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Earnings presentation5711Mitsubishi Materials CorporationIron & Steel, Nonferrous Metals

Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Results

In the first quarter of the fiscal year ending March 2027, revenue and profit increased, driven by higher metal prices, a weaker yen, and improving demand related to automobiles and semiconductors. Based on first-quarter results and a review of the underlying assumptions, the company raised its full-year earnings forecast while leaving its annual dividend forecast unchanged.

Worth reading
82Important
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
940
¥100 million (increase in full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst 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¥5,970 million
Operating profit¥329 million
Ordinary income¥519 million
Net income¥512 million
Results for the three months of the current quarter
Net Sales
¥5,970 million
Operating profit
¥329 million
Ordinary income
¥519 million
Profit attributable to owners of the parent
¥512 million
Full-year earnings forecast
Net Sales
¥24,000 million
Operating profit
¥1,300 million
Ordinary income
¥1,800 million
Profit attributable to owners of the parent
¥1,400 million
ROIC
13.7 %
ROE
18.5 %
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+¥6.9 billion
  • Price variance (selling prices)+¥43.4 billion
  • Price variance (costs and other factors)-¥23.9 billion
  • Volume variance+¥3.4 billion
  • Other (operating)+¥5.7 billion
  • Dividends received+¥10.1 billion
  • Equity-Method Income and Loss+¥2.6 billion
  • Other (non-operating)+¥3.6 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • US dollar exchange rate¥158 /$
  • Euro exchange rate181 yen/€
  • Copper prices579 ¢/lb
  • Gold prices$4,129 /oz
  • Palladium price$1,178 /oz
  • APT price (tungsten)$3,017 /MTU
New initiatives
  • Optimization of the copper products business portfolio
  • Investment to expand H.C. Starck's tungsten recycling capacity
  • Securing funding for growth investments through convertible bonds with conversion restrictions
Key KPIsA metric the company considers important as a management benchmark.
  • US dollar exchange rate¥159 /$
    Year on year against the same period last year+15
  • Euro exchange rate185 yen/€
    Year on year against the same period last year+22
  • Copper prices604 ¢/lb
    Year on year against the same period last year+173
  • Gold prices$4,516 /oz
    Year on year against the same period last year+1,236
  • Palladium price$1,414 /oz
    Year on year against the same period last year+423
  • APT price (tungsten)$3,069 /MTU
    Year on year against the same period last year+2,659
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Electrolytic copper production80 thousand tonnes
    Year on year against the same period last year-1 kt
  • Electrolytic copper sales volume71 thousand tonnes
    Year on year against the same period last year-6 kt
  • Gold production3 t
    Year on year against the same period last year△1t
  • Gold sales volume3 t
    Year on year against the same period last year△1t
  • Silver production50 t
    Year on year against the same period last year+1t
  • Silver sales volume48 t
    Year on year against the same period last year+1t
  • Copper products sales volume31 thousand tonnes
    Year on year against the same period last year±0 kt
Segment results
Smelting and Resource Recycling
Net Sales
¥4,485 million
Operating profit
¥205 million
Ordinary income
¥222 million
Year on year against the same period last year
Net Sales+¥139.9 billion
Operating profit+¥26.8 billion
Ordinary income+¥29.6 billion
Copper products
Net Sales
¥1,147 million
Operating profit
¥59 million
Ordinary income
¥58 million
Year on year against the same period last year
Net Sales+¥37.8 billion
Operating profit+¥6.4 billion
Ordinary income+¥6.5 billion
Cemented carbide products
Net Sales
¥454 million
Operating profit
¥86 million
Ordinary income
¥85 million
Year on year against the same period last year
Net Sales+¥11.1 billion
Operating profit+¥5.4 billion
Ordinary income+¥5.4 billion
High-performance products
Net Sales
¥720 million
Operating profit
¥32 million
Ordinary income
¥34 million
Year on year against the same period last year
Net Sales+¥17.2 billion
Operating profit+¥2.6 billion
Ordinary income+¥3.0 billion
Resource
Operating profit
¥-7 million
Ordinary income
¥140 million
Renewable Energy
Net Sales
¥21 million
Operating profit
¥8 million
Ordinary income
¥10 million
Other
Net Sales
¥52 million
Operating profit
¥-34 million
Ordinary income
¥-13 million
Financial targets
ROIC
13.7 %
ROE
18.5 %
Net debt-to-equity ratio
0.71 times
Equity ratio
26.4 %
Annual Dividend
Annual
¥116 per share
Vs. Previous Forecast±¥0/share
Payout ratio
not disclosed (targeting annual DOE of 2.5%)
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥5,970 million
Operating profit¥329 million
Ordinary income¥519 million
Net income¥512 million
