2nd Quarter of FY2021 Progress of Business Strategy(PDF:3.7MB)

November 18, 2021

FY2021 2nd Quarter

Progress of Business Strategy

President and Representative Director

Akira Nozaki

Briefing contents

1. Summary

II. FY2021 financial forecast

III. Topics of each business segment

IV. Promotion of activities aimed at realization of "Vision for 2030"

1. Next 3-Year Business Plan VI. Supplementary materials

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Briefing contents

1. Summary

II. FY2021 financial forecast

III. Topics of each business segment

IV. Promotion of activities aimed at realization of "Vision for 2030"

1. Next 3-Year Business Plan VI. Supplementary materials

3

Summary ① FY2021 review of 1H (production / sales / projects)

[Production / sales]

• Generally strong sales environment on the back of economic recovery following the progress in vaccination rollouts
• No material impact of the COVID-19 pandemic on production thanks to the measures taken to stop the spread of infections and the efforts to continue operating in each plant
• Year-on-yearrevenue growth continues helped by high metal prices

[Large projects]

• Sierra Gorda: Decided to sell all our equity interests
• Côté: Initial construction project costs rose 25% although construction is progressing smoothly
• QB2: Construction staff recovered to the pre-COVID level (over 10,000)
• Pomalaa: External factors affecting the progress in project consideration
• Battery materials: Decided to enhancement including the construction of new plants

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Summary ② FY2021 review of 1H (capital expenditure / financial forecast)

[Capital expenditure]

CAPEX plans have generally been pushed back due to COVID-19; however, there is no change to the promotion of the growth strategy announced in the 2018 3-Year Business Plan

[Financial forecast]

• The impact of the transfer of our equity stake in the Sierra Gorda copper mine is estimated at approx. ¥70 billion on a pre-tax profit basis (on the premise that the sale will be completed in March 2022).
• Despite negative factors such as smaller output in some overseas copper mines and the resulting cost increase, a significant profit growth is forecasted compared to the May forecast due to factors such as the maintenance of stable operations during the COVID-19pandemic, a profit growth in the materials business, positive market factors, and the impact of the sale of the equity stake in Sierra Gorda.
  FY2021 consolidated pre-tax profit is forecast to be a record high at ¥266 billion.

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