Message From the President

On March 19, 2025, JX Advanced Metals conducted an initial public offering on the Prime Market of the Tokyo Stock Exchange. We are sincerely grateful to all of our stakeholders for their support and cooperation.
The roots of JX Advanced Metals date back to 1905, when the company’s founder, Fusanosuke Kuhara, opened the Hitachi Mine. Kuhara pushed for greater mechanization and modernization of the mine from its inception. In just a few years, he built the Hitachi Mine into one of Japan’s leading copper mines and laid the foundations of the Nissan Conglomerate, which fostered companies such as Hitachi, Ltd. under its umbrella. In the intervening 120 years, we have evolved through repeated challenges and changes, becoming the company we are today. Now, in addition to copper and other major base metals, we are a global player as a supplier of advanced materials, including precious and minor metals. Our business operates on an integrated supply chain, from resource procurement to recycling.
In June 2019, we created the Long-Term Vision 2040 (revised partially in May 2023), looking 20 years into the future. This vision describes our basic policy to transition from a process industry-type firm to a technology-based firm, aiming to contribute to the realization of a sustainable society as a global leader in the semiconductor and ICT materials sectors to realize a highly profitable structure, even in the face of intensifying international competition. Under this vision, we continue to enhance corporate value to meet the expectations of you, our stakeholders. On behalf of our entire organization, I ask for your ongoing support.

The IPO reconfirmed to me the importance of fostering a better understanding of our business model and enhancing our reputation in the market. I also reaffirmed the importance of every employee taking pride in their work and in the Company, strengthening their engagement. We have consistently pursued proactive branding initiatives, including television commercials and sponsorship agreements with professional sports clubs. In addition to these initiatives, I understand that the significant media coverage surrounding our IPO was a source of pride among employees whose families were impressed that they worked for such a notable company. I feel strongly that we must share this reputation and pride across the entire organization, encourage everyone to work together to achieve our long-term vision.
The IPO has been an opportunity to reiterate the ideas, attitude, and spirit of the JX Advanced Metals Group. This spirit has been cultivated and passed down from generation to generation over our 120-year history, and we redefined these concepts in September 2025, announcing the JX Advanced Metals Group’s Philosophy, Our Purpose: Creating Value for a Brighter Future, Powered by technology, passion, and innovation.
At the time of our founding, the sulfur dioxide generated during copper smelting at the Hitachi Mine was causing serious smoke pollution. As a solution, then-founder Fusanosuke Kuhara decided to build what would be the world’s tallest smokestack ("Giant Stack") at the time, bringing about a coexistence and co-prosperity with the local community. Of course, this episode required the company’s technological strengths, but it also proved a firm conviction rooted in a strong sense of responsibility and mission toward business and society. At the same time, we proved our courage to make tough choices in attacking a problem without fearing change or failure, engaging in discussions that transcended boundaries and seeking human harmony, developing alongside society in a sustainable manner. The Giant Stack of the Hitachi Mine stands as a symbol of our purpose in society. In the years since, JX Advanced Metals has continued to boldly transform in response to the ever-changing needs of society—from copper to advanced materials supporting electronic devices and recycling that fosters resource recycling. In every era, we have always created value that leads to a better future.
This philosophy embodies our commitment to pursue value creation through a free and inventive mindset, improving lives even as the world becomes increasingly uncertain and complex.
As stated in our Long-Term Vision, our focus is on the advanced materials business, mainly in semiconductor and ICT materials. Working toward completing this business portfolio transformation, we face challenging times and pioneering efforts, just as we did with the Giant Stack. I have high expectations that the JX Advanced Metals Group’s Philosophy will be the driving force to achieve our Long-Term Vision, as Group members share the unchanging aspiration that we have held since our founding and reflect this commitment in their own actions.
We will continue to be a company that creates value and creates the future through technology, passion, and innovative thinking, holding tightly to unchanging aspirations. I want every employee to have a sense of ownership toward the company, believing they can make a difference, working together in unity toward the next transformation and the creation of the future.

Based on our recent efforts and the business environment, in May 2024, we formulated Medium- to Long-Term Business Targets toward achieving Long-Term Vision 2040. While we have made generally favorable progress toward the targets for fiscal 2027, the external environment, triggered by U.S. tariff policy, is changing more rapidly, and the future remains uncertain. Amid these circumstances, we believe we must allocate resources from the perspective of a best owner, responding flexibly to changes in the market.
We have two major areas of focus for capital allocation toward achieving our medium- to long-term business targets.
The first is to put Focus Businesses on a solid growth trajectory. As we continue to invest in growth in semiconductor and ICT materials, we know we must create value through competitive advantage in advanced materials technology, even as we recognize the downside risk of demand. We must raise the volume and make capital investments in connection with our strong products, including sputtering targets and rolled annealed copper foil, to firmly defend our current position. At the same time, we must develop products that will become drivers of earnings in future generations. One example is indium phosphide (InP), a crystalline material used in optical communications. The market for this material in use for generative AI and data centers has grown 1.5 times in the last year, and is expected to continue to grow by 20% to 30%. Demand is also on the rise for other high-quality materials, including sputtering targets for magnetic materials used in HDDs for AI servers, titanium copper as a connecting material for high-speed transmission, and tantalum powder as a capacitor material, where a stable power supply is critical. We have already begun mass production of CVD-ALD, which is used as wiring materials for next-generation semiconductors, and we have high expectations for significant growth. In these ways and more, we seek sustainable growth by developing and delivering the advanced materials that support society.
The second is to strengthen the resilience of our Base Businesses. As I mentioned at the outset, Base Businesses play an important role in our supply chain. However, as the business environment becomes even more of a challenge, we realize surviving until 2040 will be difficult if we only maintain the status quo. We must create higher added value. As part of our efforts, we pursue the recovery of minor and precious metals through new investments in minor metal mines and expanded recycling in copper smelting, aiming to maximize the value of these materials. Our efforts are valuable not only to our own company, but also to society as a whole, since what we do links directly to the formation of a circular economy. To this end, we must engage in ever-stronger cooperation with outside organizations.
In any case, we do not believe that we can reach 2040 under our current business portfolio. The development of generative AI and IoT is a great opportunity for us to become a global leader in advanced materials, and these technologies are our chance to act swiftly in changing business structures. As the leader of our company, I recognize that my mission is to ensure the speedy evolution of our organization and business structure, ensuring we will continue to provide value 20 years into the future.

*1 The targets shown above are based on an assumed exchange rate for the fiscal year ending March 31, 2025, of 140 yen per U.S. dollar; an assumed exchange rate during and after the fiscal year ending March 31, 2026, of 135 yen per U.S. dollar; and an assumed copper price in and after the fiscal year ending March 31, 2025, of 380 cents per pound.
*2 This figure is calculated based on the operating income of the Focus Businesses (Semiconductor Materials segment and ICT Materials segment) and the Base Businesses (Metals & Recycling segment), excluding common costs. The operating income of the Focus Businesses is the simple sum of the operating income of the Semiconductor Materials segment and the ICT Materials segment.
*3 This figure is calculated by dividing net debt (interest-bearing debts − cash and cash equivalents (including ENEOS Holdings group short-term loans)) by EBITDA (operating income + depreciation expense).