Mitsubishi Materials Corporation
Marunouchi Nijubashi Building 22F 3-2-3, Marunouchi, Chiyoda-ku, Tokyo 100-8117 Japan https://www.mmc.co.jp/corporate/en/
For further contact (Web) : https://www.mmc.co.jp/corporate/en/contact/
For People, Society and the Earth
Integrated Report
2022
Overview of Corporate Activities under the Corporate Philosophy System
Corporate Philosophy
For People, Society and the Earth
The Mitsubishi Materials Group Philosophy is "For People, Society andthe Earth."
We pursue business operations by applying our corporate resources and contributing to the sustainable development of society to realize our Corporate Philosophy.
CoverStory
The Mitsubishi Materials Group aims to enhance its corporate value by contributing to build "a prosperous society," "a recycling-oriented society," and "a decarbonized society," with a mission to "create both social and economic values."
In April 2022, we made changes to the organization, centering on thereorganization of the headquarters functions (introduction of a complete in-house company system), in order to optimize the Group's management to achieve our mission. The(1) "Strategic Headquarters" in charge of group strategies, (2) "Professional CoE*" responsible for efficiency improvement and sophistication of back-office operations, and (3) self-contained "Companies" as strong business divisions capable of autonomous business management are now in place.
The cover of this issueillustrates each organization and each employee of the Mitsubishi Materials Group working toward the mission to realize our vision (We will become the leading business group committed to creating a sustainable world through materials innovation, with use of our unique and distinctive technologies) and corporate philosophy (For People, Society andthe Earth), and our desire to continue to be chosen and trusted by all stakeholders.
* CoE: Center of Excellence, an organization with expertise in specific areas
Mitsubishi Materials Group Philosophy System
Our corporate philosophy system places the philosophy at the top, and underpins it with our vision, values, and code of conduct. SCQDE determines the order of priority applied when making decisions about our work processes, and compliance is at the very foundation of all our activities.
Each of us conscientiously performs our daily work in each of our roles with this content as our keystone.
Through these efforts, we are firmly committed to building a better tomorrow for Mitsubishi Materials Group, and making a difference for People, Society and the Earth.
Corporate Philosophy
ForPeople,
Society and the Earth
Vision
We will become the leading business group committed to creating a sustainable world through materials innovation,
with use of our unique and distinctive technologies, for People, Society and the Earth
Mission for achieving our corporate philosophy and vision
(Medium- to long-term Group targets for 2030 to 2050)
Mission
Create both social and economic values.
Contribute to build a prosperous society by providing nonferrous metal materials, predominantly copper, and high value-added functional materials and products. Contribute to build a recycling-orientedsociety by providing recyclable products and advanced technology-based waste recycling.
Contribute to build a decarbonized society by developing and promoting the use of renewable energies such as geothermal energy, and ensuring to consider the reduction of environmental impact in manufacturing.
Group-wide Policy
●Optimization of business portfolio
●Comprehensive efforts to increase business competitiveness→Manufacturing excellence strategy, Quality management strategy, Digital transformation strategy
●Creation of new products and businesses→R&D and marketing strategy
Our Values
Respect Diversity and Teamwork Act with Integrity, Speed and Determination
Tireless Efforts to Meet the Needs of our Customers and Society
Code of Conduct
The rules we abide by
SCQDE
The order of priority for decision making
Compliance
The foundation of all of our activities
- S
- C
- Q
- D
- E
Safety & Health
Safety & Health
Compliance & Environment
Compliance & Environment
Quality
Quality
Thorough implementation of SCQ is given priority over earnings by reflecting the quality issues
Delivery
Delivery
Fulfilling all of SCQD brings us customers' trust
Earnings
Earnings (Reasonable profit)
(Obtained based on "customer" trust after satisfying SCQD)
The "SCQDE" was established in fiscal 2019 as a measure towards enhancing Group governance. SCQDE stands for "Safety & Health (S), Compliance & Environment (C), Quality (Q), Delivery (D) and Earnings (E)." Although each element is important in its own right, SCQDE outlines an order of priority for making decisions when executing business tasks, and is positioned as a supplemental policy to the Code of Conduct.
In providing customers with our products & services, we should thoroughly fulfill SCQ at first and satisfy D.
We believe that we will be able to obtain trust from customers and society by continuously executing SCQD in good faith, and this will produce a reasonable profit.
- "Customers" in this context refers to both customers outside our group and to the businesses (including products and services) of each employee. Business includes transactions between group companies and support from the corporate department to business departments, etc.
- "SCQDE" is pronounced "S. C. Q. D. E."
