Message from the President & CEO
I would like to take this opportunity to express my sincere gratitude to all of our shareholders for their continued support.
Our results for the first half of FY2019 showed a decline in operating income of ¥15.2 billion year on year, to ¥34.5 billion, reflecting a harsh business environment including heightened trade tensions between the United States and China and a Chinese economic slowdown. More specifically, this result was attributable to a combination of factors in the Basic Materials business, such as the deteriorated market conditions for products and the impact of inventory valuation associated with falling naphtha prices. In light of this situation and the increasingly uncertain economic outlook, the Company has revised downward its full-year operating income forecast by ¥21.0 billion from the initial plan, to ¥84.0 billion.
With respect to dividends, the Company set the interim dividend at ¥50 per share (the same as for the first half of the previous fiscal year) in consideration of the stability and continuity of shareholder returns. The Company will continue to aim for a total return ratio of 30% or more.
We have been feeling positive effects of our initiatives for future growth under our Long-Term Business Plan. Consequently, we expect an increase in full-year operating income for the third consecutive year in the three targeted business domains of Mobility, Health Care and Food & Packaging. Particularly in Mobility, demand for better fuel efficiency and electrification is growing, even as global automobile production is slowing. As such, we continue to see firm sales of polypropylene compounds, a key product of the Mitsui Chemicals Group which helps reduce the weight of bumpers and other auto parts. The Company will continue to focus on expanding its three targeted business domains, where market expansion is similarly anticipated, while strengthening the competitiveness of Basic Materials.
Guided by our Long-Term Business Plan, we aim to create new customer value and solve social challenges through our business activities.
I once again thank our shareholders and hope that we can continue to count on your support going forward.
President & CEO
Joined Mitsui Toatsu Chemicals in 1976. After having participated in construction of a chemical complex in Algeria, Tannowa went on to marketing and sales of basic chemicals. He was then asked to overhaul the company’s human resources where he set his sights on modifying the company’s codes and regulations. These efforts became a key part of the company’s “New” Mitsui Chemicals transformation.
Appointed as managing executive officer in 2010, Tannowa was responsible for overseeing all major business operations from 2012. In 2013, as senior managing executive officer, he became one of the moving forces in restructuring the company’s business operations and the compilation of the company’s 2014 Mid-Term Business Plan. Tannowa was appointed President and CEO of Mitsui Chemicals, Inc. as of April 1st 2014,