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Earnings presentation5711Mitsubishi Materials CorporationIron & Steel, Nonferrous Metals

Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results

For the fiscal year ended March 2026, operating income, ordinary income and net income increased due to higher prices for metals and smelting by-products and appropriate adjustments to selling prices. For the fiscal year ending March 2027, revenue and net income are expected to increase, while operating income and ordinary income are forecast to decline due to the reversal of inventory valuation impacts and an extended furnace maintenance period at the Naoshima Smelter, among other factors.

Worth reading
64In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
245
¥100 million (year-on-year decrease in operating income for the fiscal year ending March 2027)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 2026 (full year)10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥18,440 hundred million-6.0%
Operating profit¥605 hundred million+62.8%
Ordinary income¥975 hundred million+62.0%
Net income¥405 hundred million+19.1%
Results for the three months of the current quarter
Consolidated revenue
¥5,595 hundred million
Consolidated operating profit
¥331 hundred million
Consolidated ordinary income
¥363 hundred million
Metals revenue
¥3,808 hundred million
Metals operating income
¥190 hundred million
Metals ordinary income
¥223 hundred million
Full-year earnings forecast
Net Sales
¥19,900 hundred million
Operating profit
¥360 hundred million
Ordinary income
¥730 hundred million
Net income
¥490 hundred million
ROIC
6.7 %
ROE
6.8 %
Annual Dividend
¥116 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Foreign exchange effects¥-47 hundred million
  • Price variance (selling prices)¥215 hundred million
  • Price variance (costs and other factors)¥76 hundred million
  • Volume variance¥-119 hundred million
  • Other (operating)¥109 hundred million
  • Dividends received¥32 hundred million
  • Equity-Method Income and Loss¥36 hundred million
  • Other (non-operating)¥69 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • U.S. dollar exchange rate¥150 /$
  • Euro exchange rate180 yen/€
  • Copper price (LME)500 ¢/lb
  • Gold prices$4,000 /oz
  • Palladium price$1,100 /oz
New initiatives
  • Suspension of smelting equipment operations in connection with the reduction of copper concentrate processing at the Onahama Smelter
  • Equity investment in ReElement Technologies
  • Launch of the Osaka Works to optimize the production structure for copper products
  • Completion of the Kumagaya No. 2 Plant for the provision of high-value-added sealing products
Key KPIsA metric the company considers important as a management benchmark.
  • ROIC6.1 %
    Year on year against the same period last year+1.9%
  • ROE5.7 %
    Year on year against the same period last year+0.6%
  • Net debt-to-equity ratio0.72 times
    Year on year against the same period last year-0.0%
  • Equity ratio24.5 %
  • FCF¥46 hundred million
    Year on year against the same period last year+251.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Electrolytic copper production355 thousand tonnes
    Year on year against the same period last year-10.8%
  • Electrolytic copper sales volume333 thousand tonnes
    Year on year against the same period last year-8.0%
  • Gold production16 t
    Year on year against the same period last year-57.9%
  • Gold sales volume16 t
    Year on year against the same period last year-57.9%
  • Silver production217 t
    Year on year against the same period last year-27.9%
  • Silver sales volume217 t
    Year on year against the same period last year-28.1%
  • Copper products sales volume127 thousand tonnes
    Year on year against the same period last year+8.5%
Segment results
  • Metals
    Net Sales12,356
    Revenue unit¥ hundred million
    Ordinary income570
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit38.4
  • High-performance products
    Net Sales5,858
    Revenue unit¥ hundred million
    Ordinary income200
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit545.2
  • Copper Processing
    Net Sales5,093
    Revenue unit¥ hundred million
    Ordinary income162
    Profit unit¥ hundred million
  • Electronic Materials
    Net Sales840
    Revenue unit¥ hundred million
    Ordinary income54
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit10.2
  • Processing
    Net Sales2,347
    Revenue unit¥ hundred million
    Ordinary income149
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit75.3
  • Renewable Energy
    Net Sales62
    Revenue unit¥ hundred million
    Ordinary income8
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit-69.2
  • Other
    Net Sales1,400
    Revenue unit¥ hundred million
    Ordinary income148
    Profit unit¥ hundred million
    Year-on-year change in ordinary profit-20
Financial targets
ROIC
Actual results6.1 %
ROE
Actual results5.7 %
Net debt-to-equity ratio
Actual results0.72 times
Equity ratio
Actual results24.5 %
Capital expenditures
¥549 100 million fiscal year ended March 2026 actual, on a construction basis
Annual Dividend
Annual¥100 per share
End of period¥50 per share
Acquisition of treasury shares
Share repurchases will be considered flexibly, taking into account cash flow conditions, share price levels and financial discipline.
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026 (full year)
Net Sales¥18,440 hundred million (YoY -6.0%)
Operating profit¥605 hundred million (YoY +62.8%)
Ordinary income¥975 hundred million (YoY +62.0%)
Net income¥405 hundred million (YoY +19.1%)
