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

Strategic Outlook for FY2020

  • Redoubling our efforts to secure cash flow in preparation for further downside risks (e.g., reviewing our investments; cutting costs; adjusting operations and reducing inventory sizes in advance; expanding our committed credit line)
  • Step up our execution speed toward further business portfolio reform
  • Solidify within FY2020 further restructuring plans for our Basic Materials segment to reduce volatility
  • Secure returns from our investments in the target domains and actualize a new growth model swiftly
  • Accelerate growth through active investments in ICT, Health Care domains that tap into growth opportunities

Economy

2025 Long-Term Business Plan Targets and KPIs

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

  • Expand three target 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 payment
  • Flexible acquisition of treasury stock
  KPI FY2019 Results FY2020 Targets (IFRS)*
Operating
income
¥200bn ¥71.6bn Operating income
before special items
¥35bn
Net sales ¥2,000bn ¥1,339bn Sales revenue ¥1,145bn
ROS 10% 5.4% ROS 3.1%
ROE 10% or more 7.0% ROE 3.7%
ROIC 8% or more 4.4% ROIC 2.0%
Net D/E 0.8 or less 0.76 Net D/E 0.80
Shareholder
returns
Total return ratio of 30% or more Dividends ¥100/share
Acquisition of treasury stock ¥10bn
(Total return ratio 77%)
Pending
(Total return ratio of 30% or more)
Growth
investment
¥1,000bn
incl. strategic investments ¥400bn
(total amount for 10 years, excl. maintenance investments)
Capital expenditure
¥76.3bn
(incl. maintenance investments)
Capital expenditure
¥122bn
(incl. maintenance investments)
R&D expenses ¥70bn ¥36.4bn ¥36bn

*FY2020 targets as of May 14, 2020

Environment and Society

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