Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (June 2021)
59 slides from Mitsui Chemicals's investor presentation, Jun 2, 2021
Slide 1: Creating New Customer Value through Innovations - CEO Presentation
FY21-1 Creating New Customer Value through Innovations CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals Inc. President & CEO Jun 2, 2021
Slide 2: CEO message
As we continue to face the spread of COVID-19, I would like to offer my deepest Jun 2, 2021 sympathies to those who have contracted the virus. I would also like to express my heartfelt gratitude to healthcare workers, as well as to everyone else working around the clock to keep society running. FY21
Slide 3: Today's Topics
Today’s Topics First FY20/21 Second Long-Term Business Plan half Business overview half VISION 2030 ▶ FY20 Results & FY21 Outlook ▶ Outline of VISION 2030 ▶ Highlights of business domains ▶ Basic strategy ・Mobility ・Health Care ▶ Direction of business model ・Food & Packaging transformation ・ICT Mate
Slide 4: FY20 Results & FY21 Outlook
1 FY20 Results & FY21 Outlook Jun 2, 2021 ① For FY20, reached 85.1 billion yen in operating income before special items – significantly exceeding our initial projection of reaching 35 billion yen due to COVID-19 ② For FY21, targeting a record-high 115 billion yen in operating income before special i
Slide 5: Profit by Segment
2 Profit by Segment Jun 2, 2021 ① Performance in targeted business domains expected to significantly exceed FY19 on the whole, with the Mobility segment getting back to pre-COVID levels while Health Care and Food & Packaging maintain steady growth ② Basic Materials segment is seeing earnings recover
Slide 6: Financial Infrastructure
3 Financial Infrastructure Jun 2, 2021 ▶ Building a stronger, better financial position even amid COVID-19 ▶ Pursuing active investments Cash flow Net D/E 174.3 700,000 ■Shareholders’ equity (JPY bn) 1.60 （JPY bn） Record high ●Net D/E ■Operating cash flow 1.40 ●Free cash flow 123 600,000 1.39 1.20 9
Slide 7: Investing Resources
4 Investing Resources Jun 2, 2021 Making active growth investments and investing research resources ICT・ヘルスケア、新事業創出を中心に積極的な成長投資、研究資源投入を実行 with a focus on ICT, Health Care and the creation of new businesses 00 (JPY bn) Investments R&D Expenses ■+■ Investment ■ Existing businesses 00 ■ J-GAAP→IFRS 134
Slide 8: Executive Summary
5 Executive Summary Nov 26, 2020 Recovering from COVID-19, expanding our facilities, benefiting from sales growth - overall improving sales and earnings FY19➡ Segment Area FY20 FY20➡ FY21 Current circumstances PP Compounds • Production levels recovering at all bases around the world N.A., Asia, Japa
Slide 9: Mobility
Nov 26, 2020 計数目標まとめｰグラフ Mobility Providing solutions that make full use of our comprehensive strengths
Slide 10: Mobility
6 Mobility Jun 2, 2021 ▶ Earnings to get back up to FY19 levels due to recovery in automotive production and increased need for lightweighting ▶ Spate of investment projects reaching completion in FY20 onward, contributing to further earnings Operating income before special items（IFRS） Growth driver
Slide 11: Mobility Investment Projects
7 Mobility Investment Projects Jun 2, 2021 Fleshing out our pipeline of monetization projects for FY20 and beyond; entering the phase of investment recovery Schedule for profit contribution Mobility investment projects Capacity Stable growth Accelerate growth (partial list) (KTA) FY17 FY18 FY19 FY20
Slide 12: Health Care
Jun 2, 2021 Health Care Providing products & services that contribute to quality of life through chemical innovations
Slide 13: Health Care
8 Health Care Jun 2, 2021 ▶ While FY21 is set to see a year-on-year decline in COVID-related emergency demand for nonwovens, overall health care demand is expected to recover ▶ We are moving forward with North American marketing efforts for vision care materials, bringing about further growth Operat
