Management Policy

Mitsubishi Chemical Group Corporation has formulated a new management vision “KAITEKI Vision 35” that outlines its aspirations for 2035, and a “New Medium-Term Management Plan 2029,” covering the five years from FY2025 to FY2029.

Forecast approach to leverage our strengths and enhance profitability Backcast approach from identified social issues to be addressed

KAITEKI Vision 35

Our Vision for 2035

Solving social problems and delivering impressive results to customers with the power of materials as a Green Speciality Company Solving social problems and delivering impressive results to customers with the power of materials as a Green Speciality Company

Our Vision across five business focus areas

By clarifying our Vision across five business focus areas where we can make the most of our strengths, we aim to become a Green Specialty Company that continues to provide optimal solutions for society.

Business focus areas:Eco-conscious mobility, Enable advanced data processing and telecommunications, Food quality preservation, Technology and equipment for new therapeutics, Stable supply platform for green chemicals Vision:Lead the green transformation of chemical industry globally, Leveraging materials to accelerate the shift to sustainable mobility, Supporting advancement of semiconductor ecosystem, Extending shelf-life of food products to support distributing and processing, Enabling new therapeutics through high-performance medical-grade materials Business focus areas:Eco-conscious mobility, Enable advanced data processing and telecommunications, Food quality preservation, Technology and equipment for new therapeutics, Stable supply platform for green chemicals Vision:Lead the green transformation of chemical industry globally, Leveraging materials to accelerate the shift to sustainable mobility, Supporting advancement of semiconductor ecosystem, Extending shelf-life of food products to support distributing and processing, Enabling new therapeutics through high-performance medical-grade materials

Business structure and profit level toward 2035

COI of the Chemicals Business will exceed the total COI of the Group Businesses in 2035

Business, Core operation income(Oky yen), COI margin Portfolio transformation

Organization, processes and resources to become the Green Specialty Company

“Connect” customer needs with innovative solutions to deliver the best societal outcomes with agility

Organizaton:Sales/Region, Technology/R&D, Manufacturing Personnel:Market Cultivator, Technology Interpreter, Manufacturing Enabler Process:Connect society/customer with MCG, Connect needs with technology, Connect ideas with manufacturing

New Medium-Term Management Plan 2029

Portfolio transformation and profit improvement using “Three criteria for business selection” and “Three disciplined approaches in business operations”

Three criteria for business selection:Consistent with Vision, Competitive advantage, Potential for growth Three disciplined approaches in business operations:Pricing policy, Investment decision making, Asset optimization

Business performance targets

FY29 Target COI(Oku yen)5,700, Sales revenue(Oku yen)49,500, COI12%, ROIC8%

Business portfolio reform

Re-establish Chemicals Business as a growth driver

Business segment, COI2(Oku yen), CAGR, Key changes

Five-year profit growth outlook: breakdown by key measures

COI growth through the “Three disciplined approaches in business operations”

Measures driven by the Three disciplined approaches in business operations(Approx.1,400 Oku yen)

Rationalization|Improvement of capital efficiency

Reduce fixed costs and working capital through standardization of operations and optimization of FTE

Our challenges, 5 years actions and FY29 targets

Social value|Sustainability

On the right track to achieve the target for 2030

Sustainability targets to reduce environmental impact, GHG emission reduction targets and progress(Scope 1&2)

Human capital|Our people

Assigning the right person for the right roles unleashing the potential of our human capital

We need people with, Action, Targets

Shareholder value|Capital allocation policy

Delivering stable shareholder returns while strengthening financial resilience Promoting active investment in Chemicals Business

FY25-29 Cach in30,400 Oku yen(Operating CF1 96%) Cach out30,400 Oku yen(Shareholder return/Debt repayment Approx20%, Capital and financial investment Approx80%

Shareholder value| Enhancement of shareholder value

Improve profitability through the “Three disciplined approaches in business operations” and deliver sustainable shareholder value

Crowth:Growing markets×Drive areas of strength, ROIC:5%(FY24)→8%)FY29), Shareholder return:Strengthening shareholder returns based on dividends

November 13, 2024
Corporate strategy meeting「Vision & Strategy」

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