2012 3-Year Business Plan - SMM

1 2012 3-Year Business PlanFebruary 20135713 SUMITOMO METAL MINING CO., to be a World Leader in the Non-Ferrous Metal industry and an Excellent company of JapanNobumasa KemoriPresident and Representative DirectorSUMITOMO METAL MINING CO., METAL MINING CO., Vision (LTV) & Basic Strategy of 12 3-Yr Business PlanOur Business EnvironmentCore Business Growth StrategyPlatform ReinforcementFinancial Information andSupplementary MaterialsContentsIIIIIIIVVI. Long-Term Vision (LTV) & Basic Strategy of 12 3-Yr Business PlanSUMITOMO METAL MINING CO.

2 , Gorda ProjectSUMITOMO METAL MINING CO., GoalsWorld Leader in the Non-Ferrous Metals industryExcellent company of Japan1) Our GoalsLTV & Basic Strategyof 12 3-Yr Business Plan2) Long-Term Vision TargetsSUMITOMO METAL MINING CO., 2021 World Leader in the Non-Ferrous Metals IndustryExcellent company of Japan150kt300kt30 t 1 trillion 100 billionAiming to be a World Leader in theNon-Ferrous Metals Industry&an Excellent company of JapanRecurring profit 5 billionCopper interestsNickelGoldNet SalesNet Income NewmaterialsILTV & Basic Strategyof 12 3-Yr Business Plan3) Long-Term Vision TargetsWorld Leader in the Non-Ferrous MetalsSUMITOMO METAL MINING CO.

3 , Leader in the Non-Ferrous Metals IndustryWe are contributing to society by securing superior mineral resources, smelting and refining those resources into metal, and supplying them to the market. To provide added value in Materials Business that uses non-ferrous metals. Develop globally by being highly competitive Smelting technologies ofless environmental impact Expanded recycling of valuable metals Growth in the Environment & Energy domain Development of new materials Continuous structural reformSmelting & RefiningMaterials Expand our resource interests Pursue our own profit in mining Business Stable procurement of raw materials forSmelting & Refining BusinessAmong the top 5 companies in the world in production volumeOperates its own mines and smeltersboth in Japan and

4 AbroadIMineral ResourcesLTV & Basic Strategyof 12 3-Yr Business Plan4) Long-Term Vision TargetsExcellent company of JapanSUMITOMO METAL MINING CO., company of JapanNet sales: 1 trillionNet income: 100 billionA solid corporate philosophy and management visionLays out continuous growth strategyPracticing corporate governance and CSR activities as a pillar of our businessILTV & Basic Strategyof 12 3-Yr Business Plan5) Strengths Supporting StrategySUMITOMO METAL MINING CO., of Exploration and project development cultivated over a long history in the worldOutstanding pyrometallurgical and hydrometallurgical technologiesUsing strengths of upstream fieldsin the Environment & Energy domainMineral ResourcesSmelting & RefiningMaterialsStrategies that build on strengthsIGrowing Business and improving corporate value through the execution of a continuous growth strategyTechnology and R&D expertiseCapacity to expand Business globallySound financial positionLTV & Basic Strategyof 12

5 3-Yr Business Plan6) Positioning of the 12 3-Yr Business PlanSUMITOMO METAL MINING CO., VisionFY2013-201512 3-Yr Business PlanFY2010-201209 3-Yr Business PlanFY2004-200903 & 06 3-Yr Business PlansExecute a continuous growth strategyBecome a World Leader in theNon-Ferrous Metals Industry & an Excellent company of JapanStrengthenglobal competitivenessStrengthenPlatform for global competitionLTV & Basic Strategyof 12 3-Yr Business Plan7) Key Strategies of the 12 3-Yr Business PlanSUMITOMO METAL MINING CO., priorities in the 12 3-Yr Business PlanPlanting plans for the period covered in the 12 3-Yr Business PlanStrategies for achieving our Long-Term VisionSowing plans for the period covered in the 15 3-Yr Business plan Promote and establish operations in the Sierra Gorda Project Complete the Taganito Project and ensure a smooth launch of operations Implement structural reforms in the Materials Business and stable acquisition of own profit Reduce costs by 10 billion/ year Existing copper mine expansion project