Results for the three months of the current quarterConsolidated revenue ¥5,595 hundred million / Consolidated operating profit ¥331 hundred million / Consolidated ordinary income ¥363 hundred million / Metals revenue ¥3,808 hundred million / Metals operating income ¥190 hundred million / Metals ordinary income ¥223 hundred million
Full-year earnings forecastNet Sales ¥19,900 hundred million / Operating profit ¥360 hundred million / Ordinary income ¥730 hundred million / Net income ¥490 hundred million / ROIC 6.7 % / ROE 6.8 % / Annual Dividend ¥116 per share
Segment resultsSegment Metals / Net Sales 12,356 / Revenue unit ¥ hundred million / Ordinary income 570 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit 38.4, Segment High-performance products / Net Sales 5,858 / Revenue unit ¥ hundred million / Ordinary income 200 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit 545.2, Segment Copper Processing / Net Sales 5,093 / Revenue unit ¥ hundred million / Ordinary income 162 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit Not disclosed, Segment Electronic Materials / Net Sales 840 / Revenue unit ¥ hundred million / Ordinary income 54 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit 10.2, Segment Processing / Net Sales 2,347 / Revenue unit ¥ hundred million / Ordinary income 149 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit 75.3, Segment Renewable Energy / Net Sales 62 / Revenue unit ¥ hundred million / Ordinary income 8 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit -69.2, Segment Other / Net Sales 1,400 / Revenue unit ¥ hundred million / Ordinary income 148 / Profit unit ¥ hundred million / Year-on-year change in ordinary profit -20
Breakdown of Factors Affecting the ChangeFactors Foreign exchange effects / Amount ¥-47 hundred million, Factors Price variance (selling prices) / Amount ¥215 hundred million, Factors Price variance (costs and other factors) / Amount ¥76 hundred million, Factors Volume variance / Amount ¥-119 hundred million, Factors Other (operating) / Amount ¥109 hundred million, Factors Dividends received / Amount ¥32 hundred million, Factors Equity-Method Income and Loss / Amount ¥36 hundred million, Factors Other (non-operating) / Amount ¥69 hundred million
Key KPIsIndicator name ROIC / Value 6.1 % / Year on year against the same period last year 1.9 %, Indicator name ROE / Value 5.7 % / Year on year against the same period last year 0.6 %, Indicator name Net debt-to-equity ratio / Value 0.72 times / Year on year against the same period last year -0.02 times, Indicator name Equity ratio / Value 24.5 % / Year on year against the same period last year Not disclosed, Indicator name FCF / Value ¥46 hundred million / Year on year against the same period last year ¥251 hundred million
Unit price and quantity metricsIndicator name Electrolytic copper production / Value 355 thousand tonnes / Year on year against the same period last year -10.8 thousand tonnes, Indicator name Electrolytic copper sales volume / Value 333 thousand tonnes / Year on year against the same period last year -8 thousand tonnes, Indicator name Gold production / Value 16 t / Year on year against the same period last year -57.9 t, Indicator name Gold sales volume / Value 16 t / Year on year against the same period last year -57.9 t, Indicator name Silver production / Value 217 t / Year on year against the same period last year -27.9 t, Indicator name Silver sales volume / Value 217 t / Year on year against the same period last year -28.1 t, Indicator name Copper products sales volume / Value 127 thousand tonnes / Year on year against the same period last year 8.5 thousand tonnes
Assumptions Underlying the Business OutlookItem U.S. dollar exchange rate / Value ¥150 /$, Item Euro exchange rate / Value 180 yen/€, Item Copper price (LME) / Value 500 ¢/lb, Item Gold prices / Value $4,000 /oz, Item Palladium price / Value $1,100 /oz
Financial targetsROIC Actual results 6.1 % / Target Not disclosed / ROE Actual results 5.7 % / Target Not disclosed / Net debt-to-equity ratio Actual results 0.72 times / Target Not disclosed / Equity ratio Actual results 24.5 % / Target Not disclosed
Annual DividendAnnual ¥100 per share / Interim Not disclosed / End of period ¥50 per share
Acquisition of treasury sharesShare repurchases will be considered flexibly, taking into account cash flow conditions, share price levels and financial discipline.
Capital expenditures¥549 100 million (fiscal year ended March 2026 actual, on a construction basis)
New initiativesSuspension of smelting equipment operations in connection with the reduction of copper concentrate processing at the Onahama Smelter, Equity investment in ReElement Technologies, Launch of the Osaka Works to optimize the production structure for copper products, Completion of the Kumagaya No. 2 Plant for the provision of high-value-added sealing products
Items this document does not state (13)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioOrders 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.

For the fiscal year ended March 2026, higher prices for metals and smelting by-products, appropriate adjustments to selling prices for cemented carbide and tungsten products, and increases in dividends received and equity-method income contributed to higher earnings. For the fiscal year ending March 2027, earnings are expected to decline due to higher raw material costs for cemented carbide products, less favorable treatment and refining charges (TC/RC), the reversal of inventory valuation impacts for copper products, an extended furnace maintenance period associated with expansion work at the Naoshima Smelter, and foreign exchange losses on foreign-currency-denominated receivables and payables, among other factors.

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Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results | Mitsubishi Materials Corporation (5711) timely disclosure | Komori