We will transcribe the contents of the Sumitomo Metal Mining Co., Ltd. 2021 in the mid -term management plan briefing on February 16, 2022.

Speaker: Sumitomo Metal Mine Co., Ltd. Akira Nosaki Metal Metal Mining Co., Ltd. Managing Executive Executive Officer Resource Business Director Ryoichi Sato Metal Mining Co., Ltd. Managing Executive Officer Metal Metal Business Director Nobuhiro Matsumoto Metal Mine Co., Ltd.Managing Executive Executive Officer Battery Materials Business Director Issu Abe Metal Metal Mine Co., Ltd. Executive Officer Functional Materials Director Kazuki Takizawa

2021 Medium -end management plan

Akira Nozaki (hereinafter, Nozaki): Good morning.This is Nozaki, the president.Thank you very much for coming to your 2021 mid -year management plan today.In addition, we would like to thank our businesses for their exceptional understanding and high arrangements.Let's explain the contents according to the material.

On the cover of the material, the subtitle is described as a "new challenge to change".The medium -term management plan in 2021 is for three years from 2022 to 2024.In terms of management, it is relatively stale, and I use the words "change" and "challenge" that are worn out, but I would like to talk about "why dare to use this word" later.

1.Long -term vision, target

Page 4 is our long -term vision and target.We reviewed it once in the mid -term management plan, but this time it has not changed.

The long -term vision is "Aiming to be a non -Trewide leader in the world", and the target is the target of the counts described in the slide.We believe that "how to enhance the contents suitable for" non -iron leader "" is one of the major themes of the next medium -term management plan.

2. I want to be in 2030

Page 5 is "I want to be in 2030".We extract 11 important issues and classify them into nine themes described in the slides.In -house, KPI is set and practiced in seven sessions.

The target of the long -term vision is described on page 4, but we have the "I want to be" as a long -term milestone for a long -term vision.In achieving a long -term vision, we believe that the company wants to show the company's attitude of "how to work on it".

3.18 Metal Review 1) Safety results

It is a reflection of the 2018 mid -term management plan period.Safety results are the most important part of the business base in the manufacturing industry, but unfortunately, as shown in the slide broken line graph, the ability has not increased in the past 10 years.

We are trying to ensure the safety of the site based on three expressions, but we still overlook dangerous points and overlook dangerous work.Currently, the knowledge of external consultants is also introduced, and the management supervisor is improving the observation power.

Of course, as a company, the equipment is ensuring the essence of the equipment, and the experience training is to experience and experience "what is being drawn into the machine", and using VR, "What is the contact with heavy equipment?Will it happen in a situation? "We will continue to focus on safety education.

3.18 Metal Review 2) Corona effect

In the mid -term management plan, about two -thirds of them are suffering from the expansion of the new colon virus infection.There is a delay at the measure level, but there is no major change in the strategy itself.

In domestic operations, we have taken measures to prevent infections in various places, and have been evaluated as minimizing the effects of the new colon virus.In overseas operations, there were also requests from nearby local governments, and there were some situations where operations were reduced.

Occasionally influenced by overseas mine development projects.Large projects in North America and South America were greatly influenced by the reduction of camps and delays in the mobilization of construction staff.This recovery is in the mid -2021 business plan.

The challenge that is not expressed by numbers is that we have not been able to exchange direct opinions and interviews with stakeholders in Japan and overseas, such as business partners or stakeholders.We have continued online interviews, but we are concerned that we should not have a bad effect in the future.

3.18 Metal Review 3) Large project

The progress of a large project.As you may have talked about from each business headquarters later, the plan is delayed in the plan, including the delay due to the new Coronavirus, for the resource -related Cervada Blanca 2 (QB2) project and Côté (iron).I am currently working on that recovery.

Regarding the Sierra Golda Copper Mine, our team has been on the site and striving to improve the operation, and the operating level has improved to each stage.And we decided to sell as part of our business portfolio.

3.18 Medium -sum recall 4) Efforts to realize the appearance you want to do ①

Page 9 describes the support for TCFD as an initiative for "the appearance you want".In the 2021 integrated report, we analyze climate change scenarios 1..It is done in two patterns, 5 degrees and 4 degrees.

Today, I realize that the biggest challenge for companies is climate change measures.In particular, we believe that our duty is how to contribute to the reduction of load to the global environment while collecting resources from the earth and making products using many raw materials and materials.

We are also actively participating in international organizations such as ICMM, and we will continue to respond to climate change in the future according to the guidelines.

3.18 Medium -sum recall 4) Efforts to realize the appearance you want to do ②

Page 10 is about business and human rights.Digitization and EVization have progressed, and attention has been focused on whether the resource materials used there are sustainable supply.

Acquiring license to operates (social operations permit) in resource development for a long time is the basics.We continue to dialogue with indigenous people, regional communities, and international environments, NGOs, etc., but we will continue to do this.

3.18 Medium -sum recall 4) Efforts to realize the appearance you want to have ③

Page 11 is a story that leads to a transformation, which leads to the mid -2021 business plan.It describes the initiatives that are being carried out in -house.

The ceremony reform is a project that regularly reviews existing systems and mechanisms and repeats “Scrap and Build”.In the management reform of the meeting, the management method at the management level has changed significantly.We are currently working on the renewal of the head office office.

