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.
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
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
- ＊Announced Nov.5 2015.
MCHC revised the consolidated financial results forecasts for fiscal 2015.
Revised forecasts for operating income:￥255.0 billion
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
- 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
Outline of New Integrated Company
- 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
- 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 in the Group will be composed of 13 business units and 5 next-generation business themes.
- 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
- 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)
Accelerate growth by generating synergies, and supply high-performance
Expand high-performance, high-value-added products business and solutions business
Accelerate global development
Strengthen innovation by integration of three chemical operating companies
Achieve profitability of new energy businesses at an early stage
Stabilization of earnings by strengthening of cost-competitiveness
Acceleration of growth and strengthening of presence in the global market
Strengthening of cost-competitiveness
Acceleration of global development
Aim at worldwide growth in ethical drug business
Establish and expand the healthcare and medical business utilizing ICT and regenerative medicine business
Promote overseas business mainly in the U.S.
Maximize product potential in new drugs and priority products by strengthening value development and sales
Enhance business productivity