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CONTENTS
4 Top Message
We are devoting ourselves to business activities that create both social and economic values, to achieve our Mission of contributing to the realization of our Mission of building a prosperous society, a recycling-oriented society and a decarbonized society.
- Looking back on fiscal 2022
- Four Management Reforms
- What CX aims for
- Balancing decentralizing and unifying forces
- Communication measures
-
Sustainability
Enhancing corporate governance - FY2023 Strategy progress and Fiscal 2023 management policy
- Fiscal 2023 management policy
- Looking to the next Medium-Term Management Strategy
- Conclusion
28 Special Feature:
Management Reforms to Work on Now
Four management reforms to enhance the organizational capabilities, ensuring solid readiness for environmental changes
- CX Corporate Transformation
- HRX Human Resources Transformation
- DX Digital Transformation
- Operational Efficiency Improvement
37 Group-wide Policy
37 Mission to Realize our Corporate Philosophy and Vision
38 Optimization of business portfolio
- Comprehensive efforts to increase business competitiveness
- Creation of new products and businesses
59 Sustainability Initiatives
Through the centralized leadership of SCQ which brings together specialized knowledge, we will work to resolve diversifying risks and issues
- Workplace Safety and Hygiene (Occupational Safety and Health)
- Compliance
64 Risk Management
68 | Respect for Human Rights |
69 | Quality Management Strategy |
70 | Environment protection technologies |
72 | Dealing with Climate Change |
74 | Communication Measures |
76 | Stakeholder Communication |
86 Corporate Governance
86 Efforts in Strengthening of Corporate Governance
87 Corporate Governance System
88 Directors
92 Directors Skill Matrix
94 Discussions in the Board of Directors, Etc.
- Evaluation of the Effectiveness of the Board of Directors
- Message from the Chairman of the Board of Directors
100 | Message from the Chairperson of the Nomination Committee |
102 | Nomination of Candidates for Director and the Election |
and Dismissal of Executive Officers | |
104 | Message from the Chairperson of the Audit Committee |
106 | Message from the Chairperson of the Remuneration Committee |
108 | Policy on Determining Remuneration for Officers, Etc. |
110 | Message from the Chairperson of the Sustainability Committee |
16 | Performance HighlightsーFY2022 Performance Overview | 48 | |
16 | Financial Highlights | ||
18 | Non-financial Highlights | ||
20 | Our Mission | ||
20 | History: From a perspective of creating social and economic values | ||
22 | Value Creation Process | ||
24 | Identifying of Materialities, Risks and Opportunities | ||
26 | Overview of Sustainability Activities |
Initiatives of Each Business
- Company Results Summary
- Advanced Products Business
- Metalworking Solutions Business
- Metals Business
- Environment & Energy Business
- Other Businesses (Cement and Affiliated Businesses)
77 | Human Resources Strategy |
78 | Diversity & Inclusion |
80 | R&D and Marketing Strategy |
81 | Manufacturing Excellence Strategy |
82 | Intellectual Property Management |
84 | Digital Transformation |
85 | Information Security |
112 | Executive Officer System |
113 | Status of Audits/Internal Control |
114 | Reduction of Strategic Share Holdings |
115 | Financial Data/Corporate Data | |
116 | Ten-Year Summary | |
118 | Financial Statements | |
120 | Global Atlas | |
122 | Company Data/Stock Data |
Main Reporting Mediums
All reports are available on the | ||
Mitsubishi Materials Corporation website. | Integrated Report | |
https://www.mmc.co.jp/corporate/en/ | ||
Brief report on the short-, medium- and long-term value creation of the Mitsubishi Materials Group
(Japanese and English, PDF)
Editorial Policy
We are issuing this report to help our diverse stakeholders, including customers, shareholders, and investors understand our financial and non-financial business direction. Taking advantage of the Group's strengths to meet various social requirements, we will create new values to convey our efforts for sustainable growth. This report is intended as a tool for communicating such in an easy-to-understand format.
Financial Section | ESG Report |
In editing this report, we have referred to the "International Integrated Reporting Framework" published by the Value Reporting Foundation (scheduled for consolidation with the IFRS
Detailed financial performance report
(English, PDF)
- Boundary
Including group companies, with Mitsubishi Materials Corporation playing a central role.
Please refer to ESG Report for coverage area of non-financial performance data.
- Period
Fiscal 2022 (1st April, 2021 - 31st March, 2022)
- This report may also include information from April 2022 onwards, in an effort to provide the most up-to-date information.
