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Financial results presentation5706Mitsui Kinzoku Company,LimitedIron and steel and non-ferrous metals

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue and profits increased, driven by higher sales volumes of key products such as copper foil, the weaker yen, and higher metal prices. The full-year forecasts were raised from the previous forecasts by ¥20 billion for revenue, ¥3 billion for operating profit, ¥7 billion for ordinary profit, and ¥5 billion for net income, reflecting strong performance in functional materials. The company also updated its plans and investment amounts for capacity expansions for copper foil and other products.

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Scale
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¥100 million
Wording
Conditional
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Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,016 100 million+19.3%
Operating profit¥210 100 million+84.1%
Ordinary income¥235 100 million+134.3%
Net income¥168 100 million
Selling, general and administrative expenses¥211 100 million
Results for the three months of the current quarter
Net Sales
¥2,016 100 million+19.3%
Operating profit
¥210 100 million+84.1%
Ordinary income
¥235 100 million+134.3%
Profit attributable to owners of the parent
¥168 100 million
Full-year earnings forecast
Net Sales
¥8,500 100 million
Operating profit
¥940 100 million
Ordinary income
¥1,000 100 million
Profit attributable to owners of the parent
¥800 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profit
Impact of higher sales and production volumes¥34 100 million
Commodity prices and foreign exchange¥38 100 million
Inventory-related factors / impact of precious-metal catalyst prices¥61 100 million
Margins, costs and other factors¥-36 100 million
Functional Materials
Copper foil¥29 100 million
Catalysts¥3 100 million
Inventory-related factors / impact of precious-metal catalyst prices¥9 100 million
Margins, costs and other factors¥13 100 million
Metals
Impact of higher sales and production volumes¥3 100 million
Commodity prices and foreign exchange¥22 100 million
Inventory-related factors / impact of precious-metal catalyst prices¥52 100 million
Margins, costs and other factors¥-54 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Zinc prices3,416 Prices: units shown in the presentation; exchange rate: yen/US$
Lead prices1,914 Prices: units shown in the presentation; exchange rate: yen/US$
Copper prices610 Prices: units shown in the presentation; exchange rate: yen/US$
Indium prices774 Prices: units shown in the presentation; exchange rate: yen/US$
Palladium price1,328 Prices: units shown in the presentation; exchange rate: yen/US$
Rhodium prices8,321 Prices: units shown in the presentation; exchange rate: yen/US$
Foreign Exchange159.9 Prices: units shown in the presentation; exchange rate: yen/US$
New initiatives
  • Updated capacity expansion plans for VSP, MicroThin, and FaradFlex
  • ¥7 billion investment to expand VSP production capacity
  • ¥30 billion investment to expand MicroThin production capacity
  • ¥5 billion investment to expand FaradFlex production capacity
  • Consideration of establishing new plants and pursuing M&A to meet increased demand from 2030 onward
Key KPIsA metric the company considers important as a management benchmark.
  • Electrolytic copper foil sales volume1,750 t/month
  • VSP sales volume660 t/month
  • MicroThin sales volume4,070 k-m²/month
  • Two-wheeler catalyst sales volume102 Index
  • Four-wheeler catalyst sales volume88 Index
  • Semiconductor equipment protective materials sales volume117 Index
  • Zinc production volume45 thousand tonnes
Segment results
Functional Materials
Net Sales
¥1,006 100 million+41.1%
Operating profit
¥183 100 million+41.9%
Ordinary income
¥182 100 million+73.8%
Metals
Net Sales
¥983 100 million+32.7%
Operating profit
¥53 100 million+80.0%
Ordinary income
¥68 100 million+105.1%
Head office operations
Net Sales
¥382 100 million-28.9%
Operating profit
¥-5 100 million
Ordinary income
¥6 100 million
Business Creation
Operating profit
¥-22 100 million
Ordinary income
¥-21 100 million
Medium-term management plan targets
2030 ordinary profit
Companywide¥1,500 100 million
Functional Materials¥1,300 100 million
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Zinc LME
Sensitivity±100$/t
Impact on ordinary profit/loss±¥1.48 billion (fully open), ±¥990 million (including hedging contracts)
Lead LME
Sensitivity±100$/t
Impact on ordinary profit/loss±¥230 million
Foreign Exchange
Sensitivity±¥1/US$
Impact on ordinary profit/loss±¥650 million (fully open), ±¥510 million (including hedging contracts)
Capital expenditures
VSP¥7 billion
MicroThin¥30 billion
FaradFlex¥5 billion
Annual Dividend
Annual dividend per share¥28
Interim Dividend¥14
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥2,016 100 million (YoY +19.3%)
Operating profit¥210 100 million (YoY +84.1%)
Ordinary income¥235 100 million (YoY +134.3%)
Net income¥168 100 million
Selling, general and administrative expenses¥211 100 million
