Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (November 2022)
40 slides from Mitsui Chemicals's investor presentation, Nov 28, 2022
Slide 1: FY22-2 CEO Presentation
FY22-2 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals, Inc. President & CEO Nov. 28, 2022
Slide 2: Message
Message Nov 28, 2022 Mitsui Chemicals celebrated its 25th anniversary on October 1 this year. Having come this far, I would like to express my sincere gratitude to all the stakeholders that have helped us on this journey since the company’s foundation. The roots of Mitsui Chemicals can be traced bac
Slide 3: Contents
Nov 28, 2022 Contents ▶ Business Performance Full-year outlook for FY22 ▶ VISION 2030 Basic policies toward around 2025 Measures in line with our five-point Basic Strategy
Slide 4: FY22 Full-Year Outlook
4 FY22 Full-Year Outlook Nov 28, 2022 Operating income before special items: 140 billion yen (same as outlook in August) Net income attributable to owners of the parent: 105 billion yen (up 5 billion yen from outlook in August) Growth domains: 110 billion yen (up 5 billion yen from outlook in August
Slide 5: Shareholder Returns
5 Shareholder Returns Nov 28, 2022 Implementing flexible shareholder returns Memorial ■ Dividends (interim) 5JPY + 120 ● FY22 dividend outlook ■ Dividends (year-end) ■ Memorial 115JPY JPY + ー Net income + Acquisition Interim Year-end Full year 100 100 100 Acquisition of treasury 60 + 60 = 120 of tre
Slide 6: Contents
Nov 28, 2022 Contents ▶ Business Performance Full-year outlook for FY22 ▶ VISION 2030 Basic policies toward around 2025 Measures in line with our five-point Basic Strategy
Slide 7: Progress in Our Growth Domains
7 Progress in Our Growth Domains Nov 28, 2022 With steady growth in our growth domains, we are aiming to reach 200 billion yen in operating income before special items by 2025 (JPY bn) 250 50 200 70 161.8 40 140 47 77.8 ＋21.7 37 80 B&GM 110 31.5 60 ICT 30.2 88.3 48 Mobility 33.2 65 90 L&H 24.9 30.5
Slide 8: Basic Management Policies for Achieving the 2025 Targets of VISION 2030
Basic Management Policies 8 for Achieving the 2025 Targets of VISION 2030 Nov 28, 2022 One of our key financial targets for 2025 is to reach 200 billion yen in operating income before special items. To help achieve this, we will implement strategies based on the basic policies laid out below in a sp
Slide 9: Pursuing Our 2025 Target for Operating Income Before Special Items
9 Pursuing Our 2025 Target for Operating Income Before Special Items Nov 28, 2022 Getting steady profit growth Ramping up M&A and partnership-related from our existing businesses investments in existing areas of business On top of transforming our portfolio through the acquisition Breakdown of incre
Slide 10: KPI Management for Sustainable Growth
10 KPI Management for Sustainable Growth Nov 28, 2022 Operating income before special items: Net income attributable to owners of the parent: 250 billion yen 140 billion yen ROIC: 8.0% or more Net D/E: 0.8 or less ROE: 10% or more Increasing profit Minimizing risk Accelerating growth Contributing to
Slide 11: VISION 2030 Basic Strategy
11 VISION 2030 Basic Strategy Nov 28, 2022 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 12: Contents
Nov 28, 2022 Contents ▶ Business Performance Full-year outlook for FY22 ▶ VISION 2030 Basic policies toward around 2025 Measures in line with our five-point Basic Strategy
Slide 13: Life & Healthcare Solutions
Pursuing Business Portfolio Transformation 13 Life & Healthcare Solutions Nov 28, 2022 Providing solutions that contribute to life, health 90B and comfortable lifestyles as our first pillar of earnings ■ Return from previous investments yen ■ Organic growth ■ New businesses + M&A Current business en
Slide 14: Life Care: Vision Care
14 Life Care: Vision Care Nov 28, 2022 Expanding the businesses of coating materials and processing equipment on top of our existing portfolio of ophthalmic lens materials Ophthalmic lens value chain Lens Lens Prescription Glasses Consumers polymerization process manufacturers laboratory process ret
Slide 15: Wellness: Agrochemical Products