Companies know from the past history that the status quo will gradually deteriorate, so we are trying to change them.

3.18 Metal Review 5) Achievement status for the target

In terms of the achievement status for the target, copper, nickel, material business, and net income are posted on the rod graph.Regarding the net income at the bottom right of the slide, the non -ferrous metal market is completely different from the expected time of the mid -term management plan, but it is clearly cleared.

The material business, which aims for a long -term vision of 2,3 billion yen, is a little unable to reach, but it is 23 billion yen, but we believe that the long -term vision was not a distant target.

1.Business environment

I will explain the environment surrounding the business from page 14.As I mentioned earlier in the business environment, the demand for non -ferrous metals has become very attention in society, but it is time for both copper and nickel to start a project in the future.Supply and demand are expected to be eased.

The business environment related to resource development and smelting operation is becoming more severe, and I think that there will be explanations from each business department later, but in recent years the difficulty of developing resources has become very prominent.However, the field of activities of materials is expanding, and we will continue to supply materials that can contribute to society.

2.Important tasks that are direct (social factors)

In this medium -term management plan, we have discussed three important tasks, "Carbon Nuntion", "DX", and "Human Resources Strategy".

The items described in the slide are less likely to be a familiar crisis for each of our employees, such as the new Coronavirus.As a management level, there is a very strong fear that the power of a company will be lost in the future if we do not work on this.

Needless to say, if you do not reduce carbon neutral and carbon footprint, there is a risk of excluding supply chains.Regarding DX, if you do not execute this, you have a sense of crisis that you will be submitted by competitiveness.

Needless to say about human resources, there is no survival of the company without this.The feature of this medium -term management plan is to work on these three as a major issue.

3.21 Medium

The position of the mid -year management plan, including the factors I mentioned, is shown in the slide figure.As I mentioned earlier, companies cannot survive unless they change or keep changing.

There are various issues, but carbon nector and DX may be said to be some external pressure.However, I would like to take advantage of this as an opportunity to change.I want to connect the solutions of important issues into transformation and activate the organization.The above is the explanation of the business environment.

[21 4 -middle challenge]

I will talk about the main strategy of the 2021 mid -term management plan.It is described as "four challenges".As I always say, our corporate governance is "maximizing corporate value" and "a mechanism that fulfills both healthy management."Maximizing corporate value is defined as promoting growth strategy and strengthening business base.

"Challenge 4" at the bottom right of the slide is a strengthening of the management base, but I think that it is good to reinforce the business base.I believe this is the challenge to maximize the corporate value of "Challenge 1" in the upper left.For major trends, such as changes in the situation of society and the increase in social responsibilities required by companies, we have adapted to the social environment change as "Challenge 3".

"Challenge 2" is related to both the two categories described now, but we are listed as sustainability as a company.

Challenge 1.Corporate value expansion -Promotion of large projects 1) Battery materials

I will explain each challenge from page 19.I will continue to talk about business for a while, but there will be explanations from each director later, so I would like to say only points.

Regarding the positive positive material business, we mentioned in the previous medium -term management plan that "we will increase production capacity to 10,000 tons per month during the 2024 medium -term management plan," but this is not changed this time.This time, the target of 15,000 tons per month is newly determined during the mid -2027 mid -year management plan.

In addition, as described at the bottom of the slide, we are introducing Toyota -type production systems at some manufacturing bases.The scale will continue to expand in the future, but we want to introduce TPS to improve cost competitiveness.

Challenge 1.Corporate value expansion -Promotion of large projects 2) Pomala

Page 20 is a Pomalaa project in the recruitment business.As I will talk about later, it is one of the measures upstream of our nickel business.This is also a big initiative.

Challenge 1.Corporate value expansion -Promotion of large projects 3) QB2

Page 21 is under construction work on the Cervada Blanca 2 (QB2) project.The planning production volume in 2024 is about 280,000 tons as a mine, which is a very large mining.We are also checking the amount of resources.

As you may have explained later, the feature of this project is that you can expect very high cost competitiveness.The mining mining is related to the cost of how much so -called "lil" and how small it is, but this mining is very small.I look forward to the cost competitiveness in this regard.

Challenge 1.Corporate value expansion -Promotion of large projects 4)

Page 22 is a Côté gold development project running in Canada.This is also late for construction, but construction is steadily progressing now.We are expected to acquire new resources in the neighborhood.

Challenge 2.Improvement of sustainability of core business 1) 3 Business collaboration ①

Page 23 is about 3 business collaboration.With the strengthening of the value chain of the battery from the nickel, the POMALAA project on the upstream I mentioned earlier, the existing Philippine CBNC (Coral Benickel) and the THPAL (Taganit) mining measures are steadily progressing.In addition, nickel's new mining is searched without loosening his hands.

Challenge 2.Improvement of sustainability of core business 1) 3 Business collaboration ②

Page 24 is downstream of value chain enhancement, which is worth noting that the battery -recycling process has been completed.We are aiming to establish a 10,000 -ton processing system during the 2024 mid -term management plan, but we are considering carefully promoting actual tests during the 2021 mid -term management plan.