Results for the three months of the current quarterNet Sales ¥5,970 million / Operating profit ¥329 million / Ordinary income ¥519 million / Profit attributable to owners of the parent ¥512 million
Full-year earnings forecastNet Sales ¥24,000 million / Operating profit ¥1,300 million / Ordinary income ¥1,800 million / Profit attributable to owners of the parent ¥1,400 million / ROIC 13.7 % / ROE 18.5 %
Segment resultsSmelting and Resource Recycling Net Sales ¥4,485 million / Operating profit ¥205 million / Ordinary income ¥222 million / Year on year against the same period last year Net Sales +¥139.9 billion / Operating profit +¥26.8 billion / Ordinary income +¥29.6 billion / Copper products Net Sales ¥1,147 million / Operating profit ¥59 million / Ordinary income ¥58 million / Year on year against the same period last year Net Sales +¥37.8 billion / Operating profit +¥6.4 billion / Ordinary income +¥6.5 billion / Cemented carbide products Net Sales ¥454 million / Operating profit ¥86 million / Ordinary income ¥85 million / Year on year against the same period last year Net Sales +¥11.1 billion / Operating profit +¥5.4 billion / Ordinary income +¥5.4 billion / High-performance products Net Sales ¥720 million / Operating profit ¥32 million / Ordinary income ¥34 million / Year on year against the same period last year Net Sales +¥17.2 billion / Operating profit +¥2.6 billion / Ordinary income +¥3.0 billion / Resource Operating profit ¥-7 million / Ordinary income ¥140 million / Renewable Energy Net Sales ¥21 million / Operating profit ¥8 million / Ordinary income ¥10 million / Other Net Sales ¥52 million / Operating profit ¥-34 million / Ordinary income ¥-13 million
Breakdown of Factors Affecting the ChangeFactors Foreign exchange effects / Amount +¥6.9 billion, Factors Price variance (selling prices) / Amount +¥43.4 billion, Factors Price variance (costs and other factors) / Amount -¥23.9 billion, Factors Volume variance / Amount +¥3.4 billion, Factors Other (operating) / Amount +¥5.7 billion, Factors Dividends received / Amount +¥10.1 billion, Factors Equity-Method Income and Loss / Amount +¥2.6 billion, Factors Other (non-operating) / Amount +¥3.6 billion
Key KPIsIndicator name US dollar exchange rate / Value ¥159 /$ / Year on year against the same period last year ¥+15 /$, Indicator name Euro exchange rate / Value 185 yen/€ / Year on year against the same period last year +22 yen/€, Indicator name Copper prices / Value 604 ¢/lb / Year on year against the same period last year +173 ¢/lb, Indicator name Gold prices / Value $4,516 /oz / Year on year against the same period last year $+1,236 /oz, Indicator name Palladium price / Value $1,414 /oz / Year on year against the same period last year $+423 /oz, Indicator name APT price (tungsten) / Value $3,069 /MTU / Year on year against the same period last year $+2,659 /MTU
Unit price and quantity metricsIndicator name Electrolytic copper production / Value 80 thousand tonnes / Year on year against the same period last year -1 kt, Indicator name Electrolytic copper sales volume / Value 71 thousand tonnes / Year on year against the same period last year -6 kt, Indicator name Gold production / Value 3 t / Year on year against the same period last year △1t, Indicator name Gold sales volume / Value 3 t / Year on year against the same period last year △1t, Indicator name Silver production / Value 50 t / Year on year against the same period last year +1t, Indicator name Silver sales volume / Value 48 t / Year on year against the same period last year +1t, Indicator name Copper products sales volume / Value 31 thousand tonnes / Year on year against the same period last year ±0 kt
Assumptions Underlying the Business OutlookItem US dollar exchange rate / Value ¥158 /$, Item Euro exchange rate / Value 181 yen/€, Item Copper prices / Value 579 ¢/lb, Item Gold prices / Value $4,129 /oz, Item Palladium price / Value $1,178 /oz, Item APT price (tungsten) / Value $3,017 /MTU
Financial targetsROIC Value 13.7 % / ROE Value 18.5 % / Net debt-to-equity ratio Value 0.71 times / Equity ratio Value 26.4 %
Annual DividendAnnual Value ¥116 per share / Vs. Previous Forecast ±¥0/share / Interim Not disclosed / End of period Not disclosed
Payout rationot disclosed (targeting annual DOE of 2.5%)
New initiativesOptimization of the copper products business portfolio, Investment to expand H.C. Starck's tungsten recycling capacity, Securing funding for growth investments through convertible bonds with conversion restrictions
Items this document does not state (14)
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 targetsAcquisition of treasury sharesCapital expendituresOrders 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.

In addition to the first quarter's higher revenue and profit due to rising prices for metals including tungsten, copper and gold, the weaker yen and improving demand related to automobiles and semiconductors, the company revised its assumptions for the US dollar exchange rate and tungsten and copper prices.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Results | Mitsubishi Materials Corporation (5711) timely disclosure | Komori