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Integrated Report 2020
“Transformation for Sustainable Growth”
Core technologies
For the year ended March 31, 2020
1-11-1 Osaki, Shinagawa-ku, Tokyo
141-8584, Japan
Telephone 81-3-5437-8028
Facsimile 81-3-5437-8029
e-mail [email protected]
URL https://www.mitsui-kinzoku.com/en/
MITSUI MINING & SMELTING CO.,LTD.
CSR Office
THE INCLUSION OF Mitsui Mining & Smelting Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,ENDORSEMENT OR PROMOTION OF Mitsui Mining & Smelting Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ANDLOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
Integrated Report 2020MITSUI KINZOKU
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In 2019, Mitsui Kinzoku Group reorganized our CSR report and Annual
report and began publishing "Mitsui Kinzoku Integrated Report" to help
stakeholders understand the Group's long-term value creation.
This report describes how the Group will create economical and social
value through the management in our value creation process, focusing
on “the 19 Medium Plan” which began in FY 2019. We believe that
through this report, our stakeholders, including our shareholders and
investors, will be able to ascertain that Mitsui Kinzoku Group is working
to enhance its corporate value in a sustainable manner and striving
toward a sustainable society through our business management.
This report has been edited by referring to the International Integrated
Reporting Framework advocated by the International Integrated
Reporting Council (IIRC), the “Guidance for Integrated Corporate
Disclosure and Company-Investor Dialogues for Collaborative Value
Creation” developed by the Ministry of Economy, Trade and Industry,
and the GRI Sustainability Reporting Standards (GRI Standards).
Details on our financial information can be found in our Securities Report.
Details on our governance information are provided in our Corporate
Governance Report.
[Coverage]
This report focuses on figures for fiscal 2019 (April 2019 – March 2020).
It also contains details of initiatives prior to that period, and initiatives
that are underway for fiscal 2020.
[Scope]
This report covers Mitsui Kinzoku (non-consolidated), as well as
consolidated domestic/overseas subsidiaries. If a non-consolidated
group company is included, details on its scope of application are listed
in the explanatory note for each item.
[Caution concerning forward-looking statements ]
In addition to facts about Mitsui Kinzoku Group past and present, this
report contains decisions, plans and other forward-looking statements
based on information available at the time of writing. Please bear in
mind that social situations in the future, and the actual results of our
business activities, may vary from the forward-looking statements
contained herein.
About Mitsui Kinzoku Integrated Report 2020
https://www.mitsui-kinzoku.com/toushi/lib/yuuka/
https://www.mitsui-kinzoku.com/LinkClick.aspx?fileticket=7agplJM1DcA%3d&tabid=129&mid=1060
[Securities Report] only available in Japanese
[Corporate Governance Report] only available in Japanese
https://www.un.org/sustainabledevelopment/
The SDG icons in this report are used in accordance with the UN SDG guidelines.
11
President and Representative Director
Pursuing Integrated Thinking-based Management
— Fulfilling our social responsibility and cultivating our
business to help solve environmental and social issues
in solidarity with our stakeholders.
[Engineered Materials Sector]
NISHIDA Keiji
As a nonferrous metal manufacturer, we have
cultivated our technologies and know-how and
developed our value chain in our history.
“Material Intelligence” — this is the source of
our value creation.
[Metals Sector]
[Automotive Parts & Components =Mitsui Kinzoku ACT Corporation ]
[Business Creation Sector]
Philosophy of Mitsui Kinzoku Group
Throughout our history, which is approaching 150 years since our company was first founded, Mitsui
Kinzoku has experienced many changes and faced many difficulties. The reason why we were able
to overcome these obstacles and continue to this day is because we continuously supplied products
that are helpful to the world by utilizing our “intelligence” that we have fostered over years as a
manufacturer. The central pillar of the business is our corporate philosophy.
04 MITSUI KINZOKU Integrated Report 2019 MITSUI KINZOKU Integrated Report 2019 05
The Management Philosophy was developed and documented in 1984, more than 35 years ago.
It declares that the goal of the Group’s business is contribution to society and sustainable growth.
Grateful to our predecessors for having had the perspective of sustainability, we will pass on the values
they sought to uphold.
Mitsui Kinzoku Group’s mission included in its Management Philosophy
We are a manufacturing company mainly dealing with non-ferrous metal materials and always thinking
about what our strengths are, how we can utilize them effectively, and what value we can create.
With thinking them thoroughly, we pursue our originality and value.
Mitsui Kinzoku in a nutshell
【Corporate Slogan】
Taking full advantage of Material Intelligence
The Code of Conduct defines basic requirements that all executives and employees must comply with
in their daily business activities to make them aware of their social responsibilities so that we can grow
together with our stakeholders.
Specific commitment to implementing the Management Philosophy
[Revision 3rd edition as of July 2016]
Code of ConductThis Code of Conduct applies to all the directors, officers and employees of Mitsui Mining & Smelting Co., Ltd. (Mitsui Kinzoku)
and its Group companies.
9. Demonstration of Leadership by Senior Management
Top management shall recognize that it is their responsibility to realize the spirit of this code, and act on their own
responsibility while demonstrating leadership.
1. Our Social Mission
We shall contribute to society by providing valuable products.
2. Self-Awareness and Social Responsibility as a Member of our Corporate Group
We shall always be mindful of our role as a member of the Mitsui Kinzoku Group and act with dignity and
responsibility, while positively conducting social action programs by facilitating communication with all stakeholders.
3. Compliance
We shall comply with domestic and international laws and regulations as well as our company’s regulations, and
shall act in accordance with the conscience of our society.
4. Fair Business Activities
We shall conduct appropriate business activities based on free and fair competition.
We shall also maintain healthy and transparent relationships with political parties and factions, the government, and
business partners, while making sure not to get involved in corruption.
5. Rejection of Antisocial Forces
We shall resolutely confront antisocial forces and organizations and thoroughly prohibit all relationships with
them.
6. Proactive Information Disclosure and Comprehensive Information Management
We shall proactively and fairly disclose corporate information and comprehensively protect and manage confidential
information, including personal and customer information.
7. Contribution to the Natural Environment
We shall address environmental issues to help realize a sustainable society.
8. Provision of Comfortable Work Environment
We shall provide a safe and comfortable work environment that respects the human rights, personalities, and
uniqueness of our employees, while providing a place where a diverse range of human resources can play an active
role.
“With creativity and productivity,
We, Mitsui Kinzoku Group, will explore products of value to society,
and seek an eternal growth of our group.”
Management Philosophy
We have to enhance our own sustainability in order to fulfill our social responsibility. We advance our
business to respond to the expectations of our stakeholders, while keeping our corporate philosophy
at the center of our business activities to further strengthen our business base. We will contribute to
the realization of a sustainable society through new value creation by enhancing our recognition of
environmental and social issues, and driving our unique innovations.
06 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 07
1874
1913
1943
1968
1951
1953 1966
1949 1958 1972 1990
1989
2006
1963
1977 1985
1989
2000 2005 2013
1959 1962 1968 1976 1980 1991 1999
2016
1970
2010
1943
1981
2012
1962
1962
2000
1995
2010
1976
1987
1986
Sputtering targets
Catalysts
Battery materials
Zinc and Lead
Die casting
Automotive parts
Rolled copper and brass
Rare metals
Copper
Copper foils
Measuring instruments
Mining and Resource development
20182006
1993
2018
1989 2014
1995
2020
Our origin is to develop the resources that are blessings from the earth and perform smelting of nonferrous metal.
We have continued to provide materials and products that are essential to many industries by giving added value to
nonferrous materials through processing and assembly. We will strive to create new value utilizing our core technologies
cultivated by our nonferrous metal smelting business, such as in separation and purification, powder control,
electrochemistry, and solution chemistry.
Our History
Areas that our current core business domains
* Lists only major events and initiatives.
Metals business
Others
68.6%
Zinc/Lead/Refined copper/Sulfuric acid 31.4%Sales breakdown
in FY1960
¥29.5 billion*Non-consolidated sales
Basic materials
52.8%
Zinc/Lead/
Refined copper/
Sulfuric acid/Alloys
Intermediate materials
32.9%
Copper foil/Battery materials/
PVD materials/TAB/Rolled copper/
Rare metals etc.
Assembly processing
14.3%
Automotive components/Die casting/
Catalysts etc.
*Excludes sales of gold bullion from the
financial statement values of that time.
*Business segments are shown in the
segments at that time.
Sales breakdown
in FY1990
¥269.6 billion
Mining and basic materials
30.3%
34.8%
19.1%
OthersEngineering/
Other services 15.9%
*Business segments are shown in
the segments at that time.
Intermediate materialsCopper foil/Battery materials/PVD materials/
TAB/Rolled copper/Rare metals etc.
Zinc/Lead/Refined copper/
Sulfuric acid/Alloys/Ores etc.
Assembly processing
Automotive components/
Die casting/Catalysts etc.Sales breakdown
in FY2000
¥423.7 billion
Acquired Jabaradaira pit at the Kamioka mine
Launched Omuta zinc smelting
plant
Acquired Hibi smelting plant and
Takehara refinery plant
Started full operation at
the Huanzala mine, Peru
Acquired Ohji plant from Special Alloy Co., Ltd.
and established Ohji Metals Co., Ltd.
Established Showa Die-Cast Co., Ltd.
Started technological partnership with
Wilmot Breeden of the U.K. for automotive
door latch production in 1965
Started production of electrolytic
manganese dioxide(EMD) at
Takehara refinery plant
Started production of Cadmium
oxide for nickel-cadmium battery
at Hikoshima smelting plant
Started production of battery-use
zinc powder at Kamioka mining plant
Started production of Cerium oxide
abrasive for glass substrate
Started development of transparent
conductive thin films at the Central
Research Laboratory
Started to develop copper foil technology at
Takehara refinery plant
Started production of
copper foil at Ageo
Established Oak-Mitsui Inc.
in New York, USA
Started to develop exhaust
gas detoxifying catalysts
technology at the Central
Research Laboratory
Completed Zinc
electrolytic plant
at Kamioka
Established Die-casting division
Established rolled copper division
Sold Catalysts to
Japanese automobile
manufactures
Started production of hydrogen storage
alloy at Takehara refinery plant
Developed non-destructive inspection equipment to measure
the sugar content of fruits and vegetables by applying
technology used for underground resource exploration satellites
Started full-scale operation
at the Pallca mine in Peru
Started mass production of PVD material at Miike rare metal plant
Developed
high density ITO
Established Mitsui Electronic
materials Co., Ltd. in Tai chung,
Taiwan
Established the bonding
factory in Pheongtaek,
South Korea
Established the mass production process of
IGZO, a next generation oxide
semiconductor material
Established Taiwan Copper Foil Co., Ltd. in Nantou, Taiwan
Established Mitsui Copper Foil (Malaysia) SDN.BHD in Selangor, Malaysia
Developed Micro ThinTM
copper foil with carrier film
Developed solid electrolyte for next-
generation lithium-ion batteries
Integrated automotive parts division and Ohi
Seisakusho Co., Ltd., and established Mitsui
Kinzoku ACT Corporation
Started operation at
Kamioka catalyst plant
Established Mitsui Kinzoku Instrumentations
Technology Corporation
Established Pan Pacific Copper Co., Ltd.
jointly with Nippon Mining & Metals Co., Ltd.
Started full operation of recycle-
smelting of lead from waste
batteries at Kamioka
Integrated rolled copper business with that of Sumitomo
Metal Mining and established Mitsui Sumitomo Metal
Mining Brass & Copper Co., Ltd.
Established
GECOM Corp.
in Indiana, USA
Established Ageo plant 2
Expanded the catalyst production
capacity for automobiles at the
five overseas sites
Established catalyst
manufacturing plant in
Zhuhai, China
Started operation at new Zinc
electrolytic plant in Kamioka
Increased production capacity
of Micro ThinTM to 3.9 million m2
per month
Established
automotive parts
division
Established Mitsui Kinzoku Die-Casting
Technology Co., Ltd.
Established MITSUI SIAM
COMPONENTS CO., LTD. in Thailand
Established Hibi Smelting Co., Ltd.
08 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 09
My commitment
Fulfilling our social responsibility and
cultivating our business to help solve
environmental and social issues in
solidarity with our stakeholders
Sustainability is not just a trend or fad but is the strategy for survival.
By transforming ourselves through integrated thinking-based
management, Mitsui Kinzoku Group will be resilient against not just
the coronavirus crisis but also any possible future crises.
Pursuing Integrated
President and Representative Director
NISHIDA Keiji <Profile>
1980 Joined Mitsui Kinzoku
2008 Head of Finance Department
2011 Director and Chief Financial Officer
2014 Representative Director and Senior Managing Director
2016 President and Representative Director
Thinking-based Management
I would first like to offer my sincere condolences
for people who passed away from COVID-19, as
well as my heartfelt sympathy to everyone
affected by the infection. I would also like to
express my gratitude and respect to the medical
staff and many other individuals who are
combating the spread of the infection.
The global economy in FY2019 had been
recovering moderately overall despite the
concerns about the adverse impact of U.S.–
China trade friction and the decelerating Chinese
economy until the outbreak of the pandemic in
2020, which put a brake on economic activities
and plunged the economy into rapid decline. The
future has become increasingly uncertain, and
the world is confronted with unprecedented
economic and social crises – coronavirus crisis.
Mitsui Kinzoku Group has also been affected
by the pandemic as the state of emergency was
declared in Japan and other countries in which
we operate. The impact on our business
activities was significant particularly in China,
Peru, Malaysia, India, the United States, and
Mexico due to shut-down of manufacturing sites.
We have taken emergency measures promptly
at our sites and in our supply chain to address
the crisis. We put the lives, health, and safety of
our employees and their families first and strive
for continuing our operations. I would like to
express my deep appreciation to our
stakeholders, such as customers, suppliers and
our employees, for understanding our
emergency measures and supporting us in
minimizing the impact on our business.
In the 2019 medium-term management plan (the
19 Medium Plan), Mitsui Kinzoku Group
envisages – by 2024, the year of the 150th
anniversary of its founding – to “be a corporate
group that continually creates and develops
growth products and businesses in our three
core business domains (Engineered Materials,
Metals, and Automotive Components).”
To realize this vision for 2024, we have declared
our commitment to “Transformation for
Sustainable Growth,” which represents pursuing
business management integrated with
sustainability or, in other words, integrated
thinking-based management.
For us, sustainability means sustainability not
just of Mitsui Kinzoku Group but also of society
and the earth. We, therefore, need to meet the
triple bottom line of economic, environmental,
and social sustainability.
In addition to the declaration, we also
published the Integrated Report 2019 and
presented an overall picture of how we can
realize the vision in our value creation process.
By a backcasting approach for the vision, we
clarified the basic direction of the transformation
for sustainable growth through integrated
thinking-based management, as well as the
specific management strategy.
Our goal is clear; we will transform ourselves
into a company that continuously enhances its
value. We will achieve this goal with the strategy
built on the two pillars of business and social
responsibility: offering products and services
from our three core business domains, that will
contribute to solving environmental and social
issues, and endeavoring to minimize negative
impact (risks) of our business activities, which
could arise anywhere in our value chain in the
long term. While outputs from business profits
(economic value) and from fulfilling social
responsibility will generate new corporate value
and help us realize our vision, they will also
generate social value in external environments.
Our social value should contribute to the United
Nations Sustainable Development Goals (SDGs),
particularly SDG 8 “Decent work and economic
growth,” SDG 9 “Industry, innovation and
infrastructure,” SDG 12 “Responsible
consumption and production,” and SDG 13
“Climate action.”
Based on this management strategy, in
FY2019, we implemented measures to develop
and expand sales of MicroThin™ and other 5G-
related products and catalysts for automobile
My commitment
10 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 11
Business management integrated with sustainability
exhaust gases; recycle nonferrous metals; and
adopt ICT for automotive components production
and site management. When it comes to
measures to fulfill social responsibility, we
addressed material environmental, social and
governance risks with high financial impact.
While we were making these efforts, however,
we had to revise down the FY2019 results and
FY2020 targets set out in the 19 Medium Plan
due to the below-plan sales of our main products
and the impact of the pandemic. It is uncertain
when the pandemic will end, and we are facing
extreme difficulty in maneuvering the corporate
group get through this crisis.
Some say that the unexpected pandemic is
causing the greatest ever post-war global
recession. There is also an opinion that the
‘SDGs boom’ is over and company management
is to focus on addressing the crisis with short-
term measures.
However, as President, I believe that, to
overcome this crisis, it is more critical in business
management to take long-term measures based
on the essence of the company and issues of
every level around the world. Therefore, the big-
picture perspective is indispensable for us in
order to reaffirm our Group’s identity which
remains unchanged regardless of the external
environment as well as underlying global issues.
Our business model positioned at the center of
our value creation process involves creating
products and services based on the six capitals.
This business model is sustained by our two
main strengths: Core technologies, such as
those for separation and purification, powder
control, and composite materials, and the
diverse skilled employees who utilize those
technologies. With these strengths, the business
domains operate in their respective positions in
value chains. When taking an overview of these
Redefining our identity
positions, it can be said that they draw a closed
value chain loop where resources are circulated
from the arterial industry to the venous industry
and back to the arterial industry within the one
corporate group. This means we have a core
competence in material cycling and the potential
to help realize a circular economy which is the
world’s ambitious challenge. We must fully
leverage this core competence to create growth
products and businesses that will help solve
environmental and social issues. This represents
the crux of our business model and what our
slogan “Material Intelligence” means. This is
Mitsui Kinzoku Group’s identity.
While the pandemic hit the world hard, 2019 and
2020 also saw many disasters likely caused by
progressing climate change. We may be facing a
crisis in which climate change is intertwined with
other issues in a complicated way. I feel the
sense of crisis behind the SDGs; if humans
continue economic activities in the same way, it
will bring the earth to the brink of destruction. In
the coronavirus crisis, if companies only focus on
the pandemic issue of SDG 3 and think about
the trade-offs on the axis of confrontation
between health and the economy, they may
misjudge the intertwined underlying issues and
fail to take correct actions. The SDGs raise
underlying global issues inclusively and they are
linked with each other. We need to examine and
address the SDGs in an inclusive and integrated
manner.
The SDGs also require all stakeholders to
participate and cooperate with each other. As the
world faces the pandemic, the word “solidarity” is
attracting attention. Solidarity means uniting
efforts among different levels of society, rather
than conflict with each other, in order to
overcome the crisis together. Based on this spirit
of solidarity, ambitious initiatives such as
“Recover Better” and “Green Recovery” have
also been launched.
Big-picture perspective Global issues and solidarity
(July 2020)
12 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 13
My commitment
What we can do NOW
Mitsui Kinzoku Group will advance its
transformation and take long-term measures
through integrated thinking-based management
to achieve our vision. We will examine and
address global issues under the SDGs through
leveraging our identity and reinforcing solidarity
with our stakeholders by promoting market co-
creation and engagement with them. By
considering changes of the external environment
due to the coronavirus crisis, we have revised
the measures taken under the management
strategy and come up with the following four
measures that we will be implementing NOW.
Firstly, we have revised risk management and
the material issues (materiality) related to
sustainability. We started working on the
improvement of our risk management this April
and have identified, from an integrated
perspective, long- and short-term business risks
and business risks in an emergency with
potentially high financial impact. We also have
rebuilt our risk management system that includes
actions against the identified risks, risk
assessment and results review. We will continue
to revise the risk management system in FY2020
as well.
We also have reviewed material issues related
to sustainability in accordance with our
management strategy of business and social
responsibility. More specifically, from among the
long-term environmental and social issues raised
by the SDGs and other initiatives, we have
selected those for which expectations are high
among our stakeholders for us and which pose a
high financial risk to us. They were defined as
materiality that may provide us with long-term
business opportunities and cause long-term
business risks. With these revisions, we have
clarified the basic direction of our sustainability
initiatives and identified financial risks and
opportunities.
Secondly, as part of our specific efforts for
SDG 13 “Climate action,” to which we aim to
contribute, we take part in the “Challenge Zero”
initiative by Keidanren (Japan Business
Federation) and are currently tackling four
innovation challenges. All these challenges take
advantage of our core competence, i.e. our
identity. Their objectives are to deliver
innovations to achieve the production of CO gas,
a useful starting material, from CO2 gas;
development of an all-solid-state battery for
renewable energy storage; better demand
response; and use of alternative fuels to coke in
the imperial smelting process. While
endeavoring to mitigate climate change, we will
beef up our efforts toward a circular economy,
which will lead to achieving SDG 12
“Responsible consumption and production.”
The third measure concerns SDG 8 “Decent
work and economic growth” and SDG 9 “Industry,
innovation and infrastructure.” Because of the
pandemic, the traditional business model in cities
where profits are generated from mass
consumption by people who physically meet is
becoming ineffective. As structural and demand
changes occur in cities and urban innovation
advances, some experts forecast that 5G will be
the future infrastructure of massive innovations in
cities. The 5G-related market is therefore
expected to expand further, and we will re-
examine our plans to make them more
responsive to demand mainly in the copper foil
and engineered powders businesses. We are
working to create new businesses with growth
opportunities and get them into the market.
We also expect that the current movement
toward the future mobility society will continue. In
the automotive components business, we make
sure to respond to the new domains of CASE
(connected, autonomous/automated, shared,
and electric). As urban innovations advance,
base materials, which make up the structural
framework, will remain essential. In the metals
business, we will add copper smelting to the
existing lead, zinc, and precious metals smelting
and refining network to increase synergies and
intensify recycling smelting.
Fourthly, we have placed the R&D and market
co-creation functions, which were formerly a
part of the Engineered Materials Sector, under
corporate control by establishing the Business
Creation Sector in April this year. Our core
competence supported by the two strengths of
core technologies and employees and market
co-creation with stakeholders is the source of
above-mentioned innovations. Our purpose
behind this transfer is to concentrate the two
strengths for business creation and to strengthen
collaboration with stakeholders. By solidifying the
foundation for business creation, we will
establish overwhelming core competence and
deepen our solidarity with stakeholders to create
innovations to address environmental and social
issues.
The coronavirus crisis has been bringing a
significant change to our value chain and may
have a great impact on our business. At the
More resilient and sustainable in a crisis
same time, as the crisis is also changing
traditional mindsets across all levels of society
around the world, we have been more pressed
to put “Transforming Our World,” the core
principle of the SDGs, into action than ever
before. Now is the time the world should
implement drastic reforms to solve issues and
achieve the SDGs by 2030.
Mitsui Kinzoku Group believes that, by
transforming ourselves through integrated
thinking-based management with a long-term
perspective based on global issues, we can
make the Group resilient against not just COVID-
19 pandemic but also any possible future crises.
Sustainability is not just a trend or fad but is the
strategy for survival. Whatever crisis may occur,
we will act together with our stakeholders without
pandering to short-termism. We desire to be a
more sustainable corporate group that cares for
all workers in our value chains, the earth, and
future generations of people and all living things.
MITSUI KINZOKU Integrated Report 2020 15
Intellectual capital
Manufactured capital
Human capital
Financial capital
Natural capital
Input
Social and
Relationship
capital
OutputOutcome
Coretechnologies
14 MITSUI KINZOKU Integrated Report 2020
As a nonferrous metal manufacturer, we have cultivated our technologies and know-how and developed our value chain in our history.
“Material Intelligence” — this is the source of our value creation. We establish overwhelming core competence to create growth
products and business to help solve environmental and social issues. Under the commitment of “Transformation for Sustainable
Growth”, we realize long-term value creation by the integrated management strategy of business and social responsibility.
Our value creation process
Economic,
social and
environmental
issues
<Major stakeholders>
・ Shareholders/Investors
・ Customers
・ Suppliers
・ Employees
・ Local communities
・ International organizations/
Government agencies
New social issues
ESG demands from stakeholders (risks and opportunities)
Allocation and strengthening
our management capital based
on materiality
12,197
Engagement with our
employees, suppliers
and local communities
Amount of primary raw materials
Amount of freshwater use
Total energy consumption
(FY2019, Crude oil equivalent)
Consolidated employees
(March 31, 2020)
1,235 thousand tons
44,446 thousand m3
630,634 thousand L
Main sites in Japan
Main overseas sites
Consolidated net assets
¥ 173.2 billion(March 31, 2020)
Number of patents registered
3,828
R&D expenses
¥ 34 billion(Total for FY2019-2021)
External environment Business environment
Business model
Product End Life
Input of
raw materials (increase ratio of
recycled materials)
Materiality review
Formulation of medium-term management plan(Strategy review, resources allocation, setting KPI)
Contributing to
our customers’
processes
Adding value to materials
through our processes
Consumers
・ Separationand purification
・ Powder control
・ Electrochemistry
・ Calcination
・ Solutionchemistry
・ Composite ofmaterials
Continually create and develop growth products and businesses to
help solve environmental and social issues
Mission
・ Engineeredmaterials
・ Metals
・ Automotive parts& components
Business domain
Initiatives to
enhance our
sustainability
Governance(The foundation of our value creation)
・ Market co-creation
・ Develop relationships
with our employees,
suppliers and local
communities
・ Reduction of
GHG emissions
Businessfrom economic,
environmental and
social aspect
Environmental
Social
・ Reduction of
hazardous materials
・ Energy efficiency
・ Response to CASE
・ Material cycling
Responsibility ・ IoT development
・ Circular economy
・ Safe mobility
・ Solving environmental and social issues
Contribution to
Materiality of
risks and
opportunities
Newly created corporate value
Perform
Review
12
27
Sustainability
16 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 17
Stakeholders and materiality
Identification of major stakeholdersMitsui Kinzoku Group has identified major stakeholders in accordance with the eight criteria of ISO 26000. The major stakeholders
are determined as highly likely to be affected by our business activities economically, environmentally, and socially. The earth
environment is considered as being one of our major stakeholders. The SDGs indicate the common social and environmental issues
which these multiple stakeholders are facing.
Mitsui Kinzoku Value Chain
Our major stakeholders
Identification, assessment and review of materialityAmong environmental and social issues raised by the major stakeholders, we identify material issues i.e. materiality. The materiality
can pose ESG risks that affect us financially or can turn out to be our business opportunities that may profit us by offering solutions for
the issues through our business or in our value chains. By responding to risks and opportunities presented by the materiality, we will
implement the integrated management strategy built on the two pillars of business and social responsibility.
*1 SASB Standards The SASB Standards have been developed by
SASB (Sustainability Accounting Standards Board) for respective industrial
sectors. We utilized the standards for the Metals & Mining category in the
Extractives & Minerals Processing Sector in order to incorporate risks that
are unique to mining.*2 Amundi ESG general standard
<Reference> Amundi Japan (2018) "Introduction to ESG investment that
will change society", Nikkei Publishing Inc.
Identification FY2016
Assessment FY2017
[1] Selected issues based on the seven core subjects of ISO
26000 and in reference to the GRI guidelines (G4), the SDGs
and questionnaires of CSR assessment organizations
[2] Narrowed down candidate issues from the selected issues
according to the expectations and requests of the major
stakeholders and our CSR progress
[3] Mapped the candidate issues by critical level for
stakeholders and that for Mitsui Kinzoku Group
[4] Identified the 28 materiality which were approved by the
Board of Directors
[1] Assessed the 28 materiality, whether it is risk or opportunity,
from the ESG perspective of the GRI standards in order to
integrate business contribution to solving environmental and
social issues into the management strategy
[2] Linked the materiality to the SDGs
Assessment FY2018
[1] Conducted the materiality assessment in connection to
the 19 Medium Plan to which the integrated thinking-based
management was introduced
[2] Assessed again whether the 28 materiality will have
impacts on our long-term value creation by utilizing the SASB*1 standard and the ESG general standards*2 offered by
Amundi
[3] Extracted ESG-risks from them which potentially have
impacts on our business model and finances, and grouped
them as “materiality in the areas of responsibility that relate to
the social & relationship and the natural capitals”
Raw Materials
(Incl. own mines)Supplier
Process
Our Operations Customer
Processes
Use/Consume Product End Life
Stakeholder mapping along the value chain
International organizations Shareholders/Investors ESG assessment bodies Global environment
Initiatives NGO/NPO
Employees
Local communities
Government agencies
Employees
Labor unions
Local communities
Government agencies
Industry groups
Suppliers Customers Consumers Recycling agents
Review FY2019-FY2020
We have reviewed the materiality based on the integrated
management strategy built on the two pillars of business
and social responsibility.
1 Enumerated a wide range of economic, environmental, and
social issues from a long-term perspective
2 Selected issues that are likely to have a long-term impact on
our business and value chains
3 Determined the level of materiality for each issue selected in 2
above according to the degree of the major stakeholders’
expectations and needs regarding our business and their impacts
4 Determined the level of materiality for each issue selected in 2
above at the CSR Committee according to the degree of impact on
our business model and finances
5 Mapped the issues on the two axes of 3 and 4 above (see the
right graph) and identified the ones in the shaded area as material
issues
Ref. The SDGs, the United Nations Global Compact, the GRI Standards and ISO
26000 as issues raised by international organization like the UN and NPOs
Ref. The Management Philosophy, the Code of Conduct, the 19 Medium Plan
Ref.
<International organizations> OECD Due Diligence Guidance for Responsible
Business Conduct
<Investors> The SASB standards, the ESG general standards by Amundi
<Industrial initiatives> The RBA Code of Conduct (Customer/Supplier),
ICMM 10 Principles, the Charter of Corporate Behavior by Keidanren
Ref. The 19 Medium Plan, the Code of Conduct, the Environmental Action
Plan, the Human Rights Standards, the procurement policy
6 Divided the material issues, based on the integrated
management strategy of business and social responsibility, into
ones that may pose ESG risks (social responsibility) that are likely
to affect us financially and into ones that can turn out to be
business opportunities
7 Classified the issues mapped in the lighter-colored parts in the
graph into a set of issues that supports the progress on the
material issues
8 Received approval from the Board of Directors for the materiality
of ESG risks and business opportunities
Ref. The International Integrated Reporting Framework, the SASB standards
[ B The impact on our business model and finances]
[AT
he m
ajo
r sta
kehold
ers
’ expecta
tions a
nd n
eeds]
Materiality
Mitsui Kinzoku Group will work on the materiality and monitor the progress in order to minimize risks and maximize opportunities.
The CSR committee takes the initiative in running the PDCA (plan-do-check-act) cycle of fiscal year. In FY2020, each
department in charge will re-examine material issues to review commitments, key performance indicators (KPI), and plans.
01 Market co-creation
02 Material cycling
03 Response to CASE
04 GHG emissions
05 Energy management
06 Water management ●●
07 Waste and hazardous materials ●●
08 Impacts on biodiversity ●●
09 Health and safety
10 Human rights ●
11 Fair business practices ●
12 Governance ●
Diversity
Health management
Human resources development
Intellectual property
Quality management
Community engagementSocial andrelationship capital
Human capital
Intellectual capital
CSV
Environment
Social
Governance
(Incl. Compliance & Information management)
Opportunities
Risks
Capitals for value creation
Initiatives supporting the progress of the materiality
Materiality
[Category] [Area] [Issues]
Scope of application: All sites, including those for the mining business as well as supply chains. Local communities in mining areas are included for issues marked with ●, suspended and closed mines are included for issues marked with ●.
*
CSV standards:Environmental and social standards of products
See pages 52 to 57 for the report on the progress of the previous 28 materiality.
For Mitsui Kinzoku Group, the integration of sustainability into its business management is what really matters in order to achieve
its vision and continue creating value over the long term. In order to implement the integrated thinking-based management
efficiently, we have identified major stakeholders as well as material issues (materiality) that can have critical influence on the
stakeholders and our business.
18 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 19
24.2 -38.3
-14.1
36.1 -34.8
1.3
52.4 -40.4
12.0
40.7 -44.8
-4.1
10.9%
-0.4%
2.8%
0.9%
2.5% 2.5% 2.5%DOE
70 70 70 70
518.7 523.3 537.1
168.2 170.1 164.7
32.4% 32.5%
30.7%
545.0
166.1
30.5%
40.0 -24.0
16.0
3.6%
2.5%
Director and Senior Executive Officer,
Senior General Manager of Corporate Planning & Control Sector
OSHIMA Takashi
Financial Strategy
Place importance on investment efficiency,
coordinating with the business strategies
to improve our corporate value
Total assets
Net assets
(Billion yen)
(Billion yen)
Trends in consolidated equity ratio
2018
(Forecast)
2019 2020 2021
Years ended March 31
※ We executed a 1-for-10 consolidation of shares, which came into force on
October 1, 2017. Shares from before FY2017 are being provided the dividend
amount per share in accordance with the standard after the share consolidation.
