Mitsui Chemicals, Inc. · TSE:4183
Mitsui Chemicals — Investor Presentation (November 2021)
43 slides from Mitsui Chemicals's investor presentation, Nov 25, 2021
Slide 1: CEO Presentation
FY21-2 Chemistry for Sustainable World CEO PRESENTATION 橋本 修 HASHIMOTO Osamu Mitsui Chemicals Inc. President & CEO Nov. 25, 2021
Slide 2: CEO message
We are facing an increasingly unclear global situation of late, including concerns about a resurgence of COVID-19 cases and a trend of soaring resource Nov 25, 2021 prices. Amid all this, however, we are projecting that factors such as reliable growth in our three target domains, as well as progress
Slide 3: Today's Topics
Today’s Topics First Explanation of fiscal 2021 Second VISION 2030 half earnings outlook half Long-Term Business Plan ▶ First-half results and full-year outlook ▶ Growth strategy for each part of our for fiscal 2021 business portfolio ▶ Business overview ▶ Strategies for digital transformation and c
Slide 4: 1H/FY21 Results & FY21 Outlook
1 1H/FY21 Results & FY21 Outlook Nov 25, 2021 ① The first half of FY2021 saw operating income before special items rise significantly year-on-year, boosted by strong sales for ICT-related materials, vision care materials, agrochemicals and more ② Full-year outlook for FY2021 points to record-high fi
Slide 5: Profit by Segment
2 Profit by Segment Nov 25, 2021 ① All of our three target domains are projected to achieve record-high profit for fiscal 2021, with total profit between these domains coming to 98.5 billion yen ② The Basic Materials business is projected to post a profit of 72.5 billion yen – a reflection of our re
Slide 6: Business Overview
3 Business Overview Nov 25, 2021 Recovering from COVID-19, expanding our facilities and benefiting from sales growth, making for an overall improvement to earnings Segment Area 1H→2H Summary PP compounds North America, • Despite the effects of a prolonged component shortage, the second half is Elast
Slide 7: Progress in Our Three Target Domains
4 Progress in Our Three Target Domains Nov 25, 2021 Three target domains set to reach nearly 100 billion yen in combined operating income before special items (JPY bn) Until FY18: FY19 onward: Operating income Operating income 160 (J-GAAP) before special items (IFRS) 72.5 102.1 103.5 93.4 85.1 Basic
Slide 8: Progress of Investment Projects
5 Progress of Investment Projects Nov 25, 2021 Steady implementation of growth strategies set to drive sales growth going forward Investment project (partial list) Schedule Capacity FY20 FY21 FY22 FY23 onward PP Compounds New base＠Netherland June.'20 30KT Capacity expansion of PP Compounds＠Thailand
Slide 9: Financial Infrastructure
6 Financial Infrastructure Nov 25, 2021 Maintaining a strong financial position and looking toward active investments Cash flow Net D/E (JPY bn) ■Shareholders’ equity (JPY bn) ■Operating cash flow ●Free cash flow 144.0 ●Net D/E 1.39 687.0 96.8 607.9 54.9 Active investments 349.9 0.60 FY21 Outlook ▲2
Slide 10: Shareholder Returns
7 Shareholder Returns Nov 25, 2021 Increase ■ Dividends (interim) ■ Dividends (year-end) 100 + JPY 100JPY + 110 + JPY Acquisition of FY21 Outlook ■ Memorial 90JPY treasury stock treasury stock *2 Acquisition of Acquisition of treasury stock 10B yen 100JPY 10B yen ー Net income *1 + 10B yen Interim Ye
Slide 11: Summary of Financial Targets
8 Summary of Financial Targets Nov 25, 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 1,630 Operating income before special items*1 70.9 93.4 71.6 85.1 160.0 (ROS) (5.3%) (6.3%) (5.3%) (7.0%)
Slide 12: 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 13: Today's Key Topics
1 Today’s Key Topics Nov 25, 2021 June 2, 2021 November 25, 2021 CEO Presentation #1 CEO Presentation #2 ■ Outline of VISION 2030 ■ Growth strategy for each part of our ■ Basic strategy business portfolio ■ Direction of business model transformation ■ Revision of business portfolio ■ Strategies for
Slide 14: Basic Strategy
2 Basic Strategy Nov 25, 2021 Formulated VISION 2030 Basic Strategy from VISION2030 Basic Strategy key business priorities and material topics STRATEGY Pursuing business portfolio transformation Key business priorities ▶ Rolling out a social issue perspective in all of our businesses 01 ▶ Achieving
Slide 15: VISION 2030 Business Targets
3 Business Targets Nov 25, 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 16: Business Portfolio
