Interaction with Stakeholders

Basic Approach to Building Relationships with our Stakeholders and Key Means of Communication

In the interests of sustainable corporate management, we believe that communicating with our stakeholders is crucial if we are to incorporate their expectations and requirements into our business strategies and activities. While creating more opportunities for communication, our aim is to reflect stakeholders’ perspectives in our management practices to a greater extent than ever before.

Basic Approach to Building Relationships with Our Stakeholders and Key Means of Communication

Relationships between stakeholders and businesses

Stakeholders	Relationship with businesses
Shareholders & Investors	Disclosing information as and when necessary, and engaging in dialogue regarding management We aim to sustainably increase corporate value through mutual communication with shareholders and investors while fulfilling management transparency and accountability.
Customers	Engaging in business activities with an emphasis on improving customer satisfaction We provide high-quality products and services that meet a wide range of customer needs and requirements.
Employees	Improving the value of individual talents We aim to create a workplace where members of diverse backgrounds can coexist and be accepted by each other, maximize their respective capabilities while making the most of each other, and feel safe and secure as they work, experiencing their own growth and self-realization.
Local Communities	Building trusting relationships & contributing to development We actively engage in interaction and dialogue with local communities and strive to achieve appropriate mutual recognition and understanding with regards to our business activities.
Business Partners (Suppliers)	Engaging in fair, impartial trade & collaboration We engage in fair and proper transactions with all business partners and work with our business partners to implement responsible procurement of raw materials and minerals.
Industry/Economic Organizations	Collaboration to solve social issues We engage in exchanges of opinions and collaborations with the Japan Mining Industry Association, Japan Geothermal Association, and KEIDANREN (Japan Business Federation), etc., in order to solve social issues
Non-profit Organizations (Educational/Research Institutions, NGOs & NPOs)	Engaging in dialogue and cooperation in response to public demand We contribute to education support and human resource development through cooperation with educational and research institutions, NGOs and NPOs.
Government	Maintaining close, sound relations and assisting with policies In addition to complying with related laws and regulations established by government agencies and local governments, we engage in businesses that contribute to the regional development in a collaborative manner.
Environment & Future Generations	Engaging in wide-ranging dialogue & collaboration in order to protect the environment In order to contribute to solving environmental problems, we build networks with various stakeholders, exchange opinions, and promote collaboration.

Responding to the Expectations and Needs of Stakeholders

We respond to issues highlighted and suggestions made by our stakeholders so that we can improve the standard of our sustainable management. We have launched a number of initiatives in response to key comments and requests, including the following. For information on methods of communication with stakeholders when ascertaining details, please see “Interaction with Stakeholders”.

Key expectation and request	Group response
Continuing to expand and improve resource recycling measures	"Contributing to the creation of a recycling-oriented society" is stated Our Commitment. Optimization of material flow across the overall Group Business expansion, research and development aimed at improving urban resource recycling
Responding to the risks and opportunities associated with climate change	Driving the reduction of GHG emissions to achieve carbon neutrality by the fiscal year ending March 2046 Developing materials, products and technologies that contribute to decarbonization Developing and promoting the use of renewable energies (geothermal energy, geothermal heat, hydroelectric energy, solar energy, etc.) Pushing forward with demonstration testing and technology development related to CO2 capture and utilization Performing scenario analyses based on the TCFD recommendations Calculation of our carbon footprint
Managing closed mines	Continuing management work, such as mine drainage treatment and maintenance of tailings dams, at closed mines (non-ferrous metal mines) owned by the Group in Japan (including the preservation and effects of some mines as cultural assets) Systematically implementing facility upgrades and construction work for environmental measures (construction work to prevent mine pollution and hazards to prepare for increasingly severe natural disasters, tailings dam reinforcement work in preparation for a major earthquake, measures to deal with the source of pit and waste water, upgrading of obsolete equipment, and so on) Digitalization of management tasks for closed mines Cultivating the development of closed mine workers Developing technologies related to the management of closed mines
Preserving biodiversity (company-owned forests, areas around mines)	Obtaining the forest certification by SGEC for company-owned forests and promoting sustainable forest management Confirming that biodiversity has been factored into mines in which we invest, and carrying out preservation activities at business sites located adjacent to national parks
Respecting human rights throughout the supply chain	Rolling out multi-layered initiatives with the goal of ensuring the effectiveness of the Mitsubishi Materials Group's Human Rights Policy, Procurement Policy, etc. in the supply chain including the Group, such as awareness-raising activities, due diligence, and ensuring that corrective measures are taken Sustainability Investment & Loan Standards and loan standards and CSR Procurement Standards in the Metals business, and engaging in dialogue with local communities where the Company has invested in mines where its interests are over and above a certain scale Maintaining responsible mineral procurement certifications (gold, silver, tin, copper, lead and tungsten)
Quality control	Continued implementation of preventive measures regarding quality issues Days to reflect on quality and prevent quality issues from being forgotten Developing mechanisms that avoid producing non-standard goods through "Proactive quality management"
Creating safe, healthful working environments	Activities to raise awareness of SCQDE (prioritizing safety and health in every action) Continuing the Zero Occupational Accident Project Thorough efforts to make equipment safe (engineering measures) through risk assessments (RA) Strengthening health and safety education Raising employees’ awareness of health Strengthening safety and health systems Ensuring the safety of employees of operating support providers (partner companies) Preventing fire, explosion, and other accidents
Talent development	Activating employee communication Development and continual improvement of an education and training system Developing next-generation business leaders
Promoting greater roles for diverse talents	Promoting Diversity, Equity and Inclusion Practicing health and productivity management
Strengthening information security	Improving and expanding the information infrastructure Expanding effective measures to defend against attacks aimed at vulnerabilities that are already known by attackers Reducing the risks of new threats, including targeted attacks Monitoring vulnerability and threats by the security operations center (SOC), and promptly handling incidents by establishing a computer security incident response team (CSIRT)
The evolution of corporate governance	Group governance enhancement (communication, compliance framework and awareness, allocation of resources) Building a new risk management system that enhances effectiveness and certainty Responses based on the Corporate Governance Code

