2025 Long-Term Business Plan CEO Explanation

40 Pages·2016·2.9 MB·English

by  Mitsui Chemicals, Inc.

Nov.15 PM rev.
Nov 16, 2016
2025 Long-Term
Business Plan
CEO Explanation
Creating New Customer Value through Innovations
淡輪 敏
Tsutomu Tannowa
Mitsui Chemicals Inc.
President & CEO
Nov. 16, 2016
Nov 16, 2016
Contents
Business Performance

Summary of 2014 Mid-Term Business Plan

2025 Long-Term Business Plan

Sustainable Growth
1 FY2016 Outlook (Revised Nov.1, 2016)
Nov 16, 2016
△ Denotes a minus
(JPY bn)
Increase
FY2014 FY2015 FY2016
Items (Decrease)
Results Results Outlook FY14→FY15 FY15→FY16
1,550 1,344 1,174 △ 206 △ 170
Sales
42.0 70.9 88.0 28.9 17.1
Operating income
2.4 △ 7.7 △ 8.0 △ 10.1 △ 0.3
Non-operating income
44.4 63.2 80.0 18.8 16.8
Ordinary income
Extraordinary
△ 8.6 △ 21.9 △ 7.0 △ 13.3 14.9
gains/losses
17.3 23.0 50.0 5.7 27.0
Net income*
Exchange rate(JPY/US＄) 110 120 103 10 △ 17
Domestic Standard
63,500 42,800 32,200 △ 20,700 △ 10,600
Naphtha price(JPY/KL)
*Net income always refers to Profit attributable to owners of parent
2 FY2016 Operating Income Outlook
*After segment adjustment
Nov 16, 2016
(JPY bn) △ Denotes a minus
Increase
FY2014* FY2015 FY2016
Segment (Decrease) Remarks
Results Results Outlook FY14→FY15 FY15→FY16
(+)Increase sales volume
Mobility 30.8 44.9 40.0 14.1 △4.9
(-)Appreciation of JPY
(+)Increase sales volume
Health Care 9.2 11.6 15.0 2.4 3.4
Vision care, Dental materials
(+)Increase sales volume
Food & Packaging 13.5 20.3 19.0 6.8 △1.3
(-)Appreciation of JPY
(+)High run rate of crackers
Basic Materials △6.5 1.0 22.0 7.5 21.0
(+)market conditions
(+)Terminated PU plants
Others △5.0 △6.9 △8.0 △1.9 △1.1
Total 42.0 70.9 88.0 28.9 17.1
Trade and Exchange rates downturns will be offset by sales growth in
targeted business domains from capacity expansion and
successful restructuring efforts
*The segment amounts of FY14 always refer to approximate estimates to compare with FY16
3 Operating Income Net Income
Nov 16, 2016
Mobility Health Care Food & Packaging Basic Materials
2020
FY2014 FY2015 FY2016 Around
Target
Results Results Outlook
（JPY bn） 100
88
▲ Denotes a minus
70.9
22
1
20.3
19
42.0
11.6
13.5 15
50
50
9.2
44.9 40
30.8
23
17.3
▲6.5
Corporate wide costs and others
4 Sales Portfolio in Targeted Business Domains
Nov 16, 2016
✔ Basic Materials sales decrease due to restructuring and low oil prices
✔ Steadily expand sales qty of targeted business domains in spite of weaker naphtha prices
✔ Changes in stable portfolio resilient to economic changes
（Sales: JPY bn） Mobility Health Care Food & Packaging Basic Materials
1,550
1,344
40%
1,174
54%
47%
675
667 619
60%
46% 53%
FY2014 FY2015 FY2016 Around2020
Domestic Standard ROeuvtliosoekd (Target)
Naphtha Price
（JPY/kl） （63,500） （42,800） （32,200）
5 Summary of 14MTBP (1)
Nov 16, 2016
（FY15→FY16）
FY2014 FY2015 FY2016
(Outlook)
▲ Denotes a minus
Sales -Naphtha price declines
-Termination of large-scale plants
1,174
1550.1 1343.9
13％ -PU business reassigned to
▲
(JPY bn) non-consolidated status
Operating income
-Achievement of restructuring
88.0
42.0 70.9 -Expansion of targeted business
+24%
domains
(JPY bn)
Net income
50.0
17.3 23.0 -Normal level of
+118％
extraordinary losses
(JPY bn)
ROE
12.7％
4.5% 5.8％ -Improve net income
6.9 im provement
point
Net D/E
0.90
1.22 1.03 -Reduce interest-bearing debt
0.13 imp rovement
point
Increase dividends ¥9/share → -I n cr ea se d interim dividends
3consecutive ¥5/share ¥8/share ¥10/share -In cr ea se d iv id en ds
for three consecutive terms
t erms
7 7
Operating Net Initial
Summary of 14MTBP (2)
6
Income Income Plan
Nov 16, 2016
▲ Denotes a minus
OP from
Operating Net D/E
targeted （FY2013→FY2016）
Improvement
income business domains
3.5x 1.6x 0.54 88 billion
Point
yen
✔Implement restructuring Restore
✔Further expansion of financial
70.9
targeted business domains soundness
60
42
47 50
35
24.9 billion
yen
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Outlook
▲25.1
11MTBP 14MTBP
✔ Confident about the direction of growth in 2014 MTBP
✔ Aiming for further development and expansion in
the Long-Term Business Plan
Nov 16, 2016
Contents
Business Performance

Summary of 2014 Mid-Term Business Plan

2025 Long-Term Business Plan

Sustainable Growth
7 Passion for 2025 Long-Term Business Plan
Nov 16, 2016
Next year, in 2017, Mitsui Chemicals Inc. will celebrate the 20th anniversary of its establishment in
1997. In an environment that is changing faster than ever, we have been discussing what must be
continued and what must be changed for the Mitsui Chemicals Group to promptly adapt to the
rapid changes.
This year we have incorporated which activities we should engage in and what kind of
contributions we should make starting now in the 2025 Long-Term Business Plan, in order to
achieve our corporate mission: “To contribute broadly to society by providing high-quality
products and services to customers through innovation and the creation of materials, while
keeping in harmony with the global environment.” We will share this plan throughout the Group
and bring into three-year business plan annually and implement it.
Completing this plan requires each one of our employees to aggressively take on difficult
challenges, such as changing how they think and work.
Through this plan, I hope that you will understand and identify with our vision for a future society
and how we will contribute to it as a company and continue to
November 16, 2016
support us in creating a better society.