Challenge 2.Improvement of sustainability of core business 2) Hishikari mining

Page 25 is the operation of the Hishikari mining.Since the operation in 1985, it plans to produce about 260 tons of gold by the end of March.If you think that Sado Kanayama is 83 tons, you will understand the size, but it will be the largest Kanayama in Japan.

Although it is a very high -quality gold mine in the world, we are considering Mine Life and shifts to a sustainable operation system.Since the so -called buried mineral amount has been confirmed, the amount of money will be slightly lowered by shifting to mining at that average quality.

However, when combined with the iron introduced earlier, the Group's production in 2024 is planned to increase.

Challenge 2.Improvement of sustainability of core business 3) Copper -made

Page 26 is the strengthening of the copper cruising business.Our Toyo Plant is our main factory and flagship factory since the operation started in 1971.We believe that we will continue to invest in infrastructure -related improvements in order to continue to be our main business.

Challenge 2.Improvement of sustainability of core business 4) Functional material business

Page 27 is an expansion strategy of the functional material business.We will continue to develop and sell products that can contribute to the digitization of society and low -carbon, and we will fight the mid -2021 management plan with the products listed in the slides.

Both are products on the market that grow, but the proposition is to realize the production and sales volume of the company more than the growth of the market.

Challenge 3.Adaptation to social environmental changes 1) Carbon Neutral ①

Page 28 is about carbon neutral because it is adaptive to change social environment.In the next medium -term management plan, GHG emissions are reduced to or less in FY2013, formulating plans for "GHG emission network by 2050", and promoting various measures.

In this case, the Carbon Neutral Promotion Committee has been installed in the company, and we are proceeding with individual measures, future plans, and discussions.As I mentioned earlier, we will run along the commitment of international organizations such as ICMM.

Challenge 3.Adaptation to social environmental changes 1) Carbon Neutral ②

Page 29 is about to be done during the medium -term management plan.I am thinking of investing 12 billion yen.Investments, including the application of the ICP (Internal Carbon Pricing) system, are considered at 7 billion yen for test and research expenses on the Renewable Energy and the test and research expenses for reducing the GHG emissions including scope 3.

Our GHG emissions are about 2.8 million tons in Japan and overseas.About 1.4 million tons each in the country and overseas, about 1.4 million tons, of which 60 % are derived from power.First of all, I would like to focus on how to reduce the GHG that comes out of the remaining 40 % operations.

Challenge 3.Adaptation to social environmental changes 1) Carbon Neutral ③

Page 30 is about the development of products, new technologies and processes that contribute to carbon neutral.The product described in the slide, our process, may be used to use petrified fuel to return metal from the oxide ore, or may discharge CO2 to neutralize, but it depends on the power of technology.It means to consider alternative measures.

Challenge 3.Adaptation to social environmental changes 2) DX

Page 31 is the second major challenge, DX.Specifically, we will launch the DX Promotion Committee, like carbon neutral, and accelerate company -wide DX.We have a lot of technical departments and operating sector, and DX -related initiatives have begun in various places for several years, but we will integrate this initiative in the company to clarify the direction.

As for investment and expenditure during the 2021 mid -term management plan, a total of 15 billion yen is planned as described in the slide.In addition to digitalization of business, we will continue to consider digital operations and digital business development.

Challenge 3.Adaptation to changes in social environment 3) 保 保 保 保 ３ ３ ３ ３ ３ ３ ３ ３ ３ ３ ３ ３ ３ ３

Page 32 is a human resource strategy.We are aware that the company has turned to the side selected from the market due to the declining birthrate and aging population and the flow of labor markets.I think that the awareness of working has changed in the last two to three years, especially in young people.This is a very important issue related to the survival of the company.

It is said that human resources are resources, assets, and so -called human resources, but we are thinking of dividing this management into three segments: securing, training and utilizing.We are making various efforts, but we will respond in software as described in the slide.

Challenge 4.Strengthening management base 1) Reason for competition

Page 33 is the strengthening of the management base.The slide states "the source of competitiveness".As a management spine, I have a business spirit of Sumitomo, but from here on, we are thinking of strengthening the foundation at the point listed in the slide.

Challenge 4.Strengthening management base 2) Safety

Page 34 is a safety initiative.As I mentioned earlier, the reality is that the ability has not been improved easily.Once again, we focus on preventing serious disasters and repeated disasters.

Some self -reflections feel that the safety measures we are working on are not effective, but as we are a company, the generation may change and people may change, so the experience may not be passed on. not.

Therefore, I think that it is basically to do the same thing repeatedly, but I would like to accept and change the external consultant's proposals as I mentioned earlier, as long as the basics do not fail.

Challenge 4.Strengthening management base 3) Promotion of sustainability measures ①

Page 35 is about sustainability measures because it is "2030 you want to be".Since this is described in the integrated report, etc., the explanation is omitted.

Challenge 4.Strengthening management base 3) Promotion of sustainability measures ②

About reviewing the sustainability promotion system.I understand that the history of the Sumitomo Metal Mine Group is the history of CSR and sustainability.We have been conducting CSR activities that solve social issues through our main business and business.

In our company, the understanding that our CSR activity is the sustainability activity itself today, but the word sustainability is very popular, but there are also places where the explanation outside the company is struggling.。

Aside from the interpretation of our company, we decided to make an organization that pushed the word sustainability on the entire surface, aside from our interpretation.

