Mitsui Mining and Smelting : FY2023 Q1 Results & FY 2023 Forecast

MITSUI KINZOKU

(Mitsui Mining & Smelting Co., Ltd. TSE5706)

FY2023 Q1 Results & FY 2023 Forecast

August 8, 2023

Copyright © Mitsui Mining & Smelting Co., Ltd. All Rights Reserved.

Results of FY2023 Q1

• FY2023 Q1 YoY: Sales decreased due to lower sales volumes in the Engineered Materials segment, such as MicroThin™, and lower metal and precious metal prices.
  In addition to the above, higher energy costs and inventory factors associated with lower metal and precious metal prices led to a decrease in profit.
• As for the FY2023 forecast, sales are expected to be lower than the previous forecast due to a decrease in sales volume of major products in the Engineered Materials segment and lower-than- expected prices of metals and precious metals.
  In addition to the above, operating income is expected to decrease from the previous forecast due to inventory factors resulting from the decline in metal and precious metal prices, etc. However, ordinary income is expected to be the same amount as the previous forecast due to an increase in non-operating income such as dividend income.

（Unit: Billion yen）		Q1 Results
	2023		2022	Difference
	Results		Results （23-22）
Net Sales	147.5		165.1	-17.6
			-10.6%
Operating Income	-5.5		18.2	-23.7
			-
Ordinary Income	5.1		25.4	-20.4
			-80.0%
Net income attributable to	2.5		21.7	-19.2
owners of parent				-88.3%

Copyright © Mitsui Mining & Smelting Co., Ltd. All Rights Reserved.

Forecast

2023 2023 Difference

Forecast Forecast

• Aug 8） （May 10）
  605.0 645.0 -40.0

-6.2%

11.0 20.0 -9.0

-45.0%

20.0 20.0 0.0

0.0%

9.5 10.0 -0.5

-5.0%

1

Sales and Earnings

（Unit: Billion yen）			66.0
		60.7
	51.3
	51.1
	44.8	52.1					Ordinary Income
13.0				19.9	20.0
9.3			12.5		11.0	5.1	Net Income
1.6				8.5	9.5	2.5	attributable to owners
			of parent
20/3	21/3	22/3	23/3	'24/3	'23/6
						-5.5
		633.3	652.0	605.0
				Operating Income
	522.9
473.1

						147.5	Sales
	20/3	21/3	22/3	23/3	24/3	23/6
Dividend per share					Forecast
¥70	¥85	¥110	¥140	¥140
	< - >	< - >	< - >	< - >	< ¥70 >
DOE	2.5%	2.5%	2.6%	3.3%	3.3%
					Forecast	2
Copyright © Mitsui Mining & Smelting Co., Ltd. All Rights Reserved.			as of Aug 8

FY2023 Ordinary Income Forecast

FY2023 1st half ordinary income is expected to be 2 billion yen higher than the forecast announced on May 10th. FY2023 full-year ordinary income is expected to be the same as the forecast announced on May 10th.

（Unit： Billion yen）

Ordinary Income		Ordinary Income	See page 5
Forecast for FY2023		Forecast for FY2023	for details
(May 10th)	20.0	(Aug 8th)	20.0

18.0
See page 18	16.0
for details
Profit increase by
12.0 billion
See page 4
for details
Profit increase by	4.0
2.0 billion
2.0

Forecast for	Forecast for	Forecast for	Forecast for	Forecast for	Forecast for
FY2023	FY2023	FY2023	FY2023	FY2023	FY2023
1st half	2nd half		1st half	2nd half

Copyright © Mitsui Mining & Smelting Co., Ltd. All Rights Reserved.

Profit decrease by 2.0 billion

See page 17

for details

3

FY2023 1st half Ordinary Income Forecast

Operating income forecast for the first half of FY2023 is expected to decrease by 6 billion yen from the forecast announced on May 10th. Ordinary income forecast is expected to

increase by 2 billion yen from the forecast announced on May 10th.	（Unit： Billion yen）
+ 1.4	4.0

2.0 0 2.0 - 2.8

Non-

operating profit/loss

■ Main factor

• Engineered Materials +0.4

・ Metals

-3.2

	+ 6.6			Ordinary
		Other
Operating profit and
	Profit
loss decrease by		non-	increase by
6.0 billion	operating	2.0 billion
	profit/

- 4.0	loss

Ordinary	Operating	- 6.0
Income	Income	Inventory
Forecast	Forecast
factors
for FY2023	for FY2023
1st half on	1st half on
May 10th	May 10th

■ Main factor

・ Copper foil+0.3 ・ Engineered Powders +0.4

■ Main factor
・ LME/Forex	-0.6
・ Energy cost decrease
(including cokes)	+1.0
・ Deterioration in zinc
smelting operations	-0.9
・ Mineral Resources Div	-1.0

+ 2.5

Ordinary

Income

Forecast

for FY2023

1st half

on Aug 8th

+ 1.3

Operating Dividend income

	Loss	from Japan
	Korea Joint
	Forecast
Corporate	Smelting

	+ 0.6		- 1.6
PGM price	Engineered
difference	Materials
on Catalysts					Metals	Mobility

& others for FY2023

1st half

on Aug 8th

■ Main factor

・ Catalysts +2.6

Copyright © Mitsui Mining & Smelting Co., Ltd. All Rights Reserved.

4