Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results

Consolidated Financial Results for the Second Quarter Ended September 30, 2021 [IFRS]

		November 8, 2021
	[Full version of English translation released on November 29, 2021]
Listed Company Name: Sumitomo Metal Mining Co., Ltd.
Code:	5713
Listings:	Tokyo Stock Exchange
URL:	https://www.smm.co.jp/
Representative:	Akira Nozaki, President and Representative Director
Contact:	Daiji Toyama, Manager, PR & IR Dept.	TEL: [phone]

Scheduled Date to Submit Quarterly Report: November 11, 2021

Scheduled Date to Start Dividend Payment: December 7, 2021

Preparation of Supplementary Explanation Materials for Quarterly Financial Results: Yes

Briefing on Quarterly Account Settlement: Yes (for institutional investors)

(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results (From April 1, 2021, to September 30, 2021)

1. Consolidated Operating Results

																						(% figures show year-on-year change)
					Net sales				Profit before tax				Profit			Profit attributable to	Total comprehensive
														owners of parent		income
		Millions of		%		Millions of	%			Millions of			%		Millions of		%		Millions of		%
	Six months				yen					yen					yen						yen						yen
	ended		597,930		47.0		121,666	370.0			120,226			595.1		113,828		551.6		168,172		951.6
	September 30,
	2021
	Six months
	ended		406,709		-		25,884	-28.8			17,297			-46.1		17,470		-40.5		15,992		91.5
	September 30,
	2020
					Basic earnings per share	Diluted earnings per share
										Yen						Yen
	Six months ended					414.26					414.26
	September 30, 2021
	Six months ended							63.58					63.58
	September 30, 2020
	(Note) In the fourth quarter of the fiscal year ended March 31, 2021, the SMM Group changed its accounting policy for non-free
	supplied materials. Since this change in accounting policy was applied retrospectively, the figures for the six months
	ended September 30, 2020 represent amounts after such retrospective application. Therefore, the year-on-year change in
	net sales has been omitted.
	(2) Consolidated Financial Position
					Total assets				Total equity		Equity attributable to		Equity attributable to
									owners of parent		owners of parent ratio
							Millions of yen		Millions of yen					Millions of yen						%
	As of September 30,					1,975,831					1,363,861				1,243,538						62.9
	2021
	As of March 31, 2021					1,885,999					1,222,983				1,113,923						59.1
	2. Dividends
																Dividend per share
					First quarter-end		Second quarter-end		Third quarter-end		Year-end		Total
	Year ended					Yen				Yen					Yen					Yen				Yen
					―				22.00					―				99.00					121.00
	March 31, 2021
	Year ending March					―				113.00
	31, 2022
	Year ending March 31,																	―				71.00					184.00
	2022 (Forecast)
	(Note) Revision of dividend forecast that has	been disclosed lastly:	Yes

3. Forecast of Consolidated Operating Results for the Year Ending March 31, 2022 (From April 1, 2021, to March 31, 2022)

							(% figures show year-on-year change)
	Net sales		Profit before tax	Profit		Profit attributable to	Basic earnings
			owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	1,175,000	26.9	266,000	115.6	224,000	126.9	214,000	126.2	778.82

(Note) Revision of operating results forecast that has been disclosed lastly: Yes

For further details, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Forward-Looking Information Including Forecast of Consolidated Operating Results and Other" on page 5.

Notes

1. Change in Important Subsidiaries during the Period under Review (Change in specific subsidiaries that will accompany a change in scope of consolidation): None
2. Changes in Accounting Policies or Estimates

1)	Changes in accounting policies required by IFRS:	None
2)	Changes in accounting policies other than item 1) above:	Yes
3)	Change in accounting estimates:	None

1. Number of Outstanding Shares (Common stock)
2. 1. Number of shares issued as of end of period (including treasury stock) 290,814,015 shares at September 30, 2021
      290,814,015 shares at March 31, 2021
   2. Number of shares of treasury stock as of end of period

16,041,542 shares at September 30, 2021

16,038,719 shares at March 31, 2021

3) Average number of shares during the period

274,773,757 shares for six months ended September 30, 2021 274,780,670 shares for six months ended September 30, 2020

The consolidated financial results presented herein are not subject to the quarterly review by certified public accountants or audit corporations.