Detailed report on ESG (environmental, social, and governance) policy, systems, initiatives and performance
(Japanese and English, PDF)
ESG Report https://mmc.disclosure.site/en/
- Date of Publication
July 2022
- Caution Regarding Forecasts and Forward-Looking Statements
In addition to past and present facts, this Integrated Report also contains projections, forecasts, and plans for the future of the Group. These are assumptions or judgments based on information available at the time of writing and may be affected by future changes in the business environment or other factors.
Foundation on August 1, 2022) and the Guidance for Collaborative Value Creation of the Ministry of Economy, Trade and Industry.
The description of performance is based on information current as of May 13, 2022.
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Top Message
We are devoting ourselves to business activities that create both social and economic values, to achieve our Mission of contributing to the building a prosperous society, a recycling- oriented society and a decarbonized society.
Mitsubishi Materials Corporation Chief Executive Officer
Looking back on fiscal 2022:
Fiscal 2022 saw a significant recovery in performance, however, the future outlook is extremely unpredictable and we must consider multiple potential scenarios and be ready to implement more agile responses
Under our Corporate Philosophy of "For People, Society and the Earth," we strive to solve social issues through our business activities. In other words, creating both social and economic values lies at the core of our Mission for 2030 to 2050, to contribute to building a prosperous society, a recycling-oriented society, and a decarbonized society. This approach has served as the basis for the advancement of our Medium-Term Management Strategy (FY2023 Strategy) for the three years from fiscal 2021. The business plan for fiscal 2021, which marked the first fiscal year of the FY2023 Strategy, was significantly impacted by factors such as COVID-19. This resulted in significant deviations from the original plan, and it was necessary to conduct a review of our financial plan and other areas in May 2021.
While results in fiscal 2022 were still affected by the pandemic, the strong performance of the semiconductor and automobile industries as a result of recovering demand together with the continuation of high metal prices resulted in significant recovery compared to fiscal 2021, with the exception of the Cement Business. Despite this positivity, there remain many causes for concern ahead, such as potential stagnation of the European economy due to the current conflict between Russia and Ukraine, rising raw material prices, fears of a recession following the continuation of zero- COVID policies in China and concerns about languid manufacturing as a result of semiconductor shortages. The conflict between Russia and Ukraine, in particular, is reminiscent of similar geopolitical risks in other regions, and the situation is completely unpredictable. It could be said that the pandemic and the manifestation of geopolitical risks are simply the tip of the iceberg in this age of VUCA*.
In situations such as this, where it is extremely difficult to establish a clear outlook for the future, it is important to have several potential future scenarios in mind and make preparations to respond to any of them. The organizational capabilities to implement more agile responses are crucial in order to survive.
VUCA
VUCA is an acronym of Volatility, Uncertainty, Complexity and Ambiguity. It describes a situation in which the future is uncertain and difficult to predict.
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Top Message
Related Materials:
"Management Reforms to Work on Now" Integrated
Report▶P28
Four Management Reforms:
Four management reforms, implemented simultaneously to enhance organizational capabilities to implement more agile responses and execute strategies in readiness for environmental changes
In light of these environmental changes, we will pursue the following four management reforms in fiscal 2023.
Four Management Reforms
1. | CX | : Corporate Transformation | ||
- Reform into optimal form of group management (organization / business management) | ||||
2. | HRX | : Human Resources Transformation | ||
- Reform of HR system and work style to acquire and develop autonomous talents who can | ||||
adapt to changes |
CX | HRX | DX | Operational Efficiency Improvement | |
Reform into optimal form of group | Reform of HR systems and work styles to | Reform that utilizes data and digital technology to | ||
management (organization / business | acquire and develop autonomous talents who | strengthen today, create tomorrow and cultivate | Reform that reviews | |
management) | can adapt to changes | talent | ||
organizations, business | ||||
Strategic Headquarters + Professional CoE responsible | 1. | Job-based HR System | Improvement of business added-value, business | |
processes, and work styles | ||||
for efficiency and sophistication + strong business | 2. | Next-Generation Leadership Talent Development | operations competitiveness and management speed | |
divisions capable of autonomous business management | 3. | Internal Job Posting System 4. New Training System | ||
(complete In-house Company system) | 5. | Talent Management System 6. Human Resources Committee |
Create both social and economic values | Targeting organization and corporate culture | |||||||||||||||||||||||
1. | Organization with good and healthy communication where employees have | |||||||||||||||||||||||
Mission | ||||||||||||||||||||||||
unrestricted communication | ||||||||||||||||||||||||
A recycling- | A decarbonized | CX | 2. | Organization capable of autonomously solving issues | ||||||||||||||||||||
A prosperous society | 3. | Organization that adequately shares the understanding of its business | ||||||||||||||||||||||
oriented society | society | 4. | Organization that makes prompt and resolute decisions | |||||||||||||||||||||
