Mitsubishi Materials : ９. Stakeholder Communication (141-152page) (452KB)

Stakeholder Communication

Building and Enhancing Relations with Stakeholders

Interaction with Stakeholders

Basic Approach to Building Relationships with our Stakeholders and Key Means of Communication

In the interests of sustainable corporate management, we believe that communicating with our stakeholders is crucial if we are to refect their expectations and requirements in our business strategies and activities. While creating more opportunities for communication, our aim is to incorporate stakeholders' perspectives into our management practices to a greater extent than ever before.

• Basic approach to building relationships with our stakeholders and key means of communication

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Distribution of Economic Value to Stakeholders

Striving to Adequately Distribute Economic Value

As we continue to earn operating revenue and generate economic value added thanks to the involvement of our many and varied stakeholders, we believe that it is important to fulfll our social responsibilities and adequately distribute that added value among our stakeholders.

Economic Value Added in Fiscal 2021

Revenue for Mitsubishi Materials in fscal 2021 came to ¥936.9 billion. That included proceeds from the sale of products and services, dividends and other forms of non-operating income, and extraordinary income. Operating costs, which consist primarily of payments to suppliers, totaled ¥856.2 billion. After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to ¥80.7 billion.

Distribution of Added Value

Personnel costs, which include statutory welfare expenses and pension contributions and represent the portion of revenue distributed to our employees, came to ¥49.3 billion.

In the meantime, we distributed a total of ¥2.1 billion to fnancial institutions and other creditors, in the form of interest on borrowings.

We distribute value to society and local communities through the government and through our own social contribution activities. We paid ¥7.7 billion to the government this year, as the combined total of corporate income tax plus other taxes and public charges liable as expenses. We also gave ¥0.4 billion back to the community in the form of social contribution activities, including donations, lending our facilities to the public and providing employees' services.

Cash dividends, which represent the value that we distribute to our shareholders (companies and individuals, in Japan and overseas), came to a total of ¥5.2 billion.

Retained earnings to cover investment and contingencies for the future meanwhile totaled ¥16.0 billion.

Contributing to Local Communities as part of our Overseas Operations

Whenever we engage in business activities overseas, we make every efort to understand conditions in the relevant country and the national identity of its people, so that we can integrate into the local community as a corporate citizen. We re-invest money that we make through our overseas operations back into the local community wherever possible, in order to continue growing our business and contribute to the sustainable development of the local area.

• Economic added value

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Category	Stakeholder	Amount(million yen)	Details/method of calculation
Revenues	Customers and suppliers	936,948	Net sales, non-operating income, extraordinary income
	Suppliers	856,216	Operating costs (cost of sales and selling, general and
			administrative costs, minus deductions for personnel costs,
			tax and public charges, and donations)
	Employees	49,261	Personnel costs (including statutory welfare expenses and
			pension contributions)
Payments	Creditors	2,104	Interest expense
	Government	7,670	Taxes (corporate income tax, and other taxes and public
			charges liable as expenses)
	General public	436	Donations, etc.*
	Shareholders	5,238	Cash dividends paid
	Retained earnings	16,023	Net income minus cash dividends paid

* Calculated based on the value of items such as donated goods, public lending of our facilities and the provision of employees' services as well as cash donations, as specifed by Nippon Keidanren.

Pension Contributions

Obligations relating to unfunded lump-sum severance payment plans and funded defned beneft pension plans totaled ¥47.5 billion and ¥42.2 billion respectively. ¥75.7 billion of this total was paid out in the form of pension assets to outside funds (coverage: 84.3%). A further ¥9 billion was registered as expenses in the form of accrued retirement benefts, with the remaining ¥5.1 billion classed as unrecognized beneft obligations. We plan to amortize all unrecognized beneft obligations over the next ten years.Unrecognized pension liabilities are mainly posted as expenses using the straight-line method for a 10-year period.

Financial Assistance from the Government

We received ¥0.6 billion in grants, subsidies and other fnancial assistance from the government. The government does not hold shares in Mitsubishi Materials or any of our group companies.

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Stakeholder Communication

Improving Customer Satisfaction

Improving Customer Satisfaction

Customer Satisfaction Surveys

As a part of our quality management activities, we analyze complaints and conduct customer satisfaction surveys at all Mitsubishi Materials facilities and group companies in order to refect the diverse views of our customers. We take analysis results and customers' comments seriously and submit our fndings to management reviews, in an efort to provide customers with better quality products and services.

Advanced Products Business

We deliver advanced products that are essential for customers, leveraging our manufacturing technologies like oxygen-free copper, high-performance copper alloys, and silicon, as well as process technologies like bonding diferent materials.

Sharing the future product road map with customers to identify the functional value they demand promptly, we will be a good partner of our customers as their frst call vendor.

Metalworking Solutions

At our Machining Technology Center, we provide technical support to help our customers use cutting tools correctly. We ofer the Machining Academy to increase attendees' knowledge of tools and cutting operations, along with cutting tests and technical support aimed at enabling our customers to use our tools more efciently. We also ofer toll-free telephone technical counseling. With these and other support services, we strive to ensure direct communication with our customers at all times.In fscal 2021, we focused our eforts on ofering web seminars and remote cutting tests. Based on customer demand, we will continue to provide comprehensive solutions through technical diagnoses of processing lines and analyses of cutting operations on them.

Web seminars held through live demonstrations from machining technology center

Metals

We strive to achieve customer satisfaction by providing products and services that meet our customers' needs. With more and more home appliances and electronic devices being recycled in recent years, in all corners of the world, we are focusing on processing E-Scrap to extract precious metals. Operations take place at our Naoshima Smelter & Refnery, which introduced a new online system for customers in 2014, called "NEWS." This has enabled us to process transactions quickly and smoothly online, from making appointments to bring in E-Scrap through to checking progress and payment details.

Cement Business

The various types of cement, which are our main products, are supplied to our customers in Japan and abroad via Ube- Mitsubishi Cement Corporation, our Group logistics and sales company.

They always share information about product quality, service, customer inquiries and customer product feedbacks with us. This allows us to further increase customer satisfaction by improving our steady supply of stable-quality cement.

Environment & Energy Business

We are contributing to the creation of a recycling-oriented society through the business of recycling mineral resources and the development of renewable energy. In the eco-recycling sector, we devise creative measures to continue to improve the recycling process, including methods of recovering raw materials, so as to supply recycled resources (such as copper, iron, and resins) in a well-planned manner by ofering grades and quantity demanded by customers. In addition, at each recycling plant, we are proactively providing plant tours to customers as part of our social contribution activities, with the goal of creating opportunities to provide environmental training. With respect to renewable energy, we inspect and maintain our facilities daily,

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aiming to contribute to the building of a decarbonized society by maintaining the stable supply of energy with less environmental impact over long periods of time. We also provide new value derived from renewable energy by providing electricity to regional power producers and suppliers under the concept of "local production and local consumption of energy" and participating in the auction for non-fossil fuel energy certifcates, in our eforts to obtain trust from customers and local communities.

Aluminum Business

MMC Group company Universal Can Corporation strives to operate with meticulous care and a well-prepared quality control system to ensure safe and reliable food.

Universal Can has already obtained certifcation for the ISO 22000 (FSMS) food safety management system standard and its advanced variant FSSC 22000 across all of its plants. By ensuring the efective functioning of the management systems, we provide good quality aluminum beverage cans to our beverage manufacturer clients and by extension, to all consumers. As a manufacturer dealing with food containers, in the future we will endeavor to raise the level of food hygiene and safety.

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