Message from the President
Dear Shareholders and Investors
President & CEO
During fiscal 2022 , the global economy modestly trended upward with a progressive return to normal socioeconomic activities. As the year progressed, the risk of an upcoming economic slowdown heightened, driven by monetary tightening to control inflation, continued high energy prices, and supply chain disruptions.
The Group's revenue increased significantly compared to the previous year, primarily driven by two events; a concerted effort to offset higher feedstock and energy costs by increasing selling prices and the yen’s weakening against most currencies. The Net Income attributable to owners of the parent company decreased significantly, driven by one-time impairment and special charges linked to restructuring initiatives in the Pharma and MMA businesses. Despite lower performance in the display and semiconductor markets and a steep decline in profits from MMA, petrochemicals, and carbon products, I am pleased to report that Core Operating Profit increased. This results from strong growth in the gas business, significant cost reductions, and the recognition of revenue related Gilenya royalties following a favorable arbitration award.
Based on these results and a positive free cash flow for fiscal 2022, the Group maintained its yearly dividend at ¥30/share.
In February 2023, the MCG Group formulated a specific action plan for growth and profit margin expansion based on its “Forging the future” management policy and updated its financial targets for FY2025. In addition to cost structure reforms and business restructuring, the Group will seek to improve profitability and business growth by shifting to a market-oriented organization that leverages all products globally to bring complex, innovative solutions to the market. In addition, the Group will enhance shareholder returns with a FY2025 target payout ratio of 35%.
Under this management policy, the Mitsubishi Chemical Group’s purpose is to lead with innovative solutions to achieve KAITEKI, the well-being of people and the planet. As we look to the exciting future ahead, I want to express my sincere gratitude to all shareholders and investors for your continued trust and support.
Director of the Board, Corporate Executive Officer, President and CEO