Management Policy

At the Investor Day 2023 held on February 24, 2023, Mitsubishi Chemical Group Corporation announced a detailed executable plan for fiscal 2021-2025 based on its “Forging the future” management policy (announced on December 1, 2021), as well as updated financial targets for fiscal 2025.
MCG has set out five key pillars as part of its clear strategy to drive operational excellence and unlock business potential: (1) growth, performance, and sustainability; (2) strategic cost transformation; (3) business to exit; (4) leaner, digital, empowered; and (5) strategic capital allocation. By working in these areas, we aim to deliver more value to all our stakeholders.
Between fiscal 2021 and fiscal 2025, we expect these key pillars to grow EBITDA by approximately ¥100 billion and improve the EBITDA margin from 13% to 18%.
Of these, we expect three primary pillars to generate the following outcomes: through business growth by means of pillar (1), EBITDA is projected to increase by approximately ¥70 billion; pillar (2) will deliver cost reductions of approximately ¥135 billion, higher than the initial target of ¥100 billion; while through pillar (3), exit from the petrochemicals and carbon products businesses will reduce EBITDA by approximately ¥110 billion. We will implement various initiatives based on this executable plan, with the goal of achieving our targets in fiscal 2025.

Note: Information provided in the section Executable Plan Based on the “Forging the future” Management Policy uses fiscal 2021 results and fiscal 2025 targets.

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Five key pillars: Maximizing corporate value​

Growth, performance, and sustainability	Shift to global profitable markets Focus on selected end applications Become a sustainability leader
Strategic cost transformation	Focus on Health Care restructuring, operational excellence and supply chain optimization, as well as procurement
Business to exit	Exit the petrochemicals and carbon products businesses
Leaner, digital, empowered (Formerly named: Leaner structure to execute)	Shift to a leaner, digital, and empowered organization and workforce
Strategic capital allocation	Fuel organic growth Improve the balance sheet to fund future growth

For financial targets, we remain committed to our fiscal 2025 targets and will work to improve profitability, including EBITDA and the EBITDA margin. For non-financial targets, GHG emission reduction is a must in the chemical industry, and we uphold the target of a 29% reduction (versus fiscal 2019 levels) by fiscal 2030. We are also working more intensively to achieve our target for waste reduction. Customer satisfaction has already been at a high level, but we will work to improve this further. We have also set high targets for employee engagement and diversity among management.
Our “Forging the future” management policy is our core strategy to achieve our future vision, and we will accelerate our efforts across these five key pillars through fiscal 2025. After fiscal 2025, we will be positioned to transform into a specialty materials group and aim for further growth.