Challenge 4.Strengthening management base 3) Promotion of sustainability measures ③

It is a sustainability promotion system.There is a sustainability committee under the president, and below it, there are seven sustainability seven sustainments from the slide to the left side of the slide, and a 4 -minute management system.All of these have been reorganized as our current activity organization.

The Carbon Nupt Promotion Committee and the DX Promotion Committee are already active, and these are also reorganized.

Challenge 4.Management base strengthening 4) Corporate Governance ①

This is the basic concept of corporate governance.This is as I mentioned earlier in our corporate governance.

Challenge 4.Management base strengthening 4) Corporate Governance ②

It is a corporate governance system.The sustainability promotion system mentioned earlier is at the bottom right of the slide, but the entire corporate governance, including this, is in this form.The execution is all under the president.

Challenge 4.Management base strengthening 4) Corporate Governance ③

Page 40 is the concept of a business portfolio, which is required in the corporate governance code.As a portfolio, it may be the metabolism of the business, but in the case of our company, we think that the business close to our main business remains in our hands as a result of the selection and concentration about 20 years ago.I am.

In such a situation, we cannot do business in a row, so we are considering the so -called financial efficiency indicators and looking at the trends of the business.Here, we will manage the business portfolio with ROCE (Return on Capital Employed) as an index.

In the case of our company, it is good to look at each business department.There are few assets that are not related to business in the business department, and I think ROCE is good.2021 The target value during the mid -term management plan is 5.It is 5 %.

Challenge 4.Management base strengthening 4) Corporate Governance ④

Page 41 is the description of the acquisition defense measures in the corporate governance announced yesterday.Considering the nature of our business and the contents of the assets held, we believe that the appearance of abusive buyers is still a threat.For this reason, since 2007, a prior warning type acquisition defense measures have been proposed at the General Meeting of Shareholders and have continued.

There are many investors who understand our situation, but there are many negative opinions on pre -warning defense measures to unspecified buyers.In light of the recent situations, we do not think that the need for countermeasures has changed, but this time we have decided that the acquisition defense measures will not continue.

1.Progress to the target

Page 43 is about the progress to the target because of the reach of the 2021 mid -term management plan.It is a fairly rough material, but we would like to say that if the world's economic growth is about 3 % a year, it is not a growth strategy if it is a growth strategy with a growth of about 10 % in the 1st mid -term management plan period.I want to aim for the above.

It is also implemented with resource development and capital investment, and the results may not be achieved during the 1st mid -term management plan, but when the results are achieved, the expected growth rate will be satisfied in the multiple medium -term management plan period.The goal is to realize growth.

For copper, it will increase by about 40,000 tons in 2024, which will increase by about 40,000 tons, but we also want to increase it further and achieve 300,000 tons.

2.Production estimation 1) Middle -aged profit and loss estimation

It is a estimation of business performance.The slide graph indicates the change in profits.The estimation in 2024 is inferior to the forecast of 2021, but for foresight, copper is $ 8,000 per ton from the right side of the table at the bottom of the slide, nickel is $ 70 cents, gold is gold.This is the result of estimating $ 1,600 per ounce and 115 yen for the exchange rate.

2.Production estimation 2) Medium -meter profit and loss estimation

The estimation of page 44 will be the position of the company's feet.There is a waterfall graph on page 45, but the leftmost side is expected to be 2021.The market factor has an effect of about 60 billion yen.Sierra Golda is a special factor for a single year, and the effect is 74 billion yen.

Here are some of the scopes that can be explained, except for those effects.First of all, the cost difference is 23 billion yen, but this is the result of estimating that energy costs will be expected to increase in overseas copper mine.

In addition, it has been recorded as a replacement effect of resources assets.This is the difference between QB2 and Côté contributing and the Sierra Golda eliminates, but I think it can be said to be a strategic effect.

2.Estimated achievements 3) Segment profit / ROCE

Segment profit, ROCE.Although it is described from resources to materials, ROCE for the 2024 estimated target value was mentioned earlier..5 % are clear as a whole, but by department, there are some pre -burdens and price reductions of some investments, and there are some places.We plan to watch these in the future.

3.Equipment investment / investment and capital

Equipment investment.In the mid -term management plan, capital investment was said to be 330 billion yen, but the prospect of the achievement was about 164 billion yen, about half a half.In the middle of 2021, including the remains of this project, the project is planned to have a large amount of capital investment of 494 billion yen in the 2021.

4.R & D expenses

R & D expenses.This is an increase in research expenses to solve management issues, and we believe that it is 30 % more than the 2018 mid -term management plan.

5.Dividend

It is a dividend policy.The company is shareholder reduction in dividends and is a business -linked type.The consolidated dividend tendency is 35 % or more, the same as the feet, but it is just a "principle".

What I would like to say, as described earlier, especially if Bat (BEST AVAILABLE TECHNOLOGY) is developed by technological innovation and it can be applied to the Company.I want to think about it.In that case, the level of investment will probably be quite expensive.

Compared to the cash flow of the period business, when such a special factor appears, 35 % described in the slide, looking at the financial status at that time, the financial predictions of the future, and the forecast of the financial structure.It is impossible to make a proposal that is not at all.

If there is such a thing at this time, there is no such thing so far, so if there is nothing in the future, it will be as described in the slide.

