating profit Ordinary income Net sales Electronic Materials & Operating profit Components Ordinary income Aluminum Other Elimination, etc. Total Net sales Operating profit Ordinary income Net sales Operating profit Ordinary income Net sales Operating profit Ordinary income Net sales 1, , Operating profit Ordinary income Periodic furnace repairs (Non-consolidated) - Acquisition of Luvata SP division - Impact of quality issues (-0.4) - Impact of quality issues (-0.5) - Impact of quality issues (-0.4) - Impact of quality issues (-0.1) Total impact of quality issues -1.4

6 Consolidated Statements of Operations (Comparison with the forecast announced on February 13) Previous forecast Result Difference (a) (b) (b)-(a) Net sales 1, , Operating profit Net interst and dividends income Equity in earnings of affiliates Other / Non-operating profit / loss Ordinary income Extraordinary income / loss Income taxes Net income attributable to non-controlling interests Net income attributable to owners of parent Exchange rate (USD) Exchange rate (EUR) Copper price (LME) Dividend per share (yen)

7 Consolidated Balance Sheet End of Mar. End of Mar. Difference End of Mar. End of Mar. Difference 2017 (a) 2018 (b) (b)-(a) Cash and deposits Notes and accounts receivable-trade Inventories Other Current assets, subtotal Property, plant and equipment and intangible assets Assets Investments and other assets Non-current assets, subtotal 1, , Total Assets 1, , (a) 2018 (b) (b)-(a) Liabilities Notes and accounts payable-trade Loans payable and bonds payable % % -6.7 Other liabilities Liabilities, subtotal 1, , Net assets Capital stock Capital surplus and treasury stock Retained earnings Total other comprehensive income Non-Controlling interests Net Assets, subtotal % % 58.3 Total liabilities and net assets 1, , Shareholders' equity ratio 33 % 34 % Net debt to equity ratio 0.6 times 0.6 times 7

8 FY2019 Forecast: Statistics / Assumptions / Sensitivity Statistics / Assumptions FY2017 FY2019 (Forecast) Result Result Full Year Difference 1st Half 2nd Half (a) (b) (b)-(a) Total demand for cement in Japan (million tons) Cement sales volumes for MMC-Domestic (million tons) Cement sales volumes for MMC-Exports (million tons) Total demand for cement in the U.S. (million tons) Cement sales volumes in the U.S. * (million tons) Ready-mixed concrete sales volumes in the U.S. * (million cy) Sales volumes of copper cathodes (in-house product) (thousand tons) Sales of volumes of copper cathodes (PTS) (thousand tons) Sales volumes of copper & copper alloy products (thousand tons) Dividend from copper mine ( billion) Sales volumes of aluminum sheet products (thousand tons) Sales volumes of aluminum extrusion products (thousand tons) * From, the accounting periods of the cement and ready-mixed concrete business in the U.S. have been changed from Ending December 31 to Ending March 31. Accordingly, FY2017 in the above results shows the sales volumes from January to December, and and FY2019 show the sales volumes from April to March. (Reference) Cement sales volumes in the U.S.: 1.53 million tons (April, 2016 to March, 2017) Ready-mixed concrete sales volumes in the U.S.: 7.06 million cy (April, 2016 to March, 2017) Sensitivity Exchange rates Operating profit - 1 yen/$ (yen depreciation) Exchange rates Operating profit - 1 yen/ (yen depreciation) Copper price (LME) Operating profit ±10 /lb Copper price (LME) Non-operating profit ±10 /lb FY2019 Full Year 0.7 billion yen 0.2 billion yen 0.6 billion yen 1.7 billion yen 8

9 FY2019 Performance Forecast FY2019 (Forecast) Result 1st Half 2nd Half Full Year Difference (a) (b) (b)-(a) Net sales 1, , Operating profit Net interest and dividends income Equity in earnings of affiliates Other / Non-operating profit / loss Ordinary income Extraordinary income / loss Income taxes Net income attributable to non-controlling interests Net income attributable to owners of parent Exchange rate (USD) Exchange rate (EUR) Copper price (LME) Dividend per share (yen)