4 Business Portfolio Nov 25, 2021 ▶ Revising our portfolio in aim of VISION 2030 Present Revised Ⅰ Life & Healthcare Solutions ▶ Amid growing demand for both better QoL and solutions to food issues, we will flesh out our solutions in specialty markets Mobility where we can leverage our strengths, tu
Slide 17: Transfer of Our Main Businesses to New Portfolio
5 Transfer of Our Main Businesses to New Portfolio Nov 25, 2021 Current Revised Mobility Life & Healthcare Solutions Elastomers, performance compounds Healthcare + agrochemical products Newly established Medical Business Development Division Overseas PP compounds, solutions business Performance poly
Slide 18: Profit Trends by Business Portfolio
6 Profit Trends by Business Portfolio Nov 25, 2021 Proactively investing into Life & Healthcare and ICT with the aim of improving operating income before special items to 250 billion yen by 2030 250 Mobility Solutions Life & Healthcare billion yen ROIC 200 Solutions 160 billion yen FY30 billion yen
Slide 19: Life & Healthcare Solutions Business Strategy – Part 1
7 Life & Healthcare Solutions Business Strategy – Part 1 Nov 25, 2021 Providing solutions that contribute to life, health and comfortable lifestyles as our first pillar of earnings Contributions to solving social challenges Faced with increases to the world’s population and healthy life expectancy –
Slide 20: Life & Healthcare Solutions Business Strategy – Part 2
8 Life & Healthcare Solutions Business Strategy – Part 2 Nov 25, 2021 90B Vision care ◆ Steadily capturing a market Also cultivating other pillars Life care yen Nearsighted population: 30% ➡ 50% beyond vision care (by FY2050) ◆ Contributing to ◆ Developing new eco-friendly good health Living environ
Slide 21: Life & Healthcare Solutions Business Strategy – Highlights
9 Life & Healthcare Solutions Business Strategy – Highlights Nov 25, 2021 Wellness Goal To be an R&D-oriented company with a global presence in the agrochemical sector Internal: Growing business through the continual creation of new active ingredients and the pursuit of Approach regional strategies
Slide 22: Mobility Solutions Business Strategy – Part 1
10 Mobility Solutions Business Strategy – Part 1 Nov 25, 2021 Providing unique materials, features and services to help solve social challenges and let us achieve sustainable business growth Contributions to solving social challenges We are working to achieve mobility-related sustainability in socie
Slide 23: Mobility Solutions Business Strategy – Part 2
11 Mobility Solutions Business Strategy – Part 2 Nov 25, 2021 80B Elastomers TAFMER™ yen ◆ Capturing demand in growing markets, such as the trend toward monomaterial packaging and use in solar Offering solutions cell encapsulants for the mobility 60B ◆ Bolstering production capacity in response to d
Slide 24: Mobility Solutions Business Strategy – Mobility of the future
12 Mobility Solutions Business Strategy – Part 3 Nov 25, 2021 All business Providing solutions toward the “mobility of the future” – which is focused on coexisting with society – while also exploring business opportunities around the social challenges that are areas becoming increasingly related to
Slide 25: ICT Solutions Business Strategy – Part 1
13 ICT Solutions Business Strategy – Part 1 Nov 25, 2021 Creating and growing a “unique” ICT Solutions business to grow operations here into our third pillar of earnings Contributions to solving social challenges Aiding the evolution of AI, beyond-5G and other such technologies that can support safe
Slide 26: ICT Solutions Business Strategy – Part 2
14 ICT Solutions Business Strategy – Part 2 Nov 25, 2021 70B ICROS™ Tape Introducing next-gen products able Semiconductor & assembly yen ◆ Continually introducing new grades to contribute to semiconductor in areas of growth process innovations ◆ Bolstering production capacity in response to demand E
Slide 27: ICT Solutions Business Strategy – Part 3
15 ICT Solutions Business Strategy – Part 3 Nov 25, 2021 Establishing the Innovative Solutions Center for Information & Communication Technology Semiconductor By vertically integrating everything from molecular design and synthesis technology through to customer process compatibility evaluations, we
Slide 28: Basic & Green Materials Business Strategy – Part 1
16 Basic & Green Materials Business Strategy – Part 1 Nov 25, 2021 Accomplishing business restructuring and leading our Group’s circular economy revolution Contributions to solving social challenges Reducing environmental impacts and bringing about a decarbonized society Approaches to business Restr
