Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Overview of Business Segments : Performance Products Domain

We are maximizing KAITEKI Value by providing differentiated, high-performance solutions utilizing the Group’s wide range of products and technologies.

Business Lines by Segment

Electronics Applications

With technologies such as material design, processing, and device-making, our high-value-added products centered on information technology and electronics are provided in a wide array of areas.

Designed Materials

Based on solid technologies including molecular design technology, functional design technology, and polymer processing technology, accumulated over many years, the Designed Materials segment is developing a variety of products such as composite materials, inorganic chemicals, polymer processing products, and films.

Main Businesses and Products

Designed Materials Polyester Film and High-Performance Films Net sales approx.200 billion
Designed Materials Carbon Fiber Net sales approx.60 billion
Designed Materials Engineering Plastics Net sales approx.90 billion
Designed Materials Lithium-Ion Battery Materials Net sales approx.30 billion

Opportunities and Risks

Strengths Growth Opportunities Risks
  • Ability to create solutions for saving and storing energy by leveraging the Group’s extremely broad technology base and business foundation
  • Strong market position in high-performance films, especially for optical applications
  • Strong market position for wide businesses ranging from high-performance engineering plastic materials to mold processing field
  • Dual carbon fiber product line and capability to meet market needs ranging to molding solutions
  • Market needs becoming more sophisticated and diverse as the Green Business market expands
  • Business network capable of responding to growing global demand (high-performance films, high-performance engineering plastics, carbon fibers)
  • Expanding demand for carbon fiber (particularly in automobiles, wind turbines, pressure vessels and other industrial sectors)
  • Unexpectedly rapid technological innovation and changes in market conditions, especially in the electronics field
  • Competing products in high-performance films, high-performance engineering plastics and carbon fibers
  • Need to build a global supply framework for carbon fibers to respond to sharp growth in demand
  • Growth in high-performance film in the flat panel display (FPD) field is expected to be the impact of short-term demand, changing technologies and deceleration of growth for the medium- to long-term

Review of Segments in Fiscal 2015

APTSIS 15 Step2 Review and Forecast

In Electronics Applications, delays in achieving profitability in new next-generation growth businesses resulted in falling ¥6.0 billion short of the APTSIS 15 operating income target.
Designed Materials saw films for optical applications and engineering plastics grow significantly, but aqua solutions and other areas did not grow as initially forecast, resulting in a ¥4.3 billion shortfall against the APTSIS 15 operating income target.
Market conditions change rapidly in the business environment encompassing our segment, but looking ahead, we will grasp customer needs more accurately and provide solutions to accelerate global development and advance technical innovation.

Growth Strategies

Business Portfolios (by Business Unit)

Plan Values APTSIS 20 Five-Year Plan (J-GAAP)

APTSIS 20 Action Plans

■High-Performance Polymers

Expand global market share in performance polymers (increase sales by 50%)

■High-Performance Chemicals

Increase sales by 1.5x in the food ingredients business from the acquisition of Eisai Food & Chemical Co., Ltd.

■Electronics and Displays

Secure 30% share of polyester film for FPDs in fiscal 2020

■High-Performance Films

Increase ratio of overseas sales to 35% in fiscal 2020

■Environment and Living Solutions

Aim for net sales of ¥100 billion in aqua and separator solutions fields

■Advanced Moldings and Composites

Increase sales of high-performance engineering plastic products by 20% above current levels in fiscal 2020 through M&A in the aircraft and medical fields as well as business expansion in developing countries

■New Energy

For lithium-ion battery materials, secure shares of 40% in electrolytes and 20% in anode materials by fiscal 2020 in growing target markets (automobiles)

FOCUS High-Performance Films

Priority Measures
Securing a leading position in Japan and accelerating global business development
with higher-performance products

In the field of high-performance films, we offer a wide variety of high-value-added products with added functionalities, such as gas barrier, porous control, multiple layers, and optical properties, applied through the optimal combination of technologies that are a source of strength for the MCHC Group, including polymeric material design, formation and processing, surface treatment, and composition. These products contribute to earnings with high market shares in foods, industries, medicals and displays.
Demand in the Japanese market is likely to weaken as the population declines. This has made it necessary to establish a highly efficient business structure able to stably generate earnings.
To address these changes in the business environment for high-performance films, we aim to strengthen its earnings potential, a policy of its new medium-term management plan APTSIS 20, in the following three ways.
(1) Develop products with even better functionality, maintain and build on position as the market leader in Japan
(2) Establish sales and production structures in ASEAN markets likely to see strong growth, and in markets in Europe and the U.S. where there is demand for higher performance products
(3) Create an optimal market portfolio that fully leverages coordination among Group companies

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