2016 2017 2018 2019 2020(Forecast)
Fiscal
Trends in consolidated dividend on equity (Yen)
Trends in ROE
Cash flow from operating activities
Cash flow from investing activities
Free cash flow
Cash flow (Billion yen)
2016 2017 2018 2019 2020(Forecast)
Fiscal
2016 2017 2018 2019 2020(Forecast)
Fiscal
Mitsui Kinzoku Group upholds the vision of becoming by
2024 a “company that continually creates and develops
growth products and businesses in our three core business
segments (Engineered Materials, Metals, and Automotive
Components).” As a step toward realizing this vision,
during the period of the “16 Medium -Term Plan,” we
actively made investments with a focus on the Engineered
Materials business where there is a strong need for new
product development.
In the current “19 Medium-Term Plan,” which started in the
last fiscal year of 2019, we are sticking to this policy and
continuing to invest in growth products and businesses.
In FY2019, we have invested mainly in the Engineered
Materials business, such as strengthening the catalyst
production system for automobiles and creating a smart
factory to further improve the productivity of electrolytic
copper foil.
The consolidated equity ratio for the end of FY2019 was
30.7%, which fell short of the 34.5% that was initially
planned. We feel an ever stronger need to strengthen our
financial structure, since we are a corporate group that
receives significant impact from changes such as in the
currency exchange rate and the nonferrous metals price,
as well as in the trends of the electrical materials market
for smartphones, which sees a high turnover in product
cycles and dynamic fluctuations in market conditions.
Furthermore, while there is concern over the impact of the
recent spread of COVID-19 infections on each market, we
strongly recognize the necessity.
We will strive to achieve a consolidated equity ratio of 40%,
which is one of our management goals for FY2021, by
maintaining our financial discipline as we strengthen our
management foundation achieved by drawing in the
benefits from the initiatives that we have implemented thus
far through the 19 Medium-Term Plan and by executing
our growth strategy.
Financing policy
In order to prepare for dramatic changes, such as in the
market situation as well as the exchange rate and prices
for nonferrous metals, we will secure a certain level of
liquidity on hand so that we will be able to conduct stable
business operations.
At present, we are increasing cash and deposits by more
than 50% from the end of the previous fiscal year to further
increase liquidity on hand, in order to respond to the
significant changes in the environment caused by the
impact of COVID-19.
Meanwhile, as our 19 Medium-Term Plan includes plans
for making active equipment investments with a focus on
the engineered materials business, we will strive toward
the advantageous financing in a timely manner in
accordance with funding needs, while taking consideration
of various factors including the financial situation and the
interest rate levels.
Management that places awareness
on capital efficiency
As we strive toward “Transform the growth foundation to
achieve vision for 2024” which is the slogan in the 19
Medium-Term Plan, we are strengthening business
monitoring by not only using the traditional management
index, but also evaluating each segment using ROIC
(consolidated return on invested capital).
Although ROE (consolidated return on equity) for FY2019
has not reached the initial plan, we will continue to take
measures to achieve the target of ROE 10% for FY2021.
Dividend policy
Our dividend policy is based on the appropriate distribution
of profits according to our business performance, while
also ensuring that we hold back what is needed for the
future of our business foundation.
Specifically, while we will return profits with the aim of
realizing a consolidated payout ratio of 20% in accordance
with the company’s dividend policy that was announced on
May 9, 2018, we will also place importance on providing
continuous and stable dividends.
As such, we aim to provide dividends at a rate of 2.5%
DOE (consolidated dividend on equity).
In the future, we will review our shareholder return policy in
accordance with the level of progress that we achieve in
strengthening our management foundation and in
improving our financial condition.
Tax policy
Mitsui Kinzoku Group complies with the laws and
regulations of the countries and regions in which we do
business, and conduct our business activities in
accordance with the tax guidelines published by
international organizations such as the OECD (the
Organization for Economic Cooperation and Development).
If countries and regions have preferential taxation systems,
we carefully check the actual situation of our business and
the purpose of the systems, use them appropriately, and
do not take tax avoidance acts that abuse the systems.
When making business decisions, we consider tax matters
and position tax strategy as part of our business strategy.
※ The dividend forecast for FY2020 is not decided. (As of the end of June 2020)
45.0%・
-10.0%・
0.0%・
10.0%・
20.0%・
0.0%・
5.0%・
10.0%・
35.0%・
40.0%・
0.70・
0.80・
0.90・
1.00・
-5.0%・
0.0%・
5.0%・
0.5・
1.0・
1.5・
7.3%
-4.8% -3.2%
19.0%
-4.1%
6.7%
2.5%
8.8%9.5%
3.7%
41.1%
43.9% 44.0% 44.2%45.0%
0.880.88
0.93
0.84
1.00
0.95
4.0%
-2.2%
6.2%
2.2%3.4%
0.981.03
1.10 1.111.15
20 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 21
497.7
0・
100・
200・
300・
400・
500・
600・
10・
20・
30・
40・
0・
0・
5・
10・
15・
20・
25・
0・
100・
50・
0・
10・
20・
30・
40・
84.5
114.3105.0
52.4%
82.4%
18.6
24.7
34.0
473.1 470.0
550.0
18.2
13.010.0
37.0
4.69
1.57
6.0
23.0
-4.9%
1.8%
2.8%
45.0%
1.22
(34.0)
(10.1)
13 Medium-Term Plan: from FY2013 to FY2015, 16 Medium-Term Plan: from FY2016 to FY2018, 19 Medium-Term Plan: from FY2019 to FY2021
Financial Highlights
Trends in major financial indexes in the “13 Medium -Term Plan” and the “16 Medium -Term Plan,”
and the planned values in the “19 Medium -Term Plan”
Sales growth rate
Rate of operating profit on sales
Overseas sales ratio
Total asset turnover ratio
ROA (Return on assets)
Net D/E ratio
Highlights of major financial indexes for the past 11 fiscal years are listed on pages 58-59. Please refer to those pages as well. Other figures of each business segment in the 19 medium-term business plan are listed on pages 22-29.
Net Sales
Operating profit
Profit attributable to owners of parent
Capex (Total for 3 fiscal years)
R&D expenditures (Total for 3 fiscal years)
R&D expenditures in the 19 Medium Plan
Capex in the 19 Medium Plan
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019[Fiscal] [Fiscal]
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019[Fiscal] [Fiscal]
2014[Fiscal] 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019[Fiscal]
13 Medium Plan
(Billion yen)
16 Medium Plan 19 Medium Plan
(Plan)
(Billion yen)
13 Medium Plan 16 Medium Plan 19 Medium Plan(Plan)
Engineered
Materials Sector
(28.0)
34.0
(Billion yen)
(Billion yen)
(Billion yen)
(Billion yen)
Investments in growth strategies
(55.0)
(Engineered
Materials Sector)
(28.6%)
105.0
(Billion yen)
FY2019
2018 2019 2020 2021(Forecast) (Plan)
[Fiscal]
2018 2019 2020 2021(Forecast) (Plan)
[Fiscal]
2018 2019 2020 2021(Forecast) (Plan)
[Fiscal]
FY2019
22 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 23
Maximizing the Profitability of Engineered Materials
[ Engineered Materials Sector ]
In addition to maximizing the profitability of our existing businesses, we, as a market co-creation
business entity, will combine the strengths of our engineered materials business, such as core
technologies, know-how, and sales channels, with external strengths and intensify our existing and
peripheral businesses to materialize new products and create new markets.
Business strategy
Copper foil with carrier film
Senior Executive Officer, Engineered Materials Sector
2016
200・
100・
20212017 2018 2019 2020
(Plan)(Outlook)
[Billion yen]
[Fiscal]
145.8
167.2 165.5 167.8 168.0
212.0
2016
30・
20・
20212017 2018 2019 2020
(Plan)
[Billion yen]
15.9
30.6
16.6
13.4 13.0
26.0
10・
Net sales of Engineered Materials Sector
Ordinary income of Engineered Materials Sector
Catalysts for detoxifying exhaust gases Functional powders Sputtering targets IGZO and ITO
OKABE Masato
New business creation operations, which had been
handled by the Engineered Materials Sector until
FY2019, were transferred to under control of the
Business Creation Sector established as a
headquarters function in April this year to make the
operations a corporate-wide mission and accelerate
them.
As the new business creation mission was
separated, the Engineered Materials Sector now
focuses mainly on the business for existing engineered
materials. With the shift to the 5G format globally and
the COVID-19 spread as a background,
communications infrastructure is now undergoing
significant, quantitative and qualitative changes at an
amazing pace. To respond to these changes in a
timely and flexible manner, we are working speedily on
the further sophistication of our engineered materials
that meet the needs of our customers, development of
a mass production system, and enhancement of
delivery services.
At the same time, we are also putting our energy
into the development of new products and the creation
of new markets by capitalizing on a wide lineup of our
engineered material products and internal and external
networks. Although new business creation is
undertaken by the Business Creation Sector as
mentioned above, existing businesses need to pursue
and take advantage of opportunities offered by the
advance of IoT and 5G and the tightening of
environmental regulations to expand their business.
We will identify these opportunities correctly, as well
as promote the development of a system that enables
us to utilize the captured information more efficiently,
enhance our marketing capabilities, and promote
digitization, to achieve the functional enhancement of
the Engineered Materials Sector.
We aim to meet the targets of the medium-term
management plan, which was formulated toward the
ongoing growth of our business, while contributing to
social progress and resolution of social issues through
our valuable engineered materials. Please look forward
to the growth and transformation of our engineered
materials business.
Copper foil with carrier film
Electro-deposited copper foil is used for wiring
material in high-precision circuits. In particular, Mitsui
Kinzoku has a high market share in extremely-thin
copper foils. These products contribute toward
minimizing the sizes of smartphones and enhancing
the advanced functions of electronic products.
90%
For Semiconductor Package Substrate
Buttery material (Hydrogen storage alloy)
Mitsui Kinzoku started providing materials for
batteries in the 1940s. Since then, the company
started developing materials for rechargeable
batteries at an early opportunity, and has been
supplying hydrogen storage alloy for batteries used
in hybrid vehicles since the 1990s.
For hybrid car
Copper powder
Demand for MLCC (multi-layered ceramic capacitors)
is increasing rapidly with the electrification of
automobiles, the increased sophistication of
smartphone functions, and the widespread application
of IoT. We are contributing to this by providing
materials toward the advancement of MLCC, such as
in downsizing and increasing their capacity.
35%
For MLCC
Catalyst for detoxifying exhaust gas
We are contributing toward the maintenance of a
clean environment by detoxifying toxic substances
such as CO and NOX that could cause air pollution.
We are also increasing the supply of catalysts for
four-wheel vehicles that we offer in the world market.
50%
For motorcycle
Indium tin oxide (ITO) targetITO, which is oxidized indium and tin, is an essential
material for creating the transparent conductive film on
liquid crystal displays. We make use of the capabilities
held by Mitsui Kinzoku in creating products that offer a
high level of purity, sintering technologies, and film
formation. We also supply sputtering targets for IGZO.
For LCD display
Cerium oxide abrasive
This is a polishing material that is essential for polishing
high-performance glass, such as optical lens, hard disk
glass substrate, and liquid crystal glass panels. Mitsui
Kinzoku’s strength is not only in nonferrous metal
materials, but also in rare-earth metals.
40%
For glass substrate
Active materials for lithium-ion batteries
Conductive oxide
Tantalum oxide
Niobium oxide
Atomized powder
Solder powder
Fine powder
Copper foil for PWB
Embedded Capacitance Materials for PCB
Various refractories for super-high-temperature furnace
Filtering equipment for molten aluminum
Carriers for electrophotography
Ferrite powder
Iron powders
Oxygen absorber
Rare earth oxides
High Precision Grinding Wheel
Super-abrasive wheel
40% 35%
[Fiscal]
(Outlook)
Global share
Global share
Global share
Global share
Global share
Global share
24 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 25
SO
W
T・ Pursuit of new levels of quality and create demand
through technological innovations
・ Demand expansion for high-functional products arising
from increased sophistication of market needs
・ Increased demand in final market due to the emergence
of developing countries
・ Increased price competition with manufacturers in
developing countries
・ Stagnant demand due to the rise of protectionism
and spread of infectious diseases
・Increased geopolitical risks affecting overseas
materials procurement
・ Product composition that is susceptible to changes
in the economy
・ Short life cycle of products
・ High-cost structure resulting from multiproduct
production
2020
Strengths
Opportunities
Weaknesses
Threats
*The figures for FY2021 and FY2022 in the above graphs
do not fully reflect the possible impact of COVID-19 on
demand.
Sales projection for 5G affiliates
(FY2018 = 100)
2018
300・
100・
2019 2020 2022[Fiscal]
100
(Plan)
200・
2016
(Plan)
20222017 2018 2019 2020
(Plan)(Plan)
[Fiscal]
Sales projection for Automotive catalysts
2015
100・
200・
300・
400・
2021
139
233
99
204
500・
2021
100131
200
281313
404
322
436
Vice President, Representative Director,
Executive Vice President, Business Creation Sector
NOU Takeshi
New products required by and useful to society
Business Creation Sector
In order to more effectively create products and businesses in ever increasing numbers,
we established the Business Creation Sector.
We will create new businesses through market co-creation by combining our own strengths of
core technologies, know-how and sales channels with external strengths such as customers and
partner companies.
The Business Creation Sector has been established
as a corporate function. Our mission is to create
new profitable products and businesses in a
problem free and efficient manner. Our focal points
are market co-creation, creation of new
technologies, and development of human resources
capable of creating new businesses.
New business creation operations, which the
Engineered Materials Sector was formerly in charge
of, have been placed under corporate control for
two reasons. One is because the Group’s
investments in new business creation have grown
to the extent that they need to be managed more
systematically on a corporate level. Investments
have been increased about three-fold compared
with the previous medium-term management plan.
The other is because the need to accelerate new
business creation demanded a different
management system and mindset from the previous
ones. It was also considered difficult for the
Engineered Materials Sector to concurrently
manage both new business creation and their
existing products offered and businesses executed
on a global scale.
Mitsui Kinzoku carried out this reorganization at
the halfway point in the medium-term management
plan, but we will make every effort to ensure that
new products and businesses be spawned under
this new framework. One of our pressing tasks is to
put on the market, as early as possible, prioritized
products so that they can be included in the next
medium-term management plan starting in FY2022.
A second pressing task is to create another large-
scale business. It is imperative that we implement
these two tasks at the earliest possible date.
We will work tirelessly toward the goal of
transforming ourselves into a market co-creation
business entity by drawing on Mitsui Kinzoku
Group’s expertise, technology, and “Material
Intelligence”.
Progress of commercialization
of products on new priority themes
[Market development] The material is expected to be put into
practical use in a special application in FY2020.
[Mass production] The mass production technology is being
established in the existing production lines.
A pilot plant is being built aiming to start its operation in January 2021.
Solid electrolyte for all solid-state batteries
HRDP® next-generation material for formation of ultra-fine circuit
[Market development] Multiple electronic device makers are
evaluating samples. The material is expected to be put into
practical use in FY2020 by some customers who evaluate the
samples faster than others.
[Mass production] Currently working on the establishment of
mass production with GEOMATEC Co., Ltd.
Mitsui Kinzoku has invested in Atomis Inc. (Head office: Kyoto-
shi, Kyoto), a spin-off from Kyoto University founded by
Distinguished Professor Susumu Kitagawa, Director of the
Institute for Integrated Cell-Material Sciences (iCeMS)* at Kyoto
University in 1997 to develop new porous materials called metal-
organic frameworks (MOFs).
Through this investment of corporate venture capital, we will
support the manufacturing of MOFs and the expansion of
applications of the materials.
MOFs can also be combined with inorganic materials, which are
one of our strengths, and applied in various new markets in the
environment and energy fields, such as gas absorption,
separation, and storage. We will pursue a broad range of
opportunities by developing valuable products.
Initiatives for Market Co-creation activities in FY2019
* iCeMS: A research institute in Kyoto University aiming to create new
interdisciplinary research domain integrating cell science and material science.
・ High quality and high performance product lineup and
sales channels that make use of our core technologies and
know-how
・ Manufacturing and sales structure of being “located at the
consumption site” with a focus on Asia
・Establishment of the Business Continuity Plan with
multiple production sites
[Engineered powders]
We will increase our efforts to expand sales of 5G-related
products that become widespread, and also of abrasives.
We will also strive to develop new products. Our business
unit that deals with powders, which constitute our core
technology, will work to expand our business by launching
new products continuously, in accordance with changeable
market needs and product cycle.
[Catalysts]We will maintain top share in catalysts for two-wheel vehicles
and aim to expand sales of catalysts for four-wheel vehicles.
We will also continue to evaluate further increasing and
strengthening our facilities in response to increasingly
stringent global restrictions against emissions. For GPF
catalysts scheduled for mass production in 2022, we will
continue our efforts to establish the production system.
[Copper foil]We will continue to working on the sales expansion of
MicroThin™ for PKG other than smartphones, such as for
external memories and GPUs, and also for 5G related
products such as electro-deposited copper foils for high-
frequency devices. We will also promote optimization and
smartification of our production sites.
[PVD materials]We formulated plans for improving profitability because of the
deterioration of the business environment. Through measures
aiming at strengthening competitiveness, we will aim to
recover profitability of PVD materials division.
(Plan) (Plan)
(FY2015 = 100)
Cooperation with ventures in the environment and energy fields
The strength of the Metals Sector is that it has accumulated smelting technologies and has multiple smelters.
We will promote optimization of the whole smelting business, further increasing our business value,
by adding copper smelting to the existing lead, zinc, and precious metals smelting and refining network
to increase synergies.
26 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 27
Since the early 1900s, we have owned multiple non-
ferrous metal smelters in Japan. We also have
possessed the consistent process from the mine to the
smelter. Similarly in our overseas operations, we have
not only invested in mines, but also undertaken mine
exploration, development and operation ourselves. We
are one of the few non-ferrous metal smelters to have
done this in Japan.
Extracting lead from scrap batteries and valuable
metals from industrial waste has begun early in the
1990s. We have implemented the process to the
downstream activities, leading to “venous industries.”
Material Stewardship is included in the 10 Principles for
Sustainable Development advocated by the International
Council on Mining & Minerals (ICMM), an international
organization made up of mining and smelting companies.
The aim is to promote the establishment of a material-
cycle society through management of the entire industrial
supply chain from mining, smelting, and processing to
consumption, disposal, recovery and recycling of metal
products. We greatly approve of this principle. It is also in
sync with our activities to date aimed at creating a
sustainable supply chain.
Under our Medium-Term Management Plan, we are
speeding up further the transformation of our business
structure from a non-ferrous metals smelter, which uses
concentrate as raw materials, to a recycling smelter.
We are actively expanding our processing capacity of
complex and refractory zinc ores, increasing lead blast
furnace processing, and strengthening our capacity for
collecting precious metals.
Also, in order to improve metal recovery rate and
recycle more various metals, we will utilize the newly
added copper smelting process and the existing zinc
and lead smelting processes to process intermediate
products generated at our smelting plants.
We aim to expand the capacity of recycle-smelting, to
increase benefits for a sustainable business entity, and
to contribute to the creation of a material cycling society.
2016
200・
100・
20212017 2018 2019 2020
[Billion yen]
139.6
186.5166.6 161.1
176.0163.0
2016
10・
5・
20212017 2018 2019 2020
(Plan)(Outlook)
8.5
5.5
-6.0
3.0
Net sales of Metals Sector
Ordinary income of Metals Sector
FY2019
We increased the quantity of processing lead-based recycled
raw materials and collecting by-product smoothly almost as
planned.
From FY2020 onwardsWe will continue to obtain more diverse raw materials for
recycle and increase the quantity of processing the raw
materials by organically connecting new processing processes
to the existing smelting network.
S
O
W
T
Strengths
Opportunities
Weaknesses
Threats
Share in Japan
Zn (Zinc)
Iron is essential as a basic material for use by
industries and in our livelihood. In addition,
zinc is what protects iron from corrosion. Zinc
powder is widely used not only as a coating
material for steel, but also for die-casting and
other processes of copper.
42%
Pb (Lead)
Lead is acquired from battery scraps and ores,
and because it is easy to process, it is used
mainly for lead storage batteries, as well as for
solder, lead pipes and sheets, X-ray shielding
material, soundproofing material, and more.
35%
(Leading)
(2nd)
Electrolytic zinc Electrolytic lead
Copper/Zinc base alloys/Antimony trioxide/Gold/Silver/
Sulfuric acid/Bismuth/Zinc ore/Lead ore
Senior Executive Officer, Metals Sector
TSUNODA Satoshi
Mining
・ Know-how of operation of our own zinc mine in Peru over a
long period of time
・ Production of high quality and clean zinc concentrates
Smelting
・Network of eight smelters(Zinc, lead, copper, precious metals)
that makes it possible to process a wide variety of raw materials
・ Presence as a top manufacturer of zinc in Japan
・ Possession of renewable energy (hydropower) facility
Mining
・ Widespread of ICT in operations
・ Stable growth of zinc and copper demand, both globally and
in the long term
Smelting
・ Global expansion of the recycled raw materials market due
to the enhancement of environmental awareness
・ Promotion of the spread of renewable energy worldwide
Mining
・ Increased mining costs caused by lower purity of mined ore.
・ Strengthened restrictions due to the enhancement of
environmental awareness worldwide
Smelting
・ Increased presence of Chinese zinc smelting
・ Gradual decline in domestic demand for zinc and copper
・ Intensifying competition for recycled raw materials worldwide
Mining
・ Increased costs from deepening of mining locations
Smelting
・ Aging of equipment
Total of zinc, lead, and precious metals
-7.0-1.5
-5・
[Fiscal] 2015 2016 2017 2018 2019
50・
55・
60・59%
56%Share in Japan
[Billion yen]
(Outlook) (Plan)
[Metals Sector ]
Recycle-smelting Implementing materials stewardship
Business strategy
(Electrolytic smelting process)
Annual transition of the ratio of recycled raw materials
[Fiscal]
[Fiscal]
Leverage our “Manufacturing Intelligence” and provide continuously “Safety,” “Comfort” and “Amazing Performance.”
Continually enhancing quality and cost competitiveness as well as developing and sales expanding
of automotive mobility products are one of the processes for that purpose.
Contributing to sustainability of the automotive industry has led to the building of a resilient society.
While Mitsui Kinzoku ACT Corporation (hereinafter "ACT")
was established in 2010, Mitsui Kinzoku’s automotive
parts & components business dates back more than half a
century. We first launched into the United States in 1987.
Currently, there are 11 production and supply sites
throughout the world including a site in Morocco that
was completed and started operations in January, 2020.
Our system of regional business units which conduct
business operations in each region is also established.
We have cultivated local human resources at both
operational and management level. Currently the
percentage of employees holding local nationality in
executive officer positions is around 23% and the
percentage of women in management positions is around
21%.
In FY2019, the first year of the current medium-term
management plan, the business environment
deteriorated more than expected due mainly to the
trade friction between the United States and China and
the spread of COVID-19. To survive this severe
environment, in addition to executing the contingency
plan, such as the reduction of fixed costs, globally, the
corporate headquarters and business units are working
closely together to implement the two main strategies
under Vision for 2024-continually enhancing quality
and cost competitiveness and focusing on winning
major contracts to expand sales.
Our vision for 2024 is to be a company that provides
products and services focused on safety, comfort, and
amazing performance through the utilization of our
strength in manufacturing intelligence. We will strengthen
our quality and cost competitiveness by implementing ICT
and other technologies in our production sites to develop
smart factories, in order to improve productivity and
enhance the quality of mass-produced items, as well as to
reduce costs.
Also, we would like to develop high quality products
for door-related components in accordance with CASE,
such as the electrification and automation of mobility,
and propose such products to our customers worldwide
in order to realize the acquisition of large-scale orders
and the expansion of future sales.
By establishing the ACT brand and strengthening
customer trust, we believe we can contribute to
sustainability of the automotive industry.
S
O
W
T
Strengths
Opportunities
Weaknesses
Threats
・ Technological abilities as a manufacturer specializing in components
for the door area
・ Long-term business partnership with outstanding Japanese OEMs
・ Supply chain that enables stable supply on a global scale
・ Integrated production at the major production sites that covers
everything from pressing, resin formation, and assembly
・ Alliance with European OEMs that do not have much business with the
Japanese OEMs who are our customers, and increase sales opportunities
toward European OEMs through joint purchases
・ Increased sales opportunities for our company’s lightweight products and
system products due to the electrification and automation of automobiles
・ High barriers to market entry because of strict demands in terms of
performance and required quality
・ Emergence of giving priority to one’s own country, deceleration of
the automobile market due to trade frictions, increased burden of
customs expenses, changes in the currency exchange rate
・ Market oligopoly by global mega-suppliers
・ Emergence of new customers and competitors from the major
transformation in the automobile industry
・ Deceleration of the automotive market caused by COVID-19
・ In-store share among European and American OEMs
・ Lineup of products for electric sliding doors and backdoor systems
・ Alliance with other companies that complement our own technologies
<Japan>Toyota Motor East Japan, Inc. “Quality Control Award”
Hino Motors, Ltd. “Superior Prize of Quality Control”
Achievements in FY2019 Customer awards for our manufacturing sites(Part of the results in FY2019 and no particular order)
Side Door Latch (GA Latch)
Weight of existing products = 1.0
0.85
1.18Strength of existing products = 1.0
We started full-scale production and supply of the GA Latch, a
next-generation side door latch. The GA Latch is smaller, more
lightweight, and higher-strength than existing products and can
be applied in a number of variations. It is also designed in
consideration of assembly workability for both customers and our
company.
2016
200・
20212017 2018 2019 2020
(Plan)(Outlook)
113.2 102.0 104.0
90.6
72.0
104.0
2016
10・
20212017 2018 2019 2020
6.25.5
4.7
0.5
5.0
5・
Net sales of Mitsui Kinzoku ACT group
Ordinary income of Mitsui Kinzoku ACT group
Business strategy
100・
50・
-3.0
Global share
Door Latch for automobile
Major products offered by Mitsui Kinzoku Act
Corporation that have top-level shares in the
world market are mechanical components that
keep the doors firmly in place on the vehicle body.
These parts are constantly required to be made
smaller, more lightweight, and with improved
performance, while also being required to have
the strength to ensure the safety of the people in
the vehicles.
20%around
<Other countries >Dongfeng Liuzhou Motor Co., Ltd. “Advanced supplier award”
GAC Toyota Motor Co., Ltd. “Quality Cooperation Award”
Zhengzhou Nissan Co., Ltd “Excellent service award”
Zhengzhou Nissan Co., Ltd “Long term collaboration Award”
General Motors (Thailand) Co., Ltd. “Quality Award”
TOYOTA CO-OPERATION CLUB (Thailand) “Quality Improvement Award”
Honda De Mexico, S.A. De C.V. “Supplier Performance Award”
Initiatives from FY2020 onwards
We will develop high-quality products for use around doors in
accordance to the electrification and automation of mobility, and to
meet the needs of our customers. We will make proposals on a
global level to our customers in order to acquire large-scale orders,
and thereby realize expanded sales in the future.
Solid progress toward achieving our vision for 2024
[Evolution of our system products]Our latch technologies will be combined with motor, high-
speed communication, sensor, and other new technologies
to give new added-value to our products that will make
ingress and egress from a car easier.
Easy Access Door SystemA system that provides safety, comfort, and amazing performance to
everyone. It allows the elderly and young children alike to get in and
out of the car safely and comfortably.
Automatic door
Sensor devices
Power Sliding Door
Power Back Door
28 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 29
IGATA Hiroshi
Senior Executive Officer of Mitsui Kinzoku,
President and Representative Director of Mitsui Kinzoku ACT Corporation
[Billion yen]
[Billion yen]
(Outlook) (Plan)
Continuous supply contributing to sustainable mobility
[ Automotive Parts & Components = Mitsui Kinzoku ACT Corporation ]
[Fiscal]
[Fiscal]
30 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 31
Capitals as the source of value creation
Mitsui Kinzoku Group maintains and strengthens not only our financial capital
but also our non-financial capitals in order to achieve our business model and enhance our corporate value.
We will develop growth products and businesses by continuously investing in non-financial capitals, which
generates social value.
Workstyle reform (human capital)
There are major changes of external environment underway, such as the decline of the working-age population in Japan
and the advancement of technologies including AI. In this situation, Mitsui Kinzoku Group has been reforming our workstyle
since FY2016 as a means for securing the human resources that will realize value creation of the Group. This workstyle
reform aims to create a work environment where diverse talents can participate actively, regardless of age, gender,
nationality or other attributes.
As people’s lifestyles are expected to diversify in the future, we offer various options to employees so that even those
who are restricted in when and where they can work due to child-rearing, nursing care, medical treatment, and other
reasons can work flexibly and for many years to come. We have also introduced flextime without core working hours,
working from home, and “Premium Friday” campaign, while improving leave-of-absence andreinstatement system.
In FY2019, from November 11, 2019 to
January 30, 2020, Mitsui Kinzoku implemented
trials of working from home in the headquarters,
Osaka office and a part of business site in Ageo,
Saitama, preparing for the introduction of
working from home in FY2020. Thanks to these
trials, we were able to have employees in those
areas shift to working from home in February
2020 in a smooth manner as an emergency
measure against the spread of COVID-19. This
has enabled us to reduce the infection risk for
employees and allow employees with
restrictions on the way they work to continue
working even during the emergency.
Development of human resources who will achieve value creation (human capital)
Mitsui Kinzoku Group develops human resources responsible for realizing value creation of the Group by OJT training and
Off-JT training programs. Especially, on the OJT training for new employees, we appoint OJT instructors and give regular
trainings to them. We offer Off-JT training to supplement the OJT. The Off-JT training aims at developing human
resources capable of creating businesses out of concerns about environmental and social issues. We are working to
expand and improve the Off-JT training programs, including training on how we should respond to ESG and the SDGs in
consideration of the changes in our external environment.
To respond to the spread of COVID-19 infection, we prepared all the training to be available online at the end of
FY2019. New employees in FY2020 received all their training online.
We also attach importance to the self-sustaining career development of employees which may lead to the creation of
new businesses and corporate value, and continuously explore ways to expand and improve support for employees’
career development.
Type of training
・ Programs in line with respective ranks, combining various subjects such as management,
leadership, career development, and CSR
・ Programs of information on management plans, results and various business measures
・ Programs of various themes, such as on equipment maintenance skills, calculating statistics,
intellectual property, and on sales skill-up
・ These programs are reviewed annually in accordance with the changes in external environment
and in-house needs.
・ External training program for candidates of next-generation managers
selected from Executive officers and Managers
・ Training program for next-generation and next-next-generation corporate manager candidates
selected within the corporate group.
・ Dispatch for Rank-based training held by Mitsui Inter-business Research Institute
・ Correspondence courses including e-learning
・ Support foreign languages learning
Acquire the necessary knowledge
and skills for each career stage
Strengthen each employee’s expertise
・ Special training for
corporate manager candidates
・ Interaction with external organizations
Self-sustaining career development
of employees
Rank-based training
Free-choice training
with specific theme
Self-development
support
Training for
selected employees
Purpose Outline
Overview of the Off-JT training programs
Rank-based training with National staff members Internal lecturers providing online training
*National staff: Local staff in overseas sites
Evaluation of initiatives for human capital (human capital)
Mitsui Kinzoku Group conducts the Employee Satisfaction Survey every three years in order to measure and learn about
satisfaction with workstyle reform and development of human resources, and employee engagement.
The results of the FY2019 survey show that the overall satisfaction level and the satisfaction level with respect to the
corporate group’s human capital measures rose compared to the previous survey in FY2016, indicating that our efforts
were generally evaluated positively. Based on these results, we will advance our human capital management.
Development of intellectual property (IP) human resources (intellectual & human capitals)
In 1988, the then Ministry of Labor (currently Ministry of Health, Labor and Welfare) identified the need to develop the
lifelong professional ability of businesspersons to enable them to respond to rapid economic and social changes toward
the 21st century. One of the recommendations made by the ministry for businesspersons was to acquire a qualification.
For companies, the functions of qualification and certification
tests can be roughly classified into the following four groups:
Mitsui Kinzoku Group has, for many years, been encouraging
employees to acquire qualifications (Pollution Control Manager,
and others) based on Function 1. In 2017, we started to bear the
whole or part of the expenses of employees required for acquiring
an IP-related qualification, such as examination fee, textbooks,
lecture registration fee, and transportation cost, to fill Functions 2
and 3. By allowing all employees, regardless of their position, job,
or whether or not the qualification is related to their job, to benefit
from this policy, we will develop and secure many IP human
resources.
