Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (November 2024)
42 slides from Mitsui Chemicals's investor presentation, Nov 26, 2024
Slide 1: FY24-2 CEO Presentation
FY24-2 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals, Inc. President & CEO November 26, 2024
Slide 2: Message
Message Three years have now passed since the 2021 launch of Mitsui Chemicals’ VISION 2030 Long-Term Business Plan. Regrettably, however, progress toward the achievement of VISION 2030 has been delayed as a result of the harsh business environment, including friction between the U.S. and China, conf
Slide 3: Contents
Nov 26, 2024 Contents ▶ Business Performance Full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 4: Full-Year Outlook for FY24
4 Full-Year Outlook for FY24 Nov 26, 2024 While FY24 figures have been revised downward – primarily as a result of ethylene plant issues – revenue and profits are projected to rise year-on-year, with steady growth in growth domains playing a major role FY2021 FY2022 FY2023 FY2024 FY2023 → FY2024 Ite
Slide 5: Shareholder returns
5 Shareholder returns Nov 26, 2024 Provide stable and continuous shareholder returns Dividend increase ■ Dividends (interim) ■ Dividends (year-end) +10yen/share ● FY24 dividend outlook Dividend increase ■ Memorial ー Net income (billion yen) +20yen/share Interim Year-end Full year 75 + 75 = 150 JPY/s
Slide 6: Contents
Nov 26, 2024 Contents ▶ Business Performance Full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 7: Reflecting on Our VISION 2030 Basic Strategy
7 Reflecting on Our VISION 2030 Basic Strategy Nov 26, 2024 ▶ While growth domains are showing steady growth and progress in portfolio transformation, the pace of growth has slowed down due to sluggish demand in STRATEGY ICT and other sectors as well as delays in creating new pillars of business 01
Slide 8: Basic Policies for Achieving VISION 2030
8 Basic Policies for Achieving VISION 2030 Nov 26, 2024 ◆ Looking to improve corporate value by speeding up portfolio transformation while maintaining our fiscal 2030 target of 250 billion yen in operating income before special items, as well as by targeting ROE of 13% or more through an asset-light
Slide 9: Numerical Targets for Earnings
9 Numerical Targets for Earnings Nov 26, 2024 Maintaining our operating income before special items target for FY30 and aiming for improved capital efficiency FY22 Results FY23 Results FY24 Outlook FY28 Target FY30 Target Operating income before special items 114 96 105 200 250 (B yen) Net income at
Slide 10: Approach to Pursuing Business Portfolio Transformation
10 Approach to Pursuing Business Portfolio Transformation Nov 26, 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 Organi
Slide 11: Growth Domains Pulling the Entire Group Forward
Progress Toward Business Portfolio Transformation 11 Growth Domains Pulling the Entire Group Forward Nov 26, 2024 (Operating income before special items / JPY bn) Growth domains B&GM Total 280 230 ROIC ICT ROIC ROIC Figure inside () = original plan 180 WACC FY19 → FY24 Growth rate: 130 12% Mobility
Slide 12: Cash Flow Management to Improve Capital Efficiency
12 Cash Flow Management to Improve Capital Efficiency Nov 26, 2024 Improving capital efficiency by putting cash flow earned from business operations and an asset- light approach toward growth investments and the maintenance & strengthening of existing businesses, while also utilizing various financi
Slide 13: Summary of Strategy for Achieving our FY28 Targets
13 Summary of Strategy for Achieving our FY28 Targets Nov 26, 2024 Made necessary revisions based on progress over the past three years to speed up our strategies for achieving VISION 2030 (Bold = changed from Progress of VISION 2030 previous presentation) Key strategies Despite steady growth, the p
Slide 14: Our Path to 200B Yen Operating Income Before Special Items
14 Our Path to 200B Yen Operating Income Before Special Items Nov 26, 2024 Aiming to reach 200 billion yen by FY28 by leveraging a recovery in our rate of growth (particularly in our strong businesses), restructuring and more Delay to plans Steady growth driven largely by organic growth Temporary dr
Slide 15: Contents