Slide 29: Basic & Green Materials Business Strategy – Part 2
17 Basic & Green Materials Business Strategy – Part 2 Nov 25, 2021 Reforming product portfolio Bolstering downstream businesses New facilities for high-performance PP Responding to demand for lighter and thinner vehicles, packaging materials, containers, etc. Market Share Increasing high-performance
Slide 30: Basic & Green Materials Business Strategy – Part 3
18 Basic & Green Materials Business Strategy – Part 3 Nov 25, 2021 (JPY bn) ■ Operating income before special items (three products for structural reform) 72.0 ■ Operating income before special items (others) *Revised values excluding impact of market conditions *Operating income until FY19 and inve
Slide 31: Next-Generation Business Strategy
19 Next-Generation Business Strategy Nov 25, 2021 Boosting our efforts toward solutions businesses that utilize our R&D capabilities and assets Bolstering our New Business Incubation Center Expanding into vital sensing services ・ Leveraging external ties to improve our capabilities for business PIEZ
Slide 32: R&D Strategy
20 R&D Strategy Nov 25, 2021 Looking forward to a world beyond 2030, thinking about what sort of future we would want to create here, then leaning on this to continue creating new value Forecast- based R&D Backcast-based R&D: A strategy to help solve the social challenges of a difficult-to-predict f
Slide 33: Our DX Vision and Four Basic Strategies
21 Our DX Vision and Four Basic Strategies Nov 25, 2021 Implementing a corporate transformation in aim of achieving our MCI DX Vision MCI DX Vision By having all members of the Mitsui Chemicals Group utilize data and digital technologies, we aim to create innovative products, services and business m
Slide 34: Example of DX initiatives
22 Example of DX initiatives Nov 25, 2021 Making prompt use of digital transformation to help achieve a corporate transformation Bolstering our development capabilities Pursuing innovation for our operations Transforming our business models Visualizing group-wide organizational and personnel informa
Slide 35: Efforts for a Carbon Neutral Strategy (Reducing In-House GHG Emissions)
23 Efforts for a Carbon Neutral Strategy(Reducing In-House GHG Emissions) Nov 25, 2021 ▲40％ Energy Growth efficiency, etc. investment Restruc- ▲80％ turing ① or more 6.15m Low-carbon ② ③ Energy tons 5.06m raw materials efficiency Renewable tons and fuels energy 3.75m tons FY2013 FY2019 FY2030 FY2050
Slide 36: Efforts for a Carbon Neutral Strategy (Through Our Products)
(Contributing to society 24 Efforts for a Carbon Neutral Strategy through our products) Nov 25, 2021 Japan’s first ➢ ➢ ISCC認証 ISCC ： Already certification: 大阪工場 obtained 取得完了、市原工場・三井化学東セロ for Osaka (MCI,PRM) 取得準備中 Works (MCI, PRM), and now preparing to obtain for Ichihara Works and Mitsui Chemicals
Slide 37: Increasing Our Social Contribution Value Through Blue Value and Rose Value Products
25 Increasing Our Social Contribution Value Through Blue Value™ and Rose Value™ Products Nov 25, 2021 Environmental Contribution Value Blue Value™ QOL Improvement Contribution Value Rose Value™ Reducing CO2 Conserving resources Coexisting with nature Enriching life and society Extending healthy life
Slide 38: Examples of Blue Value and Rose Value Products
26 Examples of Blue Value™ and Rose Value™ Products Nov 25, 2021 Environmental Contribution Value Blue Value™ QOL Improvement Contribution Value Rose Value™ Reducing CO2 Conserving resources Coexisting with nature Enriching life and society Extending healthy life-span Protecting food Basic & Green M
Slide 39: Reviewing Our Management Planning System
27 Reviewing Our Management Planning System Nov 25, 2021 ① Integration of financial and non-financial metrics ② Business evaluations and investment decisions In addition to looking at ROIC and operating income before special To make VISION 2030 a reality, it will be essential to items, we will facto
Slide 40: Investment Resource Allocation
28 Investment Resource Allocation Nov 25, 2021 Growth investments ￥1.8tn Strategic investments DX strategy ￥100bn ￥900bn Internal growth investments ￥900bn CN strategy ￥140bn *Maintenance investments not included *Total amount for the 10-year period from FY21 to FY30 FY21比2倍
Slide 41: VISION 2030 Business Targets
29 Business Targets Nov 25, 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
Slide 42: 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 43: 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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