Main External Evaluation for the Mitsubishi Materials Group’s Activities

Main Awards and Commendations from Outside Organizations (FYE March 2024)

Distribution of Economic Value to Stakeholders

Striving to Adequately Distribute Economic Value

As we continue to earn operating revenue and generate economic value added thanks to the involvement of our diverse range of stakeholders, we believe that it is important to fulfill our social responsibilities and adequately distribute that added value among our stakeholders.

Economic Value Added in FYE March 2024

Revenue for Mitsubishi Materials in the fiscal year ended 2024 came to \1,232.9 billion. That included proceeds from the sale of products and services, dividends and other forms of non-operating income, and extraordinary income. Operating costs, which consist primarily of payments to suppliers, totaled \1,162.5 billion.
After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to \70.4 billion.

Distribution of Added Value

Personnel costs, which include statutory welfare expenses and retirement benefit costs contributions and represent the portion of revenue distributed to our employees, came to \48.1 billion.
In the meantime, we distributed a total of \3.8 billion to financial institutions and other creditors, in the form of interest on borrowings. We distribute value to society and local communities through the government and through our own social contribution activities. We paid \3.2 billion to the government this year, as the combined total of corporate income tax plus other taxes and public charges liable as expenses. We also gave \0.2 billion back to the community in the form of social contribution activities, including donations, lending our facilities to the public and providing employees’ services.

Cash dividends, which represent the value that we distribute to our shareholders (companies and individuals, in Japan and overseas), came to a total of \9.4 billion.
Retained earnings to cover investment and contingencies for the future meanwhile totaled \5.7 billion.

Economic Added Value

• * Calculated based on the value of items such as donated goods, public lending of our facilities and the provision of employees’ services as well as cash donations, as specified by Nippon Keidanren.

Contributing to Local Communities as part of our Overseas Operations

Whenever we engage in business activities overseas, we make every effort to understand conditions in each country and the national identity of its people, placing an emphasis on engaging in activities as a member of the local community. In addition, we re-invest revenue earned from our overseas operations back into the local community wherever possible, in order to continue growing our business and contribute to the sustainable development of the local area.

Pension Contributions

Obligations relating to unfunded lump-sum severance payment plans and funded defined benefit pension plans totaled \32.0 billion and \39.3 billion respectively. \75.6 billion of this total was paid out in the form of pension assets to outside funds (coverage: 105.9%). In addition, \2.4 billion was registered as expenses in the form of accrued retirement benefits, with the remaining amount of \-6.7 billion classed as unrecognized benefit obligations. We plan to amortize all unrecognized benefit obligations over the next ten years. Unrecognized retirement benefit liabilities are mainly posted as expenses based on the straight-line method for a 10-year period.

Financial Assistance from the Government

We received the amount of \0.7 billion in grants, subsidies and other financial assistance from the government. The government does not hold shares in Mitsubishi Materials or any of our Group companies.

