Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — H1 FY2023 Earnings Presentation
36 slides from Mitsui Chemicals's earnings presentation, Nov 8, 2023
Slide 1: Financial Summary: Results for 1st Half of FY2023 & Outlook for FY2023
Financial Summary Results for 1st Half of FY2023 & Outlook for FY2023 Mitsui Chemicals, Inc. ＜Remarks＞ November 8, 2023 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
Slide 2: Contents
Contents 1. Results for 1st Half of FY2023 (April 1, 2023 – September 30, 2023) 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 (compare
Slide 3: 1. Results for 1st Half of FY2023
1. Results for 1st Half of FY2023 (April 1, 2023 – September 30, 2023) Copyright © 2023 Mitsui Chemicals, Inc.
Slide 4: Trends of Key Market Indicators
1) Trends of Key Market Indicators FY2023 FY2023 1H→ (changes from previous outlook 1H 2H ２H on Aug. 4, 2023) Firm demand Firm demand to continue Demand staying firm; Life ＆ Ophthalmic lens materials market (Movements to adjust inventory levels seen (Inventory adjustments to inventory adjustments He
Slide 5: Major Investment Projects, etc.
2) Major Investment Projects, etc. Major Investment projects Date Capacity FY21 FY22 FY23 FY24~ Orthopedic surgery sector: Japan MDM Business and Capital Alliance January.'22 - Life & Acquisition of agrochemicals business January.'22 - Healthcare Acquisition of ophthalmic lens processing equipment m
Slide 6: Consolidated Financial Highlights
3-1) Consolidated Financial Highlights (Billions of Yen) () Denotes a minus FY2022 FY2023 Increase Items % 1st Half 1st Half (Decrease) Sales revenue 951.1 823.7 (127.4) (13%) Operating income before special 77.6 42.0 (35.6) (46%) items (inc. Equity in earnings) 14.2 6.0 (8.2) (58%) Non-recurring it
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 due to movements to adjust inventory levels in some markets. ［-］ ・Automotive applications increased driven by recovery in automotive production. ［+］ Vo
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 FY2022 FY2023 Incr. FY2022 FY2023 Incr. Terms of 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 FY23.1H [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales were down due to movements to adjust inventory levels in so
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 FY23.1H [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales of solar cell encapsulants remained firm [+]Terms of trade Elastomer
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 FY23.1H [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales were down due to sluggish demand in semiconductor and [-]Sales volume Sem
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 FY23.1H [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales were down due to weaker demand ・Terms of trade deteriorated, as
Slide 13: Non-recurring Items
6) Non-recurring Items (Billions of Yen) () Denotes a minus FY2022 FY2023 Incr. Items 1st Half 1st Half (Decr.) Loss (gain) on sales and disposal of non-current assets (1.5) (0.6) 0.9 Impairment loss (3.8) (12.4) (8.6) Others 0.2 2.2 2.0 Non-recurring items total (5.1) (10.8) (5.7) 1. Results for 1s
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 Sep.2023 (Decr.) Mar. 2023 Sep.2023 (Decr.) Current assets 1,094.3 1,082.5 (11.8) Liabilities 1,184.9 1,174.8 (10.1) Cash and cash equivalents 186.3 202.
Slide 15: Consolidated Statement of Cash Flow
8) Consolidated Statement of Cash Flow (Billions of Yen) () Denotes a minus FY2022 FY2023 Incr. Items 1st Half 1st Half (Decr.) Ⅰ．Cash flows from operating activities (a) 21.9 85.8 63.9 Ⅱ．Cash flows from investing activities (b) (14.0) (35.5) (21.5) Free cash flows (a)+(b) 7.9 50.3 42.4 Ⅲ．Cash flows
Slide 16: 2. Outlook for FY2023
2. Outlook for FY2023 (April 1, 2023 – March 31, 2024) Mitsui Chemicals, Inc. has changed its business segment structure effective April 1, 2022. Results for FY2021 and prior years based on the new business segments are reference figures which have been prepared for the purpose of comparison with fi
Slide 17: Highlights of Consolidated Financial Outlook
1-1) Highlights of Consolidated Financial Outlook (Billions of Yen) () Denotes a minus FY2023 FY2023 FY2022 Incr.(Decr.) Previous Outlook Outlook Items (on Aug 4,2023) 1st Half Full Year 1st Half Full Year Full Year ％ 1st Half Full Year Sales revenue 951.1 1,879.5 823.7 1,757.0 (122.5) (7%) 870.0 1,
Slide 18: Highlights of Outlook by Business Segment
1-2) Highlights of Consolidated Financial Outlook Operating Income before Special Items of Outlook by Business Segment (compared with previous outlook for FY2023) (Billions of Yen) () Denotes a minus Operating income before special items FY2023 Comments Segment Previous [+] denotes profit trigger Ou
Slide 19: Highlights of Consolidated Financial Outlook (Operating Income before Special Items)
1-3) Highlights of Consolidated Financial Outlook (Operating Income before Special Items) Profit/loss Factors Comments trigger ・Sales for agrochemicals expected to remain firm. ［+］ ・Automotive applications expected to recover; solar cell encapsulants expected to remain firm. ［+］ Volume ・Semiconducto
