Beginning in fiscal 2020, the medium-term management plan is positioned as a three-year period for sowing seeds in anticipation of transforming into a technology-based company as set forth in the JX Nippon Mining & Metals Group Long-Term Vision 2040 formulated in May 2019. We are accelerating our efforts in new growth areas. We are promoting initiatives, human resource development, and the creation of an organizational culture suited to the characteristics of each business. We are implementing corporate management that further enhances autonomy, agility, and independence.
By pivoting from being an equipment industry company to a technology-based company, we will realize a highly profitable structure even in the face of intensifying international competition and contribute to the realization of a sustainable society as targeted by the SDGs
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Copper and other nonferrous metals are indispensable for the wider adoption of renewable energy and electric vehicles (EVs). Demand is growing as the world works toward achieving decarbonized circular economies. The JX Nippon Mining & Metals Group engages in a number of measures in response to this trend.
Although production volume declined in the Mineral Resources Business due to a strike at the Caserones Copper Mine, profit increased, mainly due to higher copper prices. The Metals & Recycling Business posted higher profit due to rising prices for precious metals and an improvement in the international market for sulfuric acid, even as conditions deteriorated with respect to purchasing raw copper concentrates.
Sales volume for each product in the Functional Materials and Thin Film Materials Businesses generally exceeded previous fiscal year due to strong demand in the high-functional IT field.
The JX Nippon Mining & Metals Group operating profit for the period under review increased 102.6% from the previous year to 158.2 billion yen, mainly due to higher metal prices and increased sales of electronic materials.
Revenue
Operating Profit
*Including inventory effects
Profit Before Tax
Net Income Attributable to Owners of Parent
Total Assets and Total Liabilities
With significant changes in social trends, the Group formulated a Long-Term Vision out of a sense of crisis about continuing with our conventional business model. We are now aiming at transforming ourselves into a technology-based company. Fiscal 2021 saw changes in the industry structure due to the impact of the spread of COVID-19, growing momentum toward the SDGs and ESG management, and accelerated movement toward social demands for carbon neutrality. In response, the JX Nippon Mining & Metals Group reaffirmed our recognition in August 2022 that Copper is an essential material for achieving carbon neutrality. We developed the Sustainable Copper Vision as a policy for the supply and ongoing evolution of sustainable copper. Given that the environment surrounding the Group will continue to change throughout fiscal 2022 and beyond, by clearly understanding these social changes, we aim to fundamentally change our organizational culture.
Creating the Long-Term Vision
| Expanding Needs for Advanced Materials | In addition to IT and mobility, digital data is being used in a variety of industries, including healthcare, energy, and construction. The need for advanced materials used in these fields will further expand |
| Shrinking Domestic Market/Focus on Emerging Economies for Sustainable Growth are Issues | The domestic market is shrinking due to the declining birthrate, aging population, and the industry hollowing out. The focus of economic growth is shifting to emerging economies in Asia and other regions, but the challenge is to deal with the environmental problems that are beginning to emerge even in emerging economies |
| Increasing Scarcity and Depletion of Resources due to the Expansion of the Middle Class | As the middle class increases, the amount of resources consumed also increases. Acquiring good quality and inexpensive resources will be subject to competition. Resource shortages and depletion, as well as uneven regional distribution, will become more serious |
At Present
| Expanding Demand for Advanced Materials |
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| Global Acceleration in Addressing Climate Change |
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| Deepening Mineral Resource Shortages/Depletion |
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When we formulated the current medium-term management plan, we set the operating income target at 170 billion yen for the three-year cumulative period. However, against the backdrop of the aforementioned business environment, we expect to increase profits in both Base and Focus Businesses. We increased our Base Business target by 192.0 billion yen over our original medium-term management plan, despite the impact of COVID-19. This revision mainly reflects higher prices for copper, precious metals, and sulfuric acid. In the Focus Business, we have raised our target 43.0 billion yen over the original 100.0 billion yen target in our plan. This revision reflects increasing sales stemming from strong demand growth. Based on this outlook, we will continue to make company-wide efforts to establish earnings and a financial base. In addition, we will promote the use of ESG-related indicators as important management indicators.
Operating Profit
| Results for Fiscal 2020 | Results for Fiscal 2021 | Outlook for Fiscal 2022 | 2020-2022 Three-Year Cumulative Total | ||
|---|---|---|---|---|---|
| Base Businesses | Mineral Resources Business | 34.9 | 72.1 | 80.0 | 287.3 |
| Metals & Recycling Business | 27.3 | 41.0 | 32.0 | ||
| Focus Businesses | Functional Materials Business, Thin Film Materials Business, Other | 31.1 | 54.5 | 57.0 | 142.6 |
| Common Business Expenses | (15.2) | (9.4) | (39.0) | (63.6) | |
| Total | 78.1 | 158.2 | 130.0 | 366.3 | |
*The outlook for Fiscal 2022 and the three-year cumulative outlook are current as of May 2022.
In the medium-term plan for fiscal 2020 - 2022, we will invest 300 billion yen over the three years in the development of advanced materials. Of this amount, 160 billion yen will be allocated to strategic investments for future growth, including capacity expansion, development of new materials, and exploration of minor metal mining interests. In addition, we will redefine our ESG investment quota of 20 billion yen to stimulate ESG activities, such as decarbonization and resource recycling.
Cumulative Total of Investment Plan for Three years: 300 billion yen
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| Focus Businesses |
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| Technology Development |
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| ESG Management |
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| Organization and Human Resources |
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