6 Sierra Gorda Phase 2, Oxide Ore Project HPAL development, efforts to improve competitiveness Recycling of valuable metals 3rd and 4th HPAL, 2nd Ni Refinery New Ni resources exploration Own Cu/Au exploration Copper mine development projects in North and South America Au (Stone Boy, etc.) projectsI(Cut costs company -wide to compensatefor increases in the costs of overseas locations and head office expenses)LTV & Basic Strategyof 12 3-Yr Business Plan8) Systems Supporting StrategiesSUMITOMO METAL MINING CO., and determine potential projectsDetermination of project implementing structure -project completionRamp up achieve the designed capacityFull-Scale productionSowingPlantingNurturingHarvest ingConfirm progress at Enterprise Value Enhancement Committee MeetingEvery period of 3-Year plan includes large-scale projects in our three core businesses: Mineral Resources, Smelting & Refining, and developments are being made in each stage.

7 Sowing, Planting, Nurturing, and HarvestingILTV & Basic Strategyof 12 3-Yr Business Plan1,199 1,129 1,092 1,500 05001,0001,50003 3-YearAverage06 3-YearAverage09 3-YearAverage12 3-Year20159) Profit Trends (1)SUMITOMO METAL MINING CO., JPY100M 03 3-YearPlan06 3-YearPlan09 3-YearPlan12 3-YearPlan2015 Total of Recurring profit in each 3-Year plan Result and 2012 Forecast 3,597 3,386 3,276-Yearly averageof each 3-Year plan1,199 1,1291,0921,500 Trends of Recurring profit in each 3-Year plan JPY100M LTV & Basic Strategyof 12 3-Yr Business Plan9) Profit Trends (2)SUMITOMO METAL MINING CO.

8 , ,0001,2501,5001,75009 3-Yr Plan2012201020112012 Forecast12 3-Yr Plan2015 Recurring ProfitNet Profit09 3-Yr plan 2012201020112012 Forecast12 3-Yr plan 2015 Recurring profit ( 100 million)1,1001,2381,0889501,500 Net income ( 100 million)7008416537301,000Cu price ($/T) 6,0008,1408,4857,8737,500Ni price ($/lb) price ($/toz) 1,0001,2941,6461,6581,550 Forex ( /$) ( 100 million)LTV & Basic Strategyof 12 3-Yr Business Plan950 1,500 4008070100100(50)(50)(30)(70)02505007501 ,0001,2501,5001,7502,00010) Recurring Profit Analysis 12 3-Yr plan 2015 vs.

9 FY12 ForecastSUMITOMO METAL MINING CO., ( 100 million)Strategy effectsMaterials Business (excluding cost cuts)VNCCost reductionForexNi priceCupriceOthersAuprice Sierra Gorda:+ 60 Morenci:+ 100 Taganito / Increased production of E-Ni: + 230 LTV & Basic Strategyof 12 3-Yr Business Plan2012 Forecast12 3-Year201511) Profit Trends by SegmentSUMITOMO METAL MINING CO., ,0001,2501,5001,750201020112012 Forecast12 3-Yr Plan2015( 100 million)AdjustmentOtherMaterialsSmelting &RefiningMineralResources201020112012 Forecast12 3-Yr plan 2015 Segment profitMineral Resources705805640760 Smelting & Refining 495256230640 Materials54-330120 Other23342040 Adjustment-39-530-60 Recurring profit1,2381,0889501,500(Unit: 100 million)LTV & Basic Strategyof 12 3-Yr Business plan FY2010 FY2012 : Contribution Margin (Earlier Bases) 12 3 Yr 2015.

10 New Segment Profit12) Investments in Large ProjectsSUMITOMO METAL MINING CO., 70 390 370 300 60 Overseas interest 100 millionPogo200 Goro180 NAC60 Total440 Overseas interest 100 millionSierra Gorda410 Goro40 NAC15 Total465480 360 110 350 260 140 Mineral Resources 170 billion 193 billion 138 billion Smelting & Refining(Taganito)Smelting & Refining(CBNC)Smelting & Refining (Japan, etc.)MaterialsOtherAcquisition of overseas interestISmelting & Refining06 3-Yr Plan09 3-Yr Plan12 3-Yr PlanSmelting & RefiningSmelting & RefiningMineral ResourcesSmelting & Refining(Taganito)Smelting & Refining(CBNC)Smelting & Refining (Japan, etc.