Results for the three months of the current quarterNet Sales ¥2,016 100 million (YoY +19.3%) / Operating profit ¥210 100 million (YoY +84.1%) / Ordinary income ¥235 100 million (YoY +134.3%) / Profit attributable to owners of the parent ¥168 100 million
Full-year earnings forecastNet Sales ¥8,500 100 million / Operating profit ¥940 100 million / Ordinary income ¥1,000 100 million / Profit attributable to owners of the parent ¥800 100 million
Segment resultsFunctional Materials Net Sales ¥1,006 100 million (YoY +41.1%) / Operating profit ¥183 100 million (YoY +41.9%) / Ordinary income ¥182 100 million (YoY +73.8%) / Metals Net Sales ¥983 100 million (YoY +32.7%) / Operating profit ¥53 100 million (YoY +80.0%) / Ordinary income ¥68 100 million (YoY +105.1%) / Head office operations Net Sales ¥382 100 million (YoY -28.9%) / Operating profit ¥-5 100 million / Ordinary income ¥6 100 million / Business Creation Operating profit ¥-22 100 million / Ordinary income ¥-21 100 million
Breakdown of Factors Affecting the ChangeConsolidated operating profit Impact of higher sales and production volumes ¥34 100 million / Commodity prices and foreign exchange ¥38 100 million / Inventory-related factors / impact of precious-metal catalyst prices ¥61 100 million / Margins, costs and other factors ¥-36 100 million / Functional Materials Copper foil ¥29 100 million / Catalysts ¥3 100 million / Inventory-related factors / impact of precious-metal catalyst prices ¥9 100 million / Margins, costs and other factors ¥13 100 million / Metals Impact of higher sales and production volumes ¥3 100 million / Commodity prices and foreign exchange ¥22 100 million / Inventory-related factors / impact of precious-metal catalyst prices ¥52 100 million / Margins, costs and other factors ¥-54 100 million
Key KPIsIndicator name Electrolytic copper foil sales volume / Value 1,750 t/month / Year on year against the same period last year Not disclosed, Indicator name VSP sales volume / Value 660 t/month / Year on year against the same period last year Not disclosed, Indicator name MicroThin sales volume / Value 4,070 k-m²/month / Year on year against the same period last year Not disclosed, Indicator name Two-wheeler catalyst sales volume / Value 102 Index / Year on year against the same period last year Not disclosed, Indicator name Four-wheeler catalyst sales volume / Value 88 Index / Year on year against the same period last year Not disclosed, Indicator name Semiconductor equipment protective materials sales volume / Value 117 Index / Year on year against the same period last year Not disclosed, Indicator name Zinc production volume / Value 45 thousand tonnes / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookZinc prices 3,416 Prices: units shown in the presentation; exchange rate: yen/US$ / Lead prices 1,914 Prices: units shown in the presentation; exchange rate: yen/US$ / Copper prices 610 Prices: units shown in the presentation; exchange rate: yen/US$ / Indium prices 774 Prices: units shown in the presentation; exchange rate: yen/US$ / Palladium price 1,328 Prices: units shown in the presentation; exchange rate: yen/US$ / Rhodium prices 8,321 Prices: units shown in the presentation; exchange rate: yen/US$ / Foreign Exchange 159.9 Prices: units shown in the presentation; exchange rate: yen/US$
Risk amount incorporated into the outlookZinc LME Sensitivity ±100$/t / Impact on ordinary profit/loss ±¥1.48 billion (fully open), ±¥990 million (including hedging contracts) / Lead LME Sensitivity ±100$/t / Impact on ordinary profit/loss ±¥230 million / Foreign Exchange Sensitivity ±¥1/US$ / Impact on ordinary profit/loss ±¥650 million (fully open), ±¥510 million (including hedging contracts)
Medium-term management plan targets2030 ordinary profit Companywide ¥1,500 100 million / Functional Materials ¥1,300 100 million
Annual DividendAnnual dividend per share ¥28 / Interim Dividend ¥14
Capital expendituresVSP ¥7 billion / MicroThin ¥30 billion / FaradFlex ¥5 billion
New initiativesUpdated capacity expansion plans for VSP, MicroThin, and FaradFlex, ¥7 billion investment to expand VSP production capacity, ¥30 billion investment to expand MicroThin production capacity, ¥5 billion investment to expand FaradFlex production capacity, Consideration of establishing new plants and pursuing M&A to meet increased demand from 2030 onward
Items this document does not state (13)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesFinancial targetsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Sales volumes of key products, including ultra-thin copper foil MicroThin and electrolytic copper foil VSP for AI servers, increased in the Functional Materials segment. In the Metals segment, the weaker yen and higher metal prices, together with an improvement in inventory-related factors, contributed to results. Net income benefited from the absence of the extraordinary loss related to the transfer of shares in an affiliated company recorded in the same period of the previous year. The upward revision to the full-year forecasts reflects expectations that sales volumes of key products in the Functional Materials segment will remain strong.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | Mitsui Kinzoku Company,Limited (5706) timely disclosure | Komori