1. Function that responds to a requirement under law or
is necessary for transactions in the industry
2. Function that promotes the acquisition of knowledge and skills
3. Function that allows the company to show its employees’
professional expertise externally
4. Function that complements the evaluation of each employee’s
professional ability at the company
3
6
6
17
The number of employees with IP qualification
in Mitsui Kinzoku Group
1st grade Certified Specialist
2nd grade Certified Specialist of IP Management(including 2nd grade The Examination of Proficiency in Intellectual Property)
Patent attorney
Back office/Administrative departments
Engineering departments
R&D departments
IP departments
Effective R&D management (intellectual & human capitals)
The source of continuous growth and the core competence for Mitsui Kinzoku Group is in research and development
toward the creation of new businesses. We strategically invest in R&D while also implementing stage-gate management.
Research themes that have been narrowed down by considering market needs (including environmental and social issues)
and commercialization potential are moved forward into the research stage. Research resources such as human resources
are allocated to the selected research in the research stage intensively. We will enhance our opportunities to create new
businesses by focusing on the areas that have high potential to proceed steadily from research to development,
commercialization, and market launch.
* Trends in R&D expenses are listed on page 21.
52.2%44.6%
Survey result in FY2019Survey result in FY2016
Q How satisfied are you with your
present work/company/workplace?
Q How satisfied are you with your
present work/company/workplace?
[Outline of survey]1.Target: 7,433 employees at Mitsui Kinzoku domestic consolidated (including employees transferred overseas and agency workers)
2. Method: Anonymous online or written survey
3. Contents: Evaluation/awareness of Mitsui Kinzoku Group, actual status and awareness of operations and workplace, evaluation of superiors,
employee's feelings and attitude toward their job and the corporate group.
4. Period: From October 29 to November 15, 2019
5. Response rate: 87.7%
32 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 33
Corporate governance
The foundation of our value creation
Mitsui Kinzoku recognizes that “corporate governance is a mechanism for ensuring transparent and fair
decision-making that proceeds in a prompt and decisive manner, taking into account the standpoints of
all stakeholders, including shareholders, customers, employees, and local communities.”
Corporate governance, which is one of the most important issues in business management, is about
establishing a management organization and mechanism and taking necessary measures to achieve the
management philosophy. Corporate governance is the foundation for sustaining the long-term value
creation of Mitsui Kinzoku Group.
Corporate Governance System
The Board of Directors is comprised of Executive Directors and Outside Directors. The board conducts appropriate and
accurate supervision of the business execution performed by the individual Executive Directors. In addition, Corporate
Auditors attend the Board of Directors and audit the decision-making process of the board and the performance of duties
by the Directors.
Directors and Board of Directors
The Directors supervise the execution of business operations. Important issues are shared in advance among the
Directors and discussed deliberately at the meetings of the Board of Directors. In order to make swift decisions and to
strengthen the supervision function of the board, the decision-making processes on certain items are entrusted to
Executive Officers and their performances are supervised by the board.
The term for the Board of Directors, as stated in our articles of incorporation, is one year. From FY2019, a mutual election
method has been introduced for appointment of the chairperson of the board. The chairperson is elected among the
Directors, and we strengthen the monitoring function of the board over the execution of operations. The mutual election
method enables to appoint the chairperson of the board from Outside Directors who are independent of execution and to
ensure clearer separation of supervision and execution functions.
General Meeting of Shareholders
Election/DismissalElection/Dismissal Election/Dismissal
Board of Directors Outside Directors
Financial AuditAuditCooperation
Involvement/Participation
Election/Dismissal/Supervision
Audit
Corporate Governance System of Mitsui Kinzoku
・Nomination Review Committee
・Compensation Committee
Board ofCorporate Auditors
External Accounting Auditor
President
Executive Council
Executive Officers
Internal Audit Committee
Audit Audit
Internal Audit Dept.
Cooperation
CSR Committee
Cooperation
・ Hotline Management Committee
・ Export Screening Committee
・ Supreme Safety and Environmental
Meeting
Survey/InstructionBusiness Units AffiliatesCorporate
The Corporate Governance Guidelines defining our fundamental principles regarding corporate governance is available on our website.
https://www.mitsui-kinzoku.com/Portals/0/images/en/toushi/management/governance/cgguideline_e.pdf
Executive Officers
President and Representative Director not only assumes
executive management responsibilities, but also executive
responsibilities for business operations of Mitsui Kinzoku Group.
Representative Directors and Executive Directors concurrently
serve as Senior Executive Officers for Mitsui Kinzoku.
Board of Corporate Auditors
and External Accounting Auditor
Corporate Auditors perform audits on the performance of
the Directors in accordance with the auditing plan
determined by the Board of Corporate Auditors. Corporate
Auditors strengthen their cooperation with Accounting
Auditors by receiving accounting audit plans and audit
results, as well as exchanging opinions regularly.
Internal Audit Committee and Internal Audit Dept.
In order to strengthen our internal control function, Mitsui
Kinzoku has an Internal Audit Committee chaired by an
Outside Director, which reports directly to the board. The
Internal Audit Dept. conducts internal audits. The
Department is equipped with personnel with specialized
knowledge and they perform audits regarding the group-
wide compliance with laws and regulations, as well as the
operating situation of the internal control system.
The Internal Audit Committee evaluates the results of
internal audits and checks the progress of corrective
measures for concerns raised by the audits. The
committee reports audit results to the Board of Directors
via the Internal Audit Dept.
Organization structure
The structure of each organization is as follows;
(As of July 1, 2020 - Number of female directors: 0; Number of female auditors: 1 )
NISHIDA Keiji
NOU Takeshi
HISAOKA Isshi
OSHIMA Takashi
KIBE Hisakazu
MATSUNAGA Morio
MIURA Masaharu
TOIDA Kazuhiko
MISAWA Masayuki
KUTSUNAI Akira
ISHIDA Toru
TAKEGAWA Keiko
President, Representative Director
Vice President, Representative Director
Director
Director
Director
Outside Director
Outside Director
Outside Director
Corporate Auditor
Corporate Auditor
Outside Corporate Auditor
Outside Corporate Auditor
◎
〇
〇
〇
〇
〇
〇
〇
◎
〇
〇
〇
〇
〇
〇
◎
〇
〇
〇
◎
〇
〇
◎
〇
〇
〇
〇
〇
〇
〇
◎
〇
◎= Chairperson 〇=Member of Committee (Chairperson of the Board of Directors is elected from among the Directors.)
(ー% )
(100%)
(100%)
(100%)
(100%)
(100%)
(100%)
(ー%)
(ー%)
(92%)
( )=Attendance rate in FY2019 *1 Not listed since being newly appointed
(ー% )
*1
*1
*1
(81%)
*1
Board of Directors
Board ofCorporate Auditors
NominationReview Committee
Compensation Committee
Executive Council
Internal Audit Committee
※ Auditors attend at the board meetings.
※Outside Auditors attend at the Nomination Review Committee and Compensation Committee in the role of advisers.
※ The Internal Audit Committee includes the general manager of the Internal Audit Dept. as a member and Corporate and Outside Corporate Auditors
as observers.
Name Positison
Expertise possessed by the Directors
NISHIDA Keiji
Name Title/PositionsCorporate
management
Business
strategies
Finance and
accounting
Technological
research/
development
Legal affairs
and risk
managementInternationality
NOU Takeshi
HISAOKA Isshi
OSHIMA Takashi
KIBE Hisakazu
MATSUNAGA Morio
TOIDA Kazuhiko
MIURA Masaharu
President,
Representative Director
Vice President, Representative Director,
Executive Vice President, Senior General
Manager of Business Creation Sector
Director, Senior Executive Officer,
Chief Environmental Safety Officer
Director, Senior Executive Officer, Senior General
Manager of Corporate Planning & Control Sector,
General Manager of Corporate Planning Department
Director, Senior Executive Officer,
Senior General Manager of Affiliates
Coordination Strategic Sector
Outside Director
Outside Director
Outside Director
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
[Business Execution]
34 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 35
Election policy of Directors and Auditors
Mitsui Kinzoku establishes a Nomination Review
Committee as an optional organization. The Committee
reviews candidates to serve as directors or auditors by
their capabilities, knowledge and personalities. Based on
the result of the review, those who are deemed capable of
satisfactorily fulfilling the responsibilities are named as
candidates for nomination by the board.
Compensation policy of Directors and Auditors
(1) Criteria for determining the amounts of compensation
The amounts of Directors’ basic compensation and
performance payments are determined by the
Compensation Committee, to which the decision is
entrusted by the Board of Directors. Decisions on the
amounts are made through deliberations at the committee
in a fair and transparent manner, within the limits approved
at the Annual General Meeting of Shareholders and based
on the company’s compensation standard policy.
Auditors’ compensation is determined by the conference of
Auditors, and the total volume of Auditors’ compensation
falls in the range approved at the Annual General Meeting
of Shareholders.
(2) Composition of compensation
Compensation for Directors consists of base
compensation and performance payments. Base
compensation is calculated based on that of the President
and by applying the ratio according to the title, taking into
consideration the Company’s performance, the general
level in Japan, and other factors comprehensively.
Performance payments are calculated by using
consolidated ordinary income as the performance
indicator and is determined (calculated by addition and
subtraction) by the evaluation corresponding to the
performance of the business for which the Director is
responsible. Outside Directors and Auditors who are
uninvolved in business execution do not receive
performance payments.
The payment ratio of the compensation provided to the
Directors (excluding Outside Directors) has been
determined, by way of how the system is designed, as
being 60% in basic compensation and 40% in
performance payments .
This ratio changes as performance payments vary
according to the company’s financial performance.
Notes:
1. At the 80th Annual General Meeting of Shareholders held on June 29, 2005, shareholders approved a limit on compensation paid to Directors of ¥60 million
per month (not including compensation for their services as employees).
2. At the 80th Annual General Meeting of Shareholders held on June 29, 2005, shareholders approved a limit on compensation paid to Corporate Auditors of
¥15 million per month.
3. At the time of resolution regarding above Notes 1 and 2, there were eleven (11) Directors and four (4) Corporate Auditors.
4. At the meeting of the Board of Directors held on April 22, 2014, it was resolved to discontinue the system of bonuses for Directors and to calculate the
Directors’ compensation by adding performance payments linked to results in addition to a fixed base compensation. This does not apply to the Outside
Directors to whom the Company will pay the base compensation only, without the addition of a performance payment. The total volume of Directors’
compensation would be within the limit already approved at the 80th Annual General Meeting of Shareholders held on June 29, 2005. The total amount of
Directors’ compensation will be determined by the Compensation Committee chaired by an Outside Director and composed mainly of the President, the
Director in charge of Human Resources, and the Outside Corporate Auditors as advisors.
Director (excluding Outside Director)
Corporate Auditor (excluding Outside Corporate Auditor)
Outside Director/Outside Corporate Auditor
4
2
6
194
50
53
Total amount of Compensation by type (millions of yen)
138
50
53
55
-
-
NumberTotal Compensation
(millions of yen)Classification
Performance paymentsBase compensation
Total compensation paid to Directors and Auditors
Election of Outside Directors
We endeavor to ensure the independence of the supervision and auditing functions from our company and to incorporate
the perspectives of diverse stakeholders. Mitsui Kinzoku appointed a new Outside Director with management experience
on June 26, 2020.
Mr. TOIDA Kazuhiko has experience as a business executive, having been engaged in a wide range of work at Nissan Motor Co., Ltd.,
including product planning, sales promotion, and launch of a sales company. In addition, he has experience as a Representative Director
and President of FALTEC Co., Ltd. The Company judges that his wealth of experience is expected to contribute to the strengthening of the
Group’s supervisory functions.
Reasons for the NominationPositionName
Mr. MATSUNAGA Morio has specialized knowledge of engineering and experience of organizational management as a
university professor and the president of a national university corporation. The Company judges that by utilizing his wealth of
experience he can further contribute to the strengthening of the Group’s management oversight and supervisory functions.
Outside
DirectorMATSUNAGA Morio
Mr. MIURA Masaharu has a wealth of knowledge and experience in legal circles as a public prosecutor and a lawyer.
The Company judges that by utilizing his wealth of experience he can further contribute to the strengthening of the Group’s
management oversight and supervisory functions.
Outside
DirectorMIURA Masaharu
Outside
DirectorTOIDA Kazuhiko
ISHIDA Toru Outside
Corporate
Auditor
Mr. ISHIDA Toru has held key positions in which he has contributed to development of commerce and industry over the years.
He served as Director-General, the Industrial Science and Technology Policy and Environment Bureau, METI and Commissioner,
Agency for Natural Resources and Energy, METI and currently serves as President, The Japan Chamber of Commerce and
Industry and President, The Tokyo Chamber of Commerce and Industry. The Company judges he can reflect his experience and
specialized knowledge in auditing of the Company and believes he is a suitable person for the position of Corporate Auditor.
Ms. TAKEGAWA Keiko served as Director, Public Relations Office and Director General, Gender Equality Bureau at the Cabinet
Office and has a wealth of knowledge and experience through her engagement in formulation and implementation of policies
such as promotion of women’s participation and advancement. Although she has never been directly involved in management of
a company, the Company judges that she can utilize her wealth of experience in auditing of the Company and believes she is a
suitable person for the position of Corporate Auditor.
Outside
Corporate
Auditor
TAKEGAWA Keiko
* The profile of Directors and Auditors is listed on pages 96-97.
TAKEGAWA Keiko
Outside Corporate Auditor
MISAWA Masayuki KUTSUNAI Akira ISHIDA Toru
Corporate Auditor Outside Corporate AuditorCorporate Auditor
TOIDA Kazuhiko
Outside Director
KIBE Hisakazu MATSUNAGA Morio MIURA Masaharu
Director Outside DirectorOutside Director
OSHIMA Takashi
Director
NISHIDA Keiji NOU Takeshi HISAOKA Isshi
President,
Representative Director
Vice President,
Representative Director
(as of June 30, 2020)
Director
36 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 37
Internal control system
A summary of the decisions made at the meetings of the
Board of Directors, regarding the business structure for
the appropriate business operation of Mitsui Kinzoku
Group in compliance with laws and regulations and the
corporate ethics, is available on our website.
https://www.mitsui-kinzoku.com/en/toushi/management/governance/
Effectiveness Assessment of the Board of Directors
We assess the effectiveness of the Board of Directors
every year to ensure the continuous enhancement of the
board’s function. In FY2018, we had an independent
organization conduct the assessment. In FY2019, we
conducted self-assessment, which included a review of
past results.
(1) Implementation method
An interview with each Director based on a questionnaire
survey filled out in advance.
(2) Main contents of the questionnaire・ Involvement of the Board of Directors in the
enhancement of corporate governance・ Involvement of the Board of Directors in the formulation
of medium-term management plans and the addressing of
critical issues・ Operation of the Board of Directors (including the
Nomination Review Committee and the Compensation
Committee)
(3) Outline of results
The results show that, while further improvement is
required mainly in terms of the enhancement of the
monitoring function, a higher evaluation than in the
previous assessment was given to the way the Board of
Directors is involved in the formulation of the medium-
term management plans and the addressing of critical
issues. The Board of Directors was judged overall as
contributing to the promotion of corporate governance.
There was also an opinion pointing out the increasing
need for our unique efforts to strengthen governance
based on the Corporate Governance Code, and it was
shared among all the Directors.
The Board of Directors will fully examine issues identified
in the assessment for further improvement of the functions
of the board, and follow up on the issues as part of the
assessments in the next term and thereafter.
Effectiveness Assessment of the Board of Corporate
Auditors
We introduced self-assessment of the effectiveness of the
Board of Corporate Auditors in FY2019. The main aims
are to assess their audit activities, reflect assessment
results in the audit plan of the following fiscal year and
improve the quality of audits. The results of the
assessment are reported to the Board of Directors.
(1) Implementation method
All the Corporate Auditors discussed and checked the
effectiveness of the board based on a self-assessment
questionnaire survey filled out by each Corporate Auditor.
(2) Main contents of the questionnaire・Effectiveness of their response to the Corporate
Governance Code・ Effectiveness of the three-type audits
・ Effectiveness of the way they respond to misconduct,
such as material legal violation and inappropriate
accounting practices
(3) Outline of results
While the effectiveness of the Board of Corporate Auditors
was found to be maintained, some issues, including one
related to collaboration with group auditors, were identified.
We will reflect the issues identified in the audit plan of the
next fiscal year for further improvement of effectiveness.
ICT governance
Mitsui Kinzoku formed a project team for the
reinforcement of ICT governance of the Group in FY2019.
The team led various activities including the establishment
of ICT-related rules to reduce such risks as cyberattack
and information leak. We will continue to strengthen our
ICT governance mainly through the newly created
Information and Communication Technology Dept.
Regarding Directors’ (excluding Outside Directors)
compensation, trends in the amount of compensation for
one year from the conclusion of General Meetings of
Shareholders, the beginning of the term, are as stated on
the left.
(excluding Outside Directors)
-112.84
(91st)310.47
(92nd)
112.39
(93rd)177.55
(94th)
197
232
154
207
197 197
138 138
34
16
68
July 2016 -
June 2017
July 2017 -
June 2018
July 2018 -
June 2019
Ordinary income(hundred millions of yen)
Compensation
for officers(millions of yen)
■ Base compensation
■ Performance payments
・The ratio of base compensation to performance
payments was changed in July 2018.
・The number of Directors (excluding Outside Directors)
for each term is as follows.
Linkage between the amount of compensation to Directors and ordinary income
91st term: 4, 92nd term: 4, 93rd term: 4, 94th term: 4
July 2019 -
June 2020
Corporate governance
Risk management
Mitsui Kinzoku Group is working on the improvement of its risk management organization and system to
enhance its ability to respond to risks that may threaten business and the Group’s continuity.
Our approach
Mitsui Kinzoku Group has identified, from an integrated
perspective, long- and short-term business risks and
business risks in an emergency. These risks potentially
have high financial impact that may threaten business and
corporate group’s continuity. To remove or minimize the
impact of these risks, we are working on the improvement
of the Group’s comprehensive risk management
organization and system in order to enhance our ability to
respond to the business risks.
Risk management system
In 2020, Mitsui Kinzoku Group identified business risks
from a comprehensive perspective and rebuilt the risk
management system which includes planning measures
against the risks, implementation, and review. Initiatives
based on the system will be reviewed by the Board of
Directors at least annually and as needed.
The Group’s risk management is managed by the
Senior Executive Officer who serves as the head of
Corporate Planning & Control Sector. Units assigned to
be in charge of each type of risk act as a secretariat,
under which relevant units or sites provide their
cooperation.
Measures against COVID-19
Mitsui Kinzoku Group classifies large-scale infection and
large-scale natural disaster as risks that can become
urgent when they emerge. If these risks emerge, we put
the human lives first and strive for protecting our assets,
maintaining supply chains, and achieving the early
recovery and continuity of operations in accordance with
the Group’s emergency response rules.
The spread of COVID-19 has caused major restrictions
on our operations in some overseas sites of the Group,
but we are striving to minimize the impact on our business
through our appropriate emergency risk management.
Since COVID-19 began to spread worldwide in January
this year, we have immediately taken measures to prevent
infection, such as wearing face masks, disinfecting
workplaces, restricting employees’ movement, and urging
office workers to work from home, based on the basic
policy of human life first. We have tightened the measures
in phases in line with the heightening of the alert level in
each country. In the meantime, as the spread of infection
was judged as an emergency situation that may have a
huge adverse impact on our business, we have set up a
countermeasures headquarters headed by President to
address the crisis in a way that matches the changing
situation.
Measures to prevent the spread of infection
(February 2020-)・ Office workers are urged to work from home as a
general rule.・Working hours are staggered and temperature
checking before commuting is made mandatory. ・ Employees’ overseas and domestic travel is prohibited
in principle.・Meetings, training, and other events are suspended or
conducted online.・ Online recruiting
・We follow the guidelines established by each country
to prevent infection.
Business continuity plan (BCP)・ The effectiveness of the existing BCP has been
examined and the BCP has been modified in response to
COVID-19.・ Products for which production is affected due to
government regulations and disrupted supply chains are
produced at another backup site (while the BCP is
activated).・ Operations have been suspended at multiple sites in
Japan by utilizing the Employment Adjustment Subsidy
program.
Temperature checking at the entrance (Malaysia)
38 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 39
It has been four years since I was appointed Outside Director at
Mitsui Kinzoku. During these years, I have seen many changes
at the company. One major change is the computerization of the
internal infrastructure. Much work was processed on a paper
basis previously but has been shifted to the use of electronic
databases. As can be seen in some business units, the
personnel in manufacturing sites are beginning to rely on their
database, rather than their experience, when making decisions.
The other major change is R&D. The direction of research
investments has become clearer than four years ago under the
initiative of Vice President Nou. I can feel that the company is
becoming more future-oriented, and this is undoubtedly
enlivening young researchers’ spirits. Researchers generally
tend to prefer doing everything by themselves for their research,
but in the case of promising research, they are supposed to
collaborate from an early stage with the staff promoting
commercialization. At Mitsui Kinzoku, the R&D function and the
manufacturing operation interact with each other from an early
stage of the Stage-Gate process to advance projects. I think this
is a very good approach.
Needless to say, there is no business without customers. R&D is
meaningless unless its progress matches the speed required by
customers. The sales force knows such customer needs. If the
speed required by customers and the direction in what they want
to do are not shared with the R&D function, R&D efforts may not
lead to commercialization.
In addition, the company’s technologies alone cannot produce
anything. It is important to exploit good external technologies by,
for instance, utilizing venture capital. I think this is worth taking a
little risk for. We are currently gaining experience and beginning
to achieve a balanced use of our own and external technologies.
Material manufacturers have the power to change the world. If
young researchers at material manufacturers like us proactively
anticipate the needs of parts manufacturers and develop
materials, the results can be amazing products. Correctly
identifying and meeting the needs of the times can result in the
creation of a world-leading product in the field.
Micro Thin, an extremely-thin copper foil, is a good example.
This invention has become a successful business for us today.
This is thanks to R&D achievements and knowledge
accumulated through our predecessors’ painstaking efforts. If
researchers at the company look into the future when developing
something, it, of course, does not guarantee success but is no
doubt more likely to lead to the creation of a world-leading
product.
We are currently developing a number of promising
technologies at present, but there are various risks that need to
be addressed for their commercialization. Winning the
competition is not easy. To win, we must keep sowing seeds
while looking into the future. But when doing so, we also must
decide the best time to harvest. It is of great importance to keep
closely watching market growth and plan the rollout of the
product at the most effective timing.
As the advance sharing of information with the Board of
Directors has become a common practice, it has become easier
for Outside Directors to keep updated on projects. For instance,
we can get information on projects in their early stages at open
labs, and when they reach a commercialization stage, we are
given more specific details during officer training. As I myself am
an expert in engineering, I can provide technical opinions in
different research stages. Other Directors can also make
comments from a business management perspective. Because
the Board of Directors is the final decision-making body, they
inevitably spend much time deliberating matters required by law
to be resolved. However, Directors are now given opportunities
to receive information and have discussions in advance,
facilitating the board to make much more informed, final
decisions.
In declining organizations, the opinion “why change something
that is going well?” is often voiced. Such organizations tend to
reject any extra change or idea that could make things better. To
avoid this, external advice is important for the execution of
business. My role at Mitsui Kinzoku is to offer opinions based on
my experience and expertise which reflect the current situation of
the company.
As the chair of the Compensation Committee, I will also work
hard to optimize the compensation system to keep everyone
motivated at work. It is hoped that Executive Officers will think
more about their successors from a longer-term perspective,
rather than just focusing on their own tenures.
Sowing seeds
with a view to future needs
MATSUNAGA MorioOutside Director
Postdoctoral fellow at the University of Tennessee in 1977. After serving
as a professor of engineering, he was the president of Kyushu Institute of
Technology from 2010 to 2016. Since June 2016, he has been an outside
director of the Company.
When I was appointed Outside Corporate Auditor in 2013, I was
amazed by the broad range of businesses Mitsui Kinzoku is
involved in.
As mining resources are almost depleted in Japan, it is only
natural for the company to make inroads into various business
domains in search of new opportunities. However, I had not
known that the business lineup includes even electrolytic copper
foils and catalysts until I became directly involved in the company.
I also realized that the employees are very earnest. I felt strongly
that they are behind-the-scenes people underpinning the
ceaseless supply of materials.
This behind-the-scenes environment is familiar to me because it
is similar to the environment in which I grew up. My father was
doing civil engineering work at an electric power company and
involved mainly in dam construction for hydropower plants. The job
may not have been a major one at an electric power company, but
I thought it was an essential job that builds a foundation on which
the company can continue its business. I was proud of my father.
The same can be said about a prosecutor, which I spent many
years working as. Legal work can hardly be seen from outside.
Soon after I became a prosecutor, I was told by a senior
colleague that a prosecutor’s job is like cleaning a ditch; when a
problem occurs in society, we must somehow clean it up.
Although it is difficult to see from outside what prosecutors do,
their job is indispensable for society. And so is the job of Mitsui
Kinzoku. I feel that my current job at this company is an
extension of the path I have been on in my life.
I am sometimes asked what changed after I became Outside
Director from Outside Corporate Auditor.
Outside directors are responsible for building a robust system
without such flaws that may be pointed out by corporate auditors,
while corporate auditors’ job is to hold directors to account in the
case that there is any deficiency in the system.
As is well known, outside directors do not engage in the
execution of operations. Outside directors are, under the current
corporate law system, expected to contribute to the sound
management of the company by properly monitoring the
directors’ execution of operations. While their functions partly
overlap those of corporate auditors, their standpoint is totally
different from that of corporate auditors as they check the
company’s internal control on the execution side.
As the chair of the Internal Audit Committee, I am also involved
in audits conducted by the Internal Audit Department. Internal
audits are becoming increasingly important. The best practices
of both internal audits and Corporate Auditor audits and the
establishment of an effective internal control system constitute
the foundation of proper governance.
A corporate auditors’ job is similar to a prosecutors’ job. Internal
audits at companies have a creative aspect as their goal is not
just to find deficiencies but to help improve the system for the
better. They are even expected to help create a system that
“prevents mud from building up in the ditch in the first place.”
Each Director of the board at Mitsui Kinzoku has a distinctive
specialty, such as technology or R&D, and extensive business
experience. I try to offer opinions based on my knowledge and
experience as a lawyer. From my experience as a prosecutor, I
believe that checking to prevent any problem from occurring is
really important.
I know many shareholder litigation cases involving other
companies. To never allow such cases to happen at Mitsui
Kinzoku, I always think about what we need to watch out for to
ensure proper execution of operations. Governance and
compliance are the backbone of all business operations. We
need the strong backbone to maintain sound and effective
corporate management.
I am also the chair of the Nomination Review Committee. As
with the Internal Audit Committee, this committee is also a place
where lively discussions take place.
Decisions on to whom we should entrust the company’s future
cannot be made by an outside person alone. In order for an
outside person to make such decisions, there must be an
appropriate system that allows the person to access the
necessary information that can be used as a basis for decision
making. During the past seven years at Mitsui Kinzoku, and
since when I was an observer of the Nomination Review
Committee, I have had opportunities to meet many people on
such occasions as audits in various business locations. These
opportunities have allowed me to build up a fairly good amount
of information that may be useful for decision making. Needless
to say, as an Outside Director, I always ensure fairness in
personnel selection. I will also ensure appropriate decision
making by exchanging information with people at the company.
Mitsui Kinzoku must be led by capable personnel who are
motivated to support the company throughout their lives. This
company has an adequate system in place for developing such
personnel.
Fateful encounter
behind the scenes
MIURA MasaharuOutside Director
Appointed the prosecutor in 1975. Served as the Immigration Bureau
Director of the Ministry of Justice and the Public Prosecutor General of the
Fukuoka High Public Prosecutors Office. Registeredas a lawyer in 2011.
Outside auditor of the Company since 2013, and he has been an outside
director of the Company since 2019.
Corporate governance
40 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 41
Occupational health and safety
Mitsui Kinzoku Group holds that occupational health and safety is essential for business continuity.
We provide a safe worksite environment not only for our employees
but also for cooperative companies, contractors, and visitors to plants.
Policy and management system
Mitsui Kinzoku Group is committed to creating a safe and
comfortable work environment. This is based on our
Basic Policy on Health and Safety, in which it states that
“ensuring the health and safety of all people working for
Mitsui Kinzoku Group is the most important element for
conducting business activities.” We also believe that the
development of a corporate culture that places health and
safety first will lead to increasing productivity and
reducing operational and business risks, and even to
strengthening our relationship of trust with employees
and solidifying our business foundation in the medium to
long term.
Environmental and Safety Management System
President
Chief Environmental and Safety Officer
Environmental and Safety Supervisory Manager
(General Manager of the Environmental
and Safety Dept.)
Chief Environmental and Safety Administrator
(Senior Executive Officer of the sector)
Supreme Safety and
Environmental Meeting
Chief Environmental
and Safety Administrator
(Head of site)
(Business Sectors
(Operation sites)
Health and safety management system
Mitsui Kinzoku Group adopted the occupational health
and safety management system, OHSAS 18001, for
major sites. Currently, we are working to sequentially
change this to ISO 45001 certification. For small-sized
sites, we developed an internal certification system.
At each site we work to realize an upward spiral motion
by going through the PDCA cycle in accordance with the
management system. Improvements to the issues
identified by the review are incorporated into measures
such as risk assessments and health and safety training.
We implement internal safety audits both in Japan and
overseas in order to confirm the operational situation of
the management system at the manufacturing sites. The
internal safety auditing body checks for compliance with
laws and regulations, such as regarding the notifications,
inspections, and measurements, in addition to pointing
out hazardous places and following up on improvements
made.
Health and safety training
Mitsui Kinzoku Group conducts health and safety training
for employees regularly to increase their level of
awareness of health and safety, ensure thorough
compliance with health and safety regulations, and
cultivate a corporate culture that places health and safety
first.
Promotion of the lockout system
Mitsui Kinzoku Group defines the “President’s policy on
Important health and safety issues” every year that raises
key initiatives for the following year. The President’s policy
for 2020 gives priority to preventative management. As
one of the actions to achieve this, a lockout system has
been introduced within the Group.
Occupational accidents could occur caused by human
errors, such as accidently switching on a machine whose
Training for instructors of the lockout system
Purposes
Expand knowledge on health and safety across the Group (Knowledge required for each position, key initiatives in the year, good practices, latest trends)
Promote compliance with safety rules and improve risk perception at manufacturing sites
Major training programs
・ New employee training・ Rank-based safety training・ Laws and regulations lecture・ Hands-on training at other companies・ Lecture by an external lecturer・ Training for instructors of the lock out system*
・ ”Kiken Yochi” activity(hazard prediction) ・ Experiential risk training・ Risk assessment training・ Safety communication activity・ Safety equipment training・ Emergency training(fire/earthquake)
* Newly introduced in 2019
operation has been suspended for cleanup, refueling,
inspection, repair, adjustment, construction, or other work.
The lockout system is a system that shuts off and locks the
power source of mechanical devices to prevent
occupational accidents that could occur due to erroneous
operation and protects the safety of workers.
To introduce the lockout system, a promotion project
team made up of members from the Environment & Safety
Department and technical and machinery managers of
each site was launched in FY2018. In FY2019 the lockout
standard was established as the standard of operation of
the system. Sixty managers of the sites have been trained
as instructors, who, in turn, have provided training to
applicable workers at their respective sites, using video
materials created by the company, to ensure that the
lockout system will be operated effectively across all the
sites. Lockout kits including locks have also been made
available for use at the sites gradually to begin the full-scale
operation of the system. From FY2020, we will review and
improve the system regularly to maintain their effective
operation in order to prevent occupational accidents.
Lock out of valves
Health and safety support against COVID-19
Mitsui Kinzoku Group strives to ensure the health and
safety of employees when an emergency occurs. With the
spread of COVID-19 in Japan and overseas, we are
giving first priority to the safety and peace of mind of
employees and taking measures to ensure health and
safety in their workplaces.
Safety performance in 2019
The frequency rate of accidents of Mitsui Kinzoku as well
as domestic consolidated affiliates exceeded the average
for the manufacturing industry as also for the non-ferrous
metal manufacturing industry. We are analyzing the
causes of accidents and taking measures for recurrence
prevention.