Slide 14: Capacity Increase for Lens Monomers
9 Capacity Increase for Lens Monomers Jun 2, 2021 Capacity increase for high refractive index lens monomers （Omuta Works, Oct. 2023) ▶ Steadily capturing global demand growth ▶ New initiative launched with major U.S. retailer ▶ Switching to MR™ Series in North American Costco polycarbonate market （O
Slide 15: Food & Packaging
Jun 2, 2021 Food & Packaging Providing solutions for world food problems and seizing new business opportunities
Slide 16: Food & Packaging
10 Food & Packaging Jun 2, 2021 ▶ Steady earnings growth through market launch of new agrochemicals and rising overseas sales ▶ Plans to further increase production of industrial films for ICT applications in response to strong demand Operating income before special items（IFRS） Growth drivers: Sales
Slide 17: F&P Highlights
11 F&P Highlights Jun 2, 2021 Reducing plastic waste in the packaging chain CHEMIPEARL™ heat sealant for Plans to start up demonstration facilities for mechanical recycling this fiscal year paper-based packaging ▶ Working with Nippon Paper and Yoshimoto Printing to develop a barrier- and heat-seal-c
Slide 18: ICT Materials
ICT MATERIALS Actively investing to form our next target domain
Slide 19: ICT-related materials
12 ICT Materials Jun 2, 2021 Our next target domain: ICT materials that contribute to digitalization Basic New Business Mobility Health Care F&P Materials Incubation Center Expanding Expanding New base Expanding Special gas PIVAR™：Polyimide varnish Semi ICT-related materials MITSUI SYNTEX™ ICROS™ Ta
Slide 20: ICT Highlights-1
13 ICT Highlights-1 Nov 26, 2020 EUV pellicle operations launched New APEL™ plant to be completed in FY21 (April, 2021 at Iwakuni-Ohtake Works) (March 2022 at Osaka Works) Growing needs for refinement of Steady growth due to multi-lens smartphones Volume semiconductor circuits for 5G FY08-25 【Sales
Slide 21: ICT Highlights-2
14 ICT Highlights-2 Jun 2, 2021 Doubling production capacity for Developed Gigafreq™ as a ICROS™ Tape at Taiwanese plant material for high-frequency PCBs (October 2023) World’s No.1 share protective tape used in Next-generation material for beyond-5G, 6G and semiconductor wafer back grinding automot
Slide 22: ICT-related Projects
15 ICT-related Projects Jun 2, 2021 Progress in growth investments and new projects Schedule ICT-related projects (Partial list) FY19 FY20 FY21 FY22 FY23 New Business Incubation Center EUV pellicle - New plant @Japan ICROS™ Tape - New base @Taiwan Semiconductor ICROS™ Tape - Increase capacity @Taiwa
Slide 23: Basic Materials
Jun 2, 2021 Basic Materials Providing materials to serve as the basis of society and industry
Slide 24: Basic Materials
16 Basic Materials Jun 2, 2021 ▶ Expecting high cracker operating rates due to demand recovery for downstream products ▶ Phenol derivatives market to calm down after the surge in prices driven by strong ICT-related demand ▶ Implementation phase for restructuring plans aimed at reducing volatility Im
Slide 25: Our Approach to Reform
17 Our Approach to Reform Jun 2, 2021 Pursuing reform with a view of company-wide optimization for reduced volatility range and ratio Reducing volatility Reforming product portfolio Current understanding Future direction V = range of volatility H = average income level Ⅰ ±V2 ±V1 Market Share 1 Reduc
Slide 26: Bolstering Downstream Businesses
18 Bolstering Downstream Businesses Jun 2, 2021 Ⅰ. Polyurethanes Ⅰ. Polyolefins Capacity increase for high-performance MDI New plant for high-performance PP in South Korea (200KTA, Jan. 2024) (200KTA, Nov. 2024) ▶ Building a supply system for high-performance PP (Responding to the need for lighter,
Slide 27: Establishing Green Sustainable Chemicals Dept.
