Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (May 2025)
37 slides from Mitsui Chemicals's investor presentation, May 30, 2025
Slide 1: FY25-1 CEO Presentation
FY25-1 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals, Inc. President & CEO May 30, 2025
Slide 2: Message
Message Mitsui Chemicals has seen steady profit growth in its specialty chemicals domains following the 2021 launch of its VISION 2030 Long-Term Business Plan. However, this growth has been slower than anticipated, and our Basic & Green Materials (B&GM) sector has been hit hard by a structural suppl
Slide 3: Contents
May 30, 2025 Contents Business Performance FY24 results and full-year outlook for FY25 VISION 2030 Basic policies toward 2030 Pursuing business portfolio transformation
Slide 4: FY24 Results and Full-Year Outlook for FY25
4 FY24 Results and Full-Year Outlook for FY25 May 30, 2025 Sales revenue and operating income before special items rose year-on-year for FY24, showing steady growth in the specialty chemicals domains* despite an ethylene plant issue. For FY25, even after factoring in the impact of U.S. trade policie
Slide 5: Financial Targets: Numerical Trends
5 Financial Targets: Numerical Trends May 30, 2025 While the specialty chemicals domains are driving Group-wide earnings, bottom-line volatility indicates capital efficiency issues, requiring urgent capital efficiency improvement through accelerating business portfolio transformation Operating incom
Slide 6: Cash Flow Trends: Improving Earning Power
6 Cash Flow Trends: Improving Earning Power May 30, 2025 Improving our earning power through profit growth and an asset-light approach, in turn generating cash to make proactive growth investments and bolster shareholder returns ＋Asset-light approach 200 （CCC Improvement, etc.) 2,000 200 Average (JP
Slide 7: Leveraging Treasury Stock for Human Capital Policy and Corporate Value Enhancement
7 Leveraging Treasury Stock for Human Capital Policy and Corporate Value Enhancement May 30, 2025 As a result of flexible acquisition of treasury stock (equating to 55 billion yen since FY17), Mitsui Chemicals ground Back- now holds approx. 7% of its shares as treasury stock. The company has previou
Slide 8: Shareholder Returns
8 Shareholder Returns May 30, 2025 Provide stable and continuous shareholder returns 160 Dividend increase 150 +10yen/share ■ Dividends (interim) ● FY25 dividend outlook ■ Dividends (year-end) 110 Dividend increase 140 ■ Memorial +20yen/share ー Net income (billion yen) 83 100 120 72 76 Interim Year-
Slide 9: Progress on Corporate Governance Reform
9 Progress on Corporate Governance Reform May 30, 2025 FY09~18 FY19 FY20 FY21 FY22 FY23 FY24 FY25~ Number of FY09: 15 → FY16: 8 8 directors Number of outside directors 2～3 (FY11~15: 2) 3 (37.5% outside directors, 12.5% women) Number of outside audit and supervisory board 3 members Executive Compensa
Slide 10: Rolling Out a Social Issue Perspective in All of Our Businesses
Pursuing Business Portfolio Transformation 10 Rolling Out a Social Issue Perspective in All of Our Businesses May 30, 2025 Sales revenue for Blue Value and Rose Value Gross profit also increasing certified products increasing in the specialty steadily alongside sales chemicals domains 40% revenue 40
Slide 11: Contents
May 30, 2025 Contents Business Performance FY24 results and full-year outlook for FY25 VISION 2030 Basic policies toward 2030 Pursuing business portfolio transformation
Slide 12: FY25 Basic Policies for Achieving VISION 2030
12 FY25 Basic Policies for Achieving VISION 2030 May 30, 2025 Environment The global business landscape is changing rapidly, driven by rising geopolitical tensions, recession risks, and growing economic fragmentation amid U.S. trade policy shifts Business The business environment surrounding petroch
Slide 13: Approach to Pursuing Business Portfolio Transformation
13 Approach to Pursuing Business Portfolio Transformation May 30, 2025 VISION 2030 Current phase onward ～2030 Active investment Organic growth New businesses + M&A Specialty chemicals L&HC & returns Ophthalmic lens materials Around existing areas Ophthalmic lens & coating materials of focus domains
