Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — FY2023 Earnings Presentation
38 slides from Mitsui Chemicals's earnings presentation, May 15, 2024
Slide 1: Financial Summary: Results for FY2023 & Outlook for FY2024
Financial Summary Results for FY2023 & Outlook for FY2024 Mitsui Chemicals, Inc. ＜Remarks＞ May 15, 2024 FY2023 indicates the period from April 1, 2023 to March 31, 2024. This summary contains forward-looking statements about the future plans, strategies, belief and performance of the Mitsui Chemical
Slide 2: Contents
Contents 1. Results for FY2023 (April 1, 2023 – March 31, 2024) 1) Trends of Key Market Indicators ･･･ 1 2) Major Investment Projects, etc. ･･･ 2 3) Consolidated Financial Highlights ･･･ 3-4 4) Sales Revenue and Operating Income before Special Items by Business Segment ･･･ 5 (compared with correspon
Slide 3: 1. Results for FY2023
1. Results for FY2023 (April 1, 2023 – March 31, 2024) Copyright © 2024 Mitsui Chemicals, Inc.
Slide 4: Trends of Key Market Indicators
1) Trends of Key Market Indicators FY2022 FY2023 FY2023 → FY2024 → FY2023 FY2024 Firm demand; inventory level adjustments Ophthalmic lens materials market seen at some customers Firm demand to continue Life ＆ Healthcare Solutions Firm demand; inventory level adjustments Firm demand to continue Agroc
Slide 5: Major Investment Projects, etc.
2) Major Investment Projects, etc. Major Investment projects Date Capacity FY21 FY22 FY23 FY24 FY25~ Orthopedic surgery sector: Japan MDM Business and Capital Alliance January.'22 - Life & Acquisition of agrochemicals business January.'22 - Healthcare Acquisition of ophthalmic lens processing equipm
Slide 6: Consolidated Financial Highlights
3-1) Consolidated Financial Highlights (Billions of Yen) () Denotes a minus Increase Items FY2022 FY2023 % (Decrease) Sales revenue 1,879.5 1,749.7 (129.8) (7%) Operating income before special 113.9 96.2 (17.7) (16%) items (inc. Equity in earnings) 22.2 13.0 (9.2) (41%) Non-recurring items 15.1 (22.
Slide 7: Consolidated Financial Highlights (Operating Income before Special Items)
3-2) Consolidated Financial Highlights (Operating Income before Special Items) Profit/loss Factors Comments trigger ・Vision care materials decreased in 1H due to movements to adjust inventory levels in some markets. ［-］ ・Automotive applications increased driven by recovery in automotive production.
Slide 8: Sales Revenue and Operating Income before Special Items by Business Segment
4) Sales Revenue and Operating Income before Special Items by Business Segment (compared with corresponding period of FY2022 results) (Billions of Yen) () Denotes a minus Operating income before special Sales revenue Breakdown items Segment Incr. Incr. Terms of FY2022 FY2023 FY2022 FY2023 Volume Cos
Slide 9: Life & Healthcare Solutions: Operating Income and Business Overview
5-1) Life & Healthcare Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales volume in 1H was down due to movements to adjust inventory lev
Slide 10: Mobility Solutions: Operating Income and Business Overview
5-2) Mobility Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales of solar cell encapsulants remained firm [+]Terms of trade Elastomers ・
Slide 11: ICT Solutions: Operating Income and Business Overview
5-3) ICT Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Overall sales volume was down due to slow recovery in semiconductor and smartphone
Slide 12: Basic & Green Materials: Operating Income and Business Overview
5-4) Basic & Green Materials: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales volume was down due to weaker demand [-]Sales volume ・Terms of tra
Slide 13: Non-recurring Items
6) Non-recurring Items (Billions of Yen) () Denotes a minus Incr. Items FY2022 FY2023 (Decr.) Loss (gain) on sales and disposal of non-current assets (2.0) (1.2) 0.8 Impairment loss (7.5) (24.2) (16.7) Others 24.6 3.3 (21.3) Non-recurring items total 15.1 (22.1) (37.2) 1. Results for FY2023 10 Copyr
Slide 14: Consolidated Statement of Financial Position