6.Cash flow / financial structure

Cash flow and financial situation.Operating cash flow is 450 billion yen in three years, investment is 600 billion yen, and about 150 billion yen is a procurement position.

In such a situation, there are opinions that the dividendity is 35 %, but the financial structure is targeted at a 50 % self -capital ratio, and as long as it can be maintained, the shareholder reduction will be performed as planned.I'm thinking about that.

Regarding the means of finance, we are thinking of project finance, green finance, or conventional bonds, but we are not thinking of any of the Equity Finance at this time.

The above is the explanation of the whole outline.From here on, the strategy of each business will be explained by the director in charge.

1.Resource Project 1) Important theme

Ryoichi Sato (hereinafter Sato): Sato.I will explain the resource business.There are three important themes in resources in the 2021 mid -term management plan.

The first is the completion and launch of the Kibrada Blanca 2 and the track as planned.The second is to review the production system of the Hishikari mine.The third is to acquire new projects after the transfer of Sierra Golda and expand the pipeline.

１．資源事業 2）ケブラダ・ブランカ2

First, about Cibrada Blanca 2.Our interest ratio is 25 %, aiming to start production in late 2022.

As mentioned earlier from Nozaki, the feature of this project is that the soil ratio is 0..It is extremely low as 72 %, and the dignity is 0.In 52 %, the average value of our main mine, Morencies, and Cellberde, will be explained later..It is quite expensive compared to the 3 % rates.

In addition, we will use seawater mining, but all seawater will be destroyed.The actual collector is 90 % by using debrisal mining water.It is a project that has cost competitiveness under such conditions.

The production plan of 2021 in 2024 was 284,000 tons in 2024, and our interests were 71,000 tons.In combination with all mines, in 2024, the amount of copper production is 270,000 tons, supplementing the decreased Siera Golda, reaching even higher levels.However, there is a premise on this, and existing mine must continue to stabilize.

1.Resource project 3) Overseas copper mining

Our main copper mines are the Morencies in the United States, the cell earberdes in Peru, and Chile Candelaria, but the two mines in Morencies and Cerberde are in the world's top 10 in the annual copper production level of 400,000 tons.We will continue to strive for stable operations along with the operator's free port.

Candelaria, on the other hand, has continued to have been planned for production due to union strikes last year and last year's pit collapse prevention measures.In the future, the management system will be strengthened, and in 2024 we will aim for 180,000 tons, an increase of 30,000 tons compared to the 2021 achievements.

1.Resource project 4) Hishikari mining / iron (au)

About Hishikari mine and iron.At the Hishikari mine, we will switch to operations that emphasize sustainability.Aiming for extension of Mine Life, we will basically make mining based on the average amount of the collection.The production amount was 6 tons per year during the mid -term management plan, but during the 2021 mid -year management plan 4 per year..It will be 4 tons.

As a topic, a hot bath entrepreneurship will be completed during the mid -2021 mid -term management plan.In order to operate the new hot spring room for the first time in about 30 years, we will actively explore tunnel in the deeper or less than the current hot spring water level and acquire new mining amounts.In addition, we will review the operation system that incorporates the latest technology such as DX and realize cost reduction.

In the iron, the transfer to the first half of 2023 and the transition to stable production will be promoted, and the gold production in 2024 will be 13 tons, aiming for 4 tons for our interests.That's it for me.

2．製錬事業 １）重要テーマ

Nobuhiro Matsumoto (hereinafter Matsumoto): This is Matsumoto of the Metal Business Headquarters.I will explain about the recruitment business.

There are two important themes as a metal described today.The first is the strengthening of the value chain of our Group Nickel Business, and we will explain the efforts to "make the trunk thicker" as a strengthening of the value chain, which is a characteristic of our company, nickel.

As described in the slide, our nickel business is involved in the development of low -quality nickel oxide ore in Yamamoto overseas, and uses HPAL technology locally to manufacture mixed monosalfide, an intermediate raw material.increase.

This is transported, manufacturing a product called sulfate nickel in a domestic smelter, and using it as a raw material, producing a positive positive material of batteries centered on in -vehicle batteries, and supplying it to the battery manufacturer.increase.We are working to make this flow thicker.

As a second theme, I will explain the efforts to strengthen the competitiveness of the copper business, which is the bone of our smelting business.

2．製錬事業 2）グループNi事業のバリューチェーン強化

Regarding the strengthening of the value chain of the nickel business introduced earlier, we will continue to promote the Pomalaa project in terms of processing raw materials.In addition, I would like to continue the stable supply of nickel -based raw materials for batteries and functional materials.

As a topic of the 2021 mid -term management plan, there is a battery recycling.As mentioned earlier, we will start operation of the actual plane during the 2021 -year management plan, and we will bring a system that can process 10,000 tons a year during the mid -2024 business plan.increase.

The right side of the slide shows a model of the battery to battery recycling, but we will collect the deteriorated batteries of the commercially available EVs and accept them to the company that has been processed by domestic preprocessing manufacturers.

The Company collects lithium, which has been released a pre -press press, in addition to nickel, cobalt, and copper by combining dry and wet processes, and supplies it as a raw material for the battery again.

2．製錬事業 ３）Cu事業競争⼒強化

Regarding the second theme, the strengthening of the competitiveness of the copper business, we are planning to expand the four points shown in the slides.