Slide 14: Specialty Chemicals Domains Pulling the Entire Group Forward
Progress Toward Business Portfolio Transformation 14 Specialty Chemicals Domains Pulling the Entire Group Forward May 30, 2025 (Operating income before special items / JPY bn) Specialty chemicals B&GM Total domains 13% 2,800 280 12% 252 250 11% 10% 2,300 230 ROIC 200 73 ICT ROIC ROIC 200 9% 8% 1,800
Slide 15: Becoming a Global Specialty Company
Business Portfolio Transformation: 15 Becoming a Global Specialty Company May 30, 2025 Expanding & growing our specialty chemicals domains and restructuring B&GM to move to a business structure centered around specialty chemicals domains FY09 FY24 FY30 Post-GFC Present Ideal vision (Pre-transformati
Slide 16: Strategy Summary and Targets
16 Strategy Summary and Targets May 30, 2025 Speeding up the strategies revised last fiscal year as we work to achieve VISION 2030 Operating income before Key strategies special items (JPY bn ) ROIC Specialty chemicals Focus on differentiated sectors where we can make the most FY19 FY24 FY30 FY19 FY
Slide 17: Restructuring and Bolstering Downstream Businesses
17 Improving Capital Efficiency by Promoting the Second Phase of Restructuring and Bolstering Downstream Businesses May 30, 2025 FY13～17 FY18～22 FY23～ Ideal state Securing stable earnings Reducing volatility Improving capital efficiency via restructuring 2023: AC-based IPA capacity boost AC-based IP
Slide 18: Pushing for Further Portfolio Transformation
18 Pushing for Further Portfolio Transformation May 30, 2025 Making the B&GM business self-sustaining Substantial progress made with internally driven restructuring Cumulative cash flow Second phase of restructuring (FY25～） plan from FY25 to FY30 Closure of Ichihara plant brought forward to end of O
Slide 19: Ideal Vision for the B&GM Business
19 Ideal Vision for the B&GM Business May 30, 2025 Aiming to build a globally competitive, Japan-leading business entity through transformation and collaborations with other companies Aims of the split Ideal vision Create in the petrochemical sector a Japan-leading green chemical business entity wit
Slide 20: Forming a Basic & Green Materials Company to Lead Japan in the Shift to a Green Society
20 Forming a Basic & Green Materials Company to Lead Japan in the Shift to a Green Society and More May 30, 2025 Helping achieve carbon neutrality throughout the entire supply chain and contributing to a more stable, more advanced domestic industry Raw material & fuel suppliers Energy companies, etc
Slide 21: Portfolio Transformation in Specialty Chemicals Domains
21 Portfolio Transformation in Specialty Chemicals Domains May 30, 2025 Blue type: overseas sites FY19 ~ FY25: Key Initiatives Asset-light approach L&HC FY22: Sale of hygiene nonwovens site in China Invested capital down Mobility FY25: Transfer of shares in Mitsui Chemicals Industrial Products by ap
Slide 22: Capital Efficiency Trends in Specialty Chemicals Domains
22 Capital Efficiency Trends in Specialty Chemicals Domains May 30, 2025 All specialty Ensuring we get returns from our past investments chemicals domains and going asset-light by restructuring low-profitability businesses 20 20 （％） Vertical: ROIC Invested capital x1.4 Bubble size: 15 15 Horizontal:
Slide 23: Global Strategy in Specialty Chemicals Domains
23 Global Strategy in Specialty Chemicals Domains May 30, 2025 Looking to supplement our organic growth in existing markets by actively investing resources in new markets and growth markets based on each region’s social environment and market needs FY09 (Post-GFC) FY24 (Present) FY30 (Ideal vision)
Slide 24: Classifying Businesses in Specialty Chemicals Domains
24 Classifying Businesses in Specialty Chemicals Domains Based on Operating Income before Special Items, ROIC and EVA May 30, 2025 Further growing key businesses and promptly moving to restructure underperforming businesses Business classification based on ROIC and operating income before special it
Slide 25: Strategies for Growing Key Businesses
25 Classifying Businesses in Specialty Chemicals Domains: Strategies for Growing Key Businesses May 30, 2025 Prioritizing resources to grow and cultivate businesses driving profit growth Key Businesses Pursue steady growth for vision care & agrochemical products Vision care: Provide value throughout