7) Consolidated Statement of Financial Position (Billions of Yen) () Denotes a minus End of End of Incr. End of End of Incr. Items Items Mar. 2023 Mar.2024 (Decr.) Mar. 2023 Mar.2024 (Decr.) Current assets 1,094.3 1,150.6 56.3 Liabilities 1,184.9 1,231.0 46.1 Cash and cash equivalents 186.3 210.3 24
Slide 15: Consolidated Statement of Cash Flow
8) Consolidated Statement of Cash Flow (Billions of Yen) () Denotes a minus Incr. Items FY2022 FY2023 (Decr.) Ⅰ．Cash flows from operating activities (a) 101.2 161.3 60.1 ( of which Working capital ) (58.3) (9.6) 48.7 Ⅱ．Cash flows from investing activities (b) (106.3) (123.9) (17.6) Free cash flows (
Slide 16: 2. Outlook for FY2024
2. Outlook for FY2024 (April 1, 2024 – March 31, 2025) In accordance with the organizational reform implemented on April 1, 2024, we have revised the segments to which Honshu Chemical Industry Co., Ltd. and certain other consolidated subsidiaries and equity method affiliates in ICT Solutions and Bas
Slide 17: Highlights of Consolidated Financial Outlook
1-1) Highlights of Consolidated Financial Outlook (Billions of Yen) () Denotes a minus FY2024 FY2023 Incr.(Decr.) Outlook Items 1st Half Full Year 1st Half Full Year Full Year ％ Sales revenue 823.7 1,749.7 890.0 1,850.0 100.3 6% Operating income before special items 42.0 96.2 52.0 125.0 28.8 30% Non
Slide 18: Highlights of Consolidated Financial Outlook (Operating Income before Special Items)
1-2) Highlights of Consolidated Financial Outlook (Operating Income before Special Items) Profit/loss Factors Comments trigger ・Vision care materials expected to increase, due to elimination of negative impact from inventory level adjustments in ［+］ some markets in FY23. ［+］ Volume ・Sales for agroch
Slide 19: Sales Revenue and Operating Income Outlook by Business Segment
2) Sales Revenue and Operating Income before Special Items of Outlook by Business Segment (compared with FY2023) (Billions of Yen) () Denotes a minus Sales revenue Operating income before special items Breakdown Segment FY2024 FY2024 Terms of FY2023 Incr.(Decr.) FY2023 Incr.(Decr.) Volume Costs Outl
Slide 20: Life & Healthcare Solutions: Outlook and Business Overview
3-1) Life & Healthcare Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY24 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales volume expected to increase due to elimination of n
Slide 21: Mobility Solutions: Outlook and Business Overview
3-2) Mobility Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY24 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales volume increase driven by firm demand for solar cell encapsu
Slide 22: ICT Solutions: Outlook and Business Overview
3-3) ICT Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY24 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Overall sales volume expected to increase due to demand recovery in Sem
Slide 23: Basic & Green Materials: Outlook and Business Overview
3-4) Basic & Green Materials: Operating Income before Special Items and Business Overview Comments Business Overview of FY24 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Improvement in terms of trade driven by sales price revision
Slide 24: Operating Income by Business Segment (2H vs. 1H of FY2024 Outlook)
4) Operating Income before Special Items by Business Segment (2H vs. 1H of FY2024 Outlook) (Billions of Yen) () Denotes a minus Operating income before special items FY2024 Comments Segment 1H 2H Incr. [+] denotes profit trigger Outlook Outlook (Decr.) [-] denotes loss trigger Life & Healthcare 16.0
Slide 25: Allocation of Resources
5）Allocation of Resources Investments R&D expenses (Billions of Yen) (Billions of Yen) 206.7 205.0 50 44.7 47.0 200 45 43.0 38.1 156.7 40 150 140.3 35 30 25 100 20 15 50 10 5 0 0 FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 Outlook Outlook 2. Outlook for FY2024 21 Copyright © 2024 Mitsui
Slide 26: Shareholder Returns: FY24 Dividend Outlook
6) Shareholder returns ●FY24 Dividend Outlook *Dividends recalculated based on share consolidation ■ Dividends (interim) Dividend increase: Year- Full ■ Dividends (year-end) ■ Memorial 110.0 +10 Yen/Share Interim end Year ー Net income(billion yen) 82.9 75 + 75 = 150 71.6 76.1 73.0 64.8 57.9 50.0 37.
