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.

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”.

Our Ordinary General Meeting of Shareholders offers an invaluable opportunity for direct communication between our management members and shareholders. We therefore strive to send out materials relevant to the meeting at the earliest possible date, while also providing the materials on our website well in advance of statutory deadlines, to give shareholders sufficient time to consider the matters to be presented and resolved at the meeting. In addition, we are striving to enhance the disclosure of information in materials for the General Meeting of Shareholders.
Besides permitting shareholders to exercise their voting rights in writing or online, we have introduced an electronic voting platform to facilitate voting by both domestic and international institutional investors. We use slides at the General Meeting of Shareholders to help ensure participants’ clear comprehension of the presented contents. We also publish shareholders’ voting results for every resolution on the Website, after the meeting. Further, to improve convenience for shareholders, a hybrid participation-type General Meeting of Shareholders (live streaming) has been conducted from the 96th Ordinary General Meeting of Shareholders held on June 24, 2021. The streamed video of the General Meeting of Shareholders is also posted on the Company’s website for a certain period of time.

In the fiscal year ended March 2025, financial results briefings (quarterly), Management Briefing, Progress and Outlook of the Medium-term Management Strategy FY2031, IR Day, and Sustainability IR meeting were held for stakeholders. At each meeting, after explaining the contents of our financial results, management strategy and sustainability initiatives etc., we set aside time for questions and answers in an effort to strengthen communication with participants. We communicated the feedback received from participants in a timely fashion through the IR reports published for senior management each month, and posted records including the details of the briefings and Q&A sessions to our website for viewing by individual investors.
We also actively exchanged opinions and communicated with institutional investors and securities analysts through individual meetings with institutional investors and securities analysts, small meetings with the CEO, CFO and Outside Directors, and participation in conferences hosted by securities companies. We also endeavored to communicate with individual investors by taking part in briefings for individual investors, and by posting our Material News shareholder newsletters on our website.
Going forward we will continue to engage in proactive IR and SR activities by deepening dialogue with stakeholders and maintaining and improving information disclosure.

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.

Revenue for Mitsubishi Materials in the fiscal year ended 2025 came to ￥1,643.1 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 ￥1,600.1 billion.
After subtracting operating costs from our total revenue, the amount of added value generated through our business activities came to ￥43.0 billion.

Personnel costs, which include statutory welfare expenses and retirement benefit costs contributions and represent the portion of revenue distributed to our employees, came to \47.0 billion.
In the meantime, we distributed a total of \5.0 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 \1.3 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 \0.4 billion back to the community in the form of social contribution activities, including donations, lending our facilities to the public, and providing employees’ services, in the three fields of the promotion of local environmental protection and conservation activities, supporting next-generation education and diversity and inclusion, and coexistence with local communities under our Community Contribution Activity Policy.
Cash dividends, which represent the value that we distribute to our shareholders (companies and individuals, in Japan and overseas), came to a total of \12.7 billion.
Retained earnings to cover investment and contingencies for the future meanwhile decreased \23.4 billion.

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.

Obligations relating to unfunded lump-sum severance payment plans and funded defined benefit pension plans totaled ￥25.4 billion and ￥32.3 billion respectively. ￥73.2 billion of this total was paid out in the form of pension assets to outside funds (coverage: 126.9%). In addition, ￥0.1 billion was registered as expenses in the form of accrued retirement benefits, with the remaining amount of ￥-15.6 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.

We received the amount of ￥0.04 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.