＞Briefing Material

＞Archived Conference

---

＞PDF for printing

Mitsubishi Chemical Holdings Corporation (MCHC) has formulated a new management policy “Forging the future”, covering the period up to the end of FY 2025.

In February 2021, MCHC announced its medium-term management plan, “APTSIS 25 Step 1”, which covers the two years from FY 2021. “Forging the future" is a new management policy based on the assumptions made at the time the plan was formulated and on a review of the measures needed to maximize corporate value.

We aim to sustainably increase value for our stakeholders with a clearer strategy to drive operational excellence and unlock the growth potential of our businesses.

Ⅰ．Strategic Priorities

 
　　1．Growth, Performance, and Sustainability
　　2．Business to Exit
　　3．Strategic Cost Transformation
　　4．Leaner Structure to Execute Strategy
　　5．Strategic Capital Allocation
 

　1．　Growth, Performance, and Sustainability

 
(1)  Our Portfolio Assessment Criteria
　We will focus on businesses in attractive markets where MCHC is positioned to win.
 
　i. Market Attractiveness
　　・Market growth
　　・Potential Risk Factors
　　・ROS / ROIC / EBITDA Margin
 
　ii. Strength
　　・No.1 / 2 Market Position Potential
　　・Technological Innovation
　　・Competitive Advantage
 
　iii. Carbon Neutrality
　　・CO₂ Emissions Level
　　・CO₂ Reduction Potential
　　・Values to Customers / Society

(2)  Our Strategic Focus
　Based on the above evaluation criteria, Electronics and Health Care & Life Science will be positioned as our strategic focus.
 
　　[Our strategic focus] 　　[Electronics]

　　　We will aim to achieve further growth in target domains by using MCHC’s key technologies.
　　[Health Care & Life Science]

　　　We will lead innovation in targeted areas in the food sector, and in healthcare we will realize the value of late-stage development assets such as a potential coronavirus vaccine.  
　　[Markets where we are strong: Solid performance materials businesses]

　　　We will aim to further increase competitiveness in each of the domains including chemicals, polymers, films, and molding materials
　　[Markets where we are strong: Industrial gas]

　　 We will take strategic initiatives to capture growth, reduce costs and improve profitability.
 
(3)  Digitalization

　By bolstering our digital strategy, we will enable customer experience and end-to-end business process transformations.
 
(4)  Carbon Neutrality by 2050

　　We will take a practical path towards carbon neutrality by 2050 while achieving sustainable growth.  

２．Business to Exit

 
　　We will lead the consolidation of domestic basic chemical industries towards carbon neutrality by 2050 via restructuring, including through the carving out and future exit of our petrochemicals and coal chemicals.
　　

 

3．Strategic Cost Transformation

 
We will reduce costs by more than 100 Billion yen per year by fiscal 2025 through the following measures for each item.  

4．Leaner Structure to Execute Strategy

 

From April 1, 2022 onward, we will reform our organizational structure to create a flat organization with a "One Company, One Team" culture. In addition, we will shift from a legal entity-based to a business unit and corporate function-based operation to clarify where responsibility lies. 　　　　　
 

5．Strategic capital allocation

 

　We will strategically reallocate available capital from operational efficiency and divestures.  

Ⅱ．Performance Targets for 2025

 
Improved operational efficiency and financial strength create solid foundation for accelerated growth.
 
(1)  Group target

	FY2020 Actual	FY2021 Forecast		FY2025 Base Target
Group Revenues	JPY 3,258 Bil	JPY 3,886 Bil		JPY 3,000 Bil
Core Operating Income	JPY 175 Bil	JPY 300 Bil		JPY 350~370 Bil
EBITDA	JPY 406 Bil	JPY 530 Bil		JPY 540~560 Bil
EBITDA margin	12.5%	13.6%		18~20％
EPS	JPY (-5.3)	JPY 108.6		JPY 125-145
Financial Leverage (Net Debt / EBITDA)	5.3x	3.8x		2.0-3.0x
ROE	-0.6%	11.0%		≧10%
ROIC	3.3%	5.4%		> 7%

 
(2)  Targets by main segment

	Performance Products	MMA	Healthcare	Industrial Gas (Request-based)
EBITDA	≈ JPY 180 Bil	≈ JPY 70 Bil	≈ JPY 70 Bil	≈ JPY 220 Bil
EBITDA margin	≈ 15%	≈ 26%	≈ 15%	≈ 25%

 

Ⅲ．Road Map

 

We will implement a firm strategy to increase shareholder value in accordance with the following road map.