Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (June 2023)
42 slides from Mitsui Chemicals's investor presentation, Jun 1, 2023
Slide 1: FY23-1 CEO Presentation
FY23-1 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals, Inc. President & CEO June 1, 2023
Slide 2: Message
Message This is now my fourth year as President of Mitsui Chemicals, following my appointment in April 2020. 2021 saw us launch our new Long-Term Business Plan VISION 2030, which has this year reached the second year of its implementation phase. The global environment surrounding our business is cha
Slide 3: Contents
June 1, 2023 Contents ▶ Business Performance FY22 results and full-year outlook for FY23 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 4: FY22 results and full-year outlook for FY23
4 FY22 results and full-year outlook for FY23 June 1, 2023 Increase (Decrease) FY2021 FY2022 FY2023 Items FY22 （億円） → FY23 (Outlook) (JPY bn) Results Results Outlook YoY Rate Sales revenue 1,613 1,880 1,900 21 1% Operating income before special items 162 114 150 36 32% Non-recurring items △ 15 15 △5
Slide 5: Shareholder returns
5 Shareholder returns June 1, 2023 Provide stable and continuous shareholder returns Dividend increase +20yen/share ■ Dividends (interim) ■ Dividends (year-end) ■ Memorial ● FY23 dividend outlook ー Net income (billion yen) Interim Year-end Full year 70 + 70 = 140 JPY/share JPY/share JPY/share ✔ Targ
Slide 6: Contents
June 1, 2023 Contents ▶ Business Performance FY22 results and full-year outlook for FY23 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 7: Basic Management Policies Toward Achieving Our VISION 2030 Goals
7 Basic Management Policies Toward Achieving Our VISION 2030 Goals June 1, 2023 ◆ We have set a target of reaching 200 billion yen in operating income before special items by fiscal 2025, as a checkpoint for achieving our 2030 goals. To help achieve this target, we will implement strategies based on
Slide 8: Working to Achieve Our VISION 2030 Goals
8 Working to Achieve Our VISION 2030 Goals June 1, 2023 Expanding our growth domains through business portfolio transformation (JPY bn) 2022 *Figures for FY20 and earlier are for previous segments 85% 2016 B&GM 65% ICT 2010 43% Mobility L&H Other Growth 76.8 71.4 73.0 74.1 73.3 72.1 88.3 102.3 121.0
Slide 9: Summary of Targets-1
9 Summary of Targets-1 June 1, 2023 FY22 Results FY23 Outlook FY25 Around FY30 Target Operating income before special items (B yen) 114 150 200 250 Net income attributable to owners of the parent (B yen) 83 100 110 140 ROE 11.1% 12.3% 10% or more 10% or more ROIC*1 5.4% 6.3% 7.0% or more 8.0% or mor
Slide 10: Summary of Targets-2
10 Summary of Targets-2 Subjects to be explained in this presentation June 1, 2023 Contributing to a sustainable society Material topics KPIs FY22 Results FY23 Outlook FY30 Target • Climate change • Circular economy Blue Value™ products sales revenue ratio ・22% ・24% ・40% • Health and livelihood Rose
Slide 11: Summary of Targets-3
11 Summary of Targets-3 Subjects to be explained in this presentation June 1, 2023 Abilities essential to business continuity Material topics KPIs FY22 Results FY23 Outlook FY30 Target • Corporate Improvement of employee engagement • Implementation rate for culture improvement plans from ・36％ or mor
Slide 12: Contents
June 1, 2023 Contents ▶ Business Performance FY22 results and full-year outlook for FY23 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 13: VISION 2030 Basic Strategy
13 VISION 2030 Basic Strategy June 1, 2023 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 14: Rolling Out a Social Issue Perspective in All of Our Businesses
Pursuing Business Portfolio Transformation 14 Rolling Out a Social Issue Perspective in All of Our Businesses June 1, 2023 Increase in sales revenue from Blue Value™ Steady growth in gross profit and Rose Value™ products in growth domains as sales revenue has expanded 40% Blue Value™ products sales
Slide 15: Pursuing Business Portfolio Transformation: Life & Healthcare Solutions
Pursuing Business Portfolio Transformation 15 Life & Healthcare Solutions June 1, 2023 (JPY bn) Providing solutions that contribute to life, health and 90.0 ■ Return from previous investments comfortable lifestyles as our first pillar of earnings ■ Organic growth ■ New businesses + M&A Our existing
Slide 16: Life Care: Vision Care
