In the interests of sustainable corporate management, we believe that communicating with our stakeholders is crucial if we are to reflect their expectations and requirements in our business strategies and activities. While creating more opportunities for communication, our aim is to incorporate stakeholders’ perspectives into our management practices to a greater extent than ever before.
As we continue to earn operating revenue and generate economic value added thanks to the involvement of our many and varied stakeholders, we believe that it is important to fulfill our social responsibilities and adequately distribute that added value among our stakeholders.
Revenue for Mitsubishi Materials in fiscal 2020 came to ¥865.1 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 ¥860.9 billion.
After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to ¥4.2 billion.
Personnel costs, which include statutory welfare expenses and pension contributions and represent the portion of revenue distributed to our employees, came to ¥39.1 billion.
In the meantime, we distributed a total of ¥1.8 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 ¥12.9 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 ¥0.3 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 ¥10.5 billion.
Retained earnings to cover investment and contingencies for the future meanwhile decreased ¥60.4 billion.
Whenever we engage in business activities overseas, we make every effort to understand conditions in the relevant country and the national identity of its people, so that we can integrate into the local community as a corporate citizen. We re-invest money that we make through 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.
| Category | Stakeholder | Amount(million yen) | Details/method of calculation |
|---|---|---|---|
| Revenues | Customers and suppliers | 865,142 | Net sales, non-operating income, extraordinary income |
| Payments | Suppliers | 860,933 | Operating costs (cost of sales and selling, general and administrative costs, minus deductions for personnel costs, tax and public charges, and donations) |
| Employees | 39,102 | Personnel costs (including statutory welfare expenses and pension contributions) | |
| Creditors | 1,836 | Interest expense | |
| Government | 12,896 | Taxes (corporate income tax, and other taxes and public charges liable as expenses) | |
| General public | 303 | Donations, etc.* | |
| Shareholders | 10,476 | Cash dividends paid | |
| Retained earnings | (60,405) | Net income minus cash dividends paid |
* 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.
Obligations relating to unfunded lump-sum severance payment plans and funded defined benefit pension plans totaled ¥37.1 billion and ¥42.1 billion respectively. ¥57.3 billion of this total was paid out in the form of pension assets to outside funds (coverage: 72.3%). A further ¥8.2 billion was registered as expenses in the form of accrued retirement benefits, with the remaining ¥13.8 billion classed as unrecognized benefit obligations. We plan to amortize all unrecognized benefit obligations over the next ten years.
We received ¥0.6 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.