To contribute to the building of | DX | HRX | 5. | Organization that manages its business with the awareness of the differences | ||||||||||||||||||||
between product-type and process-type businesses | ||||||||||||||||||||||||
Group-wide Policy | 6. | Organization that aims for thorough digitization | ||||||||||||||||||||||
Operational | Improvement of organizational capabilities | |||||||||||||||||||||||
Optimization of business portfolio | ||||||||||||||||||||||||
Efficiency | Change | |||||||||||||||||||||||
Comprehensive efforts to increase business competitiveness | adaptability Ability to implement more agile responses to changing | |||||||||||||||||||||||
environment | ||||||||||||||||||||||||
Creation of new products and businesses | ||||||||||||||||||||||||
Ability to integrate Ability to implement strategies through human networks | ||||||||||||||||||||||||
and combination of functions
3. | DX | : Digital Transformation | ||
- Reform that utilizes data and digital technology to strengthen today, create tomorrow and | ||||
cultivate talent | ||||
4. | Operational Efficiency Improvement | : Reform that reviews organizations, business processes, | ||
and work styles |
Our efforts to enhance governance have been ongoing since fiscal 2020. The approach to governance is broadly divided into issues relating to corporate governance, which focuses on the role played by the Board of Directors, and Group governance, which is the internal governance system spanning the entire corporate Group, including Group companies. We continue to work to make enhancements in both of these areas.
While we have established six items as our targeting organization and corporate culture and are implementing a range of measures, we are also proceeding with the simultaneous implementation of the four management reforms mentioned above, which are important measures towards achieving this goal, in fiscal 2023.
These reforms will also serve to enhance the aforementioned organizational capabilities required in the age of VUCA, namely the organization's change adaptability (ability to implement more agile responses to changing environments) and its ability to integrate (ability to implement strategies through human networks and combination of functions).
Targeting organization and corporate culture
- Organization with good and healthy communication where employees have unrestricted communication
- Organization capable of autonomously solving issues
- Organization that adequately shares the understanding of its business
- Organization that makes prompt and resolute decisions
- Organization that manages its business with the awareness of the differences between product-type and process-type businesses
- Organization that aims for thorough digitalization
What CX aims for:
Enhancing business competitiveness through CX by creating a clear division of roles between the Head Office/Corporate Division and Companies, thereby improving corporate value
CX is the foundation for realizing our targeting organization and corporate culture. We believe that it is crucial that we create a clear division of roles between the Head Office/Corporate Division and the Companies that conduct business. Previously, the Corporate Division was a single department responsible for all Group-wide strategy planning functions, Company support functions and routine operations. Meanwhile, Companies were mainly focused on business operations such as manufacturing and sales. In many cases, Companies received support from the Corporate Division regarding functions that the Company itself was lacking, including personnel, legal affairs and auditing. While it could be argued that this arrangement was beneficial in terms of efficient Group- wide operation, I felt that there was an unhealthy interdependence between the two entities. As a result of carrying out routine operations alongside strategy planning and support for Companies, the Head Office/Corporate Division had insufficient strength and sharpness in its strategic thinking and also lacked a distinctive awareness of roles and costs. Companies, on the other hand, did not bear responsibility for executing functions not relating to business operations, and it seemed that this had led to a strong sense of being forced to follow instructions from the Corporate Division in areas such as personnel and governance.
Moving forward, the Head Office/Corporate Division will focus on functions for strategy planning and the execution and Group-wide deployment of these strategies, while Companies will basically manage all of the functions necessary for business management by themselves. We believe that this is indispensable in order to become an organization capable of autonomously solving issues, the second point stated under our targeting organization and corporate culture. Consequently, through CX we have established the combination of the Strategic Headquarters, a Professional CoE* responsible for efficiency and sophistication, and strong Business Divisions capable of autonomous management, positioning the Business Divisions as complete In-house Companies.
In line with the organizational restructuring, the responsibilities of Executive Officers have also been divided by allocating responsibility for the Strategic Headquarters, Professional CoE or individual Companies. This will lead to the realization of an organization that makes prompt and resolute decisions, the fourth point of our targeting organization and corporate culture.
I believe that enhancing business competitiveness by deepening this type of strategic and integrated thinking is essential in order to increase corporate value, and that CX initiatives will play an important role in this regard.
CoE
CoE (Center of Excellence): An organization with expertise in specific areas
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Mitsubishi Materials Corporation published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 02:13:10 UTC.