In aiming to realize a future cohesive society in harmony with the environment, health and well-being in an aging society, and industrial platforms in harmony with local communities, as set forth in our 2025 Long-Term Business Plan, the Mitsui Chemicals Group has established respective targets for economy, environment, and society, the three dimensions of our management approach. Drawing on the strengths we have accumulated over our 100-year history, we will take on the challenge of achieving these goals as a highly profitable, growing, and sustainable company that contributes to society.

Three basic strategies to provide value to society

1. Pursue innovation
1

Pursue innovation

  • Promote customer-driven innovation
  • Strengthen our ability to propose solutions through R&D and by acquiring peripheral technologies and products
2. Accelerate global expansion
2

Accelerate global expansion

  • Aim to grow the Group globally and reinforce overseas production and sales channels mainly through our own regional expansion and business alliances
3.Strengthen existing businesses
3

Strengthen existing businesses

  • Build next-generation plants with the use of IoT, AI, and other cutting-edge technologies
  • All-out streamlining, including supply chains

8 PRIORITIES for FY2019

Business strategies
1.Expand the three targeted business domains
  • Expand investments and businesses mainly by making inroads into peripheral fields
  • Ensure production capacity to meet demand
2.Develop new businesses of the next generation and accelerate new product development
3.Further strengthen competitiveness of the Basic Materials domain
Manufacturing
4.Bolster manufacturing productivity with the use of IoT, AI, and other cutting-edge technologies
5.Thoroughly ensure safety and globally expand safety culture
Management
6.Steadily recover investments and strengthen inventory management
7.Strengthen the Group’s global management platform
8.Promote sustainability management with ESG elements at its core

Economy

2025 Long-Term Business Plan Targets and KPIs

Accelerating our business portfolio transformation
(shifting to a customer-driven business model)

  • Expand three targeted business domains
  • Develop next generation businesses
  • Strengthen competitiveness of the Basic Materials domain

Enhancing cash generation capabilities

  • Conduct active investments while maintaining fiscal discipline
  • Improve capital efficiency

Boosting shareholder returns

  • Stable and continuous dividend increase
  • Flexible acquisition of treasury stock
  KPI FY2018 Results FY2019 Targets
Operating
income
¥200bn ¥93.4bn ¥105bn
Net sales ¥2,000bn ¥1,482.9bn ¥1,540bn
ROS 10% 6.3% 6.8%
ROE 10% or more 14.3% 13.1%
ROIC 8% or more 6.0% 6.4%
Net D/E 0.8 or less 0.68 0.65
Shareholder
returns
Total return ratio 30% or more Dividends ¥100/share
Acquisition of treasury stock ¥100bn
(Total return ratio 39%)
Dividends ¥100/share
(Total return ratio 30% or more)
Growth
investment
¥1,000bn
of which ¥400bn is earmarked for strategic investments
(total amount for 10 years, excl. maintenance investments)
Capital expenditure
¥61.9bn
(incl. maintenance investments)
Capital expenditure
¥105bn
(incl. maintenance investments)
R&D expenses ¥70bn ¥35.8bn ¥38bn

Environment, and Society: Targets and Progress

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