19 Establishing Green Sustainable Chemicals Dept. Jun 2, 2021 With the aim of bringing about a circular economy starting from upstream operations – which serve as the foundation for industry – we will look to implement concrete measures through our establishment of the Green Sustainable Chemicals De
Slide 28: Introducing Bio-based Hydrocarbons
20 Introducing Bio-based Hydrocarbons Jun 2, 2021 Japan’s first project to use bio-based hydrocarbons in naphtha crackers and offer biomass products (Oct. 2021 onward) Can be utilized for a wide range of bio-based products by way of mass balance method
Slide 29: Basic Materials: History of Transformation
21 Basic Materials: History of Transformation Jun 2, 2021 ▶ Steadily implementing restructuring measures to reduce volatility decided on in FY20 ▶ Capitalizing on our strong production chain to supply more green derivatives through use of green raw materials FY10–14 FY14–16 FY17–FY20 FY21 and beyond
Slide 30: Summary of Financial Targets
22 Summary of Financial Targets Jun 2, 2021 J-GAAP J-GAAP J-GAAP IFRS IFRS (JPY bn) FY15 FY18 FY19 FY20 FY21 IFRS Results Results Results Results Outlook Sales revenue*1 1,344 1,483 1,339 1,212 1,400 Operating income before special items*1 70.9 93.4 71.6 85.1 115 (ROS) (5.3%) (6.3%) (5.3%) (7.0%) (8
Slide 31: Shareholder Returns
23 Shareholder Returns Jun 2, 2021 ■ Dividends (interim) Increase ■ Dividends (year-end) ■ Memorial 110JPY 1,100 FY21 Outlook ー Net income 100JPY 100JPY 100JPY + + 1,000 90 JPY* Acquisition of Acquisition of Year- + treasury treasury Interim FY21 end stock stock 900 *Dividends recalculated 79.0 Acqu
Slide 32: VISION 2030 Long-Term Business Plan
Chemistry for Sustainable World VISION 2030 Long-Term Business Plan A global solutions company that leads change and contributes to a sustainable future
Slide 33: Today's Key Topics: Upcoming communications about VISION 2030
1 Today’s Key Topics Jun 2, 2021 Upcoming communications about VISION 2030 tentative schedule June 2, 2021 November 25, 2021 CEO Presentation #1 CEO Presentation #2 ■ Outline of VISION 2030 ■ Summary of progress in 1H/FY21 ■ Basic strategy ■ Growth strategy for each part of ■ Direction of business m
Slide 34: Corporate Mission / Corporate Target
2 Our purpose Corporate Mission Contribute broadly to society by providing high-quality products and services to customers through innovation and the creation of materials, while keeping in harmony with the global environment Direction for the next Corporate Target 15 - 20 years To be a corporate gr
Slide 35: Our Ideal Vision for 2030
3 Our Ideal Vision for 2030 Chemistry for Sustainable World A global solutions company that leads change and contributes to a sustainable future
Slide 36: Positioning of VISION 2030
4 Positioning of VISION 2030 Jun 2, 2021 Engage in significant Corporate Review of environmental changes and Mission materiality establish a new growth Corporate Target New Long-Term strategy toward the year 2030 Business Plan “Becoming a global solutions company that leads change and contributes to
Slide 37: Changes in the External Environment
5 Changes in the External Environment Jun 2, 2021 Focal points for providing value Business impacts to society broadly ▶ Dealing appropriately with ▶ Rise of protectionist policies qualitative changes in the market Entering an era of ▶ Global polarization megatrends, and analysis of key markets Roll
Slide 38: Internal Environment - Review of VISION 2025: Overview
6 Internal Environment – Review of VISION 2025: Overview Jun 2, 2021 ▶ While we posted a record profit of 103.5B yen in FY17, growth stagnated due to the economic downturn and the impact of COVID-19 ▶The most important issue, portfolio reform, is halfway through; profit share of the three target dom
Slide 39: Internal Environment - Review of VISION 2025: Segment by Segment
7 Internal Environment – Review of VISION 2025: Segment by Segment Jun 2, 2021 VISION 2025 Accelerating Strengthening our Basic Strategy Pursuing innovation global expansion existing businesses Mobility Health Care Food & Packaging Basic Materials ▶While a post-COVID recovery is expected, the market
Slide 40: Reviewing Ideal Future Society and Materiality
Reviewing our Ideal Future Society and Materiality to deal with 8 Changes in our Internal and External Environments Jun 2, 2021 ▶Revised our vision for ideal future society by taking into account the changes in internal and external environments ▶Reviewed our materiality - key issues for Mitsui Chem
Slide 41: VISION 2030 Basic Strategy
9 Basic Strategy Jun 2, 2021 Formulated VISION 2030 Basic Strategy from VISION 2030 Basic Strategy key business priorities and materiality STRATEGY Pursuing business portfolio transformation Key business priorities 01 ▶ Rolling out a social issue perspective in all of our businesses ▶ Achieving grow
Slide 42: Evolving from Materials Supply Business Model
10 Evolving from Materials Supply Business Model Jun 2, 2021 Move away from our historical business focus on materials supply to businesses based on social issue perspective ▶Applying a social issue perspective and DX to all businesses ▶Evolve into solutions-based business models and CE-based busine