Slide 26: Medical Solutions: Acquisition of DNA Chip Research as a Wholly-Owned Subsidiary
Medical Solutions: 26 Acquisition of DNA Chip Research as a Wholly-Owned Subsidiary May 30, 2025 Acquiring business foundations in the genetic testing sector to speed up growth in the testing and diagnosis business Overall testing & Genetic testing sector: Growing rapidly amid a rise in infectious d
Slide 27: Composite Materials: Business Expansion for PP Compounds
Composite Materials: 27 Business Expansion for PP Compounds May 30, 2025 Continuing to focus on products that combine growth markets and differentiation as we aim to grow faster than the market Increasing quantity New focus on improving quality Toward further business growth Despite establishing a F
Slide 28: Semiconductor & Assembly: Impact of Investment in SHINKO ELECTRIC INDUSTRIES
Semiconductor & Assembly: 28 Impact of Investment in SHINKO ELECTRIC INDUSTRIES May 30, 2025 Leveraging highly accurate materials design to get ahead of the competition in commercializing next-gen semiconductor packaging materials Market environment Projected shipments of next-gen semiconductor pack
Slide 29: Semiconductor & Assembly: Synergies With Honshu Chemical Industry
Semiconductor & Assembly: 29 Synergies With Honshu Chemical Industry May 30, 2025 Speeding up business growth in the ICT sector through portfolio transformation Basic businesses: Improved competitiveness Meta / para- MCI’s raw Phenol Trend in Strengthening production technologies through cresol mate
Slide 30: Businesses, Subsidiaries and Affiliates for Restructuring
30 Classifying Businesses in Specialty Chemicals Domains: Businesses, Subsidiaries and Affiliates for Restructuring May 30, 2025 Pursuing rapid restructuring of underperforming businesses, subsidiaries and affiliates, with milestone management to assess progress Business classification based on ROIC
Slide 31: Improving Capital Efficiency by Pursuing Business Restructuring
31 Improving Capital Efficiency by Pursuing Business Restructuring May 30, 2025 Ascertaining the future prospects of businesses targeted for restructuring to improve profitability & ROIC in the specialty chemicals domains, including through portfolio reorganization ~FY24 Decision FY30 Milestone mana
Slide 32: Aiming to Increase Corporate Value
32 Aiming to Increase Corporate Value May 30, 2025 Planning to improve our P/B ratio & achieve our 13% ROE target – above cost of equity – via business portfolio transformation, going asset-light, bolstering shareholder returns, etc. ✓ Accelerating profit growth in specialty Accelerating chemicals d
Slide 33: Summary of Targets-1
33 Reference Summary of Targets-1 May 30, 2025 FY22 FY23 FY24 FY25 FY28 FY30 Results Results Results Outlook Target Target Operating income before special items 114 96 101 110 200 250 (B yen) Net income attributable to 150 or 83 50 32 55 110 owners of the more parent (B yen) 10% or 13% or ROE 11.1%
Slide 34: Summary of Targets-2
34 Reference Summary of Targets-2 May 30, 2025 Contributing to a sustainable society Material topics KPIs FY24 Results FY25 Target FY30 Target • Climate change • Circular economy Blue Value products sales revenue ratio • 26% • 28% • 40% • Health and livelihood Rose Value products sales revenue ratio
Slide 35: Summary of Targets-3
35 Reference Summary of Targets-3 May 30, 2025 Abilities essential to business continuity Material topics KPIs FY24 Results FY25 Target FY30 Target • Corporate Improvement of employee engagement culture Engagement score • 36% • 40％ ・50％ Key talent management Successor coverage rate for critical posi
Slide 36: A global solutions company that leads change and contributes to a sustainable future
A global solutions company that leads change and contributes to a sustainable future
Slide 37: Chemistry for Sustainable World
Chemistry for Sustainable World Challenge Diversity One Team Statements made in this document with respect to Mitsui Chemicals' current plans, estimates, strategies, and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Mitsui C