Explanation regarding appropriate use of operating results forecast and other special notes(Caution Regarding Forward-Looking Statements)

The forecast of consolidated operating results for the year ending March 31, 2022, disclosed on May 10, 2021, has been revised in this report. The forward-looking statements, including business results forecast, contained in this report are based on information available to the Company and on certain assumptions deemed to be reasonable as of the date of release of this report and they are not meant to be a commitment by the Company. Also, actual business results may differ substantially due to a number of factors.

(Supplementary Explanation Materials for Quarterly Financial Results)

The Supplementary Explanation Materials will be posted on the Company's website on Monday, November 8, 2021.

	Contents of the Attachment
1. Qualitative Information on Quarterly Financial Results .....................................................................................	2
(1)	Business Performance........................................................................................................................................	2
(2)	Financial Position ..............................................................................................................................................	4
(3)	Forward-Looking Information Including Forecast of Consolidated Operating Results and Other....................	5
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes..................................................	6
(1)	Condensed Quarterly Consolidated Statement of Financial Position ................................................................	6
(2)	Condensed Quarterly Consolidated Statement of Profit or Loss and Consolidated Statement of
	Comprehensive Income .....................................................................................................................................	8
	(Condensed Quarterly Consolidated Statement of Profit or Loss) .....................................................................	8
	(Condensed Quarterly Consolidated Statement of Comprehensive Income) .....................................................	9
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity..............................................................	10
(4)	Condensed Quarterly Consolidated Statement of Cash Flows ........................................................................	12
(5)	Notes Relating to the Condensed Quarterly Consolidated Financial Statements ............................................	14
	(Note Relating to the Going Concern Assumption)..........................................................................................	14
	(Changes in Accounting Policies) ....................................................................................................................	14
	(Operating Segments).......................................................................................................................................	14
	(Income Tax Expense)......................................................................................................................................	15
	(Subsequent Events).........................................................................................................................................	16
3. Supplementary Information..................................................................................................................................	17

1

1. Qualitative Information on Quarterly Financial Results

(1) Business Performance

								(Millions of yen)
			Net sales		Profit before tax		Profit attributable to
						owners of parent
Six months ended September 30, 2021	597,930		121,666		113,828
Six months ended September 30, 2020	406,709		25,884		17,470
Increase/decrease		191,221		95,782		96,358
[Rate of change: %]		[47.0]		[370.0]		[551.6]
(Overseas market prices and foreign exchange rates)
	Unit		Six months ended	Six months ended		Increase/decrease
		September 30, 2020	September 30, 2021
Copper	$/t		5,931		9,541			3,610
Gold	$/TOZ		1,810.9		1,802.6			-8.3
Nickel	$/lb		5.99		8.27			2.28
Exchange rate (TTM)	¥/$		106.92		109.81			2.89

With regard to the global economy during the first six months of fiscal 2021, the year ending March 31, 2022, the economies of China, the United States, and various other countries were on a trend toward recovery due mainly to the rollout of COVID-19 vaccines, although the virus has not yet been contained, and economic activity remained depressed due to the spread of variants, particularly in Southeast Asia.

As for exchange rates, the yen tended to depreciate against the dollar, primarily as a result of movements in anticipation of a gradual contraction of quantitative monetary easing due to the economic recovery in the United States. The average exchange rate for the yen was weaker year over year.

Regarding the prices of major non-ferrous metals, although copper prices were trending upward, they began to fall, due mainly to a decline in demand caused by the spread of COVID-19 variants. Nickel prices trended upward against a backdrop of the ongoing recovery of the global economy. Although gold prices were trending upward, due primarily to increasing concerns regarding the economic recovery resulting from the spread of COVID-19 variants, they began to fall, primarily due to the recovery of the U.S. economy. As a result, during the first six months of fiscal 2021, copper and nickel prices rose year over year, while gold prices fell year over year.