Nov 26, 2024 Contents ▶ Business Performance Full-year outlook for FY24 ▶ VISION 2030 Basic policies toward 2030 Measures in line with our five-point Basic Strategy
Slide 16: Increasing Our Social Contribution Value Through Blue Value and Rose Value Products
16 Increasing Our Social Contribution Value Through Blue Value™ and Rose Value™ Products Nov 26, 2024 Environmental Contributions Blue Value™ QOL Improvements Rose Value™ Reducing CO2 Conserving resources Coexisting with nature Enriching life and society Extending healthy life-span Protecting food B
Slide 17: Life & Healthcare Solutions
Pursuing Business Portfolio Transformation 17 Life & Healthcare Solutions Nov 26, 2024 Providing solutions that contribute to life, health and comfortable lifestyles as our first pillar of earnings Strategy to date Environmental changes & business situation Strategy for achieving our FY28 targets St
Slide 18: Life & Healthcare Solutions Business Strategy
18 Life & Healthcare Solutions Business Strategy Nov 26, 2024 Strategy for achieving our FY28 targets Pursue steady growth for vision care & agrochemical products + actively invest to turn medical solutions* into a new pillar of earnings Medical Life care *Oral care/ orthopedics/ FY24 FY28 FY30 Well
Slide 19: Lifecare Solutions / Wellness Solutions
19 Lifecare Solutions / Wellness Solutions Nov 26, 2024 (Vision care) Steady expansion by providing (Agrochemicals) value throughout the value chain Steady expansion of our growth drivers Ophthalmic Maintaining the top global market share for high-refractive-index Sales revenue (JPY bn) lens value c
Slide 20: Medical Solutions
20 Medical Solutions Nov 26, 2024 Leveraging our technologies and our ties with partners to turn medical solutions into a new pillar of earnings Medical solutions Trend: Steady market growth due to aging and growing populations New business opportunities business environment Need: More advanced medi
Slide 21: Mobility Solutions
Pursuing Business Portfolio Transformation 21 Mobility Solutions Nov 26, 2024 Providing unique materials, features and services to help solve social challenges and let us achieve sustainable business growth Strategy to date Environmental changes & business situation Strategy for achieving our FY28 t
Slide 22: Mobility Solutions Business Strategy
22 Mobility Solutions Business Strategy Nov 26, 2024 Strategy for achieving our FY28 targets 27･28年度目標に向けた戦略 Materials business: Continue the transition to sales focused on growth markets and differentiation Speed up the rollout of diverse applications for elastomers Solutions business: Accelerate A
Slide 23: Materials Business: Elastomers
23 Materials Business: Elastomers Nov 26, 2024 Leveraging polymers with unique strengths to capture demand & application in growth markets Deploying polymers with unique strengths in growth markets with diversifying needs Polymers with unique strengths Automotive sustainability derived from monomer
Slide 24: Materials Business: Composite Materials
24 Materials Business: Composite Materials Nov 26, 2024 Continually launching differentiated products to a wide range of growth markets, as well as acquiring new markets, to outstrip market growth Leveraging the entire Group’s capabilities to push products in growth markets Diverse range of products
Slide 25: ICT Solutions
Pursuing Business Portfolio Transformation 25 ICT Solutions Nov 26, 2024 Creating and growing a “unique” ICT Solutions business to grow operations here into our third pillar of earnings Strategy to date Environmental changes & business situation Strategy for achieving our FY28 targets Semiconductor:
Slide 26: ICT Solutions Business Strategy
26 ICT Solutions Business Strategy Nov 26, 2024 Strategy for achieving our FY28 targets 27･28年度目標に向けた戦略 戦略骨子の「成長市場」×「差別化」へのシフトは変更無し Focus resources on key businesses Semiconductor & assembly (ICROSTM Tape, pellicles, next-gen materials), coating & engineering タフマー事業のポートフォリオ転換を加速 materials, lithium-i
Slide 27: Semiconductor & Assembly Solutions
27 Semiconductor & Assembly Solutions Nov 26, 2024 Contributing to the advancement of the cutting-edge semiconductor field by rolling out a wide range of products throughout the Group Continuing & reinforcing our strategy to be the Introducing new products into related top player in cutting-edge (EU