16 Life Care: Vision Care June 1, 2023 Expanding the vision care materials business through the offering of a total solution Ophthalmic lens value chain Glasses Lens polymerization process Lens manufacturers Prescription laboratory process retailers Consumers Expanding MR™ lens Leveraging intra- mat
Slide 17: Wellness: Agrochemical Products
17 Wellness: Agrochemical Products June 1, 2023 Accelerating business expansion by maximizing overseas launch of growth drivers and leveraging integration effects Sales revenue (JPY bn) ■ Overseas ✓ Growth drivers are propelling business ■ Japan expansion Overseas launches progressing smoothly for d
Slide 18: Medical: Oral Care
18 Medical: Oral Care June 1, 2023 Business expansion by continually introducing new products and pursuing deeper collaboration between Group companies Aiming for expansion exceeding market growth, Introducing new products driven by core sectors Core sectors: 2019 2020 2021 2022 2023 (Plan) Restorat
Slide 19: Medical & Wellness: Efforts to Create New Products & Businesses
19 Medical & Wellness: Efforts to Create New Products & Businesses June 1, 2023 Business expansion in the Progress in expanding the orthopedic surgery sector examination & diagnosis sector STEP 1 Partnerships Expand groundbreaking diagnostic content Acquire partners Development & production capabili
Slide 20: Pursuing Business Portfolio Transformation: Mobility Solutions
Pursuing Business Portfolio Transformation 20 Mobility Solutions June 1, 2023 (JPY bn) Providing unique materials, features and services to help solve social challenges and let us achieve ■ Return from previous investments sustainable business growth ■ Organic growth Despite the slow recovery in aut
Slide 21: Materials Business: Differentiated Brands for Growth Markets
21 Materials Business June 1, 2023 Expanding sales by introducing differentiated brands to growth markets Differentiation in growth markets Boosting production capacity Growth market Needs Examples of TAFMER™ differentiated materials ■ New plant in Singapore Construction to be Renewable Improving th
Slide 22: Solutions Business: E-Axle Parts
22 Solutions Business June 1, 2023 Launching the supply of mass-produced parts for E-Axle next-gen EV drive systems What is an E-Axle? E-Axle Motor Inverter A system integrating the motor, inverter, reduction gears and Illustration other components of an EV’s drive system into a single unit E-Axle d
Slide 23: Pursuing Business Portfolio Transformation: ICT Solutions
Pursuing Business Portfolio Transformation 23 ICT Solutions June 1, 2023 (JPY bn) Creating and growing a “unique” ICT Solutions business ■ Return from previous investments to grow operations here into our third pillar of earnings ■ Organic growth ■ New businesses + M&A Continuing to boost capacity a
Slide 24: Semiconductor & Assembly Solutions: Pellicles
24 Semiconductor & Assembly Solutions: Pellicles June 1, 2023 Expanding the business by responding to technological innovation and diverse customer needs Establishment of Mitsui Chemicals EMS Improved EUV transmittance (July 2023) helps improve customer productivity Ｘ Process Materials Materials opt
Slide 25: Semiconductor & Assembly-Related Product Development
25 Semiconductor & Assembly-Related Product Development June 1, 2023 Forging ahead with product development to help bring about more advanced semiconductors Developed a manufacturing ICROS™ Tape process for higher silane Capacity boost (from 2H/FY2023) Wafer processing Used higher-density Si bonding
Slide 26: Pursuing Business Portfolio Transformation: Basic & Green Materials
Pursuing Business Portfolio Transformation 26 Basic & Green Materials June 1, 2023 (JPY bn) Accomplishing business restructuring and ■ Return from previous investments leading our Group’s circular economy revolution ■ Organic growth + structural reform 50.0 Substantial progress made in the restructu
Slide 27: Improving Capital Efficiency Through Further Restructuring
27 Improving Capital Efficiency Through Further Restructuring June 1, 2023 FY13-17 FY18-22 FY23-25 FY26-30 Securing stable earnings Reducing volatility Improving capital efficiency via restructuring Operating income Average of Average of 2025 targets: 40 billion yen 2030 targets: 50 billion yen 11.1
Slide 28: Polyurethane Business Strategy
28 Polyurethane Business Strategy June 1, 2023 Aiming to further improve earnings with substantial progress made in the restructuring of TDI production Decision made in: 2021 MCNS dissolved Focusing on strategy for shifting to high-performance products Production capacity: 410,000 t → 610,000 t (up