15 Wellness: Agrochemical Products Nov 28, 2022 Expanding registrations for our growth drivers in key overseas countries and bolstering MMAG’s production network for active ingredients ✓ Speeding up overseas expansion for growth drivers (Market launch) Sales revenue (JPY bn) 180 Active ■ Overseas 20
Slide 16: Mobility Solutions
Pursuing Business Portfolio Transformation 16 Mobility Solutions Nov 28, 2022 Providing unique materials, features and services to help solve 80B social challenges and let us achieve sustainable business growth ■ Return from previous investments yen ■ Organic growth Current business environment Whil
Slide 17: Materials Business
17 Materials Business Nov 28, 2022 Speeding up our transition to a Increasing production capacity focus on growth markets and differentiation to help capture growing demand Differentiating ourselves from the competition with elastomers and composite materials (e.g. ADMER™, PP compounds) New plant fo
Slide 18: Materials Business: PP Compounds
18 Materials Business: PP Compounds Nov 28, 2022 Differentiating ourselves Pursuing the use of recycled to bolster our competitive edge materials in automobiles Leveraging our strengths to bring our specialization rate from 50% to 70% Providing PP compounds made by recycling post-consumer materials
Slide 19: ICT Solutions
Pursuing Business Portfolio Transformation 19 ICT Solutions Nov 28, 2022 Creating and growing a “unique” ICT Solutions business ■ Return from previous investments 70B to grow operations here into our third pillar of earnings yen ■ Organic growth ■ New businesses + M&A Current business environment •
Slide 20: Semiconductor & Assembly Solutions
20 Semiconductor & Assembly Solutions Nov 28, 2022 Bolstering our global capabilities for technical support, evaluation and marketing Capabilities for Innovative Solutions Center for Providing evaluating Information & Communication Technology information on customer To be established in 2023 (in Nag
Slide 21: Imaging Solutions
21 Imaging Solutions Nov 28, 2022 Speeding up development in aim of being the first to meet cutting-edge needs Making group-wide efforts to supply products Strengthening our setup in response to significant growth in the XR market for APEL™ to aid in the evolution of smartphone Creating new business
Slide 22: Converting Solutions
22 Converting Solutions Nov 28, 2022 Expanding business for eco-friendly packaging Sales volume for eco-friendly applications (T) PUD*: Rising demand for barrier coatings to be used on monomaterial packaging *Polyurethane dispersions CAGR of 50% Example of use with monomaterial barrier-coated packag
Slide 23: Basic & Green Materials
Pursuing Business Portfolio Transformation 23 Basic & Green Materials Nov 28, 2022 Accomplishing business restructuring and ■ Return from previous investments leading our Group’s circular economy revolution ■ Organic growth + structural reform 50B yen Current business environment 40B • Major fluctua
Slide 24: Restructuring & Bolstering Downstream Businesses
24 Restructuring & Bolstering Downstream Businesses Nov 28, 2022 Further reducing volatility by transferring our entire shares in MPS (JPY bn) 77.8 ■ Operating income (three businesses for structural reform, not including MPS) ■ Operating income (MPS) ■ Operating income (others) Further improvements
Slide 25: Polyurethane Business: MDI
25 Polyurethane Business: MDI Nov 28, 2022 Facilitating further improvements to our earnings by maximizing our ratio of high-performance products and increasing our production capacity Operating income trend for Kumho Mitsui Chemicals Plant expansion Going from 410 KT/year to 610 KT/ year in FY24 Ra
Slide 26: Sustainable Transformation for Naphtha Crackers & Petrochemical Complexes
26 Sustainable Transformation for Naphtha Crackers & Petrochemical Complexes Nov 28, 2022 Transitioning to next-gen naphtha crackers and carbon-neutral petrochemical complexes Alternative raw materials Bio-based ethylene, etc. Derivatives ✓ Innovating in the upstream parts of our plants value chain
Slide 27: Carbon Neutral Strategy
27 Initiatives for Carbon Neutrality Carbon Neutral Strategy Nov 28, 2022 ② Contributing to society through our products ➀ Reducing our GHG emissions (Scopes 1 and 2) Low-carbon raw materials and fuels, energy efficiency, and renewable energy (maximizing avoided emissions) Expansion of Blue Value™ p