Slide 27: Consolidated Statement of Cash Flow
7) Consolidated Statement of Cash Flow (Billions of Yen) FY2024 FY2023 Outlook Incr.(Decr.) Items (b)-(a) 1st Half Full Year(a) 1st Half Full Year(b) Ⅰ．Cash flows from operating activities (a) 85.8 161.3 56.0 180.0 18.7 Ⅱ．Cash flows from investing activities (b) (35.5) (123.9) (70.0) (205.0) (81.1)
Slide 28: Performance Trends by Business Segment
8) Performance Trends by Business Segment 161.8 180 125.0 Basic & Green 113.9 4.0 Materials (Billions of Yen) 77.8 96.2 130 ICT 17.8 30.0 Solutions 85.1 23.6 72.3 23.8 19.9 Mobility 80 9.0 30.2 60.0 Solutions 17.4 49.3 57.7 25.3 33.2 30 35.6 17.8 Life & 29.2 30.0 36.0 Healthcare 14.8 23.1 24.9 Solut
Slide 29: 3. Appendix
3. Appendix 1) Trends in Product Prices 2) Sales Revenue Increase/Decrease (Year on Year) by Business Segment 3) Sales Revenue and Operating Income before Special Items by Business Segment 4) Outline of Business Segments 5) Data Highlights Copyright © 2024 Mitsui Chemicals, Inc.
Slide 30: Trends in Product Prices
1) Trends in Product Prices (Naphtha prices are Domestic Standard Naphtha Price ) (PE, PP, PH, BPA(Japan) : Change in Prices and Raw Materials Prices in Japan / BPA(China), PTA, TDI : Chinese Market Price) (ACP) : Asian contract price Year 2021 2022 2023 2024 Month Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.
Slide 31: Sales Revenue Increase/Decrease by Business Segment
2) Sales Revenue Increase/Decrease (Year on Year) by Business Segment (Billions of Yen) () Denotes a minus Sales revenue Breakdown Segment Comments FY2022 FY2023 Incr.(Decr.) Volume Prices Life & Healthcare Volume）Sales of nonwovens and agrochemicals increased. 258.2 271.7 13.5 4.8 8.7 Solutions Pri
Slide 32: Sales Revenue and Operating Income by Business Segment
3) Sales Revenue and Operating Income before Special Items by Business Segment (Billions of Yen) () Denotes a minus Sales revenue Sales revenue* Segment FY2022 FY2023 FY2023 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Life & Healthcare Solutions 58
Slide 33: Outline of Business Segments
4) Outline of Business Segments Segment Businesses Main Products Vision Care Materials, Ophthalmic lens materials (MR™, Do Green™), Personal Care Materials, Medical materials (taurine), Life & Healthcare Nonwovens, Oral Care, Nonwovens (hygiene materials, industrial materials), Solutions Agrochemica
Slide 34: Data Highlights: Net Sales, Cash Flows
5-1) Data Highlights ～FY19：J-GAAP / FY20～：IFRS () Denotes a minus （Billions of Yen） Total Assets （Billions of Yen） 2,500 Net Sales/Sales Revenue 2,400 2,215.8 2,200 2,068.2 1,879.5 1,850.0 1,935.0 2,000 1,749.7 2,000 1,612.7 1,482.9 1,328.5 1,339.0 1,800 1,500 *1 1,211.7 1,558.1 1,600 1,501.1 1,480.
Slide 35: Data Highlights: Capex, D&A, R&D, Net D/E Ratio
5-2) Data Highlights ～FY19：J-GAAP / FY20～：IFRS （Billions of Yen） 250.0 Capital Expenditure （Billions of Yen） Depreciation & Amortization 207.1 185.7 175.0 150.0 200.0 168.0 *3 102.0 150.0 *2 92.1 95.2 *1 100.0 76.6 84.2 81.2 93.2 100.0 76.3 61.9 45.7 49.5 52.1 50.0 50.0 0.0 0.0 '17 '18 '19 '20 '21 '
Slide 36: Data Highlights: Blue Value and Rose Value Products
5-3) Data Highlights Sales revenue and sales revenue ratios of Blue Value™ products Sales revenue and sales revenue ratios of Rose Value™ products Environmental contributions - Blue Value™ 0 QOL improvements - Rose Value™ 12,00 0 40% 12,00 0 Blue Value™ products sales revenue ratio: % Rose Value™ pr
Slide 37: Data Highlights: Blue Value and Rose Value by Segment
5-4) Data Highlights Sales revenue and sales revenue ratios of Blue Value™ and Rose Value™ products in each business segment 3. Appendix 32 Copyright © 2024 Mitsui Chemicals, Inc.
Slide 38: Chemistry for Sustainable World
Chemistry for Sustainable World Challenge Diversity One Team Copyright © 2024 Mitsui Chemicals, Inc.