Mitsubishi Materials unveils new three-year strategy amid missed targets

Mitsubishi Materials Corporation unveiled its new medium-term management strategy for fiscal years 2026-2028, focusing on becoming a leader in resource circulation. This strategy follows a review of the current "Chukei 2030 Phase 1" plan, where financial targets for FY2025 are projected to be unmet due to external market shifts and deteriorating copper concentrate purchasing conditions.

The new strategy aims for significant improvements by FY2028, targeting an ROE of at least 8%, ROIC of at least 7%, a Net D/E ratio under 0.5x, and a Net interest-bearing debt/EBITDA ratio under 3.5x. Key initiatives include global expansion of resource circulation businesses, doubling E-scrap processing, achieving 100% tungsten recycling, and optimizing copper concentrate procurement. The company also plans to implement “fundamental structural reforms” to reduce invested capital and improve profitability.

Capital allocation for FY2026-2028 includes approximately ¥500.0 bn in both cash in and cash out, with 30% allocated to growth investments in the Materials Area. Shareholder returns will prioritize stable dividends, with consideration for a shift to a DOE-based model. The strategy also emphasizes strengthening the management foundation through human resource development, new business creation in the circular economy, and leveraging AI and digital technologies.