For office workers
For workers at manufacturing sites
・ Provided information about health management and mental health
care for working from home
・ Provided information on how to set up an environment for working
from home
・ Took measures to both prevent heat stroke and avoid the “Three Cs.” *
・ Thoroughly disseminated rules for wearing masks in hot environments
・ Shared disaster prevention precautions when restarting operations
・ Emergency measures (fever/heat stroke)
* “Three Cs.”: Abbreviation for “closed spaces, crowded places and
close-contact settings”, which is presented by the Ministry of Health,
Labor and Welfare of Japan.
0・
10・
20・
30・
2017 2018 20192015 2016
14
22 23
10
27
12
31
5
21
1
17
0・
10・
20・
2017 2018 20192015 2016
7
1211 11
13
8
1
13 13
6
9
2019
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
2016 2017 20192015
0.010.02
0.01
0.03
2018
0.03
0.00
1.00
2.00
3.00
2016 20172015
1.39
1.14
1.53
1.23
1.18
2018
Safety performance in 2019
Trends in the number of accidents in sites in Japan
※ Including accidents that occurred in cooperative companies and contractors
Trends in the number of accidents in overseas sites
※ Including accidents that occurred in cooperative companies and contractors
Serious accidents Not requiring days offRequiring days off
Serious accidents Not requiring days offRequiring days off
※ Not including accidents that occurred in cooperative companies and contractors
Frequency rate of accidents
※ Not including accidents that occurred in cooperative companies and contractors
Severity rate of accidents
Mitsui Kinzoku
Domestic consolidated
affiliates
Overseas consolidated
affiliates
The entire Group
Average of manufacturing
industry (Japan)
Average of manufacture
of non-ferrous (Japan)
The values shown in the graph are for the entire Mitsui Kinzoku Group
as a whole
Mitsui Kinzoku
Domestic consolidated
affiliates
Overseas consolidated
affiliates
The entire Group
Average of manufacturing
industry (Japan)
Average of manufacture
of non-ferrous (Japan)
42 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 43
Initiatives for environmental issues
Changes in the Earth’s environment may affect Mitsui Kinzoku Group’s business.
We strive to reduce the negative impact on the environment brought about by our business activities
because we recognize that it constitutes a great risk to our business.
Environmental management
Mitsui Kinzoku Group has established the Supreme
Safety & Environmental Meeting as a place to deliberate
and determine the most important matters related to
safety and the environment. Guidelines and action plans
determined at the Meeting are spread to each site by the
Environmental and Safety Supervisory Manager (General
manager of the Environmental and Safety Dept.) under
the direction of the Chief Environmental and Safety
Officer. Each site that operates under ISO14001 has a
chief person that serves as the person responsible for
managing environmental and safety, and who makes
sure that the required actions are being reliably executed.
Response to climate change
Mitsui Kinzoku Group considers climate change as an
important change in our external environment which may
affect the continuity of our business. As our businesses
include non-ferrous smelting, electrolytic copper foil, and
other businesses with high energy consumption, we are
well aware of the impacts of energy consumption and
greenhouse gas (GHG) emissions from business
activities on climate change. We are also concerned that
these matters may have impacts on our Group’s business
model and financial condition as climate change
accelerates. With these as a background, Mitsui Kinzoku
Group is striving to curb its GHG emissions and review its
energy usage, among other efforts, to reduce risks
associated with climate change. We will also take
advantage of opportunities related to climate change by
creating products that will contribute to the reduction of
GHG emissions and that will meet our environmental
criteria to be certified as our environmental contribution
products.
The Basic Environmental Policy
and the Environmental Action Plan
In 2001, Mitsui Kinzoku Group established the Basic
Environmental Policy and the Environmental Action Plan.
In response to the Paris Agreement as well as the
expansion of ESG investment, we revised the basic
policy and the action plan in 2018, in order to strengthen
our Group's efforts to address environmental issues. In
the action plan, we have assessed the negative impacts
of our business activities on stakeholders in our value
chains and set targets for activities with significant
impacts, on which we will focus our efforts to reduce their
environmental footprint. In 2019, we held briefings to
explain our action plan to ensure that its details are
known throughout the Group. We will also make sure that
plans of each site reflect the targets set in the action plan
to promote their achievement.
1 Establishment and improvement of environmental
management system
2 Reduction of environmental footprint
Establishment and improvement of environmental management system at
each site according to the form and scale of business
・ Prevention of global warming
・ Effective resource utilization and waste reduction
・ Reduction of emissions of environmental pollutants
・ Utilization of renewable energy
・ Appropriate utilization and management of water resources
・ Biodiversity conservation
・ Thorough management of mine closure
3 Development and provision of environmental contribution products
4 Emergency measures
5 Education/public relations/social contribution activities
Development of environmental contribution products and market expansion
Preparation of well-organized emergency manuals for disasters and
accidents and continuous improvements of them
・ Strengthening environmental education
・ Disclosure of environmental information
・ Dialogue with stakeholders
While recognizing the conservation of the global environment as one of
the most important management issues, we will act with consideration for
environmental conservation in all aspects of our business activities.
(Revised in April 2018)
Basic Environmental Policy
[Principle]
1 We will make efforts to prevent environmental contamination and reduce
negative environmental impacts by complying with laws and regulations,
assessing the impact of our business activities on the environment,
including with regard to biodiversity, and setting necessary self-standards.
[Policies]
2 We will improve the organization and system to promote the environmental
preservation activities at each site and company of the Mitsui Kinzoku Group.
3 We will strive to address climate change and reduce wastes and
the emission of environmental pollutants by setting targets.
4 As a commitment to sustainable use of natural resources and conservation
of biodiversity, we will actively promote the introduction of environmentally-
friendly technologies, materials, and the development of environmentally
conscious products and solutions.
5 We will continuously improve the environmental management system
by regularly implementing an audit.
6 We will raise awareness of all people working in the Mitsui Kinzoku Group
by emphasizing the importance of environmental conservation through
environmental education and awareness raising.
These policies apply to all the directors, officers and employees of Mitsui Kinzoku
and its Group companies.
Outline of the Environmental Action Plan
(Revised in April 2018)
Reduction of GHG emissions
In FY2019, we adopted a new calculation method of GHG
emissions in line with the global trend of response to
climate change. The method allows us to reflect our
avoided emissions through the creation and use of
renewable energy. Based on this calculation method, in
June this year, we reset our GHG emissions reduction
target by FY2030 over FY2013 levels at 26%, from the
previous 7%, including avoided emissions from renewable
energy use.
Our activities to reduce GHG emissions are driven by
the Energy-Saving Committee, a group-wide organization
chaired by the Chief Environmental and Safety Officer.
The committee promotes the reduction of energy
consumption and the increase of renewable energy
generation, while also providing education within the
Group and keeping us updated on the trends in Japan
and overseas, in order to achieve our long-term targets.
The committee also reviews its policies as needed based
on the previous year’s performance and deploys them
across the sites.
In April this year, a new dedicated organization for
energy management was established. The organization
specializes in duties related to energy, including identifying
opportunities to save energy and create renewable energy
at each site, investigating and addressing the technical
issues of the sites, and verifying the effects of the efforts
exerted by the sites on the reduction of their energy
consumption. The organization will also collaborate with the
corporate planning department of the company to propose
to the senior management investments necessary for
projects and activities.
0・
500・
1,000・
1,500・
2.000・
2015 2016 2017 2018 2019
1,233.81,337.3
1,758.41,691.7
407.4
402.9
1,247.61,351.0
384.5
1,307.2
1,650.5
Creation of renewable energy
While keeping stable operation of existent renewable energy
facilities, Mitsui Kinzoku Group works to introduce new
renewable energy power generation projects as well as increase
the ratio of renewable energy in its energy usage.
Kamioka Mining and Smelting Co., Ltd. completed the
renewal construction work for five of its ten hydroelectric power
plants in FY2018 and started full-scale operation from FY2019.
The Copper Foil Division has newly installed solar power
generation facilities at the sites in Ageo (Japan) and Taiwan with
capacity of 10kW and 830kW respectively and started operation
in April this year.
0・
100・
200・
300・
400・
2015 2016 2017 2018 2019
(GWh)
352.7
272.3
236.7
376.8
421.8
215.5
111.5 100.4
194.9
291.4
137.2
157.7
133.3
178.8
127.3
3.1 3.0 3.1 3.1
Solar power generation equipment, Taiwan Copper Foil Co., Ltd.
CO2 emissions from energy consumption
Total of
overseas
sites
(thousand t-CO2)
Total of
domestic
sites
※ Emission amounts from overseas sites have been
added to the total amount starting FY2017.
※ We have received an independent practitioner’s assurance
for the figures for FY2019 in this information to which is
attached.
※ Figures for CO2 emissions from energy consumption
were calculated using emission factors derived in a manner
conforming to the “Act on Promotion of Global Warming
Countermeasures.” CO2 emissions derived from purchased
electricity in Japan were calculated using the latest basic
emission factors of electric power suppliers. For emission
factors overseas, the per-country emission factors “CO2
emission factors from electricity” reported by the
International Energy Agency (IEA) were used.
[Fiscal]
Total power generation using renewable energy
Total Hydraulic Geothermal Photovoltaic
[Fiscal]
44 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 45
Prevent air and water pollution
Each manufacturing site of Mitsui Kinzoku Group monitors
the following in accordance with laws, regulations and
ordinances and voluntary standards: Sulfur oxide (SOx)
emissions produced on the combustion of fossil fuels
containing sulfur, nitrogen oxide (NOx) emissions from
boilers, incinerators and other combustion equipment, and
particulate matter, as well as water quality including BOD
and COD which indicate the level of organic material in
wastewater. We work on gathering and managing the
monitoring results from each site, and sharing the
initiatives and the technologies within the Group.
Appropriate utilization and management of water
Mitsui Kinzoku Group strives to reduce and recycle water
used in the business operations. Water-related risks that
could have an impact on our business have not become
apparent as of today, but we will advance efforts to
evaluate water-related risks from multiple perspectives
that include physical risks, such as the drying up of water
resources and the lack of sufficient amounts of water, as
well as regulatory risks related to the use of water. These
efforts will also help us reduce the risks in our business.
The amount of the circulated water usage through
reusing and recycling was 30,967 thousand m3. The total
amount of water use was 44,446 thousand m3, which is
11.3% less than the previous year.
Reduction of chemical substance emissions
Each manufacturing site of the Group files the release and
the transfer amount of chemical substances to the
government under the Act on Confirmation, etc. of
Release Amounts of Specific Chemical Substances in the
Environment and Promotion of Improvements to the
Management Thereof (Law concerning Pollutant Release
and Transfer Register [PRTR] ). The management of
hazardous chemical substances contained in products
has become an essential requirement. We also respond
to the guidelines for chemical substances contained in
products, such as the RoHS Directive and the REACH
regulations required by customers.
We aim to reduce the emission amount of
environmental pollutants in accordance with the
Environmental Action Plan, including our overseas sites.
We continuously strive to collect and replace chemical
substances that may cause environmental pollution. Thus
we focus on reducing and removing use of such chemical
substances from our products.
Initiatives to reduce waste
We strive to reduce the amount of waste generated in our
business activities, and also conduct efforts to develop
technology toward reusing and recycling.
In the Environmental Action Plan revised in 2018, we
are committed to reducing the generation of waste
throughout the Group and set a target basic at each
business site.
Of the amount of byproducts in FY2019, 44% within
Japan and 9% overseas were recycled and used either
within or outside of our Group.
Use of recycled raw materials
Mitsui Kinzoku Group works on the recycling of waste by
using resources as effectively as possible. During this
process, it is essential that we establish and improve
separation and purification technologies in accordance
with the materials, as well as make technological
improvements and renew existing manufacturing
equipment for each production process. At the same time,
we develop and intensify a network for collecting recycled
raw materials.
Development and release of environmental
contribution products
According to the Environmental Action Plan, a group-wide
team was established to develop the environmental
contribution product program in 2019. The team has
discussed the basic direction of the program and decided
how it will be operated.
Under this program, we conduct lifecycle assessments
for products of our Group to assess their positive and
negative impact on the environment and society
throughout their lifespan from raw materials to final
product disposal. Products that meet certain criteria are
certified as environmental contribution products. The
program aims at expanding the development and release
of certified products as solutions to environmental and
social issues, such as the reduction of GHG emissions,
conservation of ecosystems and resources, and
improvement of quality of life, to enhance sustainability of
our business.
Breakdown of water use (FY2019)
Other freshwater
Seawater
thousandm3
Groundwater
(including underflow water)
Rainwater
Industrial water
(supplied from offsite)
Tap water
43.8%
1.2%
16.0%
6.9%
21.0%
44,446
1.1%10.1%
Surface water
(rivers and others)
* Partially changed the classification method since FY2019.
56.9%
0.8%
39.6%63,936
0.9%
1.7%
Sewage and others
Discharged
into sea
Discharged
into rivers
thousandm3
Breakdown of wastewater (FY2019)
others
Injected into deep wells
* Partially changed the classification method since FY2019.
Revised the amount of wastewater for FY2018 disclosed last year
from 48,194 thousand m3 to 74,700 thousand m3.
・10,000
・5,000
・0
・15,000
・20,000
・25,000
839.0 857.0
19,775.8 1,941.1
7,554.0 0.5
・100
・0
・200
・300
・200
・100
・0
・300
・400
・500
136.1
259.7
76.0 60.1
104.8 154.9
104.9
472.2
202.2
21,716.9
7,554.5
1,696.0
( t )
198.2
462.0
101.5
3.9
10.2
3.4
( t )
BOD load
COD load
Soot and dust
NOX emission
SOX emission
Emissions to the water (FY2019)
Emissions to the atmosphere (FY2019)
Reused(for the same purpose)
Amount of circulated water usage (FY2019)
Recycled
Reused(for different purposes)
Sites in Japan Overseas sites
Sites in Japan Overseas sites
Sites in Japan Overseas sites
(thousand m3)
* Changed the calculation method since FY2019.
59.7%
25.1%
2,067.7
10.2%
3.8%
1.2%
Breakdown of usage by type of raw material (FY2019)
Unused products,
intermediate products
and parts manufactured
or processed by other
companies
Materials recycled from waste
of products once used
thousand tons
Unused products,
intermediate products and
parts manufactured or
processed in the Group
518 thousand tons
212 thousand tons
79 thousand tons
Processing stage defective articles
and processing losses
24 thousand tons
* Partially changed the classification method since FY2019.
Rivised the total amount of raw materials for FY2018 disclosed
last year from 1,390.0 thousand tons to 2,119.0 thousand tons.
1,235 thousand tons
Unused natural
resources
such as ore
404.3
451.2
0・
100・
200・
300・
400・
2015 2016 2017 2018 2019
87.1 99.1 120.4 114.9
500・ 458.3
93.0
2015 2016 2017 2018 2019
0・
1,000・
2,000・
3,000・
1,828 1,978
2,435
2,104.3
1,889.2
615 550 551
223.8 311.7
1,042.0 943.2
0.0 0.0
released transferred
Volume of chemical substances released and transferred
(tons/year)
Amount of waste generation (thousand tons)
Sites in Japan Overseas sites
Sites in Japan
Overseas sites released transferred
* Added the amounts of overseas sites from FY2018.
* Revised the values for sites in Japan for FY2018 disclosed
last year.
[Fiscal]
[Fiscal]
* Added the amounts of overseas sites from FY2017.
* The major waste of overseas sites is tailings generated from mines.
46 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 47
Compliance Respect for Human Rights
Compliance management system
Mitsui Kinzoku Group ensures that all executives and employees are fully aware of compliance. The
General Manager of the Corporate Planning Department is responsible for group-wide compliance and
the Legal Department takes initiative in enforcing it.
The situation on compliance is monitored as part of audits by the Internal Audit Department under the
Internal Audit Committee which is directly controlled by the Board of Directors. The Internal Audit
Department shares the audit results with the board members.
Code of Conduct
Mitsui Kinzoku Group considers compliance as not only being compliant with the rules and regulations,
but also being compliant with social norms, corporate ethics, common sense, and morals that may not
necessarily have defined codes but expected by society.
The Code of Conduct defines the common values that are shared by all executives and employees.
The Code is available in local languages and distributed to all sites. The Legal Department has
compiled the “Compliance Guidebook” which explains main points in practicing the Code. The
guidebook is translated into local languages in corporation with local staff members and distributed to
overseas sites.
Compliance trainings
Our compliance programs are included in new employees training, regular rank-based trainings and
trainings for newly appointed directors and auditors for affiliate companies. We also hold compliance
trainings with local lawyers at overseas sites. In addition, we conduct seminars specialized for specific
topics. In FY2019, we held a compliance seminar at one site in Vietnam. In Japan, seminars on
information management and “Act Concerning Special Measures for Correcting Practices Impeding
Consumption Tax Pass-on, etc.” were held at each site.
Mitsui Kinzoku Hotline
Mitsui Kinzoku Group sets a whistle-blower system for internal stakeholders and a consultation desk for
external stakeholders. All stakeholders can report compliance violations such as anti-competitive
practices, corruption/bribery, human rights abuse, and negative impacts on the environment. We secure
the anonymity of whistleblowers and they are protected from unfair treatment.
All executives and employees can report a concern either to the company’s office or to the external
law firm through Mitsui Kinzoku Hotline (MHL). MHL is widely disseminated among them through
compliance trainings and the Compliance Guidebook. We also set a whistleblowing system for our
affiliated companies. The system is consigned to a law firm in China and is available in Chinese.
For external stakeholders including suppliers, we set up the Compliance Consultation Desk on our
website.
Reported issues are regularly passed on to Corporate Auditors, with the anonymity of the reporter
ensured, and comprehensively reported to the Board of Directors.
Prevent anti-competitive practices and corruption/bribery
Article 4 of the Code of Conduct stipulates “Fair Business Activities.” The Compliance Guidebook
specifies fair business activities and requires all executives and employees to implement them: the
establishment and implementation of a system that ensures compliance with the Antimonopoly Act,
appropriate procurement, maintaining fair and transparent relationships, and prohibition of bribery and
corruption.
In FY2019, there were no reports of punitive legal action taken against Mitsui Kinzoku with respect to
anti-competitive practices and bribery.
The human rights policy and the human rights
standards
Mitsui Kinzoku Group approaches human rights issues
based on our Human Rights Policy. In July 2019, we
defined our “Human Rights Standards” as our approach
to major risks and prioritized stakeholders who could
potentially be affected in our businesses. This Human
Rights Standard serves as a code for our human rights
due diligence. We will further strengthen our efforts to
address human rights issues by establishing detailed
regulations on the Standards.
Human rights training
We are conducting human rights training to increase
awareness of our Group’s Human Rights Policy and
promote the correct understanding of human rights. In
FY2019, we conducted training within Japan in the
rank-based training. We also conducted human rights
training for employees at one affiliated company. With
regards to overseas sites, we conducted human rights
training and gave explanations on the human rights
due diligence toward employees including the persons
responsible for human resources at two sites in
Indonesia and one site in Malaysia. In FY2020, we will
conduct further educational training at major sites
within Asia.
[Human Rights Policy] [Human Rights Standards]
https://www.mitsui-kinzoku.com/en/csr/society/humanrights/
Addressing human rights
Mitsui Kinzoku Group is implementing due diligence
based on the Human Rights Standard by giving priority
to human rights risks in our businesses and supply
chain, as well as to the mining-specific human rights
risks. Please see the following pages for more details.
Labor relations
Mitsui Kinzoku Group respects freedom of association
and collective bargaining. Mitsui Kinzoku and major
affiliates in Japan have a respective labor unions
under the Mitsui Mining & Smelting Workers Union.
Based on the union shop agreement, all general
employees become members of the labor unions.
About half of the other consolidated affiliates in Japan
have labor unions.
Among global consolidated affiliates, 12 affiliates
have labor unions. A labor-management council and a
labor-management round-table conference are
regularly held to communicate with workers. In
FY2019, no strikes or lockouts lasting more than a
week occurred in Mitsui Kinzoku Group.
[Supply chain management] Page 48-49
[Mining business] Page 50
Human rights due diligence
In FY2019 we conducted the human rights due
diligence using a self-check sheet (SAQ) regarding all
employees, including non-regular employees and
indirect employees at three sites among the major
sites in Japan and at three sites overseas. We
assessed SAQ results and conducted on-site surveys
and hearings.
As a result, we did not find any major risks,
including any forced labor or child labor risks. For
areas that were found to require improvements, we
provided feedback and implemented corrective
measures. The due diligence will be newly performed
at sites of the consolidated domestic subsidiaries and
major sites within Asia during FY2020.
<Main areas that were improved>
・ Lecture on labor management for employees
promoted to management positions (at overseas sites)
※ Information on labor unions at several sites is unavailable
due to legal requirements.
6,317
66%
7,439
49%
13,756
57%
Total employees
Coverage rate
Employees covered by collective bargaining agreements
4,161 3,655 7,816
Sites in Japan Overseas Total
48 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 49
Supply chain management
Responsibility for our supply chain
Mitsui Kinzoku Group recognizes that negative social and
environmental impacts in our Group’s supply chain may
pose risks for our business. We will fulfill our responsibility
by implementing initiatives for sustainability in the supply
chain according to the requests from our stakeholders.
The Procurement Policy
Mitsui Kinzoku Group respects the globally recognized
codes and guidance, such as the United Nations Global
Compact. We formulated the Mitsui Kinzoku Group
procurement policy in which we declare to fulfill our social
responsibilities in human rights and labor, health & safety,
ethics, and on the environment, based on ensuring legal
compliance throughout our procurement activities. The
procurement policy consists of the basic procurement
policy as our basic commitment and the procurement
guidelines that gives specific instructions for executing the
basic procurement policy. Detailed items in the guidelines
follow the objectives of the RBA*Code of Conduct.
Response to emergency in our supply chain
Mitsui Kinzoku Group is working to manage procurement
risks to ensure continuous operation even in an
emergency. In 2020, the spread of COVID-19 has
affected production and logistics operations of
manufacturing sites in our supply chain due to lock-down
and other restrictions. To address procurement risks, we
are regularly checking and reporting the conditions of
supply from suppliers to watch out for any risk of delivery
delay or supply disruption. In the case that there is any
risk of delay or disruption, we are swiftly taking measures
such as switching to another manufacturing site of
supplier, procurement from multiple suppliers, searching
for stock on the market, and adoption of alternatives, to
minimize the impact on our production lines.
Supplier due diligence
Mitsui Kinzoku Group conducts supplier due diligence to
mitigate risks in our supply chain. We request suppliers to
implement our procurement policy and assess their
implementation status in the supplier due diligence.* RBA = The Responsible Business Alliance
Responsible minerals sourcing
As a corporate group in the minerals supply chain, Mitsui
Kinzoku Group promotes responsible minerals sourcing.
Along with the heightened global interest in responsible
minerals procurement, relevant risks are expanding. The
scope of target risks is expanding to environment and
human rights issue, target areas are widening to
CAHRAs*4 and other minerals such as cobalt and silver
are included as target minerals. Mitsui Kinzoku Group is
addressing such emerging demands by working in close
partnership with industry groups and other organizations,
such as the RMI*5. In October 2019, we formulated the
“Responsible Mineral Sourcing Policy” as a
comprehensive policy for our mineral sourcing, which
covers the “Conflict Minerals Policy” *6.
With regards to the tantalum smelting business, based
on the RMAP*7 by the RMI, we have been receiving third
party audits every year since 2011 and have been
acquiring RMAP Conformant status. We are also a
member of ITSCI*8, a program for achieving due diligence
in the tantalum mineral supply chain and engaging with
our suppliers.
In the smelting business of gold or silver, we defined
the “Gold and Silver Supply Chain Policy” and are
performing initiatives in accordance with the LBMA*9 ’s
guidance that is based on the OECD Guidance.
Regarding the target suppliers selected according to the
LBMA’s guidance, we conduct supplier evaluation every
year by risk investigation and assessment, such as the
check of the origin of mineral sourcing and the
transportation route. An independent third party certifies
that all the processed gold and silver in our plants have
been sourced from areas that are not associated in any
way with the conflict zones. The results of this audit are
reported to the LBMA. The report of guarantee issued by
the auditing company, and the report submitted to LBMA,
are disclosed on our website.
For non-smelting business activities, we participate in
the Responsible Minerals Trade Working Group by JEITA
(Japan Electronics and Information Technology Industries
Association) and engage with downstream companies in
the supply chain, as well as global initiatives such as RMI
through JEITA.
*6 Conflict Minerals Policy : Mitsui Kinzoku Group’s policy on the way it responses to the issue of conflict minerals as defined in the U.S. Dodd–Frank Act. Under
this policy, we are committed not to use any conflict minerals sourced from the Democratic Republic of the Congo or nine surrounding countries, which are a source
of funds for armed groups accused of human rights abuses and violence.
Result of supplier SAQ in FY2019
42565%25%
10%
The SAQ was completed by 425 suppliers (80%) by
FY2019. Of these suppliers, those ranked “C” were
found to be underperforming particularly in the areas
of ethics and the environment.
Suppliers meeting in Thailand (Mitsui Kinzoku ACT Corporation)
suppliers
B rank(middle risk)
A rank(low risk)
C rank(high risk)
Supply chain management system
The supply chain management system is formulated as
follows: The senior executive officer in charge of supply
chain is appointed as chief person responsible for our
procurement. The Supply Chain Committee of the Group
has been organized under the chief person, which
consists of the representatives of each department.
Senior Executive Officer
in Charge of Supply Chain
Procurement manager
of each division or group
company
Supply Chain Committee
Members elected from
each procurement dept.
IGATA HiroshiSecretariat
CSR Office
Buyer or person in charge
of procurement of each
division or group company
Medium- and long-term target(the first cycle from FY2017 to the end of FY2020)
Rate of implementation of a Self-Assessment
Questionnaire (SAQ) to the critical suppliers:100%
Notification of the procurement policy;
request for the implementation of the
policy in suppliers’ operations
All suppliers*1
Overview of our due diligence (scope/measures)
*1:Including—in addition to raw material suppliers— indirect materials
suppliers such as temporary staff agencies, contractors, outsourced
services, carriers, warehouses, and equipment suppliers.
・Receipt of the signed agreement form
to our procurement policy
・Notification of the procurement policy;
request for implementing the policy
Critical suppliers*2
Our procurement staff
and others in charge of
procurement operations
[Performance in FY2019]
・Explained about the procurement policy in our Group:
180 participants・Notified the procurement policy: 4,929 suppliers
・Received the singed agreement form: 511 critical
suppliers・Conducted supplier SAQ: 425 critical suppliers
(including 97 indirect materials suppliers)・SAQ completion rate among critical suppliers (progress
on the target): 80%・Implemented selection criteria for new suppliers: 4 trial
suppliers
[Plan for FY2020]
・Achieve 100% of SAQ completion rate among the
critical suppliers ・Interview with C-ranked suppliers of SAQ and take
necessary corrective actions・Analyze SAQ results and risk assessment
・Set the new target for FY2021 to FY2024
・Notify the procurement policy to our suppliers and
receive the singed agreement form the critical suppliers・Introduce the selection criteria for new suppliers
・Assessment by utilizing the Self-
Assessment Questionnaire (SAQ) *3
・Assessment of implementation of the
policy in the human rights due diligence
*2:Suppliers with a critical impact on our Group’s business, which meet
the following criteria:
(1) Top 80% of suppliers by our procurement value
(2) Suppliers supplying products that have no alternatives or
strategically important parts/components
(3) Suppliers operating in regions in which CSR risk is considered high
*3 : A questionnaire with 46 questions prepared in accordance with our
procurement guidelines
*4 CAHRAs : Conflict Affected and High-Risk Areas
*5 RMI : Responsible Minerals Initiative
*7 RMAP : Responsible Minerals Assurance Process
*8 ITSCI : International Tin Supply Chain Initiative
*9 LBMA : The London Bullion Market Association
Mining business
Mitsui Group first started mining operations in the Kamioka area in 1874, and ever since, Mitsui Kinzoku has
been in the mining business for more than 140 years. We currently have our own developed mines in operation
in Peru: the Huanzala Mine and the Pallca Mine. In Japan, many of the mines have already suspended or
terminated operations, and we are continuing to manage these suspended or closed mines.
Relationships with the local communities
around the mines
We recognize that the mining business has a particularly
large impact on the surrounding environment and the
local communities. As such, based on the mining-specific
risks as recognized by such institutions as the ICMM
Principles and SASB, we strive in our efforts to establish
a relationship of co-existence and mutual prosperity with
the local communities, and to be respectful of human
rights. Since FY2017, we have been conducting annual
surveys on human rights and environment at the mines
for which we hold an investment ratio of more than 50%,
using a self-assessment check sheet for sites engaged in
mining activities.
We also place importance on our engagement with the
local communities around the mines, and are continuing
to address the needs of the communities, such as by
developing infrastructure, providing educational aid, and
offering support for agriculture and livestock. In FY2019, we signed an agreement with Llamac Village, a local
community near the Pallca Mine, regarding
comprehensive local support to be provided by the
company until 2022. Under this agreement, we
implement various support projects, including bridge and
road repair and guidance on artificial insemination
techniques for cattle.
Migration and resettlement
We manage human rights risks, such as the relocation of
indigenous people and local residents, for the mines in
which our investment ratio exceeds 50%. None of these
mines are located and operated on land owned by
indigenous people or in their neighboring areas. No local
residents were forced to relocate to another area due to
the development of these mines.
Artisanal and Small-scale Mining (ASM)
There are no ASM activities in the operation areas of the
Huanzala Mine, Pallca Mine and the Akeshi Mine
(Kagoshima, Japan). Although we found ASM activities in
a neighborhood located outside of the Huanzala Mine
operating area, we confirmed that the discovered ASM
activities do not pose a risk to our business.
Grievance mechanism
Compania Minera Santa Luisa that operates the
Huanzala Mine and the Pallca Mine holds meetings with
the local government and the community organizations
on an as-needed basis. These meetings are held to listen
to complaints and opinions from the local community and
to resolve the raised issues. There is also a grievance
mechanism system to address conflicts between the
company and local residents that could affect the
operation of the mines. In the event of such a conflict, a
discussion with local residents is held with the attendance
of a third party, such as the Ministry of Energy and Mines
of Peru. No such conflicts occurred in FY2019.Details of the group-wide approach are described on
page 46.
50 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 51
24-hour water quality monitoring at all drains
Construction of a debris barrier as a road improvement (Near Llamac Village)
Appropriate management of water
The Huanzala Mine and Pallca Mine manage the
drainage of water in accordance with the EIA (Estudio
Impacto Ambiental = Environmental impact study) and in
compliance with the relevant legislation. For the Huanzala
Mine, where acidic water is generated in the mine due to
an abundance of sulfide of iron in ore, we focus
particularly on thorough neutralization treatment of the
water. We continue to promote these and other efforts by
utilizing ISO14001. The flotation plant at the Huanzala
Mine is also advancing efforts to recycle water and striving
to reduce the amount of water being used.
Wastewater management in Huanzala Mine
・ Acid mine drainage is gathered and processed centrally
・ Neutralization treatment at the mine-attached plant
・ Maintain a pH level within the range of effluent standards with 24-hour monitoring
・ Monthly water quality testing at 14 nearby locations
Neutralizationof acid water
Management at the drains
Environmental monitoring
・ Analyze the concentration of heavy metals in drained water every three days
Appropriate management of the tailings dam
In the flotation process, slurry type wastes called tailings
are generated. The facility to storage “tailings” is called
“tailings dam”. An accident at the tailings dam could have
an enormous impact on the surrounding environment
and community. Mitsui Kinzoku Group regards the
leakage incidents of tailings dams as one of the major
risks in the mining business and manages tailings dams
in accordance with applicable technical guidelines and
manuals. The amount of tailings for FY2019 was 471,041 tons*.
Initiatives to conserve biodiversity
The areas surrounding the Huanzala Mine and Pallca Mine,
which are situated at an elevation of over 3,000 meters, are
home to flora and fauna that are unique to that particular
environment. Both mines practice underground mining, so
they have limited impact on the surface above the grounds.
However, in order to minimize the effects of mine
development and operations, we make sure to process the
acidic water properly, and also conduct environmental
baseline surveys and bio habitat surveys. From 2019, due to
the construction work to expand the tailings dam, we have
conducted the transplant of the wetland vegetation group
(bofedal) at the Huanzala Mine, which has been performed in
partnership with experts and affiliated government agencies.