First, the production of electric copper at the Toyo Plant is currently 450,000 tons per year.This means that we will remodel this bottle neck and other facilities, take a system that can increase production by 10,000 tons, and build a 460,000 -tons of a year.

The second is the further improvement of the actual income.We can make various intermediate products and slags, but we are considering that we will further recover the amount of metal and improve the actual collection rate.

Third, from the recent EV business in recent EVs from the viewpoint of creating quality tailored to market needs, even higher purity electric copper is being required.I would like to respond properly to such things and aim to be able to supply customers.

The fourth optimization promotion of in -premises logistics is to further improve the environment and efficiency, leading to strengthening competitiveness.That's it for me.

3.Material Business 1) Important theme

Abe (hereinafter Abe): Abe.I will explain the battery material business.

The important theme of battery materials in this medium -term management plan is to share the world's top nickel positive positive material.There are various numbers issued by the research company, but now it is in the top 5 share of the world's positive positive material, so we are aiming to aim to keep it from the top 5.。

３．材料事業 2）電池材料事業 ①

As a battery material business, the new factory we are currently promoting has been named Niihama Plant, but we will promote the start of 2,000 tons of production there.We are planning to complete and launch equipment in 2024, and is positioned as a model factory for DX promotion.The purpose is to use this DX to improve productivity and very important quality by automatic control of the operation parameters of production equipment by machine learning and data analysis.

The mid -term management plan period will be implemented in advance of recruitment and education of the new factory, and will be ensured.

Next is the stable production of 4,850 tons per month and improvement of profit and loss of NCA, which is currently running.The establishment of a stable production system by improving the equipment is very required by customers to enhance the product, especially the quality aspects.

In addition, we will implement measures such as repair costs, reducing the original unit, and improving productivity at each base.As part of that, we are considering introducing a Toyota -type production system that Nozaki mentioned earlier.Another important point is to introduce TPS for human resource development, in addition to improving site power and reducing costs.Currently, we have introduced the Mineral Energy Materials in Fukushima Prefecture, and we are planning to expand this to all bases during this medium -term management plan.

３．材料事業 2）電池材料事業 ②

As for the next production, as explained from Nozaki earlier, the production of battery materials will be produced 10,000 tons per month by 2027 and 15,000 tons by 2030.However, even if the new factory at your feet is completed, it is 7,000 tons, so it is not enough.

We would like to proceed with this, including customer demands and locations.The important thing is to secure the raw materials, and as explained by the metal business headquarters, I would like to secure new procurements and promote recycling along with the recruitment business.

In particular, as a battery material business, the European order announced in December has made the recycling rate of 4 % for nickel in the positive electrode timber in 2030, so we promoted it as one target.I think.

The company is planning to secure and develop human resources for business expansion, but during the mid -term management plan, we plan to increase by more than 200 people, including the staff of the new factory.I would like to proceed to secure human resources.

Regarding the response to the GHG reduction in the entire battery life cycle, we plan to first incorporate power procurement of power at the base and convert heat source natural gas mainly during the middle of the middle -term management plan, and to work on reducing the GHG.increase.That's it for me.

3.Material business 3) Functional material ①

Kazuki Takizawa (hereinafter referred to as Takizawa): This is Takizawa, the director of the functional material business headquarters.The first point of the 2021 -year management plan of the functional material business is to strengthen portfolio management.In the headquarters, which develops more than a dozen types of products, which are large and large, we aim to keep the portfolio of the product and maintain the optimal condition.We recognize that this will enable continuous growth.

This time, the functional material business headquarters has re -formed the appearance of aiming for a long period of time, and once again determined the targets and aiming for the organization and people.As described in the slide, you want to be a business group of products with high profitability and top -class share.

In addition, we introduced roadmap management as a tool that realizes this aim.As you can see in the slide, we have three roadmaps, market, business department, new product, and overlook the social and market trends.We will predict the future and capture changes and new needs, and consider how to adapt and grow.In addition, we will always share the direction and career we aim for, and the stakeholders will work on the realization.

The second point is the maxim of revenue.The electronic component industry, which supplies materials and materials, is tied with the term DX these days, but the high growth rate is expected to be high in the future with such needs.

However, if our business department grows at the same pace as this growth rate, the value of the business will be questioned.For this reason, it is recognized that the market growth rate is the first business value as a business after acquiring plus alpha.

Introducing new products or new technologies, development and operation of innovative production processes, and even new sales strategies, and have achieved the growth of the market growth rate plus alpha that we have just expressed through these various measures.I want to come.

3.Material business 3) Functional material ②

Page 63 is about the powder material business.In the paste business, we would like to respond to the needs of customers about the MLCC nickel paste, and to expand our business especially in the development of new products.

As for ink materials, we will ensure that the demand for existing existence is expanded.In addition to this, we will develop a new market that takes advantage of the functional characteristics of ink materials, develop new applications, and realize a market growth rate plus alpha.

In addition, the Ome office, which is a major manufacturing and development base of powdered material material, will be consolidated in the Ome area of the development function of powder material businesses currently scattered in various parts of the country to strengthen the development of new products.Start a plan for the future, accelerating.

