ALCONIX CORPORATION. Company Overview / Appendix. (Listed on TSE First Section, Code 3036) May PDF Free Download

ALCONIX CORPORATION (Listed on TSE First Section, Code 3036) Company Overview / Appendix May 2014

Solid overseas network 事業概要 The ALCONIX Group has a unique overseas network that emphasized profitability (As of March 2013) Overseas subsidiaries and liaison offices Cleveland, USA: ALCONIX USA., INC. Hong Kong, China: ALCONIX HONGKONG CORP., LTD. Bangkok, Thailand: ALCONIX (THAILAND) LTD. ALCONIX LOGISTICS (THAILAND) LTD. Shanghai, China: ALCONIX (SHANGHAI) CORP. Beijing, China: ALCONIX (SHANGHAI) CORP, Beijing Branch Shenzhen, China: ALCONIX (SHANGHAI) CORP, Shenzhen Branch Guangzhou, China: ALCONIX (SHANGHAI) CORP. Guangzhou Branch Dusseldorf, Germany: ALCONIX EUROPE GMBH Kuala Lumpur, Malaysia: ALCONIX (MALAYSIA) SDN. BHD. Taipei, Taiwan: ALCONIX (TAIWAN) CORPORATION Hanoi, Vietnam: ALCONIX VIETNAM CO.,LTD. Moscow Liaison Office (Russia): ADVANCED MATERIAL JAPAN CORPORATION Vladivostok Liaison Office (Russia): ADVANCED MATERIAL JAPAN CORPORATION ADVANCED MATERIAL BEIJING CORPORATION (China): ADVANCED MATERIAL JAPAN CORPORATION ADVANCED MATERIAL TRADING PTE.LTD.(Singapore) Overseas agents Jeddah, Saudi Arabia: Sojitz Corporation, Jeddah Branch Cairo, Egypt: Sojitz Corporation, Cairo Liaison Office Copyright 2014 ALCONIX CORPORATION All Rights Reserved 9

Business fields Business model The ALCONIX Group is a specialized non-ferrous metals trading firm that covers all processes from upstream to downstream (final manufacturing) Copyright 2014 ALCONIX CORPORATION All Rights Reserved 12

Features of business model and profit structure Business model Market price rise expansion of client demand; Market price drop restraint in client demand Relatively small impact of market volatility on our transactions Some "Intermediary" and "Inventory-2" transactions are directly impacted by the market. "Inventory-2" transactions account for only 5% of total transactions. This limits the direct impact of market volatility on our profits. Copyright 2014 ALCONIX CORPORATION All Rights Reserved 13

Percentage breakdown of ALCONIX Group transactions by product category * Based on results at the end of FY3/14 (value basis) Plating materials, precision machining processing parts, precision grinding processing parts, nonferrous metal materials for automotive applications, metal silicon, magnesium, zinc, valve parts, piping joints, construction materials, etc. Corporate data Aluminum fins, aluminum foil, tubes, strips, sheets, aluminum alloy ingots, scraps, primary ingots, fabricated aluminum products, etc. Industrial sapphire, UV blocking ink, sputtering target, SIC wafer, magnetic materials applications, etc. Titanium, tungsten, molybdenum, rare earth, gallium, indium, cobalt, antimony, cadmium, barium, etc. Copper products (tubes, strips, sheets), electrolytic copper, copper products for semiconductors, brass copper rod, copper scrap, electric wire, and other fabricated copper products Nickel powder, plating nickel ingot, nickel foam, etc. Copyright 2014 ALCONIX CORPORATION All Rights Reserved 17

Market trends (main non-ferrous metals: copper, aluminum and nickel) Market chart (reference materials) Market prices fell in the beginning of 2013 and have been modestly volatile since * Based on London Metal Exchange (LME) Copyright 2014 ALCONIX CORPORATION All Rights Reserved 22

Market trends (minor metals) Market chart (reference materials) Titanium sponge prices remain weak, but tungsten and indium prices have risen in 2013 on recovery expectations for the Japanese economy Copyright 2014 ALCONIX CORPORATION All Rights Reserved 23

Market trends (rare earth) Market chart (reference materials) Rare earth prices, which have remained sluggish since July 2011, prices of light rare earth elements recovered thanks to the upturn in operating environment. Ongoing inventory corrections for heavy rare earth elements continue. Copyright 2014 ALCONIX CORPORATION All Rights Reserved 24

Dramatic growth of smartphone market Market chart (reference materials) Global shipments of over 700 million units We expect demand to expand not just in developed countries, but also in developing counties particularly for low-priced smartphones Smartphone Shipments Source: IDC (US research company ) Copyright 2014 ALCONIX CORPORATION All Rights Reserved 25

Trend in sales of promising hybrid and electric vehicles (HV/EV) Market chart (reference materials) Number of Domestic Sales; Share of HV/EV Source: Next Generation Vehicle Promotion Center Copyright 2014 ALCONIX CORPORATION All Rights Reserved 26

These materials were prepared to help investors understand ALCONIX and were not intended as a solicitation for investment in ALCONIX. These materials were prepared carefully for accuracy, but the completeness of these materials cannot be guaranteed. ALCONIX will not be held responsible for any problems or damages that result from the information provided in these materials. Earnings forecasts and other future forecasts in these materials were made based on the judgment of ALCONIX using information available at the time these materials were prepared. These forecasts embody latent risk and uncertainty. Please understand that actual earnings may differ from these forecasts due to changes in the business environment and other factors.

ALCONIX CORPORATION. Company Overview / Appendix. (Listed on TSE First Section, Code 3036) May 2014