10 10 FY2019 Forecast: Factor Analysis of Net Sales, Operating Profit and Ordinary Income by Segment FY2019 (Forecast) Equity in Exchange Electricity Other principal reasons Price Quantity Div idends earnings Result Full Year Differences rate price Others (Operating profit) 1st Half 2nd Half differences income differences variation effect (a) (b) (b)-(a) Net sales Cement Operating profit Ordinary income Net sales Metals Operating profit Ordinary income Advanced Net sales Materials & Operating profit Tools Ordinary income Electronic Net sales Materials & Operating profit Components Ordinary income Net sales Aluminum Operating profit Ordinary income Net sales Other Operating profit Ordinary income Net sales Elimination, Operating profit etc Ordinary income Net sales 1, , Total Operating profit Ordinary income of affiliates - Acquisition of Luvata SP division ( 8 months FY months) - Periodic furnace repairs (Non-consolidated and PTS) - Expenditures for sales expansion (labor cost) - Transfer shares of real estate business subsidiary

11 Depreciation and Capital Expenditures Left: Depreciation and amortization Right: Capital expenditures (construction basis) (Capital expenditures on cash basis) (65.1) (58.0) (74.3) (78.1) (72.9) (95.0) FY2014 FY2015 FY2016 FY2017 FY2019 Forecast Cement Metals Advanced Materials & Tools Electronic Materials & Components Aluminum Others 11

12 Cash Flows Operating CF Investing CF Financing CF (Free cash flows) (58.0) (65.7) (88.7) (88.9) (-33.2) (17.0) FY2014 FY2015 FY2016 FY2017 FY2019 Forecast 12

13 Interest-Bearing Debt and D/E Ratio Interest-Bearing Debt Net Interest-Bearing Debt D/E Ratio (times) Net D/E Ratio (times) FY2014 FY2015 FY2016 FY2017 FY2019 Forecast

14 (FYI) Performance Overview (Quarterly) FY2017 Result Result 1Q 2Q 1st Half 3Q 4Q 2nd Half Full Year 1Q 2Q 1st Half 3Q 4Q 2nd Half Full Year Performance Overview by Segment Net sales Cement Operating profit Ordinary income Net sales Metals Operating profit Ordinary income Advanced Net sales Materials & Operating profit Tools Ordinary income Electronic Net sales Materials & Operating profit Components Ordinary income Net sales Aluminum Operating profit Ordinary income Net sales Other Operating profit Ordinary income Net sales Elimination, etc. Operating profit Ordinary income Net sales , ,599.5 Total Operating profit Ordinary income Statistics / Assumptions Total demand for cement in Japan (million tons) Cement sales volumes for MMC-Domestic (million tons) Cement sales volumes for MMC-Exports (million tons) Total demand for cement in the U.S. (million tons) Cement sales volumes in the U.S. * (million tons) Ready-mixed concrete sales volumes in the U.S. * (million cy) Sales volumes of copper cathodes (in-house product) (thousand tons) Sales of volumes of copper cathodes (PTS) (thousand tons) Sales volumes of copper & copper alloy products (thousand tons) Dividend from copper mine ( billion) Sales volumes of aluminum sheet products (thousand tons) Sales volumes of aluminum extrusion products (thousand tons) Exchange rate (USD) JPY / $ Exchange rate (EUR) JPY / Copper price (LME) / lb * From, the accounting periods of the cement and ready-mixed concrete business in the U.S. have been changed from Ending December 31 to Ending March 31.

15 For further information, please contact at: Mitsubishi Materials Corporation IR Dept., Finance & Accounting Dept., Corporate Strategy Div. 3-2, Otemachi 1-chome, Chiyoda-ku, Tokyo, , Japan URL: These projected performance figures are based on information available to the Company s management as of the day for releasing this material. There are many uncertain or risk factors inherent in projections, and there might be cases in which actual results materially differ from projections of this material. 15