Slide 28: We're reshaping the world from a material level
28 Bolstering Circular Economy Initiatives Building Concept Brands Nov 28, 2022 We explore the materials of materials We’re reshaping the world from a material level Achieving carbon neutrality Creating a circular economy with biomass through recycling Bio & Eco Solutions for PLAYERs Recycling Solut
Slide 29: Stable Procurement of Bio-Based Raw Materials & Rollout of Bio-Based Derivatives
Stable Procurement of Bio-Based Raw Materials & 29 Rollout of Bio-Based Derivatives Nov 28, 2022 Making both upstream and downstream improvements to naphtha crackers as further efforts toward carbon neutrality Stable procurement of bio-based raw materials Waste cooking oil, residue oil, etc. Investe
Slide 30: Pursuing a Circular Economy Through the Implementation of Recycling
Pursuing a Circular Economy Through the 30 Implementation of Recycling Nov 28, 2022 Launching production of chemically recycled Polyolefin monomaterial packaging polyethylene derived from plastic waste Mixture of Mitsui Chemicals Group materials Pyrolysis different materials enabling monomaterial de
Slide 31: Concepts for Creating & Cultivating New Businesses
Building Solutions-Based Business Models 31 Concepts for Creating & Cultivating New Businesses Nov 28, 2022 Designing and optimizing new value chains to capitalize on the flow of people, goods and data Optimizing the circulation Building systems for of agricultural produce to the separation and mini
Slide 32: Creating Solutions Via Co-Creation/Collaboration
Building Solutions-Based Business Models 32 Creating Solutions Via Co-Creation/Collaboration Nov 28, 2022 Building co-creation spaces linked by cutting-edge digital technology to bolster timely collaborative efforts both in-house and with external partners Setting up co-creation spaces that employ d
Slide 33: R&D Innovation Through Digital Science
Building Solutions-Based Business Models 33 R&D Innovation Through Digital Science Nov 28, 2022 Speeding up our digital transformation in R&D Making use of cutting-edge MI & AI technology Digital Science Lab.TM to be established at the Improving the accuracy of digital experiments Sodegaura Center (
Slide 34: HR Strategy for Speeding up Portfolio Transformation
Management and Business Transformation 34 HR Strategy for Speeding up Portfolio Transformation Nov Nov 28, 2022 28, 2022 Implementing a human resources strategy based on VISION 2030 Our ideal state in 2030 Priority issues KPIs (From June 2 CEO Presentation) ① Critical positions • Successor coverage
Slide 35: Embodiment of "Self-Initiative, Autonomy and Collaboration"
Management and Business Transformation 35 Embodiment of “Self-Initiative, Autonomy and Collaboration” Nov Nov 28, 2022 28, 2022 Measures to support autonomous A cycle to promote taking up the challenge of change career development and a sense of growth ■ Evaluation system ■ Support for career develo
Slide 36: Summary of Targets-1
36 Summary of Targets-1 Nov 28, 2022 FY22 Outlook FY25 Around FY30 Target Operating income before special items (B yen) 140 200 250 Net income attributable to owners of the parent 105 110 140 (B yen) ROE 14.0% 10% or more 10% or more ROIC*1 6.3% 7.0% or more 8.0% or more Net D/E 0.74 0.8 or less 0.8
Slide 37: Summary of Targets-2
37 Summary of Targets-2 Nov 28, 2022 Contributing to a sustainable society Material topics KPIs FY22 Outlook FY30 Target • Climate change Blue Value™ products sales revenue ratio • 22% • 40％ • Circular economy • Health and livelihood Rose Value™ products sales revenue ratio • 25% • 40％ • Highly liva
Slide 38: Summary of Targets-3
38 Summary of Targets-3 Nov 28, 2022 Abilities essential to business continuity Material topics KPIs FY22 Outlook FY30 Target • Corporate Improvement of employee engagement • Implementation rate for culture improvement plans from our FY21 • Engagement score : 50% Engagement surveys survey : 100% Key
Slide 39: 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 40: 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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