3.Material business 3) Functional material ③

Next is the crystal material business.For LT and LN substrates, the market is expected to grow further due to the spread of 5g smartphones, and we will expand sales with this opportunity.FR is a member of optical communication equipment, but the communication market is expected in various places as the high growth rate will continue.I would like to build a manufacturing and sales system so that I will not miss this opportunity.

As for the package material business, the tape material will consolidate the top share of the COF substrate for the display, and expand the development and sales of high -performance substrates for smartphones.

Regarding the SIC (silicon carbide), which is working on commercialization, the company has a milestone that will spread the market for the Group's unique technology, "Paste Uchimata", and start mass production for cars in 2025., I'm working on a rapid pace on the current task.That's it for me.

Q & A: About replacement of resource assets, capital investment, Indonesian policies, LFP

Questioner 1: Please ask 3 questions.As the first point, please explain page 45.Among the graphs in the slide, there is a total of 24 billion yen by replacing resource assets.Cibrada Blanca 2 and the iron contribute and Sierra Golda withdraws. Is this simply good idea?

I think Sierra Golda was 8 billion yen this term, but it disappeared, and when the iron and QB2 entered, it was 32 billion yen plus a total of 24 billion yen, or with the withdrawal of Sierra Golda, some provisions of withdrawal.Please tell us what this plus 24 billion yen is, including whether or not there is any profit.

Nozaki: I don't say the number individually, but QB2 and the iron will definitely come in due to the increase in profits.Also, in Sierra Golda, it is related to financial treatment, and it actually contains something like the profit and loss of investment subsidiaries, so we believe that the amount is probably higher than what you expected in FY2021.In our calculation, it is a explanation without discrepancy.

Questioner 1: Please tell me a little easier to understand.

Nozaki: I guess the problem is how to look at Sierra Golda's profit or loss, but the profit and loss of Sierra Golda is a variety of financial exchanges, including investment subsidiaries, for example, interest rates and lending.Since the factors come in, I hope that you can think that the numbers are different from the ability as a mining alone.If you compare 2021 and 2024 based on slide graphs, please understand that there are different elements from those that compare the original mining skills.

Questioner 1: In other words, 8 billion yen is the profit of the equity -based profit and loss flow, but there are parts that are dented like a deficit, including investment subsidiaries that were invested there.Does that mean that the contribution of the part that is resolved, the contribution of QB2 and the iron will be a plus of 24 billion yen?

Nozaki: In fact, in FY2021, in FY2021, we look at positive profit and loss in FY2021, so we believe that profits will rise higher than the profit or loss of equity law.

Q & A: About capital investment plan

Questioner 1: The second question is about 47 pages, about capital investment plans.I understand that it is 293 billion yen in smelting, but I understand that the 18 middle meter shrinks and it shrinks a little due to the corona evil because there was no Pomala, but I will tell you if this is about 200 billion yen.Please give me.This time, it is a little difficult to understand because the Toyo factory has been enhanced, but is it like this?

Nozaki: A considerable part is a so -called new mine, in this case, Pomala, but I would like to think of it as an investment in this.In fact, there are some parts that do not know whether it will be made by capital investment or investment, but it is now recorded by capital investment.

Questioner 1: It was stated in the late 2020s that even if you invest in the last three years, do you mean that the next medium is still being constructed?

Nozaki: That's right.Certainly, it is a big deal of investment of 494 billion yen, but if you look at our capital investment on a consolidated basis, there is about 45 billion yen depreciation costs.It is usually 45 billion yen x 3 years, that is, from 1030 billion yen to 140 billion yen with maintenance update investment alone, so it is a new project related to the part that exceeds that.I think it's a reasonable amount.

Q & A: About the impact of policy changes regarding Nickel in Indonesia

Questioner 1: I understand.The third question is that the policy of melting and nickel in Indonesia has changed a little.One is to say, "Don't handle something like nickel pig iron," or "let's shift to something that is added as much as possible"."It has come out.

In the case of "more value -added ones", I first received the impression that "this is a highly added nickel, so I don't have to worry about it."Is there any risk that your company's plan will not go as planned by changing this Indonesian policy?Also, in this study, I think that the battery material's LFP has been considerably happened in mind, but please let us know your knowledge around that.

Nozaki: LFP will be answered by Abe, director of the Battery Materials Business Division.As you mentioned, there is a story about Indonesian tariffs, as you mentioned, but we are going to make tariffs, but we are going to make it in the middle of Mixed Sulfide, a higher nickel purity.For this reason, I hope that there will be no tax policy at the moment.However, there is no doubt that you are paying attention.

Abe: I would like to express our way of thinking about LFP.The main car producers have already announced that they will use LFP when the price is low, and we are actually running a lot of LFP EVs in China, so we 4 in the world market.I think it will be LFP.

However, 60 % estimate that EVs will be made with nickel -based materials, so we believe that demand for Nickel's EV will continue in the future.

Q & A: About medium -meter profit and loss estimation and Kibrada Blanca's revenue

Questioner 2: 2 points I have a question.The first point was that from the graph on page 45, except for the market factors, the goal was slightly lower than the current number, so I did not think about trying to do a little more to accumulate profits and challenge.Please tell me if it is.

The second point is about how much profit contribution you are looking for in the middle of the Cibrada Blanca 2 Project, and how the tax stabilization clause under Chile's Foreign Investment Act No. 600 is.Please tell me what you are.