Slide 29: Promoting a Shift to Green Chemicals via Cracker Transformation
29 Promoting a Shift to Green Chemicals via Cracker Transformation June 1, 2023 Collaborating with other companies in regional initiatives to optimize running of crackers with large CO2 emissions (Illustration of our carbon neutral concept) (Regional cooperation) [Feedstock] [Derivatives] Ichihara W
Slide 30: Mitsui Chemicals' Path to Carbon Neutrality
Bolstering Circular Economy Initiatives 30 Mitsui Chemicals’ Path to Carbon Neutrality June 1, 2023 GHG emission trend Current phase Transition phase Carbon neutral phase (Million tons/year) Focus on energy conservation Switch to low-carbon options Achieve carbon neutrality 6.15 Ammonia combustion c
Slide 31: Technology Development for Carbon Neutrality
Bolstering Circular Economy Initiatives 31 Technology Development for Carbon Neutrality June 1, 2023 Progress by Mitsui Chemicals, Inc. – Fuel transition to run on ammonia Carbon Neutral Research Center Currently working on 13 research Aiming to install a high-efficiency topics across four divisions
Slide 32: Strengthening Our Management of Technology (MOT)
Management and Business Transformation 32 Strengthening Our Management of Technology (MOT) June 1, 2023 Bolstering technology-focused Group-wide cross-organizational initiatives Established the CTO Office Example: Optical materials project Seizing business opportunities in growth ✓ Strategic plannin
Slide 33: Robot Development Solutions Business
Building Solutions-Based Business Models 33 Robot Development Solutions Business June 1, 2023 Mitsui Chemicals’ robot development solutions Promoting the automation of logistics warehouses Offering a speedy one-stop robot development Using logistics robot systems to deliver the efficiency service co
Slide 34: Training Data Scientists
Corporate Transformation Through DX 34 Training Data Scientists June 1, 2023 Implementing training programs Material topic Digital transformation Training in-house data scientists with AI analysis skills and a knowledge of Training of DX specialists KPI our business Number of data scientists Number
Slide 35: Strengthening the Production Base With Advanced Technologies
Corporate Transformation Through DX 35 Strengthening the Production Base With Advanced Technologies June 1, 2023 Aiming for humans and AI to work together Material topics Safety Stable production Introduction of advanced to operate the plants efficiently, safely and stably KPIs Incidence of major te
Slide 36: New Value Creation for Beyond 2030
Management and Business Transformation 36 New Value Creation for Beyond 2030 June 1, 2023 Identifying new areas of development Material topic Innovation to reach the future we want to create through a back-cast approach Value creation for beyond 2030 • Population decline, • Increase in • Uneven regi
Slide 37: HR Strategy for Accelerating Portfolio Transformation
Management and Business Transformation 37 HR Strategy for Accelerating Portfolio Transformation June 1, 2023 Implementing a Human Resources Strategy Based on VISION 2030 Our “Ideal State” in 2030 Priority Issues KPIs (From CEO Presentation on June 2, 2022 ) Material topic : Human Capital Key Talent
Slide 38: Upgrading Human Resources Governance
Management and Business Transformation 38 Upgrading Human Resources Governance June 1, 2023 Utilizing the Group-wide integrated human resources platform to assist business portfolio transformation by increasing the effectiveness of human resources strategies at the global level What the Integration
Slide 39: Strengthening Our Risk Management Setup
Management and Business Transformation 39 Strengthening Our Risk Management Setup June 1, 2023 Establishing the Risk Management Committee & putting in place an environment that supports appropriate risk-taking Stakeholders Risk & compliance Board of Material topic management Directors Disclosure Man
Slide 40: Aiming to Increase Corporate Value
40 Aiming to Increase Corporate Value June 1, 2023 Seeking to increase the P/B ratio by raising the level of ROE, accelerating profit growth in growth domains, promoting further restructuring and boosting shareholder returns 250 ✓ Accelerating profit growth in growth (JPY bn) Accelerating domains bu
Slide 41: 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 42: Challenge Diversity One Team
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