Dialogue with Investors

IR and SR Activities in FYE March 2024

Item	Number of times held during FYE March 2024
Financial Results Briefing (quarterly)	4
Management Briefing	1
Business Strategy IR Meeting	1
Sustainability IR Meeting	1
Manufacturing Excellence & DX meeting	1
Individual IR/SR meeting	164
Overseas IR	13
Briefing for individual investors hosted by a securities company	2

Labor Union and Management Partnership

Under our union shop scheme, we respect collective bargaining rights and freedom of association as the basic rights of workers, thereby striving to maintain a good labor-management relationship. The scheme also enables us to share information and exchange opinions between labor union and management on a regular basis. In particular, our biannual Labor-Management Conference, which is held within a year with the Mitsubishi Materials Federation of Labor Unions, is aimed at strengthening solidarity through active discussion, covering subjects such as recent issues, strategies and policies in each sector, and establishing a shared direction in the interests of the Company’s sustainable growth for the future.
Also, management spends substantial time on careful explanation and consultation with labor upon facing such events as proposal of measures. The Current number of union members amongst those directly employed by Mitsubishi Materials (including employees on assignment) stood at 4,064. Including labor unions of Group companies that belong to Mitsubishi Materials Federation of Labor Unions, the total number of members was 6,328 (as of April 2024).

Number of Union Members (full-time equivalent)

Item	Number of employees
Non-consolidated	4,064
Consolidated	6,328

Communication Measures

The Group implements various communication measures with the aim of becoming an organization with good and healthy communication where employees have unrestricted communication. The Group began its inner branding activities in the fiscal year ended March 2022 with the aim of ensuring that each individual employee feels a sense of ownership in "Our Commitment." We are implementing numerous initiatives based on the three directions of "1. Communication with management," "2. Connect every single employee and the entire Group horizontally" and "3. Support each challenge."
Mitsubishi Materials Corporation started distributing smartphones to all employees in the fiscal year ended March 2023. This is intended to activate internal communication through means such as delivering information to employees in a timely manner and enabling employees to communicate with each other using chat functions while also promoting DX and improving operational efficiency.
Activities to raise awareness of Our Commitment were a key focus in the fiscal year ended March 2024, and we utilized our framework of existing measures as we made progress in this area.

List of Measures

Measure	Content
Ambassador activities	Ambassadors are appointed from throughout the Group through an open application process. They promote inner branding, and have been actively fulfilling this role since the fiscal year ended March 2022.
Internal radio-style broadcasts	Created to promote communication with managers and employees, regular radio-style broadcasts where the CEO personally acts as an entertainment personality, answering a range of questions from Group employees, have been delivered since the fiscal year ended March 2022.
Half-day workplace experiences	Half-day workplace experiences are being carried out as an opportunity for employees to experience jobs at other workplaces. This started in the fiscal year ended March 2022, with about 70 people taking part.
Reverse mentoring	Reverse mentoring is a program in which young employees become the mentors and give mentoring to management. Discussing various themes from a standpoint different from that of work provides opportunities to gain mutual awareness.
Town Hall Meetings	In connection with internal branding activities, we hold Town Hall Meetings as a way to enhance communication of management information and promote two-way dialogue. We held 42 meetings covering 6 themes in the fiscal year ended March 2024.

Key Visual Development

We have created a key visual with the aim of fostering recognition and understanding of Our Commitment by representing it in a visual form. The circular design represents the uninterrupted and powerful circulation of metal resources and their growth while adding further value. The texture evokes metal, expressing Mitsubishi Materials’ unique approach to resource circulation. This key visual is widely used in documents such as internal posters and templates.

Circulation Map

We have developed a Circulation Map as a communication tool to help each individual employee to see the role they play in realizing Our Commitment. This map is used in various settings, from Officer messages at the start of each fiscal year to internal events, and is helping to foster ownership of Our Commitment.

Upper Management Communication Work

Aiming to close the gap between upper management and employees and foster an organization with good and healthy communication where employees have unrestricted communication, members of management have been visiting Group locations to create opportunities for dialogue with employees.
In the fiscal year ended March 2024, a total of 77 meetings were held at 51 sites, with opinions on the FY2031 Strategy being exchanged.
Employees’ questions covered wide-ranging topics, including the business strategies aiming to realize Our Commitment and everyday issues, and a lively exchange of opinions took place.

In the fiscal year ended March 2024, in addition to carrying on existing measures, we deepened our activities through a strategic, multifaceted approach covering both the revitalization of our organizational culture and awareness of Our Commitment while leveraging our framework of measures, including incorporating some discussions on Our Commitment.