Slide 28: Converting Solutions: Coating & Engineering Materials
28 Converting Solutions: Coating & Engineering Materials Nov 26, 2024 Launching differentiated products in key markets to speed up business expansion Differentiated products Speeding up business expansion by introducing differentiated products in Coating and engineering materials such as PUD*1 (TAKE
Slide 29: Battery Material Solutions
29 Battery Material Solutions Nov 26, 2024 Using our technologies to help improve LiB performance LiB material design/ Accelerating development battery evaluation technology Customers’ development of next-gen materials Existing products status & needs Additives, adhesives, etc. Pouch film adhesives
Slide 30: Basic & Green Materials
Pursuing Business Portfolio Transformation 30 Basic & Green Materials Nov 26, 2024 Accomplishing business restructuring and leading our Group’s circular economy revolution Strategy for achieving our FY28 targets Second phase of restructuring Selecting competitive derivatives Pursuit of green chemica
Slide 31: Improving Capital Efficiency by Promoting the Second Phase of Restructuring
Improving Capital Efficiency by Promoting the Second Phase of 31 Restructuring and Bolstering Downstream Businesses Nov 26, 2024 FY13～17 FY18～22 FY23～ Ideal state Securing stable earnings Reducing volatility Improving capital efficiency via restructuring AC-based IPA production Honshu Chemical 2023:
Slide 32: Basic & Green Materials
32 Basic & Green Materials Nov 26, 2024 Making the B&GM business self-sustaining, including for green chemical investments through to 2030 Speeding up the formation of regional and multi-company collaborations as we look to achieve carbon neutrality by 2050 Cumulative cash flow plan from 2025 to 203
Slide 33: Our Grand Design for Cracker Reorganization
33 Our Grand Design for Cracker Reorganization Nov 26, 2024 Pursuing carbon neutrality and capacity optimization by Chiba and West Japan collaborations to achieve advanced chemical complexes Realizing our Carbon Neutrality Promoting our green chemicals business Contributing to advanced Helping to re
Slide 34: Initiatives for Carbon Neutrality
34 Initiatives for Carbon Neutrality Nov 26, 2024 Our FY2030 target within reach; pursuing technological development as well as regional and multi-company collaborations toward realizing FY2050 carbon neutrality Energy Chiba LLP cracker efficiency, restruc- consolidation, Chiba PP closure, 40% turin
Slide 35: Building Solutions-Based Business Models
35 Building Solutions-Based Business Models Nov 26, 2024 Creating next-gen businesses to help solve social challenges and generate 10 billion yen in sales revenue ★Key Next-gen business candidates project Helping make logistics more efficient Steady growth for Rapyuta ASRS automated flexible warehou
Slide 36: Creation Palette
36 Building Solutions-Based Business Models: Creation PaletteTM Nov 26, 2024 Working together with R&D sites to enable co-creation with stakeholders, with YAE serving as the gateway Creation PaletteTM NIIGATA Leveraging functions including design, analysis, molding, prototyping and evaluation to cre
Slide 37: Aiming to Increase Corporate Value
37 Aiming to Increase Corporate Value Nov 26, 2024 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 growth domains Accelerating ✓ Mana
Slide 38: Summary of Targets-1
38 Reference Summary of Targets-1 Nov 26, 2024 FY22 Results FY23 Results FY24 Outlook FY28 Target FY30 Target Operating income before special items 114 96 105 200 250 (B yen) Net income 150 or attributable to owners 83 50 56 110 of the parent (B yen) more 10% or 13% or ROE 11.1% 6.1% 6.6% more more
Slide 39: Summary of Targets-2
39 Reference Summary of Targets-2 Nov 26, 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 40: Summary of Targets-3
40 Reference Summary of Targets-3 Nov 26, 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 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: 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
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