Nozaki: The first question is how much you thought about "Ganbashiri" during the middle period.Sato will respond later, because of the relation to the second contribution of Cibrada Blanca and the DL600, the so -called tax agreement, which is currently being discussed in Chile.

I think that the impression that it is not enough during this middle period, but the position we are now is the period of finishing the large investment in the device.In addition, we believe that it is time to make an investment that does not lead to direct revenue, such as carbon neutral.

Controling expenditures and raising profits may not be possible, but I think it's time not to do it, but to spend money.Please understand that it will lead to the next step up.

Sato: It's the profits of Cibrada Blanca, but I hope you can think about it in a rough 10 billion yen.After that, the tax stabilization agreement is involved, but we believe that the tax stabilization agreement will be maintained for 15 years after the start of operation, and we do not think that it will be affected immediately.

Q & A: About the interests of the material business for the medium -sized period and the acquisition of new projects

Questioner 3: There are 3 questions.The first point is that the profit of the material business for the middle period is 15 billion yen, so please tell me the background.The second point is that the acquisition of a new project is one theme in the resource business, but it is possible to acquire additional projects in the first place, including your personal capacity.

Finally, I think you have experienced the mine of Sierra Golda this time, so please let us know, including how to contribute to the direction of your company's buyer.

Nozaki: I will answer the profit and loss of the material business even if I ask the individual business manager, so I will answer.

As you mentioned, it is a decrease in profit compared to 2021.However, as described on the way, we are aiming for a quantitative expansion of functional materials, so we are considering the profit level in the direction of improvement.However, we are currently making a large investment, especially in battery materials.

In addition, I have talked about it, but I think that it will be a cost -ahead three years because I have to go to the front Hirotsu for a long time.I believe that monetizing this as soon as possible is the following issue.

Sato will explain how capacity to acquire new resources and how to make the contribution of Sierra Golda's operating team in the future.

Sato: Currently, we are conducting two projects, Cebrada Blanca 2 and the iron, and as you pointed out, there is a relationship between human resources, so during this middle period, focus on finishing these two projects.There is no doubt that you will do it.

On the other hand, resources are worn.From now on, we will do various searches by treating the next.The situation that I haven't seen the site for a long time due to the corona is continuing, so I will prepare something like a so -called shopping list, and when the corona is over, I will go around the country aggressively.

In addition, based on the improvement of such operations that we utilized in Sierra Golda, we are looking for something that can be worthwhile on our own power, not in development projects, but also in operating mines.I'm thinking like this.

On the other hand, we are also exploring.Now that the metal price is very high, buying a project is quite expensive, so it takes time to grow from exploration, but I want to go in parallel.

Q & A: About the profit goal of the material business, the profit and loss of the material category of the medium -meter profit and loss estimation, and the ROCE goal

Questioner 4: Please ask 2 questions.The first point is about the material business.This time, there was an explanation that the production quantity target of the positive poles of the battery was raised from 10,000 tons to 15,000 tons for a long time, but among them, the profit of the long -term material business.The goal has not changed to 25 billion yen.According to the story mentioned earlier, it was said that "the profitable type does not increase in this middle plan," but the goal of profits has not changed even if the amount increases, which is the long -term view.Will it be like that?

At the same time, in the 45 -page middle profit or loss estimation, the material business is minus about 8 billion yen, but I would like to explain what is the difference between cobalt etc. or what is it.。This is the first big point.

The second point is to look at page 40 of the material and ask a question.This time, ROCE goal 5 in the midfield period.5 % of the 5 % will be shown, and for those that are less than that, it will be a business that checks continuation management, such as business portfolio management, and will be directly supervised in the future.

In the ROCE shown in the middle, both the material and the smelting business are below this target value, so a little more explanation on how to set this and manage each business. please.

Nozaki: The first question is the profit target of the long -term vision related to the material business, but in fact our long -term vision profit targets are 150 billion yen in the whole company, achieving this in FY2021.It will exceed this in 2024.

As a way to make a medium -sized meter, we will first decide on a long -term vision and deploy it to each business unit, so this is the case, but we will review the long -term vision counted target in the future.There are things.In other words, when the size of the assets increases and the thickness of the business comes out, I don't think it will continue to keep the same goal.

In that sense, the material business of the question has not yet been achieved, but I think it will be a different goal in the future.Now we have not been able to discuss that far.

Next, I will explain the minus 8 billion yen of the explanation of the profit and loss difference in the material category.There are various factors about this, but I understand that the big one is as I mentioned earlier, the investment burden related to the upcoming investment, or the cost burden.This is also a bit bumpy depending on the product and business, but it looks like this.

Also, "There are some places that are already below the target value of ROCE in the management of segment portfolio management." As I mentioned earlier, the business that is close to our main business can now be competed.Because it remains, I feel the need to observe this fixed point and put in a leverage.

Therefore, if the goal is not reached in a short period of one medium -sized period, it is supposed to be considered for draft measures, etc.I want to think about it all over the company.In terms of material system, I think it will be a group that is clearly sluggish for a long time.Or, in smelting, it is a metal.

In this area, I think we have to take action somewhere, but we know that the profit level and efficiency level will move considerably up and down.I would like to respond while carefully looking at that area.

Article provision: