Mitsubishi Chemical Holdings

THE KAITEKI COMPANY

Medium-Term Management Plan

Mitsubishi Chemical Holdings (MCHC) launched a new Medium-Term Management Plan, “APTSIS 20.” With rapidly changing external business conditions, the MCHC Group reviewed materiality assessment. We identified and prioritized important management issues to be addressed up to 2020, and established this plan.
Under “APTSIS 20,” we will steadily execute measures for “Growth, efficiency and strengthening foundations.” We are aiming to remain a high growth and high profit-model corporate group through optimizing our business portfolio.

APTSIS 20

APTSIS 20

What We Aspire to Be in 2020

By increasing profitability, pursuing innovation, and contributing to sustainability, MCHC will establish the foundation to become THE KAITEKI COMPANY being recognized on a truly global level

APTSIS 20 Basic Policy

Aiming to remain a high growth/high profit-model company through businesses in the performance products, industrial materials, and health care domains

Numerical Targets for FY2020

Attain ROE of more than 10% to improve capital efficiency

[Analysis of Contributory Factors in Increased Operating Income (FY2015→FY2020) ][JGAAP]

  • *Announced Nov.5 2015.
    MCHC revised the consolidated financial results forecasts for fiscal 2015.
    Revised forecasts for operating income:¥255.0 billion

[Earnings Structure for FY2020 ]

Plan balanced development and enhanced earnings from the three business domains of performance
products, industrial materials, and health care

Resource Allocation Policy

  • Allocate ¥1.0 trillion in investment for growth and inject ¥700.0 billion in R&D investment

Financial Strategy

  • While maintaining an appropriate balance between “investment for growth,” “enhancement of shareholder return,” and “strengthening of the financial position,” work to improve corporate value
  • Investment ceiling is deemed to be the amount derived from adding “asset efficiency” to the sum of “depreciation and amortization” and “1/3 of net income”
  • Reduce interest-bearing debt, improve capital adequacy ratio

Shareholder Returns

Outline of New Integrated Company

Plan1 Integrated three chemical companies into one

  • As a holding company system, MCHC to manage the Group
  • At the integrated company, business operations to be conducted by 10 business units, and bring about the maximization of the synergies generated within the units, promote the growth of businesses, and work to expand profits

Plan2 Business Portfolio Management

  • Targeting the formation of high-growth, high-profit entities, implement thorough business portfolio management
  • Based on evaluations of growth (sales growth ratio), return on sales (ROS), and return on invested capital (ROIC), give consideration to and position/rank contributory factors, such as growth opportunities, competitive environment, and business characteristics

[Business Portfolio (FY2017-)]

Business portfolio in the Group will be composed of 13 business units and 5 next-generation business themes.

Plan3 Promoting Next-Generation Businesses

  • Select five items that take into account business strategies of each operating company and Group strengths
  • Positioning of incubation businesses instrumental to growth in 2020 - 2025
  • Fully utilizing the Group’s abundant resources, promote business development using OSB (Open Shared Business) framework

Plan4 Global Development

  • Increase overseas sales ratio from 43% to 50%
  • Enhance business support functions of each region, promote collaboration among business units

Business Strategies (Policy and Earnings Targets)

Performance Products

Policy

Accelerate growth by generating synergies, and supply high-performance
products/solutions globally to growth markets

Key strategies

Expand high-performance, high-value-added products business and solutions business

  • High performance engineering plastics (Quadrant)
  • Organic synthesis (NSCI)
  • Food ingredients (MFC)

Accelerate global development

  • Performance polymers
  • Carbon fiber composite materials
  • Polyester film
  • High-performance films
  • High-performance engineering plastics

Strengthen innovation by integration of three chemical operating companies

  • Specialty intermediates
  • Aqua and separator solutions
  • Advanced agricultural business (plant factory systems, etc.)

Achieve profitability of new energy businesses at an early stage

  • Lithium-ion battery materials
  • Optoelectronics materials

Industrial Materials

Policy

Stabilization of earnings by strengthening of cost-competitiveness

Acceleration of growth and strengthening of presence in the global market

Key strategies

Strengthening of cost-competitiveness

  • Basic petrochemicals and derivatives
  • Coke
  • MMA

Acceleration of global development

  • MMA
  • Industrial gases
  • PP compounds

Business rebuilding

  • PTA

Health Care

Policy

Aim at worldwide growth in ethical drug business

Establish and expand the healthcare and medical business utilizing ICT and regenerative medicine business

Key strategies

Promote overseas business mainly in the U.S.
Strengthen new drug creation abilities

  • Transformation for R&amo;D processes
  • Open innovation

Maximize product potential in new drugs and priority products by strengthening value development and sales
Expand the healthcare and medical business utilizing ICT
Promote the regenerative medicine business

  • Obtaining early approval of regenerative medicine products (Muse cells/Clio)

Enhance business productivity

Related Information