First Read: Mitsui Kinzoku "Company further lifts its medium-term plan ROIC..."

Research evidence excerpt

First Read: Mitsui Kinzoku "Company further lifts its medium-term plan ROIC..."

year growth

03/28E 2,043.4 1,529.3

investment of ¥122.0bn (previously ¥81.5bn) and maintenance and upgrade investment 03/29E 2,312.4 1,802.6

of ¥80.0bn (¥72.5bn). In addition to strengthening the competitiveness of the

"Core10" core product group (copper foil: MT / VSP / FF, catalysts, iconos, rare materials, Harunobu Goroh

and ceramics) through FY3/31, the company aims to accelerate the shift to non-linear Analyst

growth by nurturing multiple businesses, including the "Next10" growth drivers harunobu.goroh@ubs.com

+81-3-5208 6215

through FY3/31, materials for solid-state batteries and the HRDP semiconductor chip

carrier through FY3/36, and the "Future10" businesses through FY3/41. Key investment Lihui Huang

initiatives include a capacity expansion in copper foil (MicroThin™, VSP™, Farad Flex®), Analyst

establishing an initial mass production facility for the solid-state battery material A-SoLiD lihui.huang@ubs.com

+81-3-5208 6217

(enabling a fourfold capacity increase), and aggressive M&A activity.

Copper foil ROIC target for FY3/31 lifted to 64%

Reflecting actual ROIC of 27% in FY3/25 and 52% in FY3/26, the company lifted its

copper foil ROIC targets significantly, from 39% to 52.0% for FY3/28 and from 49% to

64% for FY3/31. Demand for MicroThin™ is expanding sharply, including in DRAM and

other memory package applications, and in optical transceiver substrate applications.

While the company is working continuously to improve productivity, with the average

facility utilization rate in FY3/26 reaching nearly 70.0%, management noted that it is

considering physical capacity enhancements. The company lifted its demand outlook for