Slide 43: Solutions-based Business Models
11 Solutions-based Business Models Jun 2, 2021 Break down barriers to growth by moving beyond the supply of materials and designing a value creation model that helps solve social challenges, with the aim of building a new value chain Customer needs have become more Social challenges cannot be solved
Slide 44: Circular Economy-based Business Models
12 Circular Economy-based Business Models Jun 2, 2021 ▶ Rolling out circular economy initiatives across the entire Group to break dependence on energy-intensive business model ▶ Creating new businesses that contribute to the transition from conventional linear supply chain to circular economy supply
Slide 45: DX Roadmap
13 DX Roadmap Jun 2, 2021 Creating innovative products, services and business models in an agile manner to solve social challenges MCI Digital Vision through the utilization of data and digital technologies by all members of the Group; leading the transformation of companies, industries and society
Slide 46: Digital Transformation
14 Digital Transformation Jun 2, 2021 To realize corporate transformation, accelerate DX by quickly transferring know-how to business divisions by adopting an organizational structure linked to corresponding businesses Changes in DX Vision Efforts to improve digital literacy - Transformation to a da
Slide 47: Resource Circulation Platform (DX × CE)
15 Resource Circulation Platform (DX × CE) Jun 2, 2021 Working toward a plastic recycling traceability system that utilizes blockchain technology Aiming to make supply chains more transparent and build a platform for sharing various benefits throughout supply chains OEMs Visualizing the manufacturin
Slide 48: Business Portfolio
16 Business Portfolio Jun 2, 2021 ▶ Revise business portfolio to implement basic strategies for creating value, and start efforts toward the realization of VISION 2030 as soon as possible ▶ Individual strategies for each part of the portfolio will be explained at our next presentation event and beyo
Slide 49: VISION 2030 Business Targets
17 Business Targets Jun 2, 2021 VISION 2030 Business Targets Net income attributable to owners of Operating income before special items Financial metrics the parent 250bn yen 140bn yen ROIC Net D/E ROE 8.0% or more 0.8 or less 10% or more Blue Value™ Rose Value™ GHG reduction Non-Fin metrics sales r
Slide 50: Investment Plan
18 Investment Plan Jun 2, 2021 VISION 2030 Investment Resource Allocation Growth Strategic investments investments ￥900bn ￥1.8tn Internal growth investments *Maintenance investments not included *Total amount for the 10-year period from FY21 to FY30 ￥900bn
Slide 51: Carbon Neutral Roadmap
Chemistry for Sustainable World 2050 Carbon Neutral Roadmap
Slide 52: Carbon Neutral Declaration
19 Carbon Neutral Declaration (Nov. 26, 2020) Jun 2, 2021 Mitsui Chemicals Group to become a carbon neutral company by 2050 1 To make major contributions to social reform by pursuing carbon neutrality by 2050 Working with customers to achieve widespread 2 implementation of GHG-reducing products, all
Slide 53: Carbon Neutral Roadmap - 1
20 Carbon Neutral Roadmap - 1 Jun 2, 2021 Pursuing the two pillars of (1) reducing GHG emissions of the Mitsui Chemicals Group; (2) maximizing avoided emissions Mitsui Chemicals' Carbon Neutral Strategy (1) Reducing our GHG emissions (2) Contributing to society through our products <Scope 1, 2> <Avo
Slide 54: Carbon Neutral Roadmap - 2
21 Carbon Neutral Roadmap - 2 Jun 2, 2021 Aiming to reduce GHG emissions by 40% by 2030 (Scope 1+2, vs. FY13) to reach carbon neutrality by 2050 ▲ 18% ▲ 40% ▲ 80 % or more 6.15m Energy efficiency Restructuring ➀ ② ③ Low-carbon tons raw materials Energy Carbon 5.06m and fuels efficiency tons Renewabl
Slide 55: Carbon Neutral Roadmap - 3
22 Carbon Neutral Roadmap - 3 Jun 2, 2021 Implementing measures to reduce our GHG emissions, including low-carbon raw materials and fuels, energy efficiency and use of renewable energy Example measures Low-carbon raw materials Energy efficiency Use of renewable energy and fuels Introduction of bio-b
Slide 56: Toward a Circular Economy
23 Toward a Circular Economy Jun 2, 2021 ▶Provide low GHG emission products and services from upstream right through to downstream ▶Contribute to reducing GHG emissions and realizing a circular economy together with customers ➀Low-carbon fuels, energy efficiency, renewable energy ③ Expanding Blue Va
Slide 57: Conclusion
24 Conclusion Jun 2, 2021 A circular society An inclusive society A comfortable society in harmony with the creating diverse value that lets people lead environment healthy, happy lives Chemistry for Sustainable World A global solutions company that leads change and contributes to a sustainable futu
Slide 58: A global solutions company that leads change
A global solutions company that leads change and contributes to a sustainable future
Slide 59: 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