In addition, since 2018, we have been distributing pamphlets
to the local residents on animal and plant protection, thereby
providing information on initiatives being implemented toward
the preservation of biodiversity.
* Ores mined at the Pallca Mine are being processed at the flotation
plant at the Huanzala Mine, and therefore, the amount of tailings at
the Huanzala Mine includes the amount originating from the Pallca
Mine.
1 13
Overview of tailings dam management
Technical policies of the ministerial decree defining technical
standards of mining facilities (The Ministry of Economy, Trade
and Industry)
・ Monitoring of seepage level and water quality
(in-house expert / once a year to twice a month *)
・ inspection tour (in-house expert / once a year to twice
a month*)
・ 12 of the 13 dams have extremely low risks of major collapses
or downstream damages, even in the event of a massive-scale
earthquake
・ One tailings dam was found to be non-conforming by an
evaluation in FY2019 and is scheduled to be reinforced against
earthquakes in FY2020
*The frequency is appropriate to the risk of each tailings dam
・ Monitoring of seepage level and water quality
(in-house expert / monthly)
・ Seepage level monitoring and tilt measurement
(outside experts / every three months)
Technology guidelines and manuals
(The Ministry of Energy and Mines)
No stability problems, even if the area is hit by a major
earthquake of a level that only happens once every
500 years
Country
Number of dams
Management Guidelines
Approaches to safety
Result of
stability evaluations
Peru Japan
* Nippon Caserones Resources Co., Ltd., which became an affiliate company based on the equity method (investment ratio of 32.2%) from FY 2020, is operating
the Caserones Copper Mine in Chile through SCM Minera Lumina Copper Chile. The scope of disclosure for this report is for mines in which our investment ratio
exceeds 50%.
Management of suspended and closed mines
Even for mines that have been suspended or closed,
wastewater processing and disposal management
continue to be performed in compliance with the Mine
Safety Act and related environmental laws. We are
managing the maintenance of the tailings dams and the
former mine entrance, conducting neutralization treatment
of acid mine drainage that includes heavy metals, and
performing the monitoring of water quality. We also visit
and check the area, as well as perform environmental
audits, on a regular basis in order to make sure that the
mines are being properly managed.
Closure plan
In the mining business, we have drawn up closure plans
of mines subject to applicable laws, and guarantee or
accumulate expenses for closure to minimize the impact
and risk after closure.
Iwaizumi Town,
Iwate
Iwate Mine
Kushikino Mine
Akeshi Mine
Hashima Mine
Yuhsui Town, Kagoshima
Ohnoyama Mine
Izumo City, Shimane
Udo Mine
Ohda City, Simane
Iwami Mine
Hida City, Gifu
Kamioka Mine
Ono City, Fukui
Nakatatsu Mine
Ichikikushikino City,
Kagoshima
Minami kyushu city,
Kagoshima
Ichikikushikino City,
Kagoshima
※ The amount of accumulated funds for the Akeshi Mine indicated in the table is that
for a tailings dam located at a refinery related to the mine.
Huanzala Mine (Peru)
Pallca Mine (Peru)
Akeshi Mine (Kagoshima, Japan)
Planned
Planned
Not planned
Closure planMine
8.5million US dollars
2.3million US dollars
249.1million yen ※
Amount of guaranteed/accumulated
expenses (FY2019)
Mines that are in operation and suspended in Japan
Mines in operation (including those partially operating)
Suspended mines
List of material issues with the commitments, the performance in FY2019 and the plan for FY2020.
01
02
03
04
05
06
07
08
09
Materiality Policies
[Commitment]Ideal Goals Plan for FY2019 Performance in FY2019 and self assessment Implementation plan for FY2020
◎
◎
○
○
◎
〇
〇
〇
(Same as 07)
Progress of Material Issues
MITSUI KINZOKU Integrated Report 2020 5352 MITSUI KINZOKU Integrated Report 2020
Related SDGs
[Organizational Governance]Strengthen ofcorporate governance
Full enforcement of compliance
Information management
Spread CSR throughout the Group
[Human rights]Human rights due diligence
Prohibition of child labor/forced labor
[ Labor Practices ]Diversity
Employee engagement
Occupational health and safety
Corporate
Governance
Guidelines
Code of Conduct
Code of Conduct
Basic CSR Policy
Human Rights Policy
Human Rights Policy
Code of Conduct
Basic Policy for
Human Resources
Development
Basic Policy on Health
and Safety
Implementation of the
Corporate Governance Code
and enhancement of
deliberations by the Board of
Directors
Spreading of compliance
awareness group-wide
Establishment of a
management system for
confidential information at
sites beside priority sites
Establishment of the CSR
promotion system and each
site’s taking the initiative
Understanding of the actual
situation of the Group’s sites
and addressing human rights
risks through human rights
due diligence
Improvement of the work
environment so that all
employees can play an
active role
Creation of workplaces
where employees feel
fulfilled in their work
Ensuring fundamental safety at
all sites and training employees
to improve compliance with rules
and increase their risk sensitivity,
eliminate repeated disaster by
preventive management of
sharing information of disaster
cases in the Group
△: Not achieved as planned
○: Achieved as planned
◎: Achieved more than planned
(1)Review the implementation of the revised
Corporate Governance Code
(2)Conduct follow-up on the results of the evaluation
on the effectiveness of the Board of Directors
(3) Implement the evaluation on the effectiveness of
the Board of Directors
(1)Conduct compliance seminars at overseas sites
(2)Disseminate information about the Compliance
Guidebook through legal audits and training, and
others
(3)Conduct compliance training for the management
executives, individually to Directors and Auditors
(4) Conduct compliance awareness survey
(1)Make a review of confidential information at
affiliated sites. Discuss what method and system
would be most suitable for each site
(2) Inform all employees of the information
management regulations and their compliance
ensured
(3)Organize and implement rules related to ICT
governance
(1)Conduct the CSR Caravan at major sites in Asia
(1)Continue training on human rights (including
prohibition of child labor/forced labor) and also conduct
it at sites in Asia
(2)Conduct human rights DD at major sites in Japan
and major overseas sites
(3) Review the results from the survey conducted in
2018 at mines (more than 50% of investment ratio),
discuss corrective measures and continue the survey
(1)Continue providing training and promoting
information related to diversity issues
(2)Continue career management training
(3) Give shape to details in the report on the
workstyle reform project
(4) Conduct attitude survey toward management-level
employees and female employees, and consider
countermeasures
(5) Enhance measures to give support toward career
development, with a focus on the development of
career consultants
(6) Continuously implement work hour CA in the
committee, performed by the labor and management
at each site
(1)Conduct the 2nd employee satisfaction survey
(1)Deploy the implementation of the lockout system
(2)Promote the horizontal deployment of lessons
learned from disasters at other companies
(3) Provide trainings and thoroughly implement
measures to prevent the reoccurrence of high-risk
disasters
(1)(2) Shortened the Directors’ term of office to one year. A
mutual election method has been introduced for appointment of
the chairperson of the Board. Explained about the lack of female
Directors in Corporate Governance Report
(3)The Board of Directors self-evaluated its effectiveness
(1)Held at one site in Vietnam
(2)Conducted legal audits and followed up the results. Prepared
Compliance Guidebook in corporation with local staff at Vietnam
and Malaysia and distributed them
(3)Conducted as planned. Compliance trainings in regular rank-
based trainings
(4) Conducted as planned
(1)Considered management methods at each site of Engineered
Materials Sector. Informed employees with the methods and
constructed the management system
(2)Continuing at each site
(3) Organized ICT project team, established ICT governance-
related rules and constructed ICT management system
(1)Conducted at two sites in Indonesia and one site in Malaysia
(1)Conducted as planned. Approx. 180 employees joined at
regular rank-based trainings. Approx. 30 employees joined at one
site in Japan. Approx. 60 employees joined at sites in Malaysia
and Indonesia
(2)Conducted as planned. Three sites in Japan and three
overseas sites (Postponed some parts due to COVID-19)
(3) (Details are listed on P.50)
(4) Established “Mitsui Kinzoku Group Human Rights Standards”
(1)Conducted as planned. Diversity trainings at the regular rank-
based training and two sites in Japan. Disseminated information
through in-house magazines and intranet
(2)Conducted in regular rank-based trainings (Postponed some
parts due to COVID-19)
(3) (5) Organized workstyle reform task force. Considered
specific measures in each subcommittee meetings
(4) An attitude survey regarding workplace environment, work life
balance and benefits
(6) Conducted as planned
(1)Conducted as planned (Details are listed on P.31)
(1)Conducted as planned
(2)Conducted as planned. The occurrence rate of continual
disaster did not decrease
(3) Conducted as planned. Zero serious disaster
・ Review on initiatives for corporate governance code
・ Follow-up the results of effectiveness evaluation of the Board of
Directors (Consider reinforcing our own governance system)
・ Effectiveness evaluation of the Board of Directors
・ Compliance seminars at overseas sites
・ Thoroughly disseminate Compliance Guidebook thorough legal
audits and trainings
・ Compliance trainings individually for Directors and Auditors
・ Reconsider whistle-blower system
・ Check confidential information of other business units and affiliated
companies. Consider the management system corresponding to each
department
・ Hold information management seminar in order to disseminate
information management regulations (including online seminar)
・ Construct information management system focusing on ICT
utilization
・ CSR caravan at major sites in Asia (including online caravan)
・ Human rights training at sites in Japan and Asia
・ Human rights DD at affiliated sites in Japan and major overseas
sites
・ Make detailed rules for “Mitsui Kinzoku Group Human Rights
Standards”
・ Review FY2019 survey results of mines (more than 50% of
investment ratio), consider corrective measures and conduct another
survey
・ Construct diversity training system and reinforce information
dispatching scheme
・ Continue career management trainings and consider enriching the
contents
・ Consider measures for supporting workplace diversity and career
development. Reflect the results of employee satisfaction survey in the
measures
・ Introduce return to work system and temporary leave system for
employees who follow spouses’ job transfer
・ Continue working time CA by committees by the labor and
management side at each site
・ Analyze the results of employee satisfaction survey in detail and
consider corrective measures
・ Regular employee engagement surveys for new employees
・ Fix the lock out system
・ Promote intrinsic safety of facilities and reinforcing management
systems in order to reduce risks leading to serious disasters
・ Implement intrinsic safety of facilities and preventive management
in order to prevent continuous disasters
[Assessment standards]
10
11
12
13
14
15
16
17
18
19
〇
〇
〇
◎
△
〇
△
○
△
〇
MITSUI KINZOKU Integrated Report 2020 5554 MITSUI KINZOKU Integrated Report 2020
Health management
Develop human resources
[Environment]Reduce GHG emissions
Creation of renewable energy
Sustainable water use
Wastewater management
Sustainable use ofraw materials/resources
Recycling and managementof waste
Biodiversity conservation
Management of mine closure
Basic Policy on
Health and Safety
Basic Policy for
Human Resources
Development
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Basic Environmental
Policy
Improvement of the work
environment based on the
stress check survey
Making full use of the abilities
of each employee
Setting Group-level targets
and focusing strategic efforts
Stable generation of
renewable energy at the
existing facilities and
completion of Kamioka
hydroelectric power facilities
Setting and achieving a
target amount of water intake
Setting and achieving a
target water quality
Striving for zero emissions
and development of products
with reduced use of resources
Striving for resource
circulation in the business
activities including recycle-
smelting
Implementation of an action
plan for biodiversity
(Japan)
Development and
implementation of a
management plan for
suspended or closed mines
(overseas)
Works before mines closure
(1)Centrally Control and utilize information on
employees’ health
(2) Prevent sickness in mental health by the utilization
of stress checks
(1)Continue strengthening efforts in the training of new
employees (volunteer training, overseas training)
(2)Further improve training programs regarding
advanced technology, workstyle reform-related issues,
business skills, and others
(3) Continue and improve education toward
management candidates
(4) Strengthen development of global human resources
(promote participation of locally hired staff in the rank-
based training)
(1)Establish a management system for reducing GHG
emissions of the entire Group
(2) Identify the Scope 3 GHG emissions
(1)Determine the status of operations using renewable
energy
(2)Determine the progress of the refurbishment of
Kamioka Hydroelectric Power Station’s facilities.
(3) Study the issuance of CO2 credits
(1)Monitor the total amount of water intake, the amount
of recycled water, and the amount of reused water by
water source
(2)Set intensity targets for water
(1)Monitor the amount of wastewater and water quality
by destination of discharged wastewater and manage
targets
(2)Encourage acquisition of Pollution Control Manager
Certification and improvement of skills of qualified
employees
(3)Conduct key environmental audits for wastewater
management
(1)Set a target ratio of recycled raw materials used
(1)Set an individual target for reduction in generated
waste
(1)Develop a specific action plan for efforts
(2)Continue studies and protection of rare species in
the development areas
(Japan)
(1) Develop and implement a plan for maintenance and
management of suspended mines
(2) Develop and implement plans for construction work
at each site to strengthen facilities against torrential rain
(3) Conduct follow-up studies on closed mines (sites for
where the studies were not performed in 2018)
(4) Conduct voluntary studies at one site on the stability
analysis of the tailings dam
(Overseas)
(5) Implement works before closing a mine along the
mine closing plan
(1)Prepared centralized management system of employees’ health information
at major sites in Japan
(2)Shared the results of stress check and next action plan with Health and
Safety Committee and Executive Council
(3) Selected as the 2020 Certified Health and Productivity Management
Organization Recognition Program (Mitsui Kinzoku non-consolidated)
(1)Conducted as planned
(2)Held a lecture on advanced technology. Expanded trainings on effective
working style and business skills
(3) Conducted as planned
(4) Conducted as planned (Postponed some parts due to COVID-19)
(1)Conducted as planned
(2)Grasped the amount of CO2 emissions by waste treatment. Answered CDP
(grade D)
(1)Conducted as planned
(2)Completely adapted to Feed-in Tariff (FIT). The facilities are operating
(3)Conducted as planned. Decided to give priority to energy reduction and
deferred issuance of credits from the result of the study
(1)Surveys at each site on the amount of water intake by resources, the effect
of business activities on water resource, and the amount of recycled and
reused water
(2)Collected the information on current status of the whole group
(1) Current situation survey on business sites areas in order to set a goal for
water quality management
・ Grasped the amount of discharged water
・ Grasped the upper limit regulations of the amount of discharged water
・ Grasped the quality of discharged water
(2)Conducted as planned
(3)Conducted as planned
(1)Grasped the rate of usage of recycled materials. Disseminated the
Environmental Action Plan including related information
(1)Grasped the amount of waste and the situation of waste reducing initiatives.
Disseminated Environmental Action Plan including related information
(1)Understood issues and current status of initiatives at each site. Internal
trainings as a previous step toward creating action plan
(2)Conducted as planned (Huanzala Mine, Peru)
(Japan)
(1)Conducted as planned
(2)Conducted as planned (six constructions)
(3) Conducted as planned (24 mining areas)
(4) Conducted as planned (one survey)
(Overseas)
(5) Conducted as planned
・ Centrally manage and utilize employees’ health information
・ Improve workplace environment by utilizing stress check results in order to
prevent sickness in mental health
・ Enrich new employees training program, try online trainings
・ Renew training curriculum regarding workstyle reform and business skills
・ Trainings for executive candidates through regular rank-based trainings and
external trainings. Improve the quality of internal trainings for executive
candidates and follow-up trainings for those who have finished the trainings
・ Support overseas sites to establish training system
・ Consider implementation method for training programs (including online)
・ Disseminate Mitsui Kinzoku Group’s target for reducing CO2 emissions
from energy consumption and set goals for each site
・ Expand scope 3 boundary
・ Monitor the operation status of renewable energy facilities
・ Consider and plan new renewable energy projects
・ Grasp the amount of water intake by resources
・ Check the effects of business activities on water resources at each site
・ Grasp the amount of recycled and reused water
・ Management goal setting for each site
・ Grasp the amount of discharged water
・ Grasped the upper limit regulations of the amount of discharged water
・ Grasp the quality of discharged water
・ Set management goals at each site according to regional characteristics
・ Set a target ratio of recycled materials used for each business site
・ Set a target for reduction in generated waste for each business site
・ Collect the information on issues and current status of initiatives at each site
・ Make action plan for initiatives referring to practices and guidance
documents inside and outside Mitsui Kinzoku Group
・ Conserve rare living things of developing areas (Huanzala Mine, Peru)
(Japan)
・ Maintenance and management of suspended mines
・ Reinforcement construction of facilities for heavy rain
・ Take countermeasures so that nobody enters the mine mouth of closed
mines
・ Earthquake resistance construction to improve stability of tailings dam
(Overseas)
・ Remove sediments at former Waste Rock Dumps
・ Tree planting at former Waste Rock Dumps
※ Overseas initiatives may be postponed due to COVID-19
Materiality Policies
[Commitment]Ideal Goals Plan for FY2019 Performance in FY2019 and self assessment Implementation plan for FY2020Related SDGs
20
21
22
23
24
25
26
27
28
△
〇
○
〇
○
○
○
○
○
MITSUI KINZOKU Integrated Report 2020 5756 MITSUI KINZOKU Integrated Report 2020
Development of standards for
environmental contribution
products and setting of
targets
Anti-corruption and anti-
bribery awareness
Compliance with the
Antimonopoly Act, the
Subcontract Act, and laws
related to anti-competitive
practices
Fulfill responsibility to reduce
risks in supply chains
Spreading awareness and
maximum utilization of
intellectual property group-
wide
Change to a company that, in
cooperation with stakeholders,
creates a succession of new
products utilizing our “material
intelligence”
Utilization of the Mitsui
Kinzoku’s smelters network
and increase of the collection
of recycle-materials,
processing capacity, and the
number of processing metals
Establishment of the ACT
brand by ensuring “Safety,”
“Comfort” and “Amazing
Performance" using our
manufacturing intelligence
Local communities
understand and trust our
business activities through
social contribution activities
Basic Environmental
Policy
Code of Conduct
Code of Conduct
Procurement Policy
Conflict Minerals
Policy
President’s policy
regarding intellectual
property
Basic CSR Policy
Basic CSR Policy
Basic CSR Policy
Code of Conduct
Environmental contribution products
[Fair Operating Practices]Anti-corruption and anti-bribery
Prohibit of anti-competitive practices
CSR procurement
Intellectual property
[Consumer Issues]Co-creation in markets for new engineered materials
Materials stewardship(recycle-smelting)
Supply productsfor sustainable mobility
[Community involvement]Contribution to local communities
(1)Establish an organization to implement programs
for environmental contribution products
(2)Design internal certification
(1)Prepare and use a written agreement on
prohibition of corruption and bribery for the sites in
Taiwan and other Asian countries
(2)Assess a sample of a basic transaction from CSR
perspectives
(3) Develop a manual on anti-bribery
(1)Continue legal audit and feedback at all sites of
the Group
(2)Continue training related to fair operating
practices
(Details are listed on P.48-49)
(1) Support surveys on new projects
(2) Secure intellectual property rights and use
intellectual property
(3) Provide education on intellectual property and
establish an intellectual property infrastructure
(improvement of the specifications)
(Details are listed on P.22-25)
(Details are listed on P.26-27)
(Details are listed on P.28-29)
(1)Social contribution activities take root in the Group.
Promoting activities according to plan at each site
(1)(2)Organized a team and discussed an original system for
environmental contribution products. Decided the outline of system
operation
(1)Conducted as planned (Taiwan). Follow-up at the sites in China
(2)Conducted as planned
(3) Hearings for manual preparation
(1)Completed the audit of approving authorities at all sites in Japan
and follow the audit results. Legal audit at three sites in Japan, one
overseas site
(2)Antimonopoly law seminar for Mitsui Kinzoku Group. Held seminars
on “Act Concerning Special Measures for Correcting Practices
Impeding Consumption Tax Pass-on, etc.” at the sites in Japan
(Details are listed on P.48-49)
(1)Supported Business Planning Dept. of Engineered Materials Sector
(2)Acquired 107 patent rights / year
(3) Held basic skills training 10 times (for beginner, middle, and
advanced class)
(4) Reconstructed system according to business improvement
(Details are listed on P.22-25)
(Details are listed on P.26-27)
(Details are listed on P.28-29)
(1)Conducted as planned. The number of sites that engaged in
contribution to community increased by 10% from FY2018
・ Start training Life Cycle Assessment practitioners
・ Prepare and use a written agreement on anti-bribery at the sites in
Indonesia and Vietnam
・ Prepare an anti-bribery manual
・ Legal audit and follow the results for target sites
・ Hold training on fair business activities (including online)
(Details are listed on P.48-49)
・ Support investigation on new business (Business Creation Sector)
・ Apply for patents that can be highly proved to be infringed
・ Continue and improve training on intellectual property (for working
from home)
・ Stably operate the intellectual property management system for
working from home
(Details are listed on P.22-25)
(Details are listed on P.26-27)
(Details are listed on P.28-29)
・ Consider next action plan according to the situation of community-
contributing initiatives at each site
Materiality Policies
[Commitment]Ideal Goals Plan for FY2019 Performance in FY2019 and self assessment Implementation plan for FY2020Related SDGs
(And other goals)
2020
473,109
13,037
9,318
1,566
33,999
28,970
10,125
36,107
(34,833)
1,274
537,119
173,255
157,296
233,070
27.43
2,884.68
70
255.2
2.5
0.9
1.8
1.22
30.7
2014
441,046
25,743
13,656
3,662
27,160
24,178
5,795
38,003
(72,128)
(34,125)
503,825
169,867
156,280
218,500
64.12
2,816.71
40
62.4
1.5
2.4
2.9
1.26
31.9
2013
417,219
16,557
16,194
9,910
22,601
23,952
5,867
38,058
(47,208)
(9,150)
438,072
155,049
154,397
180,372
173.51
2,565.60
30
17.3
1.1
7.1
3.8
1.13
33.5
2010
392,364
27,881
25,639
13,899
15,186
26,119
4,941
19,610
(17,823)
1,787
416,541
121,300
121,375
191,514
243.20
1,948.20
30
12.3
1.4
13.5
6.2
1.34
26.7
58 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 59
11-Year Summary of Selected Financial Data
※ The company conducted a share consolidation to change its share unit from 10 shares to 1 share on October 1, 2017. Past figures have been calculated
assuming the share consolidation took place in 2009.
Consolidated Financial Highlights
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
Capital expenditures
Depreciation
Research and Development expenditures
Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Total assets
Net assets
Shareholders' equity
Interest-bearing debt
Per share of common stock
EPS(Earnings per share)※
BPS(Net assets per share)※
Cash dividends per share ※
Dividend payout ratio
DOE(Dividend on equity ratio)*
Financial Ratios
ROE(Return on equity)
ROA(Return on assets)
Net D/E ratio
Equity ratio
Yen
Yen
Yen
%
%
%
%
%
2011
446,487
30,208
34,010
21,160
21,829
22,707
4,623
22,545
(26,286)
(3,741)
411,027
134,452
140,817
171,459
370.25
2,203.82
60
16.2
2.4
17.8
8.2
1.17
30.6
2012
431,058
20,903
19,168
11,531
29,226
22,781
4,967
30,992
(31,039)
(47)
413,106
140,175
148,840
169,263
201.78
2,306.12
30
14.9
1.2
9.0
4.7
1.15
31.9
2015
473,274
31,835
21,096
17,237
28,906
25,146
6,265
37,245
(26,418)
10,827
538,646
207,106
170,994
210,390
301.81
3,449.10
60
19.9
2.0
9.6
4.0
0.98
36.6
2016
450,553
11,137
(11,284)
(20,926)
28,446
25,066
6,575
50,397
(26,395)
24,002
484,800
179,566
146,469
191,733
(366.41)
2,968.55
60
-
2.3
(11.4)
(2.2)
1.03
35.0
2017
436,330
38,461
31,047
18,674
37,718
24,414
7,163
24,218
(38,300)
(14,082)
518,981
184,421
161,713
207,421
326.98
3,046.41
70
21.4
2.5
10.9
6.2
1.10
33.5
2018
519,215
49,529
11,239
(708)
40,509
26,634
8,015
52,436
(40,376)
12,060
518,705
178,652
157,271
208,418
(12.40)
2,945.20
70
-
2.5
(0.4)
2.2
1.11
32.4
2019
497,701
18,222
17,755
4,691
36,119
27,964
9,523
40,696
(44,843)
(4,147)
523,315
179,673
159,207
216,878
82.15
2,977.84
70
85.2
2.5
2.8
3.4
1.15
32.5
Millions of yenMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31
* In calculating the DOE (Dividend on Shareholders' Equity), we have changed the shareholders' equity from the average of the term to the shareholders'
equity at the end of the term. Along with this, the figures for the previous years have been changed this time.
Financial ReviewThe forward-looking statements contained in this section represent the Company’s judgment as of March 31, 2020.
Financial position
Total assets increased ¥13.8 billion from the previous fiscal year-end
to ¥537.1 billion. The change was mainly attributable to increases of
¥11.1 billion in cash and deposits and ¥9.7 billion in inventories, offset
by decreases of ¥7.2 billion in notes and accounts receivable.
Total liabilities increased ¥20.2 billion from the previous fiscal year-
end to ¥363.8 billion. This change was mainly attributable to
increases of ¥16.1 billion in short- and long-term borrowings, straight
bonds and commercial paper, and ¥2.3 billion in notes and accounts
payable, among others.
Total net assets decreased ¥6.4 billion from the previous fiscal year-
end to ¥173.2 billion. This decrease mainly reflected the recording of
¥1.5 billion in profit attributable to owners of parent and ¥1.8 billion in
deferred gains on hedges, net of tax, partially offset by a decrease of
¥3.9 billion in dividends of surplus, ¥4.2 billion in foreign currency
translation adjustments and ¥0.9 billion in net unrealized losses on
securities, net of tax, among others.
60 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 61
Overview of fiscal 2019
On a consolidated basis, the Company's net sales during fiscal 2019,
ended March 31, 2020, decreased ¥24.5 billion (4.9%) from the
previous fiscal year, to ¥473.1 billion. Operating income decreased
¥5.1 billion (28.5%) from the previous fiscal year to ¥13.0 billion. This
was mainly because of a decrease in sales volume of core products in
each business, despite a favorable factor in the launch of feed-in tariff
operation for the hydroelectric power generation service in Kamioka in
the Metals Business.
Ordinary income decreased by ¥8.4 billion (47.5%) year on year to
¥9.3 billion. This was mainly attributable to the recording of investment
losses on equity method amounting to ¥1.4 billion.
In extraordinary items, the Group recorded extraordinary losses such
as a loss on disposal of property, plant and equipment of ¥2.1 billion.
After accounting for taxation expenses and profit attributable to non-
controlling interests, the profit attributable to owners of parent
decreased by ¥3.1 (66.6%) billion to ¥1.5 billion.
Cash flows
Net cash provided by operating activities was ¥36.1 billion, a
decrease of ¥4.5 billion from the previous fiscal year. This was
primarily attributable to cash provided of ¥5.7 billion in profit before
income taxes, ¥28.9 billion in depreciation and amortization, an
increase of ¥10.2 billion in notes and accounts payable and an
increase of ¥5.2 billion in income taxes refund. This was partially
offset by an increase of ¥12.4 billion in inventories, ¥6.7 billion in
income taxes paid, among others.
Net cash used in investing activities amounted to ¥34.8 billion, a
decrease of ¥10.0 billion from the previous fiscal year. Expenditures
mainly consisted of ¥29.4 billion for the acquisition of property, plant
and equipment and other assets and ¥3.3 billion for purchases of
investment securities.
Net cash provided by financing activities totaled ¥11.2 billion, an
increase of ¥8.3 billion from net cash used in the previous fiscal year.
This change was mainly attributable to a ¥17.0 billion increase in
short- and long-term borrowings, straight bonds and commercial
paper, and a ¥3.9 billion payment for cash dividends. As a result of
the above, cash and cash equivalents, including foreign currency
translation adjustments, increased 11.1 billion from the end of the
previous fiscal year to ¥32.6 billion
- Cash flow trends are explained in detail on page 19.
- The changes in major financial indicators are explained in detail on page 20-21.
- See page 22-29 for details on the main business segments.
- Please see page 21 for the forecasts for FY2020 and FY2021.
2019
¥ 36,412
324
2,600
9,022
1,232
23
―
327
2,239
14,761
180,969
122,368
1,025
502
2,775
878
927
ー
3,341
26,404
4,447
162,672
343,641
42,129
22,631
95,069
(622)
159,207
1,607
(1,976)
11,524
(308)
10,847
9,618
179,673
¥ 523,315
2019
¥ 21,536
85,387
5,885
111,753
841
24,110
(179)
249,336
33,711
184,982
385,567
3,768
11,492
57,249
676,772
(486,914)
189,857
53,529
10,833
8
446
5,765
4,625
9,050
(137)
84,121
¥ 523,315
36,334
3,258
16,333
58,098
62 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 63
Assets
Current assets:
Cash and deposits (Notes 5 and 15)
Notes and accounts receivable (Note 15):
Trade
Unconsolidated subsidiaries and affiliates
Inventories (Note 3)
Derivatives (Notes 15 and 16)
Other current assets
Less: Allowance for doubtful accounts
Total current assets
Property, plant and equipment (Note 7):
Land
Buildings and structures
Machinery and equipment
Leased assets
Construction in progress
Others
Less: Accumulated depreciation
Total property, plant and equipment
Investments and other assets:
Investment securities (Notes 4 and 15):
Unconsolidated subsidiaries and affiliates
Others
Loans receivable:
Unconsolidated subsidiaries and affiliates
Others
Deferred tax assets (Note 14)
Asset for retirement benefits (Note 17)
Others
Less: Allowance for doubtful accounts
Total investments and other assets
Total assets
Liabilities and Net Assets
Current liabilities:
Notes and accounts payable (Note 15):
Trade
Unconsolidated subsidiaries and affiliates
Others
Short-term borrowings and commercial papers (Notes 6 and 15)
2020
¥ 32,677
78,523
5,455
121,514
2,167
22,729
(212)
262,856
34,245
187,204
388,292
6,031
12,067
55,277
683,118
(493,993)
189,124
9,429
56,551
―
435
5,174
3,769
9,855
(78)
85,137
¥ 537,119
38,975
2,942
17,881
69,459
Current portion of long-term debt (Notes 6 and 15)
Current portion of lease liabilities
Accrued income taxes
Accrued expenses
Provision for product warranties
Provision for loss on construction contracts
Provision for improvement of business structure
Provision for loss on disposal of inventories
Derivative liabilities (Notes 15 and 16)
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6 and 15)
Lease liabilities
Directors' and corporate auditors' retirement benefits
Deferred tax liabilities (Note 14)
Provision for environmental countermeasures
Provision for preventing environmental pollution
in mineral, mining, and other operations
Provision for loss on litigation
Asset retirement obligations (Note 21)
Liability for retirement benefits (Note 17)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Commitments and contingent liabilities (Note 8)
Net Assets (Note 9):
Shareholders' equity:
Common stock:
Authorized - 190,000 thousand shares in 2020 and in 2019
Issued - 57,296 thousand shares in 2020 and in 2019
Capital surplus
Retained earnings
Less: Treasury stock
190 thousand shares in 2020 and 189 thousand shares in 2019
Total shareholders' equity
Accumulated other comprehensive income:
Net unrealized gains on securities, net of tax
Deferred gains (losses) on hedges, net of tax
Foreign currency translation adjustments
Accumulated adjustments for retirement benefit (Note 17)
Total accumulated other comprehensive income
Non-controlling interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets
2020
¥ 28,727
485
1,986
8,785
1,147
80
2
321
1,423
13,820
186,040
134,883
2,652
598
1,260
803
722
116
3,727
26,776
6,281
177,823
363,863
42,129
22,631
93,159
(623)
157,296
659
(174)
7,275
(322)
7,436
8,522
173,255
¥ 537,119
Consolidated Balance SheetsMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2018 and 2019
Millions of yen
Millions of yen
See accompanying notes to consolidated financial statements.
2019
¥ 5,177
(1,056)
3,917
(2,228)
243
(987)
¥ (111)
¥ 5,066
4,616
449
2019
¥ 497,701
424,325
73,376
55,153
18,222
1,998
(1,605)
875
(2,194)
718
(259)
(467)
17,755
―
64
(1,769)
20
(909)
(2,592)
15,162
8,792
1,191
9,984
5,177
486
¥ 4,691
Yen
¥ 82.15
70.00
64 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 65
Net sales (Note 13)
Cost of sales (Notes 3 and 11)
Gross profit
Selling, general and administrative expenses (Notes 10 and 11)
Operating income
Non-operating income (expenses):
Interest and dividend income
Interest expense
Foreign exchange gains (losses)
Investment losses on equity method
Real estate rent
Other, net
Ordinary income (Note 13)
Extraordinary income (losses):
Gain on sale of investment securities
Gain on sale of property, plant and equipment (Note 12)
Loss on sale and disposal of property, plant and equipment (Note 12)
Insurance claim income
Other, net (Note 12 and 19)
Profit before income taxes
Income taxes (Note 14):
Current
Deferred
Profit
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent
Amounts per share of common stock:
Basic earnings (loss) per share (Note 18)
Cash dividends applicable to the year
2020
¥ 473,109
403,460
69,648
56,611
13,037
1,643
(1,749)
(2,241)
(1,429)
708
(651)
(3,719)
9,318
(812)
175
(2,286)
484
(1,084)
(3,523)
5,794
5,267
(1,185)
4,082
1,712
146
¥ 1,566
Yen
¥ 27.43
70.00
Net income
Other comprehensive income:
Net unrealized losses on securities, net of tax
Deferred gains (losses) on hedges, net of tax
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income
of associates accounted for using equity method
Total other comprehensive income (Note 22)
Comprehensive income
(Breakdown)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
2020
¥ 1,712
(898)
1,757
(4,346)
(36)
(63)
(3,588)
¥ (1,875)
¥ (1,844)
(31)
Consolidated Statements of OperationsMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2019 and 2020 Millions of yenMillions of yen
Consolidated Statements of Comprehensive IncomeMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2019 and 2020
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
Common
stock
Balance at April 1, 2018
Cash dividends paid
Profit attributable to owners of parent
Effect of changes in accounting period
of consolidated subsidiaries
Acquisition of treasury stock
Change of scope of consolidation
Change in ownership interest of parent due to
transactions with non-controlling shareholders
Net changes of items other than
shareholders' equity
Balance at March 31, 2019
Balance at April 1, 2018
Cash dividends paid
Profit attributable to owners of parent
Effect of changes in accounting period
of consolidated subsidiaries
Acquisition of treasury stock
Change of scope of consolidation
Change in ownership interest of parent due to
transactions with non-controlling shareholders
Net changes of items other than
shareholders' equity
Balance at March 31, 2019
¥42,129
¥42,129
¥22,648
(16)
¥22,631
¥93,113
(3,997)
4,691
1,324
(61)
¥95,069
¥(619)
(2)
¥(622)
¥157,271
(3,997)
4,691
1,324
(2)
(61)
(16)
¥159,207
¥13,532
(2,007)
¥11,524
¥(519)
210
¥(308)
¥10,922
(74)
¥10,847
¥10,459
(840)
¥9,618
¥178,652
(3,997)
4,691
1,324
(2)
(61)
(16)
(915)
¥179,673
¥2,606
(998)
¥1,607
¥(4,696)
2,720
¥(1,976)
2019
Net
unrealized gains
on securities,
net of tax
Deferred
gains(losses)
on hedges,
net of tax
Foreign
currency
translation
adjustments
Accumulated
adjustments
for retirement
benefit
Total
accumulated
other
comprehensive
income
Non-controlling
interests
in consolidated
subsidiaries
Total
net assets
(Note 9)
Total
shareholders‘
equity
Treasury
stock
Retained
earnings
Capital
surplus
Common
stock
Millions of yen
66 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 67
Consolidated Statements of Changes in Net AssetsMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2019 and 2020
Balance at April 1, 2019
Cumulative effects of changes in accounting policy
Restated balance
Cash dividends paid
Profit attributable to owners of parent
Effect of changes in accounting period
of consolidated subsidiaries
Acquisition of treasury stock
Change in ownership interest of parent due to
transactions with non-controlling shareholders
Net changes of items other than
shareholders' equity
Balance at March 31, 2020
Balance at April 1, 2019
Cumulative effects of changes in accounting policy
Restated balance
Cash dividends paid
Profit attributable to owners of parent
Effect of changes in accounting period
of consolidated subsidiaries
Acquisition of treasury stock
Change in ownership interest of parent due to
transactions with non-controlling shareholders
Net changes of items other than
shareholders' equity
Balance at March 31, 2020
¥42,129
42,129
¥42,129
¥22,631
22,631
(0)
¥22,631
¥95,069
155
95,224
(3,997)
1,566
366
¥93,159
¥(622)
(622)
(1)
¥(623)
¥159,207
155
159,363
(3,997)
1,566
366
(1)
(0)
¥157,296
¥11,524
11,524
(4,249)
¥7,275
¥(308)
(308)
(13)
¥(322)
¥10,847
10,847
(3,410)
¥7,436
¥9,618
9,618
(1,096)
¥8,522
¥179,673
155
179,829
(3,997)
1,566
366
(1)
(0)
(4,507)
¥173,255
¥1,607
1,607
(948)
¥659
¥(1,976)
(1,976)
1,801
¥(174)
2020
Net
unrealized gains
on securities,
net of tax
Deferred
gains(losses)
on hedges,
net of tax
Foreign
currency
translation
adjustments
Accumulated
adjustments
for retirement
benefit
Total
accumulated
other
comprehensive
income
Non-controlling
interests
in consolidated
subsidiaries
Total
net assets
(Note 9)
Total
shareholders‘
equity
Treasury
stock
Retained
earnings
Capital
surplus
Millions of yen
Number of shares
of common stock
issued (Thousands)
57,296
57,296
Number of shares
of common stock
issued (Thousands)
57,296
57,296
2019
12,805
18,504
(22,699)
(403)
10,000
(10,000)
(3,997)
(1,147)
(188)
2,873
(567)
(1,840)
22,377
(2)
990
¥ 21,524
2019
¥ 15,162
27,964
―
(2)
1,706
271
2,194
18
58
(1,998)
1,605
7,764
2,366
(2,764)
(644)
53,705
2,875
(1,623)
(15,268)
582
425
40,696
(1,339)
―
―
(35,280)
260
(1,313)
(6,645)
(525)
(44,843)
68 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 69
Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Loss on impairment of fixed assets (Note 19)
Loss (gain) on sale of property, plant and equipment, net (Note 12)
Loss on disposal of property, plant and equipment (Note 12)
Foreign exchange losses (gains)
Investment losses on equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in liability for retirement benefits
Interest and dividend income
Interest expense
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable
Other, net
Subtotal
Interest and dividend received
Interest paid
Income taxes paid
Income taxes refund
Other, net
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of investment securities
Proceeds from sale of investment securities
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Acquisition of property, plant and equipment and other assets
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment and other assets
Decrease (increase) in short-term loans receivable, net
Other, net
Net cash used in investing activities
2020
¥ 5,794
28,970
363
(43)
2,154
262
1,429
36
755
(1,643)
1,749
1,540
(12,416)
10,286
(2,657)
36,580
2,131
(1,762)
(6,772)
5,221
708
36,107
(3,315)
39
1,136
(31,412)
624
(1,319)
(40)
(546)
(34,833)
Cash flows from financing activities:
Net change in short-term borrowings and commercial papers
Proceeds from long-term debt
Repayment of long-term debt
Repayment of lease liabilities
Issuance of bonds
Redemption of straight bonds
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of exclusion of consolidated subsidiaries
Effect of changes in accounting period of consolidated subsidiaries
Cash and cash equivalents at end of year (Note 5)
2020
12,269
31,271
(26,479)
(714)
10,000
(10,000)
(3,997)
(1,064)
(51)
11,232
(584)
11,923
21,524
ー
(781)
¥32,666
Consolidated Statements of Cash FlowsMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2019 and 2020 Millions of yenMillions of yen
See accompanying notes to consolidated financial statements.
70 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 71
Notes to Consolidated Financial StatementsMitsui Mining and Smelting Company, Limited and Consolidated Subsidiaries
Years ended March 31, 2019 and 2020
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Law and its related accounting regulations, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of
International Financial Reporting Standards. The accounts of consolidated overseas subsidiaries are prepared in accordance with either
International Financial Reporting Standards or U.S. generally accepted accounting principles, with adjustments for the specified four
items as applicable.
The accompanying consolidated financial statements have been restructured and translated into English (with some expanded
descriptions) from the consolidated financial statements of Mitsui Mining and Smelting Company, Limited (“the Company”) prepared in
accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the
Financial Instruments and Exchange Law. Some supplementary information included in the statutory Japanese language consolidated
financial statements, but not required for fair presentation, is not presented in the accompanying consolidated financial statements.
Amounts less than one million yen have been rounded down in the presentation of the accompanying consolidated financial
statements. As a result, the totals in yen shown herein do not necessarily agree with the sums of the individual amounts.
The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using
the prevailing exchange rate at March 31, 2020, which was ¥108.81 to U.S. $1. The convenience translations should not be construed
as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at
this or any other rate of exchange.
2. Summary of Significant Accounting Policies
(a) Consolidation
The consolidated financial statements include the accounts of the Company and its 51 significant subsidiaries (the "Companies"). One
subsidiary was excluded from the scope of consolidation from the fiscal year ended March 31, 2020 due to a decrease of its materiality
to the consolidated financial statements. All significant intercompany transactions, accounts and unrealized profits among the
Companies have been eliminated in consolidation. Investments in the 10 significant affiliates which the Company and its subsidiaries
are able to influence, in a material degree, their financial and operating decision-making, are accounted for by the equity method after
the elimination of unrealized intercompany profits. Investments in the remaining unconsolidated subsidiaries and affiliates are not
accounted for by the equity method because of their immaterial effect on the consolidated financial statements. Such investments,
therefore, are carried at cost, adjusted for any substantial and non-recoverable decline in value, and income from such unconsolidated
subsidiaries and affiliates is recognized only when the Companies receive dividends.
In the elimination of investments in subsidiaries, the assets and liabilities of the subsidiaries, including the portion attributable to
minority shareholders, are recorded based on the fair value at the time when the Company acquired control of the respective
subsidiaries.
The consolidation difference between acquisition cost and net assets at the date of acquisition is shown as goodwill and amortized
mainly over five years. Negative goodwill is recognized as profit on the acquisition date.
The balance sheet date of the 7 significant subsidiaries is December 31. As the difference between their balance sheet date and the
consolidated balance sheet date does not exceed three months, they are consolidated on the basis of their financial statements for the
fiscal year ended December 31. We have made necessary adjustments for significant transactions that have occurred in the period
between their balance sheet date and the consolidated balance sheet date.
In addition previously, other 7 subsidiaries were consolidated on the basis of their financial statements for the fiscal year ended
December 31. From the fiscal year ended March 31, 2020, these subsidiaries provided financial statements based on provisional
settlement of accounts as of March 31, for the purpose of a more appropriate disclosure.
The impact of the above changes on profit and loss for 3 months from January 1, 2019 to March 31, 2019 was reflected directly to
retained earnings in the fiscal year ended March 31, 2020. As a result, retained earnings increased by ¥366 million ($3,363 thousand).
(b) Foreign currency translation
Revenues and expenses are translated at the rates of exchange prevailing when transactions are made. Monetary claims and liabilities
denominated in foreign currencies are generally translated into each reporting currency at the rates of foreign exchange prevailing at
the balance sheet dates and the resulting translation gains or losses are included in earnings.
All assets and liabilities of consolidated foreign subsidiaries are translated into Japanese yen at the rates prevailing at their balance
sheet dates and revenues and expenses of consolidated foreign subsidiaries are translated into Japanese yen at the average
exchange rates prevailing during the year. The resulting translation adjustments are shown as “Foreign currency translation
adjustments,” a component of net assets.
(c) Cash and cash equivalents
In the accompanying consolidated statements of cash flows, cash and cash equivalents include cash on hand, demand deposits and
short-term investments with maturities of three months or less from the date of acquisition which have high liquidity and negligible risk of
price fluctuation.
(d) Marketable securities, investment securities and investments in unconsolidated subsidiaries and affiliates other than
those accounted for by the equity method
Securities owned by the Companies are classified into:(1) securities intended to be held to maturity (hereafter, “held-to-maturity
securities”), (2) equity securities issued by subsidiaries and affiliated companies, or (3) all other securities that are not classified as
trading securities or in any of the above categories (hereafter, “available-for-sale securities”).
Held-to-maturity securities are stated at amortized cost. Equity securities issued by subsidiaries and affiliated companies which are
not consolidated or accounted for using the equity method are mainly stated at average cost. Available-for-sale securities with fair
market values are stated at fair market values, and the corresponding unrealized holding gains or losses, net of applicable income
taxes, are reported as a component of net assets. Realized gains and losses on sale of such securities are computed using average
cost or moving-average cost. Other available-for-sale securities with no available fair market value are mainly stated at average cost
(e) Derivative transactions and hedge accounting
The Companies generally state derivative financial instruments at fair value and recognize changes in the fair value as gains or losses
unless they are used for hedging purposes and qualified for hedge accounting.
If derivative financial instruments are used as hedges and meet certain hedging criteria, gains or losses resulting from changes in
their fair value are generally deferred as a component of accumulated other comprehensive income in the consolidated balance sheet,
and charged to income when the related gains or losses on the hedged items are recognized.
All derivative contracts are based on actual demand and not for trading in the short term or for speculation.
For currency swap contracts, interest rate swap contracts, metal forward contracts and fuel forward contracts, the Companies
evaluate hedge effectiveness by comparing the cumulative changes in cash flows or the changes in fair value of the hedged items with
the corresponding changes in the hedging derivative instruments.
The evaluation of effectiveness is skipped for currency forward contracts that are believed to have high hedge effectiveness, such as
in cases where hedging instruments and hedged items share the same important characteristics.
(f) Inventories
Inventories are stated primarily at lower of cost or net selling value based on the following methods:
The Company:
Metals Sector, Catalysts Division
Subsidiaries:
Mitsui Kinzoku ACT Corporation, Kamioka Mining & Smelting Co., Ltd. (except for the metal powders factory), Hachinohe
Smelting Co., Ltd. and others
: First-in, first-out method
The Company:
Copper Foil Division
: Moving average method
The Company:
Engineered Materials Sector (except for Catalysts Division and Copper Foil Division), Affiliates Coordination Strategic Sector
Subsidiaries:
The metal powders factory of Kamioka Mining & Smelting Co., Ltd., Nippon Yttrium Co., Ltd., Mitani Shindo Co., Ltd. and others
: Average method
Overseas subsidiaries
: Average method or first-in, first-out method
(g) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is generally computed by the declining-
balance method based on the estimated durable years of these depreciable assets, except the straight-line method is applied to:(1)
buildings, excluding building fixtures, acquired since April 1, 1998, and building fixtures and structures, which were acquired since April
1, 2016. (2) certain plant facilities of the Company and (3) property, plant and equipment of certain consolidated subsidiaries. The
durable years of these assets generally range from 7 to 50 years for buildings, 3 to 60 years for structures and 2 to 20 years for
machinery and equipment.
Leased assets used under finance leases and capitalized, are depreciated over the lease terms of respective assets by the straight-
line method.
(h) Allowance for doubtful accounts
The Company and consolidated subsidiaries provide an allowance for doubtful accounts in an amount sufficient to cover probable
losses on collection by estimating individually uncollectible amounts and applying a percentage based on historical data to the
remaining accounts.
(i) Provision for product warranties
Reserve for product warranties is provided to accrue estimated costs of repairing products free of charge, based on individually estimated
amounts which are reliably measurable or the amounts computed by the ratio of actual repair costs which correspond to net sales.
72 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 73
(t) Reclassification
Certain prior year amounts have been reclassified to conform to the 2020 presentation. These changes had no impact on previously
reported results of operations or shareholders' equity.
(u) Accounting of consumption tax
Consumption tax generally withheld upon sale, as well as that paid for purchases of goods or services, is recorded as a liability or an
asset, and is excluded from the relevant revenue, costs or expenses.
(Changes in accounting policy)
Certain consolidated subsidiaries overseas which apply U.S. GAAP have adopted Accounting Standards Update (“ASU”) No.2014-09,
“Revenue from Contracts with Customers” from the beginning of the fiscal year ending March 31, 2020.
ASU No. 2014-09 calls for an entity to recognize revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain
consolidated subsidiaries overseas adopted the method by which the cumulative effect of retrospectively applying this standard was
recognized at the date of initial application.
The impact of applying this standard on consolidated financial statements is immaterial.
(Standards and guidance not yet adopted)
The following standard and guidance were issued but not yet adopted.
- “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020)
- “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.30, March 31, 2020)
(1) Overview
The above standard and guidance provide comprehensive principles for revenue recognition. Under the standard and guidance,
revenue is recognized by applying following 5 steps:
Step1: Identify contract(s) with customers.
Step2: Identify the performance obligations in the contract.
Step3: Determine the transaction price.
Step4: Allocate the transaction price to the performance obligation in the contract.
Step5: Recognize revenue when (or as) the entity satisfies a performance obligation.
(2) Adoption date
The Company will adopt the above standard and guidance from the beginning of the fiscal year ending March 31, 2022.
(3) Effects of the application of the standards
The Company and its consolidated domestic subsidiaries are currently in the process of determining the effects of these new standards
on the consolidated financial statements.
Following accounting standards and guidance are those issued but not yet adopted.
- “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)
- “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, July 4, 2019)
- “Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9, July 4, 2019)
- “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019)
- “Implementation Guidance on Disclosures about Faire Value of Financial Instruments” (ASBJ Guidance No.19, March 31, 2020)
(1) Overview
In order to enhance comparability with internationally recognized accounting standards, “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (together, hereinafter referred to
as “Fair Value Accounting Standards”) were developed and guidance on methods measuring fair value was issued. Fair Value
Accounting Standards are applicable to the fair value measurement of the following items:
- Financial instruments in “Accounting Standard for Financial Instruments”; and
- Inventories held for trading purposes in “Accounting Standard for Measurement of Inventories.”
Additionally “Implementation Guidance on Disclosures about Faire Value of Financial Instruments” was revised and it established new
notes of the breakdowns of every fair value of financial instruments and other.
(2) Adoption date
Fair Value Accounting Standards and guidance will be effective from the beginning of the consolidated fiscal year ending March 31,
2022.
(j) Provision for improvement of business structure
Provision for improvement of business structure is provided to accrue estimated costs of improvement of business structure by
consolidating production facilities and other measures.
(k) Provision for loss on disposal of inventories
Provision for loss on disposal inventories is provided to accrue estimated costs of disposal of inventories, such as by-products and other
materials.
(l) Employees’ retirement benefits
The Companies provided employees' retirement benefits based on the estimated amounts of projected benefit obligation and the fair
value of the plan assets at the balance sheet date. The liabilities and expenses for employees' retirement benefits are determined
based on the amounts actuarially calculated using certain assumptions.
Prior service costs are amortized by the straight-line method over periods of 1 to 5 years which are within the average remaining
years of service of the employees.
Actuarial differences are amortized primarily from the year in which the actuarial differences are incurred by the straight-line method
over periods of 1 to 12 years which are within the average remaining years of service of the employees.
(m) Directors’ and corporate auditors’ retirement benefits
Directors and corporate auditors are generally entitled to receive retirement benefits based on the Companies’ internal rules. Their
retirement benefits are accrued at the amount required to be paid in accordance with the internal rules if the directors and corporate
auditors retired at the balance sheet date.
(n) Provision for environmental countermeasures
With enactment of the legislation about special measures concerning the proper treatment of PCB (polychlorinated biphenyl) waste, the
Company and its domestic subsidiaries provide for environmental countermeasures to accrue estimated cost of disposal of PCB waste.
Furthermore, estimated cost of soil improvement and preventing environmental pollution is charged to this account.
(o) Provision for preventing environmental pollution in mineral, mining, and other operations
Provision for preventing environmental pollution in mineral, mining, and other operations is provided to accrue estimated cost of
preventing the environmental pollution following the termination of use of mineral, mining, and other facilities.
(p) Research and development expenses
Research and development expenses are charged to expenses when incurred.
(q) Accounting for revenues on construction contracts
Recognition of net sales and cost of sales of completed construction contracts
Construction contracts whose outcome can be estimated reliably: Percentage-of-completion method
Other construction contracts: Completion-of-contract method
(r) Income taxes
The Companies recognize tax effects of temporary differences between the financial statement basis and the tax basis of assets and
liabilities. The provision for income taxes is computed based on the pretax income of each of the Companies, with certain adjustments
required for consolidation and tax purposes.
The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences.
The Company has adopted the consolidated tax return system for the calculation of income taxes. Under the consolidated tax return
system, the Company consolidates all wholly owned domestic subsidiaries based on the Japanese tax regulations.
Application of tax effect accounting for the transition from the consolidated tax payment system to the group taxation system
Having regard to paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated
Taxation System to the Group Tax Sharing System” (PITF No.39, March 31, 2020), the Company and its domestic consolidated
subsidiaries did not follow paragraph 44 of “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, February 16,
2018) but applied provisions of pre-amended tax laws when calculating the amounts of deferred tax assets and liabilities that relate to
transitioning to the group taxation system and related amendments of tax laws for transitioning to the single tax payment system.
(s) Earnings per share, diluted earnings per share and cash dividends per share
Earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the respective
fiscal year.
Diluted earnings per share is not presented as there were no shares with dilutive effects in 2019 and 2020.
Cash dividends per share represent the historical amount applicable to the respective year.
74 MITSUI KINZOKU Integrated Report 2020
(3) Effects of the application of the standards
The Company and its consolidated domestic subsidiaries are currently in the process of determining the effects of these new standards
on the consolidated financial statements.
- “Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ Statement No. 24,
March 31, 2020)
(1) Overview
The objective is to present an overview of accounting principles and procedures used when a relevant accounting standard is unclear.
(2) Effective date
The standards will be effective for the end of annual periods ending on or after March 31, 2021.
- “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No.31, March 31, 2020)
(1) Overview
The objective is to present financial statement users with information to understand the details of accounting estimate items in financial
statements for the current fiscal year that have a material risk on financial statements for the following fiscal year.
(2) Effective date
The standards will be effective for the end of annual periods ending on or after March 31, 2021.
(Changes in presentation)
(1) Consolidated statements of income
“Reversal of provision for environmental countermeasures” that had been included separately under “Extraordinary income (losses)” in
the previous fiscal year did not exceed ten percent of the total amount of extraordinary income, and has therefore been presented
under “Other, net” under “Extraordinary income (losses)” in the current fiscal year.
“Environmental expenses” and “Loss on disaster” that had been included separately under “Extraordinary income (losses)” in the
previous fiscal year did not exceed ten percent of the total amount of extraordinary losses, and has therefore been presented under
“Other, net” under “Extraordinary income (losses)” in the current fiscal year.
The presentation for the year ended March 31, 2019 was reclassified to reflect this change to the comparative information.
As a result, ¥21 million that was presented as “Reversal of allowance for environmental countermeasures” and ¥(156) million that was
presented as “Environmental expenses” and ¥(336) million that had been presented as “Loss on disaster” and ¥(438) million that had
been presented as “Other, net” under “Extraordinary income (losses)” in the consolidated statements of income for the year ended
March 31, 2019 has been restated as “Other, net” of ¥(909) million.
(Additional information)
Mitsui Kinzoku Group continued business activities while implementing strict measures following the COVID-19 outbreak, but impacts
such as decreased net sales are expected as a result of halted operations at some overseas bases and other factors.
The COVID-19 outbreak will have wide-reaching effects on economies and business activities, and it is difficult to predict such factors
as how it will spread and how long it will take to get under control. Therefore, in estimating the recoverability of deferred tax assets and
other, the Company will consider such things as external information available as of the end of the current fiscal year and assume that
the impact of COVID-19 will continue for a certain period of the year ending March 31, 2021.
MITSUI KINZOKU Integrated Report 2020 75
3. Inventories
Inventories at March 31, 2019 and 2020 consisted of the following:
Write-downs, net of reversal of write-downs recognized during the prior fiscal year, are included in the cost of sales for the fiscal years
ended March 31, 2019 and 2020 respectively as follows:
4. Securities
(a) Acquisition costs and book values of available-for-sale securities with fair value as of March 31, 2019 and 2020 were as follows:
(b) Available-for-sale securities sold for the years ended March 31, 2019 and 2020 were as follows:
5. Amounts of Cash and Cash Equivalents
Amounts of cash and cash equivalents at March 31, 2019 and 2020 were reconciled with cash and deposits as follows:
Merchandise and finished goods
Work in process
Raw materials and supplies
Total
2019
¥36,061
30,392
45,299
¥111,753
2020
¥41,081
29,536
50,897
¥121,514
Cost of sales
Total
2019
¥1,648
¥1,648
2020
¥1,202
¥1,202
Cash and deposits
Time deposits with maturities exceeding
three months from the date of deposit
Total : Cash and cash equivalents
2019
¥21,536
(11)
¥21,524
2020
¥32,677
(11)
¥32,666
Year ended March 31, 2019
Securities whose book value exceeds acquisition cost:
Stocks
Subtotal
Securities whose book value does not exceed acquisition cost:
Stocks
Subtotal
Total
Book value
¥4,348
4,348
1,030
1,030
¥5,379
Acquisition cost
¥2,007
2,007
1,238
1,238
¥3,246
Difference
¥2,341
2,341
(208)
(208)
¥2,133
Year ended March 31, 2020
Securities whose book value exceeds acquisition cost:
Stocks
Subtotal
Securities whose book value does not exceed acquisition cost:
Stocks
Subtotal
Total
Book value
¥2,579
2,579
1,586
1,586
¥4,166
Acquisition cost
¥1,370
1,370
1,870
1,870
¥3,240
Difference
¥1,209
1,209
(284)
(284)
¥925
Total sale amount
Gains
Losses
2019
¥-
-
-
2020
¥39
23
-
Stocks
Stocks
Stocks
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
76 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 77
6. Short-Term Borrowings and Long-Term Debt
Inventories at March 31, 2019 and 2020 consisted of the following:
Long-term debt at March 31, 2019 and 2020 consisted of the following:
The aggregate annual maturities of long-term debt at March 31, 2020 were as follows:
The 0.76% yen unsecured straight bonds due in 2020 were issued on November 28, 2013 by the Company.
The 0.39% yen unsecured straight bonds due in 2020 were issued on December 15, 2015 by the Company.
The 0.20% yen unsecured straight bonds due in 2021 were issued on November 28, 2016 by the Company.
The 0.20% yen unsecured straight bonds due in 2022 were issued on November 28, 2017 by the Company.
The 0.20% yen unsecured straight bonds due in 2023 were issued on November 29, 2018 by the Company.
The 0.22% yen unsecured straight bonds due in 2024 were issued on November 28, 2019 by the Company.
7. Pledged Assets
Assets pledged as collateral for long-term debt at March 31, 2019 and 2020 were as follows:
Government-owned banks and government agencies,
maturing through 2027 at interest rates ranging from 0.900%
to 2.200% at March 31, 2020:
Secured
Unsecured
Less: Current portion
1,166
-
158,780
36,412
¥122,368
708
-
163,611
28,727
¥134,883
Banks, insurance companies and other financial institutions,
maturing through 2026 at interest rates ranging from 0.200%
to 10.220% at March 31, 2020:
Secured
Unsecured
900
96,714
621
102,282
0.22 % yen unsecured straight bonds due in 2024
0.20 % yen unsecured straight bonds due in 2023
0.20 % yen unsecured straight bonds due in 2022
0.20 % yen unsecured straight bonds due in 2021
0.39 % yen unsecured straight bonds due in 2020
0.27 % yen unsecured straight bonds due in 2019
0.76 % yen unsecured straight bonds due in 2020
2019
¥ -
10,000
10,000
10,000
10,000
10,000
10,000
2020
¥10,000
10,000
10,000
10,000
10,000
-
10,000
Short-term bank loans, generally represented by short-term notes
and bank overdrafts, bore interest at annual rates ranging from
0.310% to 9.432% and from 0.230% to 9.632% at March 31, 2019
and 2020, respectively.
Commercial paper with interest at annual rate of (0.01)% and 0.05%
at March 31, 2019 and 2020, respectively.
2019
¥51,598
6,500
¥58,098
2020
¥44,459
25,000
¥69,459
Year ending March 31,
2021
2022
2023
2024
2025
Thereafter
Total
Millions of yen
¥28,727
25,657
40,140
27,776
38,612
2,696
¥163,611
Property, plant and equipment, net book value
2019
¥7,846
¥7,846
2020
¥7,339
¥7,339
Millions of yen
Millions of yen
Millions of yen
9. Net Assets
Under the Japanese Company Law, the entire amount paid for new shares is required to be designated as common stock. However, a
company may, by a resolution of the board of directors, designate an amount not exceeding one-half of the price of the new shares as
additional paid-in-capital, which is included in capital surplus.
The Japanese Company Law provides that an amount equal to 10 % of cash dividends and other cash appropriations of retained
earnings must be set aside as a legal earnings reserve included in retained earnings until the total amount of capital surplus and the
legal earnings reserve equals 25% of common stock.
The excess of the total amount of capital surplus and the legal earnings reserve over 25% of common stock can be transferred to
retained earnings by a resolution of the shareholders, which may be available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the unconsolidated financial statements of
the Company in accordance with the Japanese Company Law.
(a) Shares issued and outstanding
Changes in number of shares issued and outstanding during the year ended March 31, 2019 and 2020 were as follows:
(b)Dividends
Dividends paid for the year ended March 31, 2020 were as follows:
Dividends included in the retained earnings at March 31, 2020 and to be paid in subsequent periods were as follows:
10. Selling, General and Administrative Expenses
Principal items of selling, general and administrative expenses for the years ended March 31, 2019 and 2020 were as follows:
8. Contingent Liabilities
Contingent liabilities at March 31, 2019 and 2020 were as follows:
Notes receivable discounted
Notes and accounts receivable securitized with recourse
Loans guaranteed
Unconsolidated subsidiaries and affiliates
Others
2019
¥270
584
116,820
343
¥118,019
2020
¥219
427
107,863
289
¥108,798
Balance at April 1, 2018
Increase during the year
Decrease during the year
Balance at March 31 and April 1, 2019
Increase during the year
Decrease during the year
Balance at March 31, 2020
Shares of common stock
(Thousands)
57,296
-
-
57,296
-
-
57,296
Shares of treasury stock
(Thousands)
188
0
-
189
0
-
190
Approved at the shareholders' meeting held on June 27, 2019
Total
Millions of yen
¥3,997
¥3,997
Approved at the shareholders' meeting held on June 26, 2020
Total
Millions of yen
¥3,997
¥3,997
Freightage related expenses
Salaries
Bonus and retirement pay
Provision for bonuses
Provision for directors' and corporate auditors' bonuses
Retirement benefit expenses
Provision for directors' and corporate auditors' retirement benefits
Provision for product warranties
Depreciation expense
Research and development/Exploration expenses
2019
¥9,758
10,046
2,401
1,610
31
1,307
120
72
2,028
8,232
2020
¥9,794
10,070
2,188
1,703
-
2,114
124
17
2,166
8,508
Millions of yen
78 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 79
12. Explanatory notes on extraordinary profit and loss
(a) Gain on sale of property, plant and equipment
11. Research and Development Expenses
Research and development expenses included in production cost and selling, general and administrative expenses amounted to
¥9,523 million and ¥10,125 million ($93,052 thousand) for the years ended March 31, 2019 and 2020, respectively.
(b) Loss on sale of property, plant and equipment
(c) Loss on disposal of property, plant and equipment
(d) Provisions included in other, net of extraordinary losses
13. Segment Information
The operations of the Companies for the years ended March 31, 2019 and 2020 were summarized as follows:
(a) Overview of reportable segments
"The reportable segments of the Company are those units for which separate financial statements can be obtained among the
constituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation of
management resources and for assessing business performance.
The Company has business sectors categorized by products and services in head office, and each business sector plans business
strategies comprehensively and operates business activities domestically and internationally.
As a result, the Company reports four segments: Engineered Materials, Metals, Automotive Parts & Components, and Affiliates
Coordination, based on business sectors categorized by products and services."
(b) Basis for Calculating amounts of net sales, profit or loss, assets, and other items by reported segments
Accounting procedure for reported segments, excluding the handling treatment for converting the income, expenses and assets of
overseas subsidiaries into Japanese currency, is mostly the same as procedures indicated in 2. Summary of Significant Accounting
Policies. The handling treatment for converting the income, expenses and assets of overseas subsidiaries into Japanese currency is
mainly based on anticipated exchange rates at the time budgets were formulated. Profit for reported segments is based on ordinary
income. Sales for inter-segment are based on actual market prices.
Provision for allowance for doubtful accounts
2019
¥21
2020
¥-
Millions of yen
Buildings and structures
Machinery and equipment
Others
Total
2019
¥655
963
87
¥1,706
2020
¥283
1,256
614
¥2,154
Millions of yen
Buildings and structures
Machinery and equipment
Land
Others
Total
2019
¥3
46
-
12
¥62
2020
¥-
59
36
35
¥132
Millions of yen
Buildings and structures
Machinery and equipment
Land
Others
Total
2019
¥4
20
-
39
¥64
2020
¥2
58
67
47
¥175
Millions of yen
Sales:
Outside customers
Inter-segment
Total
Segment profit
Segment assets
Depreciation expense
Amortization of goodwill and negative goodwill
Interest income
Interest expense
Investment gains (losses) on equity method
Investment for companies accounted for using
the equity method
Increase in property, plant and equipment, and
intangible assets
Engineered
Materials
¥158,950
6,524
165,474
16,608
158,160
10,991
-
201
769
369
3,862
14,395
Metals
¥142,796
23,843
166,640
(6,039)
205,482
9,191
-
279
1,122
(3,349)
29,139
12,054
Automotive
Parts &
Components
¥104,026
-
104,026
4,689
59,321
4,183
-
101
184
-
-
5,013
Affiliates
Coordination
¥89,825
37,079
126,904
4,881
94,536
2,508
-
136
215
753
14,446
2,841
Total
¥495,599
67,447
563,047
20,140
517,500
26,876
-
719
2,292
(2,225)
47,447
34,305
Adjustment
¥2,102
(67,447)
(65,345)
(2,385)
5,815
1,088
-
(419)
(686)
31
(40)
1,814
Consolidated
¥497,701
-
497,701
17,755
523,315
27,964
-
299
1,605
(2,194)
47,407
36,119
Year ended March 31, 2019
Reported segments
Millions of yen
(c) Information on amounts of net sales, profit or loss, assets, and other items by reported segments
Segment information as of and for the fiscal year ended March 31, 2019, which was restated in conformity with reorganization, was as
follows:
(a) Amounts of adjustment are as follows::
Notes:
(b) Segment profit (loss) is adjusted to be consistent with ordinary income (loss) shown on the consolidated statements of operations.
(1) Adjustments of sales to outside customers is the difference mainly in the conversion process to the Japanese currency of sales of overseas
subsidiaries.(The difference between the anticipated exchange rates at the time budgets were formulated and the average exchange rates during the year)
Adjustment to segment profit, which amounted to ¥(2,385) million, consists mainly of ¥(2,084) million for Company-wide costs that do not belong to
any reportable segments, ¥895 million for adjustment of inventories and ¥(1,802) million for adjustment of fixed assets.
Company-wide costs are mainly general and administrative expenses and research expenses that do not belong to any reportable segments.
(2) Adjustment to segment assets, which amounted to ¥5,815 million, consists of ¥(14,642) million for offset of receivables to the corporate administrative
department, ¥(18,432) million for offset of inter-segment receivables, ¥47,822 million for Company-wide assets that do not belong to any reportable
segments and ¥(8,932) million for other adjustment.
Company-wide assets are mainly assets in head office that do not belong to any reportable segments.
Sales:
Outside customers
Inter-segment
Total
Segment profit
Segment assets
Depreciation expense
Amortization of goodwill and negative goodwill
Interest income
Interest expense
Investment gains (losses) on equity method
Investment for companies accounted for using
the equity method
Increase in property, plant and equipment, and
intangible assets
Engineered
Materials
¥160,673
7,153
167,826
13,394
183,389
11,221
-
248
989
380
4,145
14,929
Metals
¥139,850
21,273
161,123
(1,472)
186,665
9,504
-
496
703
(1,935)
27,154
9,494
Automotive
Parts &
Components
¥90,581
-
90,581
469
56,628
4,308
-
70
181
-
-
4,017
Affiliates
Coordination
¥82,405
27,510
109,916
1,445
89,956
2,609
-
145
216
288
14,336
3,230
Total
¥473,510
55,937
529,447
13,837
516,639
27,643
-
960
2,090
(1,266)
45,636
31,672
Adjustment
¥(400)
(55,937)
(56,338)
(4,519)
20,480
1,326
-
(514)
(341)
(163)
(200)
2,326
Consolidated
¥473,109
-
473,109
9,318
537,119
28,970
-
446
1,749
(1,429)
45,436
33,999
Year ended March 31, 2020
Reported segments
Millions of yen
Segment information as of and for the fiscal year ended March 31, 2020 was as follows:
Year ended March 31, 2020
Loss on impairment of fixed assets
Engineered Materials
¥64
Metals
¥153
Automotive Parts &
Components
¥145
AffiliatesCoordination
¥-
Elimination・Corporate
¥-
Consolidated
¥363
Year ended March 31, 2019
Property, plant and equipment
Japan
¥137,488
Asia
¥38,598
North America
¥6,577
Other Areas
¥7,192
Consolidated
¥189,857
Year ended March 31, 2019
Sales
Japan
¥273,724
China
¥69,893
Asia(Except China)
¥94,734
North America
¥41,790
Other Areas
¥17,559
Consolidated
¥497,701
(a) Amounts of adjustment are as follows:
Notes:
(b) Segment profit (loss) is adjusted to be consistent with ordinary income (loss) shown on the consolidated statements of operations.
(1) Adjustments of sales to outside customers is the difference mainly in the conversion process to the Japanese currency of sales of overseas subsidiaries.
(The difference between the anticipated exchange rates at the time budgets were formulated and the average exchange rates during the year)
Adjustment to segment profit, which amounted to ¥(4,519) million, consists mainly of ¥(3,437) million for Company-wide costs that do not belong to
any reportable segments, ¥(676) million for adjustment of inventories and ¥(535) million for adjustment of fixed assets.
Company-wide costs are mainly general and administrative expenses and research expenses that do not belong to any reportable segments.
(2) Adjustment to segment assets, which amounted to ¥20,480 million, consists of ¥(12,403) million for offset of receivables to the corporate
administrative department, ¥(14,073) million for offset of inter-segment receivables, ¥50,547 million for Company-wide assets that do not belong to
any reportable segments and ¥(3,590) million for other adjustment.
Company-wide assets are mainly assets in head office that do not belong to any reportable segments.
80 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 81
【Related information】
Information by area: Millions of yen
Year ended March 31, 2020
Sales
Japan
¥260,353
China
¥60,193
Asia(Except China)
¥95,655
North America
¥38,502
Other Areas
¥18,404
Consolidated
¥473,109
Year ended March 31, 2020
Property, plant and equipment
Japan
¥137,576
Asia
¥38,217
North America
¥5,148
Other Areas
¥8,182
Consolidated
¥189,124
【Information on loss on impairment of fixed assets by reported segments】
【Information on amortization of goodwill and amortized balance by reported segments】
【Information on gain on negative goodwill by reported segment】
Millions of yen
Year ended March 31, 2020
Not applicable.
Year ended March 31, 2019
Not applicable.
Year ended March 31, 2019
Not applicable.
Year ended March 31, 2020
Not applicable.
Year ended March 31, 2019
Not applicable.
14. Income Taxes
The Company and its domestic subsidiaries are subject to a number of taxes based on income, which, in the aggregate, indicate
statutory rates in Japan of approximately 30.5% for the fiscal years ended March 31, 2019 and 2020.
1.Significant components of the Companies' deferred tax assets and liabilities as of March 31, 2019 and 2020 were as follows:
Deferred tax assets:
Excess bad debt expenses
Excess accrued bonuses to employees
Excess product warranties
Liability for retirement benefits
Provision for environmental countermeasures
Loss on impairment of fixed assets
Depreciation in excess of limit
Enterprise taxes Accrued
Unrealized profits and losses
Operating loss carryforward for tax purposes (b)
Net unrealized losses on securities
Deferred losses on hedges
Other
Subtotal
Valuation allowance for operating loss carryforward for tax purposes (b)
Valuation allowance for deductible temporary differences
Valuation allowance-total (a)
Total deferred tax assets
Deferred tax liabilities:
Net unrealized gains on securities
Deferred gains on hedges
Retained earnings of foreign subsidiaries
Asset for retirement benefits
Excess depreciation for tax purposes
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)
2019
¥ 84
1,451
253
8,058
258
2,449
1,802
129
3,299
9,695
70
684
6,425
34,662
(8,452)
(13,027)
(21,479)
¥ 13,182
¥ (679)
(252)
(4,016)
(1,460)
(2,129)
(1,653)
(10,192)
¥ 2,989
2020
¥ 76
1,473
241
8,220
235
2,419
1,474
183
3,392
8,894
117
416
6,839
33,984
(6,576)
(12,842)
(19,418)
¥ 14,566
¥ (350)
(662)
(4,379)
(1,238)
(2,347)
(1,675)
(10,653)
¥ 3,913
(a) Valuation allowance decreased by ¥2,061 million. The main reasons for the decrease were decreases in valuation allowance of
¥1,704 million due to Oak-Mitsui, Inc., which had been a consolidated subsidiary in the previous fiscal year but was excluded from
consolidation in the current fiscal year.
(b) Operating loss carryforward for tax purposes and its deferred tax assets by expiration periods.
Millions of yen
(2019)
Operating loss carryforward for tax purposes (1)
Valuation allowance
Net deferred tax assets
2020
¥1,173
(1,132)
40
2021
¥317
(310)
7
2022
¥1,184
(821)
362
2023
¥153
(153)
-
2024
¥678
(676)
2
2025 and
beyond
¥6,187
(5,357)
829
Total
¥9,695
(8,452)
1,243
(1) Carryforward tax loss shown in the above table is after multiplying the statutory tax rate.
Millions of yen
(2020)
Operating loss carryforward for tax purposes (1)
Valuation allowance
Net deferred tax assets
2021
¥302
(171)
130
2022
¥1,208
(372)
835
2023
¥143
(142)
0
2024
¥136
(130)
5
2025
¥1,321
(429)
891
2026 and
beyond
¥5,783
(5,329)
453
Total
¥8,894
(6,576)
2,317
(1) Carryforward tax loss shown in the above table is after multiplying the statutory tax rate.
Millions of yen
Year ended March 31, 2019
Assets:
(a) Cash and deposits
(b) Notes and accounts receivable
(c) Investment securities
Total
Liabilities:
(a) Notes and accounts payable
(b) Short-term borrowings and commercial papers
(c) Current portion of long-term debt
(d) Long-term debt
Total
Derivative transactions
Book value
¥ 21,536
91,273
11,441
¥ 124,251
55,926
58,098
36,412
122,368
¥ 272,805
¥ (1,398)
Fair value
¥ 21,536
91,273
10,912
¥ 123,721
55,926
58,098
36,550
122,762
¥ 273,337
¥ (1,398)
Difference
¥ -
-
(529)
¥ (529)
-
-
138
393
¥ 532
¥ -
Notes: Derivative assets and liabilities are on net basis. Items that are net liabilities are shown in parenthesis.
2019
30.5
1.7
(109.7)
111.8
4.4
29.1
(2.1)
65.8
82 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 83
Management system for market risk
For foreign currency exchange rate risk from foreign currency denominated trade receivables, currency forward contracts are used on
a certain portion of the positions that are, as a general rule, the net amount of foreign currency denominated trade receivables. For
foreign currency exchange rate risk from foreign currency denominated trade payables, currency forward contracts are used on a
certain portion of the positions that are, as a general rule, the net amount of foreign currency denominated trade payables. Moreover,
the Companies also entered into interest rate swaps to hedge their loans payable against interest rate risk.
For stock market fluctuation risk of investment securities, the Companies keep track of the market prices and investees’ (business
partners) financial condition and review continuously the possession situation of stocks in view of the relationship with business
partners.
Derivative transactions entered into by the Companies are implemented and controlled based on the Company’s internal policies.
Management system for liquidity risk of financing
The Company's Finance & Accounting Department manages the risk through the preparation of the Companies' financial plans with
group financing.
2.The following table summarizes the significant differences between the statutory effective tax rate and the tax rate calculated based
on the Company's consolidated financial statements for the fiscal years ended March 31, 2019 and 2020.
Statutory effective tax rate
Permanent difference due to non-deductible expense
Permanent difference due to non-taxable income
Effect of elimination of intercompany dividends received
Investment losses on equity method
Valuation allowance
Others
Tax rate calculated based on the Companies' consolidated financial statements
2020
30.5
4.8
(51.9)
52.1
7.5
23.6
3.7
70.4
%
%
%
%
15. Financial Instruments
(a) Qualitative information on financial instruments
1. Policy of financial instruments management
The Companies raise funds primarily through bank loans and the issuance of commercial paper and bonds. The Companies manage
surplus funds utilizing financial assets with high degrees of safety. The Companies use derivatives to reduce risk as described below
and do not enter into speculative trading.
2. Description of financial instruments and risk
Trade receivables-notes and accounts receivable are exposed to the credit risks of customers. As the Companies are expanding their
business globally, certain foreign currency denominated trade receivables are exposed to foreign currency exchange rate fluctuation
risk. For this risk, currency forward contracts are used on a certain portion of the amount of foreign currency denominated trade
receivables less the amount of respective foreign currency denominated trade payable. Investment securities are mainly stocks issued
by companies that have business relationships, and are exposed to stock market fluctuation risk.
The majority of trade payables-notes and accounts payable have payment due dates of less than one year. A portion of foreign
currency denominated trade payables-notes and accounts are denominated in foreign currencies in association with the import of raw
materials and others and are thus exposed to foreign currency exchange rate fluctuation risk. For this risk, currency forward contracts
are used on a certain portion of the positions that are, as a general rule, the net amount of trade payables denominated in the
respective foreign currencies. Short-term borrowings and commercial papers are raised mainly for operating activities while long-term
debt (in principle within 5 years) is raised mainly for capital investments. Loans with floating interest are exposed to interest rate
fluctuation risk, for long-term debt with floating interest, derivative transactions (interest rate swap contracts) are used for certain long-
term loans in each loan agreement in order to hedge the risk of fluctuating interest rates and to make interest expenses fixed.
Regarding derivative transactions, the Companies used currency forward contracts and swaps to hedge transactions, such as future
sales of commodities (mainly basic metals) and future purchases of inventories (mainly imported materials) in foreign currencies, and to
hedge their foreign currency denominated assets and liabilities against foreign currency exchange risk. For those transactions, the
Companies apply the deferred hedge method or the matching treatment method as hedge accounting methods except for transactions
held by certain foreign subsidiaries, and for certain transactions to hedge assets and liabilities denominated in foreign currencies
against foreign currency exchange risk.
The Companies also entered into interest rate swap contracts to hedge their loans payable against interest rate fluctuation risk. For
those transactions, the Companies apply the deferred hedge method or the exceptional accrual method for interest rate swaps as
hedge accounting methods except for transactions held by certain foreign subsidiaries.
Further, the Companies utilized metal forward contracts and fuel forward contracts to reduce the Companies' exposure to fluctuations
in material prices. For those transactions, the Companies apply the deferred hedge method as hedge accounting methods except for
transactions held by certain foreign subsidiaries. With regard to hedging instruments, hedged items, hedging policies and evaluation of
hedge effectiveness, please refer to “Notes to Consolidated Financial Statements - 2.Summary of Significant Accounting Policies - (e)
Derivative transactions and hedge accounting.”
Derivative transactions are exposed to market risks from fluctuations in fair value and to credit risks from breach of contract due to
counter parties' insolvency or other reasons. Market risks of the Companies' currency forward and swap contracts, interest rate swap
contracts and metal forward contracts refer to the risks from fluctuations in exchange rates, interest rates and metal prices.
3. Description of risk management system for financial instruments
Management system for credit risk
With regard to the credit risk for trade receivables-notes and accounts receivable, due dates and balances are managed for each
customer and the credit status of major customers is kept track of on a semiannual basis.
In order to mitigate credit risk for derivative transactions, the Companies conduct business only with highly rated financial
institutions and trading companies.
4. Supplementary explanation regarding fair value of financial instruments
The fair value of financial instruments is measured based on the market price, if available, or reasonably estimated value if a market
price is not available. As reasonably estimated value is estimated based on certain assumptions, it might differ if different assumptions
are used.
In addition, the contract amount of the derivative transactions described below in "Notes to Consolidated Financial Statements -
16.Derivative Transactions" does not represent the market risk of the derivative transactions.
(b) Fair value of financial instruments
The carrying amounts of book value, fair value, and differences as of March 31, 2019 and 2020 were as follows. In addition, financial
instruments, of which it is extremely difficult to measure the fair value, are not included (Please refer to "Notes 2. Financial instruments
whose fair value is extremely difficult to measure").
Year ended March 31, 2020
Assets:
(a) Cash and deposits
(b) Notes and accounts receivable
(c) Investment securities
Total
Liabilities:
(a) Notes and accounts payable
(b) Short-term borrowings and commercial papers
(c) Current portion of long-term debt
(d) Long-term debt
Total
Derivative transactions
Book value
¥ 32,677
83,979
10,544
¥ 127,201
59,799
69,459
28,727
134,883
¥ 292,870
¥ 744
Fair value
¥ 32,677
83,979
10,295
¥ 126,953
59,799
69,459
28,807
135,030
¥ 293,097
¥ 744
Difference
¥ -
-
(248)
¥ (248)
-
-
80
147
¥ 227
¥ -
Notes: Derivative assets and liabilities are on net basis. Items that are net liabilities are shown in parenthesis.
Millions of yen
April 1, 2019 to
March 31, 2020
¥ 21,536
91,273
-
¥ 112,809
April 1, 2020 to
March 31, 2024
¥ -
-
-
¥ -
April 1, 2024 to
March 31, 2029
¥ -
-
-
¥ -
April 1, 2029
and thereafter
¥ -
-
240
¥ 240
Year ended March 31, 2019
(a) Cash and deposits
(b) Notes and accounts receivable
(c) Investment securities:
Available-for-sale securities with maturity date
Bonds(domestic government and municipal bonds)
Total
84 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 85
Derivative transactions:
Notes:
1. Method of estimating fair value of financial instruments
Assets:
(a) Cash and deposits and (b) Notes and accounts receivable:
(c) Investment securities:
Regarding Cash and deposits and Notes and accounts receivable, book value is used as fair value, because these instruments have short maturity so
that fair value approximates book value.
Liabilities:
(a) Notes and accounts payable and (b) Short-term borrowings and commercial papers:
Fair value of investment securities equals quoted market price. Fair value of debt securities equals quoted market price or provided price by financial
institutions. For the situation from the point of view of holding purposes, please refer to "Notes to Consolidated Financial Statements - 4. Securities."
(c) Current portion of long-term debt and (d) Long-term debt:
Regarding Notes and accounts payable and Short-term borrowings and commercial papers, book value is used as fair value, because these
instruments have short maturity so that fair value approximates book value.
Fair value of long-term bank loans is based on the present value of future cash flows discounted using the current borrowing rate for similar debt of a
comparable maturity.
Fair value of corporate bonds is based on the present value of future cash flows discounted using the indicated rate in secondary markets.
(a) Contract amount, fair value, unrealized gain or loss, and others are described in “Notes to Consolidated Financial Statements - 16. Derivative Transactions."
2. Financial instruments whose fair value is extremely difficult to measure
Classification
Unlisted equity securities
Nonpublic domestic bonds
2020
¥ 55,196
240
Consolidated balance sheet amount Millions of yen
Above are not included in "(c) Investment securities" because there is no market value and it is extremely difficult to measure the fair value.
3. The redemption schedule for money claim and held-to-maturity debt securities with maturity dates subsequent to the consolidated
balance sheets date
4. The redemption schedule for corporate bonds, long-term debt, and other interest-bearing debt with maturity dates subsequent to the
consolidated balance sheets date
Please refer to "Notes to Consolidated Financial Statements - 6. Short-Term Borrowings and Long-Term Debt."
April 1, 2020 to
March 31, 2021
¥ 32,677
83,979
-
¥ 116,657
April 1, 2021 to
March 31, 2025
¥ -
-
-
¥ -
April 1, 2025 to
March 31, 2030
¥ -
-
-
¥ -
April 1, 2030
and thereafter
¥ -
-
240
¥ 240
Year ended March 31, 2020
(a) Cash and deposits
(b) Notes and accounts receivable
(c) Investment securities:
Available-for-sale securities with maturity date
Bonds(domestic government and municipal bonds)
Total
16. Derivative Transactions
(a) Derivative transactions for which hedge accounting had not been applied as of March 31, 2019 and 2020 were as follows:
Currency-related derivatives
Type
Forward contracts:
Selling:
U.S. dollars: Contract amounts
Due over one year
Fair value
Net unrealized gains (losses)
2020
¥1,356
-
(22)
(22)
Notes: Fair values of currency forward contracts are based on future exchange rates or prices provided by financial institutions.
Millions of yen
2019
¥ 52,681
240
Millions of yen
(b) Derivative transactions for which hedge accounting had been applied as of March 31, 2019 and 2020 were as follows:
Currency-related derivatives
Type Hedged items
Forward contracts:
Selling: Accounts receivable
U.S. dollars: Contract amounts
Due over one year
Fair value
Buying: Accounts payable
U.S. dollars: Contract amounts
Due over one year
Fair value
Euros: Contract amounts
Due over one year
Fair value
Thailand bhat: Contract amounts
Due over one year
Fair value
Indonesia rupiah: Contract amounts
Due over one year
Fair value
Malaysia ringgit: Contract amounts
Due over one year
Fair value
2020
¥15,546
228
0
¥1,298
-
4
¥26
-
(0)
¥826
68
(33)
¥356
-
(50)
¥353
-
2
Notes:
Currency-related derivatives for which hedge accounting had been applied
(a) The deferred hedge method is applied as a hedge accounting method.
(b) Fair values of currency forward contracts and currency swap contracts are based on future exchange rates or prices
provided by financial institutions.
Millions of yen
2019
¥1,498
-
(10)
(10)
2019
¥15,007
2,568
(137)
¥1,610
-
17
¥33
-
(0)
¥ -
-
-
¥ -
-
-
¥ -
-
-
86 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 87
Type Hedged items
Forward contracts: Raw materials and finished goods
Selling:
Zinc: Contract amounts
Due over one year
Fair value
Lead: Contract amounts
Due over one year
Fair value
Silver: Contract amounts
Due over one year
Fair value
Copper: Contract amounts
Due over one year
Fair value
Buying:
Zinc: Contract amounts
Due over one year
Fair value
Lead: Contract amounts
Due over one year
Fair value
Copper: Contract amounts
Due over one year
Fair value
Coal: Contract amounts
Due over one year
Fair value
2020
¥7,906
-
2,009
¥803
-
(5)
¥ -
-
-
¥225
-
(17)
¥1,621
-
(85)
¥2,474
-
(215)
¥4,170
1,615
(710)
¥971
450
(132)
Commodities-related derivatives
Notes:
(a) The deferred hedge method is applied as a hedge accounting method.
(b) Fair value of metal forward contracts is based on forward prices provided by trading companies.
Millions of yen
Type Hedged items
Forward contracts:
Selling: Accounts receivable
U.S. dollars: Contract amounts
Due over one year
Fair value
Buying: Accounts payable
U.S. dollars: Contract amounts
Due over one year
Fair value
2020
¥174
-
(Note b)
¥1
-
(Note b)
Notes:
Currency-related derivatives for which exceptional accrual method had been applied
(a) The exceptional accrual method for currency-related derivatives is applied as a hedge accounting method.
(b) For certain accounts receivable for which currency forward contracts are used to hedge the foreign currency exchange
rate fluctuation risk, fair value of derivative financial instruments is included in fair value of the accounts receivable as
hedged items, because those currency forwards contracts are treated in combination with the respective accounts
receivable with the exceptional accrual method for currency forward contracts.
2019
¥230
-
(Note b)
¥2
-
(Note b)
Millions of yen
2019
¥23,222
7,494
(1,648)
¥1,576
-
31
¥635
-
19
¥17
-
0
¥2,354
-
185
¥2,225
-
(19)
¥5,813
3,296
163
¥ -
-
-
17. Employees' Retirement Benefits
The Company and its consolidated domestic subsidiaries provide two retirement benefit plans for employees, an unfunded retirement
plan and a funded retirement plan, under which all eligible employees are entitled to benefits based on their length of service and basic
rate of pay at the time of termination.
(a) Changes in retirement benefit obligations
Defined benefit plans
(b) Changes in plan assets
(c) Reconciliation from retirement benefit obligations and plan assets to liability (asset) for retirement benefits
(d) Retirement benefit costs
Balance at the beginning of the fiscal year
Service cost
Interest cost
Actuarial loss (gain)
Benefits paid
Past service costs (benefits)
Decrease by exclusion of consolidated subsidiaries
Other
Balance at the end of the fiscal year
Balance at the beginning of the fiscal year
Expected return on plan assets
Actuarial gain (loss)
Contributions paid by the employer
Benefits paid
Decrease by exclusion of consolidated subsidiaries
Other
Balance at the end of the fiscal year
Funded retirement benefit obligations
Plan assets
Unfunded retirement benefit obligations
Net liability for retirement benefits at the end of the fiscal year
Liability for retirement benefits
Asset for retirement benefits
Net liability for retirement benefits at the end of the fiscal year
Service cost
Interest cost
Expected return on plan assets
Net actuarial loss (gain) amortization
Past service costs amortization
Total retirement benefit costs for the fiscal year
2020
¥46,633
3,026
149
108
(2,139)
3
(1,249)
(17)
¥46,514
2020
¥24,854
692
(1,475)
1,030
(656)
(912)
(25)
¥23,507
2020
¥20,410
(23,507)
(3,096)
26,103
23,006
26,776
(3,769)
¥23,006
2020
¥3,026
149
(692)
1,464
6
¥3,952
Millions of yen
2019
¥46,264
2,606
148
(152)
(2,081)
(0)
(58)
(93)
¥46,633
2019
¥24,346
637
(505)
999
(648)
-
26
¥24,854
2019
¥20,941
(24,854)
(3,913)
25,692
21,779
26,404
(4,625)
¥21,779
2019
¥2,606
148
(637)
568
63
¥2,748
88 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 89
(e) Remeasurements of defined benefit plans
(f) Accumulated adjustments for retirement benefit
(g) Plan assets
1. Plan assets comprise:
(h) Actuarial assumptions
The principal actuarial assumptions at March 31, 2019 and 2020 are as follows:
2. Long-term expected rate of return
Current and target asset allocations, historical and expected returns on various categories of plan assets have been
considered in determining the long-term expected rate of return.
Defined contribution plans
Contributions to defined contribution plans amounted to ¥792 million and ¥907 million for the years ended March 31, 2019 and 2020,
respectively.
18. Earnings per Share of Common Stock
Earnings per share of common stock at March 31, 2019 and 2020 were as follows:
Regarding diluted earnings per share, no figures for diluted earnings per share have been disclosed because no latent shares existed.
Past service costs
Actuarial gain (loss)
Total remeasurements of defined benefit plans for the fiscal year
Prior service costs that are yet to be recognized
Net actuarial losses that are yet to be recognized
Total balance at the end of the fiscal year
Bonds
Equity securities
General insurance funds
Other
Total
2020
¥2
(78)
¥(76)
2020
¥-
427
¥427
2020
36%
26%
33%
5%
100%
Discount rate
Long-term expected rate of return
2020
0.0%-0.9%
Mainly 3.4 %
Millions of yen
Year ended March 31, 2020
Profit attributable to owners of parent
Profit
(Millions of yen)
¥1,566
Weighted-average shares
(Thousands)
57,106
Profit per share
(Yen)
¥27.43
2019
¥63
215
¥278
2019
¥2
348
¥351
2019
34%
31%
31%
4%
100%
2019
0.0%-0.9%
Mainly 3.0 %
Year ended March 31, 2019
Profit attributable to owners of parent
Profit
(Millions of yen)
¥4,691
Weighted-average shares
(Thousands)
57,107
Profit per share
(Yen)
¥82.15
19. Loss on impairment of fixed assets
The Company recognized impairment losses on the manufacturing facilities and the idle assets as extraordinary losses for the fiscal
years ended March 31, 2019 and 2020 as follows:
Year ended March 31, 2019
Not applicable.
Grouping of assets used for business purposes is based on plant- and product-specific units based on management accounting
classifications. And idle assets are grouped by individual assets. The Company planned to restructure and discontinue the
operations relevant to the impaired manufacturing facilities due to the reduce in profitability, and reduced their book values to the
recoverable amounts, which were measured at memorandum value since it is difficult to continue to use them for other operations
or to sell them.The book value of the idle assets held to sale were reduced to net realizable value, which were measured at the estimated sales
price. Further, the book values of the other idle assets were reduced to the recoverable amounts, which were measured at
memorandum value since it is difficult to continue to use them for other operations or to sell them.
Year ended March 31, 2020
Location
Ohta City,
Shimane Prefecture
Ishikawa District
Fukushima Prefecture
Others
Total
Major use
Manufacturing facilities
Idle assets
Idle assets
Millions of yen
¥112
40
0
153
69
52
23
145
64
¥363
Asset category
Buildings and structures
Machinery and equipment
Other
Subtotal
Buildings and structures
Land
Intangible fixed Assets
Subtotal
Machinery and equipment etc.
20. Related Party Transactions
(a) Related party transactions
1. The Company owns 32.2% of outstanding shares of Pan Pacific Copper Co., Ltd., which produces and sells products related to
copper refining and smelting business.The transaction amount for the fiscal years ended March 31, 2019 and 2020 and account balance as of March 31, 2020 with
Pan Pacific Copper Co., Ltd. was as follows:
Millions of yen
2. SCM Minera Lumina Copper Chile is an affiliate of MFN Investment LLC.
MFN Investment LLC is an affiliate of the Company.
The transaction amount for the fiscal years ended March 31, 2019 and 2020 with SCM Minera Lumina Copper Chile was as
follows:
Millions of yen
Guarantees of bank loans
Increase in short -term loans receivable, net
Short term loans receivable
2020
¥85,864
¥129
¥6,445
Guarantees of bank loans
2020
¥21,218
2019
¥90,302
¥6,575
¥6,575
2019
¥25,135
(b) Note about significant related parties
In the fiscal year ended March 31, 2020, Pan Pacific Copper Co., Ltd. was recognized as significant related party and the
summary of its financial statements was as follows:
Pan Pacific Copper Co., Ltd.
Millions of yen
Total current assets
Total non-current assets
Total current liabilities
Total long-term liabilities
Total net assets
Net sales
Profit before income taxes
Profit (loss)
2020
¥266,113
200,353
268,170
82,281
116,014
713,696
3,337
1,602
2019
¥308,844
194,686
330,690
58,280
114,560
733,965
10,003
6,782
90 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 91
21.Asset Retirement Obligations
Years ended March 31, 2019 and 2020
Asset retirement obligations that are recorded in the consolidated balance sheet
(a) Overview of asset retirement obligations
- Obligation to restore a closed mine to its original state required by the Mine Closure Law overseas
- Obligation to eliminate asbestos caused by dismantling a building (business asset) under the Act on Asbestos Health Damage Relief
- Obligation to restore a vacated office or other facility to its original state based on a real estate lease agreement
(b) Basis for calculating amounts of the asset retirement obligations
(Mines)
Compania Minera Santa Luisa S.A. has recognized asset retirement obligations in accordance with International Financial Reporting
Standards, by estimating closure costs based on mine closure plans under mine closure legislation and regulations in Peru. With regard
to estimate of asset retirement obligations, a discount rate of 1.92% is used, and the expected period up to payment is based on
number of recoverable years from launch of operations and estimated between 3 and 21 years from the next fiscal year.
In addition, during the fiscal year ended March 31, 2020, the company revised its estimate of mine closure costs, no longer using the
2.69% discount rate used in the previous fiscal year. As a result, there was a increase of ¥93 million ($854 thousand) in the balance of
asset retirement obligations compared with before the change.
(Asbestos)
The expected periods of time before removal expenses at the time of dismantling is estimated between 1 and 31 years depending on
each asset. The companies use rates between (0.13)% and 2.30% as a discount rate to estimate the amount of asset retirement
obligations.
In the fiscal year ended March 31, 2020, the Company gained the ability to reasonably estimate future removal expenses for
asbestos building materials, as it obtained new information about these removal expenses. Accordingly, the Company has derived a
new estimate of these removal expenses and has recorded the expenses as asset retirement obligations. The resulting increase of
¥535 million ($4,916 thousand) has been added to the balance of asset retirement obligations.
(Real estate lease agreements)
The companies reasonably estimate the amount of lease deposits from real estate lease agreements that they cannot expect to finally
recover, and record the portion of this amount allocated to the fiscal year ended March 31, 2020 as expenses, instead of recording
them as asset retirement obligations under liabilities.
The companies use periods of time between 4 and 21 years from the date of occupancy to estimate the amount of the expenses.
The companies estimate the uncollectible amount of lease deposits as ¥85 million ($781 thousand) in the fiscal year ended March 31,
2020.
(c) Changes in the total amount of these asset retirement obligations in the fiscal years ended March 31, 2019 and March 31, 2020
Millions of yen
Balance at the beginning of the fiscal year
Increase due to acquisition of property, plant and equipment
Adjustments due to the passage of time
Decrease from execution of asset retirement obligations
Increase from changes of estimates
Impact of foreign currency translation
Balance at the end of the fiscal year
2020
¥ 3,341
0
83
(249)
629
11
¥ 3,816
22.Consolidated Statements of Comprehensive Income
Years ended March 31, 2019 and 2020
Amounts reclassified to net income in the current period that were recognized in other comprehensive income in the current or previous
periods and tax effects for each component of other comprehensive income were as follows:
Millions of yen
Net unrealized gains (losses) on securities:
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Deferred gains (losses) on hedges:
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Foreign currency translation adjustments:
Increase(decrease) during the year
Reclassification adjustments
Subtotal, net of tax
Remeasurements of defined benefit plans:
Increase(decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Subtotal, net of tax
Share of other comprehensive income of associates
accounted for using equity method:
Increase(decrease) during the year
Reclassification adjustments
Subtotal, net of tax
Total other comprehensive income
2020
¥(1,211)
(21)
(1,233)
334
(898)
3,383
(1,226)
2,157
(400)
1,757
(5,007)
660
(4,346)
(104)
28
(76)
39
(36)
(590)
527
(63)
¥(3,588)
23. Subsequent events
1. Business combination by the acquisition of the shares
The Company approved a resolution to acquire all outstanding shares of Hibi Smelting Co., Ltd. (Hibi Smelting) at a meeting of the
Board of Directors held on February 12, 2020 with transactions of 1) Pan Pacific Copper Co., Ltd. (PPC), investment in which are
accounted for by the equity method as a joint investment company with JX Nippon Mining & Metals Corporation (JX), transfers a part of
its operations to Hibi Smelting, which is newly established by PPC through an absorption-type company split, 2) PPC transfers its
shares of Hibi Smelting to the Company and JX as dividend in kind, and 3) the Company acquires all shares of Hibi Smelting held by JX.
These transactions were executed on April 1, 2020. In addition, Hibi Kyodo Smelting Co., Ltd. (Hibi Kyodo), investment in which had
been accounted for by the equity method, became a consolidated subsidiary as Hibi Smelting acquired the shares of Hibi Kyodo
previously held by PPC.
(1) Overview of business combination
1) Name and business of acquired company
a. Hibi Smelting Co., Ltd.
Main business operations: Smelting and refining of electric copper and other materials as a consignee and consignor
b. Hibi Kyodo Smelting Co., Ltd.
Main business operations: Smelting and refining of electric copper and other materials as a consignee
2019
¥ 3,065
-
66
(156)
538
(171)
¥ 3,341
2019
¥(1,542)
-
(1,542)
485
(1,056)
3,626
772
4,398
(481)
3,917
(2,228)
-
(2,228)
76
202
278
(35)
243
(2,035)
1,048
(987)
¥(111)
92 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 93
2) Primary reasons for business combination
The Company and JX established PPC in October 2000 as a joint sales company for their copper products. Then on April 1, 2006, the
two companies transferred their respective copper refining and smelting functions to PPC and integrated their production operations,
with the aim to be more competitive through consolidated operation. In doing so, they established in PPC the capability of providing a
full range of copper-related services, from resources development and raw materials procurement to smelting and refining and product
sales, an arrangement that has continued to the present.
Since the integration of production operations, the Company had been pursuing synergies in its existing lead, zinc, and precious
metals smelting and refining network, while JX had been reviewing the role of smelting and refining business as it sought to strengthen
downstream business segments. In this manner, the Company and JX had been developing their own separate business strategies in
seeking to expand earnings. At this time, the Company and JX have judged that by making independent use of the respective smelting
and refining facilities for their own particular business portfolios, the Company and JX, being thoroughly familiar with the distinctive
features and nature of each of the facilities, will be better able to make the existing copper smelting and refining functions more
competitive.
Accordingly, after April 1, 2020, the Company and JX will separately manage the copper smelting and refining facilities at the
subsidiaries owned by each company. Specifically, the Company will manage the Hibi Smelter, a smelting and refining facility previously
managed by PPC, and the Hibi Kyodo Tamano Smelter (63.51% previously owned by PPC). Meanwhile, JX will manage the
Saganoseki Smelter & Refinery and Hitachi Refinery.
3) Date of business combination
April 1,2020
4) Legal form of business combination
An absorption-type company split in which PPC is the splitting company and Hibi Smelting is the successor company. PPC will transfer
the shares of Hibi Smelting as dividends in kind and JX will transfer its shares of Hibi Smelting to the Company.
5) Percentage of voting rights acquired
a. Hibi Smelting Co., Ltd. (established on February 3, 2020)
Percentage of voting rights held before the business combination: 32.20% (indirectly held)
Percentage of additional voting rights acquired on the date of business combination: 67.80%
Percentage of voting rights after the acquisition: 100.00% (directly held)
b. Hibi Kyodo Smelting Co., Ltd.
Percentage of voting rights held before the business combination: 20.45% (indirectly held)
Percentage of additional voting rights acquired on the date of business combination: 43.06% (indirectly held)
Percentage of voting rights after the acquisition: 63.51% (indirectly held)
6) Basis for determining the acquiring company
The Company was determined to be the acquiring company as a result of consideration for the percentage of voting rights held by the
Company in Hibi Smelting and Hibi Kyodo .
(2) Acquisition cost and each major class of consideration transferred
Fair value of common shares previously held by the Company on the date of business combination: ¥1,352 million
Cash consideration: ¥2,800 million
Total acquisition cost: ¥4,152 million
(3) Difference between the acquisition cost of the acquired company and the total amount of the consideration transferred for
the acquisition
Not yet determined.
(4) Acquisition-related costs
Remuneration and fees for advisory and other services ¥10 million
(5) Amount of goodwill recognized, the factors that making up goodwill recognized, amortization method and useful life
Not yet determined.
(6) Amounts recognized as of the acquisition date for each major class of the assets acquired and the liabilities
Not yet determined.
2. Gains (losses) on sales of investment securities
The Company approved a resolution at a meeting of the Board of Directors held on February 12, 2020 that 1) PPC transfers a part of its
operations to JX Metals Smelting Co., Ltd. (JX Smelting), which is newly established by PPC through an absorption-type company split,
2) PPC transfers its shares of JX Smelting to the Company and JX as dividend in kind, and 3) JX and JX Smelting conduct the share
exchange with cash consideration so that JX acquires all outstanding shares of JX Smelting. The reasons for this transaction are
described in the aforementioned “1. (1) 2) Primary reasons for business combination.”
As a result of the aforementioned share exchange, the shares of JX Smelting held by the Company was transferred to JX and the
Company received cash from JX. Accordingly, the Company will record a gains (losses) on sales of investment securities in its
consolidated financial statements for the fiscal year ending March 31, 2021.
(1) Name of company to make cash payment to the Company
JX Nippon Mining & Metals Corporation
(2) Date of share exchange
April 1,2020
(3) Name and business of the company whose shares was transferred
JX Metals Smelting Co., Ltd.
Main business operations: Smelting and refining of electric copper, etc. as consignee
(4) Number of shares transferred, cash consideration, gains or losses and percentage of ownership after the share exchange
a. Number of shares transferred
3,220 shares
b. Cash Consideration
¥13,700 million
c. The gains or losses are not determined.
d. Percentage of ownership after share exchange: -%
94 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 95
96 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 97
Profile of Directors and Corporate Auditors (As of June 2020)
April 1980
June 2010
June 2011
February 2012
April 2014
January 2016
April 2016
Entered the Company
Executive Officer, General Manager of Finance &
Accounting Department
Director, Senior Executive Officer, CFO,
General Manager of Corporate Management
Department and Finance & Accounting Department
Director, Senior Executive Officer, CFO,
General Manager of Corporate Management
Department
Representative Director, Senior Managing Director,
Senior Managing Executive Officer, CFO, General
Manager of Corporate Management Department,
Senior General Manager of Copper Business
Strategic Division, Metals Sector
Representative Director, Senior Managing Director,
Senior Managing Executive Officer, CFO
President and Representative Director (current
positions)
April 1986
June 2010
October 2013
April 2014
April 2015
June 2015
October 2015
April 2016
April 2020
Entered the Company
President and Representative Director of Mitsui
Copper Foil (Malaysia) Sdn. Bhd.
General Manager of Recycling Business Promotion Group,
Metals, Minerals & Engineering Sector
Executive Officer, Senior General Manager of Technology
Management Division, Metals & Recycling Division, Metals
Sector
Executive Officer, Deputy Senior General Manager
of Engineered Materials Sector, General Manager
of Business Planning Group, Engineered Materials
Sector
Director, Senior Executive Officer, Deputy Senior
General Manager of Engineered Materials Sector,
General Manager of Business Planning Group,
Engineered Materials Sector
Director, Senior Executive Officer, Senior General
Manager of Engineered Materials Sector, General
Manager of Business Planning Group, Engineered
Materials Sector
Representative Director, Managing Director, Senior
Executive Officer,
Senior General Manager of Engineered Materials
Sector
Vice President, Representative Director, Executive
Vice President, Senior General Manager of
Business Creation Sector (current positions)
Vice President, Representative Director,
Executive Vice President
President and Representative Director
NISHIDA Keiji
NOU Takeshi
April 1980
January 2010
June 2010
November 2010
June 2011
June 2013
April 2014
April 2015
October 2015
April 2016
April 2018
April 2019
Entered the Company
General Manager of Specialty Foil Division
Executive Officer, Deputy Senior General Manager of
Copper Foil Sector, General Manager of Specialty Foil
Division
Executive Officer, Senior General Manager of Copper Foil
Sector, General Manager of Specialty Foil Division
Senior Executive Officer, Senior General Manager of
Electronic Materials Sector, General Manager of Specialty
Foil Division
Director, Senior Executive Officer, Senior General Manager
of Electronic Materials Sector
Director, Senior Executive Officer, Deputy Senior General
Manager of Engineered Materials Sector
Director, Senior Executive Officer, Senior General Manager
of Engineered Materials Sector
Director, Senior Executive Officer, Deputy Senior General
Manager of Metals Sector
Director, Senior Executive Officer, Senior General Manager
of Metals Sector
Director, Senior Executive Officer, Senior General Manager
of Metals Sector, Chief Environmental Safety Officer
Director, Senior Executive Officer, Chief Environmental
Safety Officer (current positions)
Director and Senior Executive Officer
HISAOKA Isshi
April 1981
October 2009
April 2013
June 2013
April 2014
June 2014
January 2016
April 2016
Entered the Company
President and Representative Director of MCS, Inc.
Deputy Senior General Manager of Materials & Applications Sector,
General Manager of Affiliates Coordination Division
Executive Officer, Deputy Senior General Manager of Materials &
Applications Sector, General Manager of Affiliates Coordination
Division
Executive Officer, Senior General Manager of Affiliates
Coordination Strategic Sector
Director, Senior Executive Officer, Senior General Manager of
Affiliates Coordination Strategic Sector
Director, Senior Executive Officer, CRO, Senior General Manager
of Corporate Planning & Control Sector, General Manager of
Corporate Planning Department, Corporate Planning & Control
Sector
Director, Senior Executive Officer, Senior General Manager of
Corporate Planning & Control Sector, General Manager of
Corporate Planning Department, Corporate Planning & Control
Sector (current positions)
Director and Senior Executive Officer
OSHIMA Takashi
April 1985
April 2009
October 2013
April 2014
June 2014
October 2015
January 2016
April 2018
June 2020
Entered the Company
General Manager of Finance & Accounting Department,
Automotive Parts & Components Division, Parts Production Sector
Director, Senior Executive Officer, Senior General Manager of
Planning & Administrative Sector, General Manager of Planning
Department, Mitsui Kinzoku ACT Corporation
Executive Officer, Assistant to Senior General Manager of Metals
Sector
Executive Officer of the Company,
Director, Executive Officer of Pan Pacific Copper Co., Ltd.
Senior Executive Officer, Deputy Senior General Manager of
Affiliates Coordination Strategic Sector
Senior Executive Officer, Senior General Manager of Affiliates
Coordination Strategic Sector, General Manager of Copper
Business Strategic Division, Metals Sector
Senior Executive Officer, Senior General Manager of Affiliates
Coordination Strategic Sector
Director, Senior Executive Officer, Senior General Manager of
Affiliates Coordination Strategic Sector (current positions)
Director and Senior Executive Officer
KIBE Hisakazu
August 1977
September 1996
April 2003
April 2010
June 2016
June 2016
June 2018
Postdoctoral fellow, The University of Tennessee
Professor, Faculty of Engineering, Kyushu Institute of
Technology
Professor, Department of applied science for
integrated system engineering, Kyushu Institute of
Technology
President, Kyushu Institute of Technology
Chairperson of the Board of Director, Kitakyushu
Foundation for the Advancement of Industry, Science and
Technology (current position)
Outside Director of the Company (current position)
Outside Auditor of KROSAKI HARIMA CORPORATION
(current position)
Outside Director
MATSUNAGA Morio
April 1975
August 2002
September 2004
June 2007
January 2010
May 2011
May 2011
June 2013
June 2014
May 2015
June 2019
Adopted as Prosecutor
Chief Prosecutor of Naha District Public Prosecutors Office
Director-General of the Immigration Bureau, the Ministry of
Justice
Chief Prosecutor of Osaka District Public
Prosecutors Office
Superintending Prosecutor of Fukuoka High Public
Prosecutors Office
Professional registration in Japan as lawyer
With KAWAKAMI Law Office
Outside Corporate Auditor of the Company
Outside Director of OUG Holdings Inc. (current position)
Launched GINZA-CHUO Law Office
Outside Director of the Company (current position)
Outside Director
MIURA Masaharu
April 1975
July 1999
April 2001
April 2005
April 2009
April 2009
April 2010
April 2017
June 2017
April 2018
June 2020
Entered Nissan Motor Co., Ltd.
General Manager of Domestic Parts Department, Parts
Division, Nissan Motor Co., Ltd.
Senior Vice President, Global Aftersales Business, Nissan
Motor Co., Ltd.
Senior Vice President, Japan Marketing & Sales, Chairman
of MC-Dealer, Nissan Motor Co., Ltd.
Executive Vice President, FALTEC Co., Ltd.
Chairman and Board Director, ALTIA Co., Ltd.
Representative Director, President and CEO, FALTEC Co.,
Ltd.
Chairman of the Board and Representative Director,
FALTEC Co., Ltd.
Senior Adviser, FALTEC Co., Ltd.
Executive Board Member, Rikkyo Educational Corporation
(current position)
Outside Director of the Company (current position)
Outside Director
TOIDA Kazuhiko
April 1981
July 2008
July 2009
December 2012
July 2014
July 2018
April 2019
June 2019
June 2019
April 2020
Entered Prime Minister’s Office (Presently Cabinet Office)
Deputy Director General for Policies on Cohesive Society,
Cabinet Office
Deputy Director General for Gender Equality Bureau,
Cabinet Office
Director, Public Relations Office, Cabinet Office
Director General, Gender Equality Bureau
Counsellor for Scientific Research Organizations, Policy
Planning Division, Secretariat of the Science Council of
Japan
Professor, Showa Women’s University (current position)
Outside Corporate Auditor of the Company
(current position)
Outside Director of Nippon Telegraph and Telephone
Corporation(current position)
Dean of Faculty of Global Business and Director of Institute
of Women's Culture of Showa Women’s University(current
positions)
Outside Corporate Auditor
TAKEGAWA Keiko
April 1982
April 2014
April 2015
January 2020
June 2020
Entered the Company
General Manager of Copper Foil Division, Engineered
Materials Sector, General Manager of Strategic Production
Planning Department, Copper Foil Division, Engineered
Materials Sector
Executive Officer, General Manager of Copper Foil Division,
Engineered Materials Sector
Executive Officer, General Manager of Copper Foil Division,
Engineered Materials Sector, General Manager of Business
Planning Group, Copper Foil Division, Engineered Materials
Sector
Corporate Auditor of the Company (current position)
Corporate Auditor
MISAWA Masayuki
April 1975
July 2003
September 2005
July 2007
July 2008
January 2011
June 2013
June 2014
December 2015
June 2018
Entered Ministry of International Trade and Industry
(Presently Ministry of Economy, Trade and Industry)
Director General for Policy Planning and Coordination,
Minister’s Secretariat, METI
Director-General, Trade and Economic Cooperation Bureau,
METI
Director-General, Industrial Science and Technology Policy
and Environment Bureau, METI
Commissioner, Agency for Natural Resources and Energy,
METI
Advisor, Tokyo Electric Power Company, Incorporated
(TEPCO)
Director, Japan Alcohol Trading Co., LTD
Vice President, Japan Alcohol Trading CO., LTD
President, The Japan Chamber of Commerce and Industry
(current position)
President, The Tokyo Chamber of Commerce and Industry
(current position)
Outside Corporate Auditor (current position)
Outside Corporate Auditor
ISHIDA Toru
April 1984
February 2012
June 2014
April 2017
June 2018
April 2020
June 2020
Entered the Company
General Manager of Finance & Accounting Department
General Manager of Administration Department, Metals
Sector
Executive Officer, General Manager of Investor Relations
and Corporate Communications Department, Corporate
Planning &Control Sector
Executive Officer, General Manager of Investor Relations
and Corporate Communications Department, Corporate
Planning & Control Sector, Finance & Accounting
Department, Corporate Planning & Control Sector
Executive Officer, General Manager of Corporate
Communications Department, Corporate Planning & Control
Sector, General Manager of Finance & Accounting
Department, Corporate Planning & Control Sector
Corporate Auditor of the Company (current position)
Corporate Auditor
KUTSUNAI Akira
98 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 99
Breakdown of consolidated employees by employment status and employment contract type (as of the end of FY2019)
Open-ended workforce contract
Fixed-term contract
Total
Supervised workers
Total workforce
※ Since the calculation method is different from the one for temporary employees stated in the annual securities report, the total number of employees is not in accord.
Full-time
Part-time
Total
Full-time
Part-time
Total
Male
8,650
3
8,653
885
29
914
9,567
697
10,264
Female
3,824
6
3,830
317
20
337
4,167
1,086
5,253
Total
12,474
9
12,483
1,202
49
1,251
13,734
1,783
15,517
Male
4,844
354
603
2,810
42
8,653
Female
784
255
386
2,360
45
3,830
Male
443
0
2
469
0
914
Female
123
0
2
212
0
337
Total
6,194
609
993
5,851
87
13,734
Japan
North America
South and Central America
Asia
Europe
Total
Breakdown of consolidated employees by employment contract (as of the end of FY2019)
Fixed-term contractOpen-ended workforce contract
Male
8
2,119
2,127
Female
2
1,050
1,052
Male
703
4,522
5,225
Female
86
2,480
2,566
Male
534
1,681
2,215
Female
28
521
549
Total
1,361
12,373
13,734
Managerial
Non-managerial
Total
Breakdown of consolidated employees by position (as of the end of FY2019)
30-49 years old 50 years of age or overUnder 30 years of age
Percentage of managers holding local nationality in overseas sites (as of the end of FY2019)
North America
South and Central America
Asia
Europe
Total
79.2%
74.1%
82.4%
100.0%
82.0%
Male
190
775
24.5%
18
43
41.9%
160
199
80.4%
534
1,161
46.0%
9
11
81.8%
911
2,189
41.6%
Female
57
154
37.0%
2
12
16.7%
165
193
85.5%
455
691
65.8%
1
4
25.0%
680
1,054
64.5%
Male
162
2,986
5.4%
11
166
6.6%
49
289
17.0%
163
1,866
8.7%
6
21
28.6%
391
5,328
7.3%
Female
46
426
10.8%
2
110
1.8%
79
172
45.9%
113
1,783
6.3%
3
13
23.1%
243
2,504
9.7%
Male
75
1,762
4.3%
7
136
5.1%
0
101
0.0%
4
180
2.2%
1
9
11.1%
87
2,188
4.0%
Female
17
214
7.9%
1
132
0.8%
4
22
18.2%
6
97
6.2%
0
28
0.0%
28
493
5.7%
Total
547
6,317
8.7%
41
599
6.8%
457
976
46.8%
1,275
5,778
22.1%
20
86
23.3%
2,340
13,756
17.0%
New hires
Total employees
Rate of hiring
New hires
Total employees
Rate of hiring
New hires
Total employees
Rate of hiring
New hires
Total employees
Rate of hiring
New hires
Total employees
Rate of hiring
New hires
Total employees
Rate of hiring
Japan
North America
Asia
Europe
Total
New employee hires by region (as of the end of FY2019)
30-49 years old 50 years of age or overUnder 30 years of age
※ Since the calculation method is different from the one for consolidated employees, the total number of employees is not in accord.
South and
Central America
Male
39
775
5.0%
20
43
46.5%
175
199
87.9%
275
1,161
23.7%
8
11
72.7%
517
2,189
23.6%
Female
15
154
9.7%
5
12
41.7%
183
193
94.8%
288
691
41.7%
1
4
25.0%
492
1,054
46.7%
Male
69
2,986
2.3%
23
166
13.9%
68
289
23.5%
238
1,866
12.8%
9
21
42.9%
407
5,328
7.6%
Female
29
426
6.8%
14
110
12.7%
107
172
62.2%
157
1,783
8.8%
2
13
15.4%
309
2,504
12.3%
Male
182
1,762
10.3%
39
136
28.7%
8
101
7.9%
18
180
10.0%
3
9
33.3%
250
2,188
11.4%
Female
24
214
11.2%
35
132
26.5%
7
22
31.8%
13
97
13.4%
0
28
0.0%
79
493
16.0%
Total
358
6,317
5.7%
136
599
22.7%
548
976
56.1%
989
5,778
17.1%
23
86
26.7%
2,054
13,756
14.9%
Departures
Total employees
Turnover rate
Departures
Total employees
Turnover rate
Departures
Total employees
Turnover rate
Departures
Total employees
Turnover rate
Departures
Total employees
Turnover rate
Departures
Total employees
Turnover rate
Japan
North America
Asia
Europe
Total
Employee turnover by region (as of the end of FY2019)
30-49 years old 50 years of age or overUnder 30 years of age
※ Since the calculation method is different from the one for consolidated employees, the total number of employees is not in accord. Departures include “retirement at
the age limit” and “expiration of contract period”.
South and
Central America
100 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 101
0.0・
10.0・
20.0・
30.0・
40.0・
50.0・
0.0・
2.0・
4.0・
6.0・
8.0・
10.0・
0.0・
10.0・
20.0・
30.0・
40.0・
14.8%
22.2%
35.4%40.0%
1.1%1.3%
7.8% 7.6%
8.3% 8.5%
30.4% 30.7%
10.0%
31.1%
1.0%
7.8%
15.8%
40.1%37.4%
20.0%
7.0%
1.5%
30.5%
11.1%
1.6・
1.8・
2.0・
2.2・
2.4・
1.83%
2.04%2.01%
2.32%
39,776
50,351
86,790
113,210
79.0% 76.7%
0.0・
5.0・
10.0・
15.0・
20.0・
16.715.9
11.012.4
15.2
13.8 14.0
15.3
10.0・
12.0・
14.0・
16.0・
18.0・
14.5%
13.0%
14.0%
Research &
Education
Culture & TraditionDisaster support
Infrastructure
development
Others
30.7%
1.5%
17.7%2.9%
35.0%
12.2%
[FY2019]
150.0million yen
40.6%
19.3%
2015 2016 2017 20192018
7.9%
2.2%
30.3%
11.4%
2.10%
14.7%
2015 2016 2017 20192018
2015 2016 2017 20192018
2015 2016 2017 20192018 2015 2016 2017 201920182015 2016 2017 20192018
previous fiscal year 77.1% previous fiscal year 72.6%
13.7
16.8Percentage of high stress
Proportion of women as a percentage of new hires Percentage of employees with disabilities
(Mitsui Kinzoku, Non-consolidated)
Mitsui Kinzoku consolidated
Mitsui Kinzoku
Fiscal Fiscal
Proportion of women in management positions
Mitsui Kinzoku consolidated
Mitsui Kinzoku consolidated
Mitsui Kinzoku
Mitsui Kinzoku
Fiscal
Fiscal
Rate of taking paid leave
Total paidleave taken
Total paid leavegranted
[Mitsui Kinzoku] [Domestic total]
Proportion of women as a percentage of total employees Overtime hours
[Hours/month per employee]
Mitsui Kinzoku Domestic total
Fiscal
Results of stress check (Percentage of high stress)
(Target : Directly hired employees of Mitsui Kinzoku and
the domestic consolidated affiliates, including expatriate workers)
*The check has been conducted since FY2016.
Environmental
preservation
Fiscal
Mitsui Kinzoku Group breakdown of the amount
67
8
75
143
17
160
4
8
12
13
16
29
87
10
97
127
20
147
1
10
11
1
20
21
69
7
76
130
17
147
2
7
9
3
17
20
5
10
15
13
15
28
5
10
15
13
15
28
0
0
0
0
0
0
2
0
2
2
6
8
2
0
2
2
6
8
0
0
0
0
0
0
2
7
9
4
15
19
2
7
9
4
15
19
0
0
0
0
0
0
Return to work and retention rates after parental leave
※ Ended: Employees whose parental leave ended.Returned: Employees that returned to work after ended.
Retired: Employees that separated from employment in twelve months after returning.
Parental leave
※ Employees that took advantage: Employees that took parental leave in the relevant fiscal year of those entitled.
FY2017 FY2019FY2018
Employees that entitled to leave
Employees that took advantage
Employees that entitled to leave
Employees that entitled to leave
Employees that took advantage
Employees that took advantage
Male
Female
Total
Male
Female
Total
Mitsui Kinzoku
Domestic total
FY2017 FY2019FY2018
Ended Returned Retired Ended Returned Retired Ended Returned Retired
Male
Female
Total
Male
Female
Total
Mitsui Kinzoku
Domestic total
2016 2017 2018 Fiscal
0・
100・
200・
300・
400・
500・
2019
207190 188
212243
367351
385
343
2015
2015 2016 2017 Fiscal2019
ISO9001 (Japan)
ISO9001 (Overseas)
IATF16949 (Japan)
IATF16949 (Overseas)
0・
20・
40・
60・
48 50 5053
2015 2016 2017 Fiscal2019
0・
20・
40・
60・
80・
100・100
85.7
68.4
55.748.7 48.1
* The values are expressed as relative values, with the data of FY2013 being 100.
2013 2014
2016 2017 2018 Fiscal20190・
10・
20・
30・
40・
50・
35.6
52.7
39.4
30.6
43.2 42.3
49.2 52.0
7.2 6.5
4.04.9
2015
60・
59.7
12.8%(7.7)
10.2%(6.1)
10.6%(6.3)
66.3%(39.6)
63.7%(1,077.8)
26.0%(439.1)
2.2%(37.4)
8.0%(135.3)
0.04% (0.6)
77.3%(1,307.2)
21.0%(355.6)
1.7%(28.0)
0.1%(0.9) 0.1% (1.5)
・0.0%
・20%
・40%
・60%
・80%
・100%
・0.0%
・20%
・40%
・60%
・80%
・100%
Scope 1 Scope 2 Scope 1 Scope 2
45.3% 54.7%
55.1% 44.9%
10.0% 90.0%
36.9% 63.1% 60.3% 39.7%
45.3% 54.7%
57.5% 42.5%
14.1% 85.9%
34,400
FY2019
t-CO2
(15,581)
45.3%
Japan
54.7%
(18,820)
2016 2017 2018 Fiscal20192015
0・
5,000・
10,000・
15,000・
20,000・
25,000・
30,000・
102 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 103
380
* Changed the calculation method and revised the values for previous years.
3,828 48.0%(1,837)
6.2%(238)
13.2%(504)
11.5%(439)
4.3% (166)
6.7%(258)
10.1%(386)
2018
54
52.7
2018
22.1
53.3
6.4
12.2
* The scope of data calculation covers only the transportations
which are designated as Specified Consigner by the Act on the
Rational Use of Energy.
* For the emission factors, the emission intensity database for calculating
GHG emissions of organizations throughout the supply chain, Japan‘s
Ministry of the Environment and Ministry of Economy, Trade and Industry
(Ver. 2.6 and Ver. 3.0) was referenced.
CO2 emissions by waste treatment (t-CO2/year)CO2 emissions in logistics (Non-consolidated, t-CO2/year)
Overseas
Breakdown by scope of CO2 emissions by region Breakdown by scope of CO2 emissions by business unit
Japan
Asia
America
Europe
Global
Metals
Engineeredmaterials
Automotive parts& components
Affiliatescoordination
Group-wide
Breakdown of CO2 emissions by business unitBreakdown of CO2 emissions by region
Japan
Europe
FY2019
thousand t-CO2
America (North, South and Central America)
Asia(except Japan)
MetalsEngineered
materials
Automotive parts
&components
Affiliates coordinationMitsui Kinzoku Head Office andadministrative sites
FY2019
thousand t-CO2
Other business sectors
OverseasJapan Number of patents registered globally
Japan
Republic of
Korea
United States
Europe
the others
Taiwan
China
Number of patent applications
Number of operating sites with certifications Number of claims at sites that hold QA meetings
Environment-related capital expenditures (Japan)
Environmental management expenses (Japan)
Environment-related capital expenditures (overseas)
Environmental management expenses (overseas)
* Added the data of overseas sites from FY2017.
* Revised the values for FY2018 disclosed last year.
Waste treatmentoutsourcing expenses
Energy expenses
Maintenance andrepair expenses
Others(Labor cost, office commodity
expenses, etc.)
FY2019
100 million yen
* We have received an independent practitioner’s assurance for
the figures for FY2019 in this information to which is attached.
Environment-related capital expenditures and environmental
management expenses (Hundred million yen)
Break down of environmental management expenses
1,691.7 1,691.7
93.4%6.6%36.8% 63.2%
17,748
20,846 20,63619,518 19,306
Corporate profile and Stock information(as of March 31, 2020)
Corporate profile
Stock information
The Master Trust Bank of Japan, Ltd. (Held in trust account)
Japan Trustee Services Bank, Ltd. (Held in trust account)
JP MORGAN CHASE BANK 385632
JPMorgan Securities Japan Co., Ltd.
Mitsui Kinzoku Employees’ Shareholding Association
Japan Trustee Services Bank, Ltd. (Held in trust account 5)
JP MORGAN CHASE BANK 385151
SMBC Nikko Securities Inc.
Mitsui Kinzoku Business Partners’ Shareholding Association
SOCIETE GENERALE PARIS/BT REGISTRATION MARC/OPT
5,926
4,718
2,187
1,246
1,105
1,086
944
735
679
657
10.37
8.26
3.83
2.18
1.93
1.90
1.65
1.28
1.19
1.15
Major shareholders (Top 10)
Number of shares held (Thousands) Percentage of total (%)Shareholder
*Percentages of shares held are calculated based on the total number of shares issued and outstanding (excluding 190,255 shares in treasury).
Financial institutions
Securities firms
Other Japanese corporations
Individualsand others
Treasury stock
Overseascorporationsand others
17,976
4,750
3,097
190
14,857
16,424
31.37%
8.29%
5.41%
25.93%
28.67%
0.33%
104 MITSUI KINZOKU Integrated Report 2020 MITSUI KINZOKU Integrated Report 2020 105
Subsidiaries 51
Affiliates 10
Company name MITSUI MINING & SMELTING CO., LTD.
Established May 1, 1950
Subsidiaries and affiliates
Paid-in capital 42,129 million yen
Employees Consolidated 12,197 Non-consolidated 2,030
Head office 1-11-1 Osaki, Shinagawa-ku, Tokyo 141-8584 Japan
Telephone +81-3-5437-8000
Facsimile +81-3-5437-8029
Total number of authorized shares 190,000,000 shares
Total number of outstanding shares 57,296,616 shares
Number of shareholders 37,542
Share breakdown (Thousands of shares)