Message from the President

Hello, everyone. I am Manabu Chikumoto, president and CEO of Mitsubishi Chemical Group Corporation. This year marks my third year since assuming the role of president in April 2024.

When I took office, the Group had not yet fully translated its strengths in diverse technologies and business foundations into earnings growth and corporate value. I have identified improving the profitability of the Chemicals Business as our highest priority and have spent the past two years implementing structural reforms. Based on our three criteria for business selection (consistent with Vision, competitive advantage, and potential for growth), we have clarified our business portfolio and implemented our three disciplined approaches in business operations (pricing policy, investment decision making, and asset optimization). As a result, we advanced business restructuring and divestitures equivalent to approximately ¥490.0 billion in sales revenue, exceeding our initial plan, including transactions that have already been approved. Moreover, through pricing policy and asset optimization, we improved earnings by approximately ¥58.0 billion in fiscal 2025.

Alongside structural reforms, we continued to invest for future growth. We have prioritized investments in areas where we hold a competitive advantage, such as carbon fibers & composite, semiconductor precision cleaning, polyester films, and high-performance engineering plastics. We aim to translate these investments into meaningful earnings contributions from fiscal 2026 onward. I believe these businesses, chosen by customers for their superior quality and technology, will serve as key drivers of our future growth.

We are now about to transition to a new phase focused on offensive decision-making for future growth.

From fiscal 2026 onward, we will further concentrate management resources on our next-generation and growth driver quadrants based on a business portfolio clearly centered on profitability and growth potential. Structural changes across society and industry, including the proliferation of generative AI, growing demand for data centers, and advances in mobility, are significant business opportunities for the Group. By combining our extensive lineup of materials, process technologies, and services, we will continue to deliver unique value to customers and society.

We have also clarified the future direction of our petrochemicals business. Japan’s petrochemical industry faces significant structural challenges including declining domestic demand and intensifying global competition. As we consider the possibility of spinning off the petrochemicals business as a wholly owned subsidiary, we will continue to strengthen its competitiveness and advance initiatives to reduce GHG emissions and promote circular resource use, including through strategic partnerships. Through the stable supply of basic chemicals, we will contribute to the development of Japan’s industrial infrastructure and economic security.

We aim to implement our Green Specialty Company strategy by developing initiatives that respond to the transition toward carbon neutrality and a circular economy. We will pursue initiatives involving recycled materials, biomass-derived feedstocks, and the use of captured CO₂ as a feedstock, while developing products and services for growth markets such as mobility, semiconductors, and data centers. We view green transformation as an opportunity to strengthen our competitiveness and support our long-term growth.

By aligning our management strategy and human resource strategy, we will optimize our talent development and deployment capabilities on a global scale while creating an environment that enables all employees to boldly take on new challenges.

In this context, we have also launched our new brand communication campaign “CHEMISTRY for The Planet.” This campaign expresses our aspiration to use chemistry to help address social needs and connects our Purpose of achieving KAITEKI (the well-being of people and the planet) with the proactive efforts of each employee.

I believe enhancing corporate value is one of management’s top priorities. This requires implementing disciplined management practices and continuing to invest for future growth. By translating the results of structural reforms undertaken over the past two years into earnings growth and accelerating investment in growth domains, we will enhance both profitability and capital efficiency. We will strengthen our cash generation capabilities and channel these results into sustainable growth and shareholder returns.

Through our continued advancement of the Green Specialty Company strategy, we will seek to contribute to addressing social issues while enhancing corporate value, delivering results that meet the expectations of all our stakeholders.

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