Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (May 2024)
35 slides from Mitsui Chemicals's investor presentation, May 29, 2024
Slide 1: FY24-1 CEO Presentation
FY24-1 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals, Inc. President & CEO May 29, 2024
Slide 2: Message
Message Three years have now passed since the 2021 launch of Mitsui Chemicals’ VISION 2030 Long- Term Business Plan, based on which we embarked on a process of business portfolio transformation and efforts to implement a range of reforms. Regrettably, however, one would have to say that progress tow
Slide 3: Contents
May 29, 2024 Contents ▶ Business Performance FY23 results and full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 4: FY23 results and full-year outlook for FY24
4 FY23 results and full-year outlook for FY24 May 29, 2024 While profit fell in FY23 due to the harsh business environment, growth domains maintained steady profit growth. Profit is forecast to increase across the Group in FY24, but we still face challenges in achieving our FY25 checkpoint target of
Slide 5: Shareholder returns
5 Shareholder returns May 29, 2024 Provide stable and continuous shareholder returns 160 Dividend increase 150 +10yen/share ■ Dividends (interim) 110 ● FY24 dividend outlook ■ Dividends (year-end) Dividend increase 140 ■ Memorial +20yen/share ー Net income (billion yen) 100 83 120 72 76 73 65 58 50 I
Slide 6: Contents
May 29, 2024 Contents ▶ Business Performance FY23 results and full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 7: Basic Policies for FY24 Toward Achieving Our VISION 2030 Goals
7 Basic Policies for FY24 Toward Achieving Our VISION 2030 Goals May 29, 2024 ◆ We will revise the strategy, figures and timing for meeting the target of reaching 200 billion yen in operating income before special items, which is a checkpoint for achieving our 2030 goals (details of revisions to the
Slide 8: Working to Achieve Our VISION 2030 Goals
8 Working to Achieve Our VISION 2030 Goals May 29, 2024 Returning to a growth path without delay by accelerating growth in growth domains and achieving further progress with B&GM restructuring 250.0 (JPY bn) 2022 *Figures for FY18 and earlier are for previous segments 85% B&GM 50.0 2016 ICT 70.0 65%
Slide 9: Progress of VISION 2030 and Key Priorities
9 Progress of VISION 2030 and Key Priorities May 29, 2024 Making necessary revisions to VISION 2030 based on key priorities identified for each domain Progress of VISION 2030 Key priorities Despite steady growth, the pace of growth is slowing, due to Growth domains falling semiconductor demand and t
Slide 10: Approach to Pursuing Business Portfolio Transformation
10 Approach to Pursuing Business Portfolio Transformation May 29, 2024 Becoming a truly global specialty company by advancing strategies and pursuing multi-company collaborations in the growth domains as well as B&GM Becoming a VISION 2030 global specialty company Current phase onward by 2030 Active
Slide 11: Contents
May 29, 2024 Contents ▶ Business Performance FY23 results and full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 12: VISION 2030 Basic Strategy
12 VISION 2030 Basic Strategy May 29, 2024 STRATEGY ▶ Rolling out a social issue perspective in all of our businesses 01 Pursuing business portfolio transformation ▶ Achieving growth by expanding and fleshing out our business domains ▶ Accelerating structural reform of our existing businesses and tr
Slide 13: Rolling Out a Social Issue Perspective in All of Our Businesses
Pursuing Business Portfolio Transformation 13 Rolling Out a Social Issue Perspective in All of Our Businesses May 29, 2024 10,000 45% Gross profit ratios trend higher Both sales revenue from Blue Value™ and 40% than for Group products overall 9,000 Rose Value™ products and their ratios to 40% total
Slide 14: Life & Healthcare Solutions
Pursuing Business Portfolio Transformation 14 Life & Healthcare Solutions May 29, 2024 Providing solutions that contribute to life, health and comfortable lifestyles as our first pillar of earnings Current state of businesses toward achieving VISION 2030 goals Underlining (JPY bn) Vision care Agroch
Slide 15: Life Care: Vision Care
15 Life Care: Vision Care May 29, 2024 Expansion of the Continuous business expansion of high-refractive-index lens material coating material portfolio Strengthen production capacity to support growing demand for high-refractive-index lenses Accelerate business growth by leveraging the strengths of
Slide 16: Wellness: Agrochemical Products
16 Wellness: Agrochemical Products May 29, 2024 Expanding business by leveraging growth drivers in key overseas markets Monetizing the expanded portfolio 180 Sales revenue Leveraging the effect of integration Developing competitive active (JPY bn) to maximize the value of our patents ingredients thr
Slide 17: Life Care: Nonwovens (Mitsui Chemicals Asahi Life Materials)
17 Life Care: Nonwovens (Mitsui Chemicals Asahi Life Materials) May 29, 2024 Pursuing synergies from integration via the bolstering of industrial materials and optimized production setups Expanding our industrial materials portfolio via greater post-merger technology integration Sales revenue ■ Indu
Slide 18: Mobility Solutions
Pursuing Business Portfolio Transformation 18 Mobility Solutions May 29, 2024 Providing unique materials, features and services to help solve social challenges and let us achieve sustainable business growth (JPY bn) Underlining Current state of businesses toward achieving VISION 2030 goals indicates
Slide 19: Materials Business
19 Materials Business May 29, 2024 Achieving growth that offers the prospect of exceeding our targets by means of steady resource investment and a sales transition to a focus on growth markets and differentiation Solar cell encapsulants Automotive materials Accelerating growth in the Capturing new d
Slide 20: Solutions Business
20 Solutions Business May 29, 2024 Providing solutions that combine the Mitsui Chemicals Group’s knowledge with new materials Expanding the development of solutions-based business models Creating the mobility of the future that will transform approaches to transport Leveraging knowledge and technolo
Slide 21: ICT Solutions
Pursuing Business Portfolio Transformation 21 ICT Solutions May 29, 2024 Creating and growing a “unique” ICT Solutions business to grow operations here into our third pillar of earnings Underlining (JPY bn) indicates matters to be 70.0 Current state of businesses toward achieving VISION 2030 goals e
Slide 22: Semiconductor & Assembly Solutions
22 Semiconductor & Assembly Solutions May 29, 2024 Exposure Front-end Back-end Assembly Investment in next-gen EUV pellicle Investment in manufacturing facility SHINKO ELECTRIC INDUSTRIES Acquisition of process compatibility For completion in 2025 (at Iwakuni-Ohtake Works) Forecast shipments of eval
Slide 23: Converting Solutions: XDI Special Isocyanate
23 Converting Solutions: XDI Special Isocyanate May 29, 2024 Increasing profit by means of capacity expansion and sales transition to sectors where we can differentiate ourselves Market 20% boost to XDI* production capacity Sectors of Properties growth Starting September 2025 at Omuta works differen
Slide 24: Basic & Green Materials
Pursuing Business Portfolio Transformation 24 Basic & Green Materials May 29, 2024 Reducing volatility and strengthening the business foundations by accelerating the second phase of restructuring Second phase Cash flow secured to some extent ⇔ Profit still highly volatile External progressing enviro
Slide 25: Improving Capital Efficiency by Promoting the Second Phase of Restructuring
Improving Capital Efficiency by Promoting the Second Phase of 25 Restructuring and Bolstering Downstream Businesses May 29, 2024 FY13-17 FY18-22 FY23~ Ideal state Securing stable earnings Improving capital efficiency Reducing volatility via restructuring (8% ROIC by FY30) 2023: AC-based IPA capacity
Slide 26: Chemical Complex Transformation
26 Chemical Complex Transformation May 29, 2024 Transitioning to advanced chemical complexes – with a focus on regional and multi–company collaborations - while also speeding up the shift to the green chemicals business East Japan Advanced chemical complex Keiyo Coastal Industrial Complex Mulling Co
Slide 27: Building Solutions-Based Business Models
27 Building Solutions-Based Business Models May 29, 2024 Next-generation business creation that leverages our accumulated know-how Potential next-gen businesses ★Priority project Evolution of robot solutions Robot solutions ● Building up design capability and know-how in the business Providing mater
Slide 28: Logistics Automation Solutions Business
Building Solutions-Based Business Models 28 Logistics Automation Solutions Business May 29, 2024 Helping to speed up the commercialization of automated warehouses by swiftly offering solutions that respond to the challenge of growing logistics volumes Strategic partnership formed Rapyuta ASRS automa
Slide 29: Identifying New Businesses: Holding Business Contests
29 Identifying New Businesses: Holding Business Contests May 29, 2024 Identifying and promoting the commercialization of ideas that tap into country- and region-specific social challenges and leverage each company’s distinctive features Overview of the FY23 contest: Focus Proposals for new businesse
Slide 30: Aiming to Increase Corporate Value
30 Aiming to Increase Corporate Value May 29, 2024 Seeking to increase our P/B ratio by raising the level of ROE (under consideration with a view to announcement in 2H/FY24), accelerating profit growth in growth domains, promoting the second phase of restructuring, shifting to the green chemicals bu
Slide 31: Summary of Targets-1
31 Reference Summary of Targets-1 May 29, 2024 FY XX FY22 Results FY23 Results FY24 Outlook (under FY30 Target review) Operating income before special items 114 96 125 200 250 (B yen) Net income attributable to owners 83 50 73 110 140 of the parent (B yen) 10% or 10% or ROE 11.1% 6.1% 8.3% more more
Slide 32: Summary of Targets-2
32 Reference Summary of Targets-2 May 29, 2024 Contributing to a sustainable society Material topics KPIs FY23 Results FY24 Target FY30 Target • Climate change • Circular economy Blue Value™ products sales revenue ratio • 24% • 26% • 40% • Health and livelihood Rose Value™ products sales revenue rat
Slide 33: Summary of Targets-3
33 Reference Summary of Targets-3 May 29, 2024 Abilities essential to business continuity Material topics KPIs FY23 Results FY24 Target FY30 Target • Corporate Improvement of employee engagement culture Engagement score • 36% • 38％ or more ・50％ Key talent management Successor coverage rate for criti
Slide 34: 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 35: 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