Slide 20: Life & Healthcare Solutions: Outlook and Business Overview
2-1) Life & Healthcare Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales staying on par with the year-ago level [+]Terms of
Slide 21: Mobility Solutions: Outlook and Business Overview
2-2) Mobility Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales increase driven by recovery in automotive applications and f
Slide 22: ICT Solutions: Outlook and Business Overview
2-3) ICT Solutions: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・EUV pellicle sales expected to remain firm; sales increase from acquisi
Slide 23: Basic & Green Materials: Outlook and Business Overview
2-4) Basic & Green Materials: Operating Income before Special Items and Business Overview Comments Business Overview of FY23 (Outlook): [+] denotes profit trigger Movement of Operating Income before Special Items [-] denotes loss trigger ・Sales expected to decrease due to weaker demand [-]Sales volu
Slide 24: Operating Income before Special Items by Segment (2H vs. 1H of FY2023)
3) Operating Income before Special Items by Business Segment (2H vs. 1H of FY2023) (Billions of Yen) () Denotes a minus Operating income before special items FY2023 Comments Segment 2H Incr. [+] denotes profit trigger 1H [-] denotes loss trigger Outlook (Decr.) [+]Vision care, Nonwovens and Agrochem
Slide 25: Consolidated Statement of Cash Flow (Outlook)
4) Consolidated Statement of Cash Flow (Billions of Yen) () Denotes a minus FY2023 FY2023 FY2022 Previous Outlook Outlook Incr.(Decr.) (on Aug 4,2023) Items (b)-(a) Full Year(a) Full Year(b) Full Year Ⅰ．Cash flows from operating activities (a) 101.2 130.0 28.8 141.0 Ⅱ．Cash flows from investing activ
Slide 26: 3. Appendix
3. Appendix 1) Performance Trends by Business Segment 2) Trends in Product Prices 3) Sales Revenue Increase/Decrease (Year on Year) by Business Segment 4) Sales Revenue and Operating Income before Special Items by Business Segment 5) Operating Income before Special Items by Business Segment (2Q vs.
Slide 27: Performance Trends by Business Segment
1) Performance Trends by Business Segment 200.0 Basic & Green 188 40.0 Materials 161.8 ICT 47.0 Solutions 113.9 112.0 138 77.8 17.8 28.0 85.1 60.0 Mobility 88 72.3 23.8 Solutions 9.0 19.9 30.2 57.0 17.4 25.3 49.3 38 33.2 Life & 35.6 17.8 65.0 Healthcare Solutions 29.2 36.0 14.8 23.1 24.9 -12 (3.0) O
Slide 28: Trends in Product Prices
2) 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 2020 2021 2022 2023 Month Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.
Slide 29: Sales Revenue Increase/Decrease by Business Segment (1)
3-1) Sales Revenue Increase/Decrease (Year on Year) by Business Segment Life & Healthcare （Unit:Billions of yen） () Denotes 売上高 a minus ➢ Volume (6.7) billion yen - Sales of vision care materials and nonwovens decreased. (3.0) ➢ Prices +3.7 billion yen - Foreign exchange impact, etc. （Unit:Billions
Slide 30: Sales Revenue Increase/Decrease by Business Segment (2)
3-2) Sales Revenue Increase/Decrease (Year on Year) by Business Segment （Unit:Billions of yen） ICT () Denotes a minus 売上高 ➢ Volume (11.0) billion yen - Sales of semiconductor and smart phone applications decreased. ➢ Prices +6.2 billion yen (4.8) - Foreign exchange impact, etc. （Unit:Billions of yen
Slide 31: Sales Revenue and Operating Income before Special Items by Business Segment
4) Sales Revenue and Operating Income before Special Items by Business Segment (Billions of Yen) () Denotes a minus Sales revenue Segment FY2022 FY2023 2H Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Outlook Life & Healthcare Solutions 58.7 63.4 64.7 71.4 57.1 62.0 183.9 Mobility Solutions 120.6
Slide 32: Operating Income before Special Items by Segment (2Q vs. 1Q of FY2023)
5) Operating Income before Special Items of Outlook by Business Segment (2Q vs. 1Q of FY2023) (Billions of Yen) () Denotes a minus Operating income before special items FY2023 Comments Segment Incr. [+] denotes profit trigger 1Q 2Q [-] denotes loss trigger (Decr.) Life & Healthcare 4.5 6.7 2.2 [+]Vi
Slide 33: Outline of Business Segments
6) 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 (SYNTEX™, AIRYFA™, TEKNOROTE™), Solutions Agrochemicals and Medi
Slide 34: Data Highlights: Sales, Profit, Cash Flows
7-1) Data Highlights () Denotes a minus ～FY19：J-GAAP / FY20～：IFRS （Billions of Yen） Total Assets （Billions of Yen） 2,500 Net Sales/Sales Revenue 2,200 2,068.2 2,000 1,935.0 1,879.5 2,000 1,757.0 1,612.7 1,800 1,482.9 *1 1,500 1,328.5 1,339.0 1,211.7 1,558.1 1,212.3 1,600 1,501.1 1,480.1 1,431.3 1,00
Slide 35: Data Highlights: Capex, Depreciation, R&D, Net D/E Ratio
7-2) Data Highlights ～FY19：J-GAAP / FY20～：IFRS （Billions of Yen） 250.0 Capital Expenditure （Billions of Yen） Depreciation & Amortization 207.1 180.0 150.0 200.0 168.0 *3 150.0 *2 92.1 96.0 *1 93.2 100.0 76.6 84.2 100.0 81.2 76.3 52.1 45.4 61.9 44.1 45.7 49.5 50.0 50.0 0.0 0.0 '16 '17 '18 '19 '20 '21
Slide 36: Chemistry for Sustainable World
Chemistry for Sustainable World Challenge Diversity One Team Copyright © 2023 Mitsui Chemicals, Inc.