In industries related to the Materials business, demand for automobile battery components was robust, against a backdrop of the accelerated electrification of automobiles. With regard to components for electronic parts, demand was also robust, due mainly to progress in fifth-generation mobile communications system (5G) for smartphones and the computerization of automobiles.

Under these circumstances, consolidated net sales in the first six months of fiscal 2021 increased by ¥191,221 million year over year to ¥597,930 million, due mainly to rising year-over-year copper and nickel prices. Effective from the fourth quarter of fiscal 2020, the Company has changed its accounting policy for non-free supplied materials received from customers. Accordingly, for the first six months of fiscal 2020, net sales are presented after the retrospective application of this change in accounting policy.

Consolidated profit before tax increased by ¥95,782 million year over year to ¥121,666 million, due mainly to an increase in sales as well as an upturn in share of profit of investments accounted for using equity method, mainly as a result of rising copper prices.

Profit attributable to owners of parent increased by ¥96,358 million year over year to ¥113,828 million, due to the increase in consolidated profit before tax.

2

Operating results by segment are as follows.

(Mineral Resources segment)			(Millions of yen)
	Six months ended	Six months ended	Increase/decrease	Rate of change (%)
	September 30, 2020	September 30, 2021
Net sales	59,548	76,138	16,590	27.9
Segment income	12,138	67,354	55,216	454.9

Segment income increased from the same period of the previous fiscal year, due mainly to an increase in copper prices.

The statuses of our main mines are as follows.

Mining operations at the Hishikari Mine remained steady in line with the planned annual sales volume of six tons, and the sales volume of gold was 3.7 tons.

Production levels at the Morenci Copper Mine (United States) (of which the Company holds a 25.0% interest, excluding non-controlling interest) fell from the same period of the previous fiscal year to 195,000 tons, due mainly to the implementation of measures to decrease the operating rates of some mills (ore crushers), due to the effects of COVID-19.

Production levels at the Cerro Verde Copper Mine (Peru) (of which the Company holds a 16.8% interest, excluding non-controlling interest) stood at 192,000 tons, an increase from the same period of the previous fiscal year, in which operations were temporarily transitioned to a care and maintenance status in response to the spread of COVID-19.

Production levels at the Sierra Gorda Copper Mine (Chile) (of which the Company holds a 31.5% interest, excluding non-controlling interest) rose from the same period of the previous fiscal year to 93,000 tons, due mainly to an increase in ore grade.

(Smelting & Refining segment)			(Millions of yen)
		Six months ended	Six months ended	Increase/decrease	Rate of change (%)
		September 30, 2020	September 30, 2021
	Net sales	301,763	450,113	148,350	49.2
	Segment income	15,153	50,155	35,002	231.0
(Output by the Company's major product)
	Product	Unit	Six months ended	Six months ended	Increase/decrease
	September 30, 2020	September 30, 2021
	Copper	t	218,994	207,181	-11,813
	Gold	kg	8,434	8,233	-201
	Electrolytic nickel	t	28,560	26,565	-1,995
	Ferronickel	t	5,931	5,966	35

(Note) Output includes the portions of commissioning and/or commissioned production.

Segment income increased from the same period of the previous fiscal year, due mainly to an increase in non-ferrous metals prices.

The production level and sales volume of electrolytic copper decreased from the same period of the previous fiscal year, while scheduled furnace repairs (large-scale suspension) at the Toyo Smelter & Refinery are planned. The production level of electrolytic nickel declined year over year, due primarily to a shortage of raw materials, while the sales volume increased from the same period of the previous fiscal year, due mainly to the recovery of domestic demand.

The production level at Coral Bay Nickel Corporation (Philippines) fell slightly year over year, due mainly to a temporary decline in operating rates due to the effects of COVID-19. The production level at Taganito HPAL Nickel Corporation (Philippines) fell from the same period of the previous fiscal year, due mainly to equipment issues.

3