Mitsubishi Chemical HoldingsKAITEKI Value for Tomorrow

Medium-Term Management Plan「APTSIS 20」

As of Dec. 4, 2018

In 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 Medium-Term Management Plan (APTSIS 20 Period:FY2016-FY2020).
In addition to the progress of the plan up to fiscal 2018, we have decided to revise the financial index targets for fiscal 2020, the final year of the plan, taking into account the further development of growth and integration effects centered on the Performance Products segment, the risk of market fluctuations in the Chemicals segment, and the acquisition made in the Industrial Gas segment.

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

Review of Numerical Targets for FY2020

[Earnings Structure for FY2020 ]

Projecting ¥410 billion in core operating income due to growth in the performance products business, M&A in the industrial gas business, progress of rationalization, etc. after factoring in market risks in the chemicals business

Review and Progress in Investment Plans

  • Investment and loans in FY2018 increased from ¥0.7 trillion to ¥1.3 trillion due to large-scale acquisition in the industrial gas business

Strengthening Financial Base

  • Improving financial base toward FY2020, though financial index will deteriorate temporarily as a result of increased borrowings for acquisition of Paraxair’s European business
FY2018 FY2020
Net D/E ratio 1.2 1.0
Ratio of equity attributable
to owners of the parent
25.5% 29.0%

Shareholder Returns

Basic Policy on
Shareholder Returns

Aiming for improvement in shareholder value by enhancing corporate value

Our dividend policy takes into consideration a balance between improvements in investment for business growth and in financial position

・We shall regard 30% as our consolidated dividend payout ratio benchmark, taking the medium-term profit level into account.

・Aiming for making stable payment of dividends

Priority Measures and Growth Strategies for Focus Markets in APTSIS 20

  • ● Accelerating growth centering on Growth Drivers, while generating synergy with related segments

Priority Measures for each Focus Markets

Automobiles, Aircraft (Mobility)

自動車・航空機(モビリティ) グラフ 自動車・航空機(モビリティ) グラフ

Growth
measures

  • ● Responding to trend toward Connected, Autonomous, Shared, Electric (CASE) in the automotive industry, reinforce response to environmental issues
  • ● Reinforcing carbon fiber and composite material business and accelerate overseas expansion
  • ● Accelerating overseas expansion of resin compound business

Progress

  • ● Reinforcing overseas network for carbon fiber and composite material business
  • ● Expanding adoption of CF-SMC : Toyota Prius PHV, other
  • ● Higher performance of PP: A new PP manufacturing facility is under construction at the Goi Plant (150kt/y)
  • ● Acquired 2 overseas compound producers (India, Indonesia)

IT, Electronics, Displays

Growth
measures

  • ● Reinforcing display-related product business: LCD, OLED materials
  • ● Expanding semiconductor-related business: Expanding precision cleaning agent-related business, developing thermal management materials

Progress

  • ● Optical films : A new line is under construction in China (starting operation in April 2019), OPL Film : A new line is under construction at the Kumamoto plant (starting operation in March 2020)
  • ● Precision cleaning of semiconductor manufacturing equipment : Acquired Cleanpart Group (October 2018)

Medical, Food, Bio products

Growth
measures

  • ● Expanding the implant material business
  • ● Expanding the nutrition-related business
  • ● Expanding the medical use gas business

Progress

  • ● Acquired a U.S. high-performance engineering plastic company (Piper Plastics, Inc.)
  • ● Food emulsifier : Expanding sales mainly in China and other ASEAN countries
  • ● Respiratory-related business including home healthcare services : Acquired IMI Co., Ltd.

Healthcare

Growth
measures

  • ● Reinforcing pipelines for ethical pharmaceuticals
  • ● Developing the business in the U.S.
  • ● Commercialization of VLP vaccine
  • ● Commercialization of regenerative medicine

Progress

  • ● Expanding Radicava globally
  • ● Advancing development of influenza VLP vaccine and constructing a manufacturing facility for commercialization
  • ● Developing regenerative medical products using Muse cells and promoting commercialization

Environment, Energy

Growth
measures

  • ● Expanding LIB materials business
  • ● Accelerating development of wastewater treatment in China and water supply treatment business in Japan
  • ● Developing products that reduce environmental impact

Progress

  • ● Accelerating global expansion of electrolyte business (Europe/U.S./China)
  • ● Start of full-scale sales of wastewater treatment facilities for farming villages and pig farms in China
  • ● Accelerating development of other applications of BioPBS

Packaging, Labels, Films

Growth
measures

  • ● Barrier application : Accelerating overseas expansion of food packaging film, reinforcing development of new high-barrier performance products
  • ● High-performance films : Developing new products by combining the group’s technologies

Progress

  • ● Started full-scale operation of a new polyester film line in the U.S. in 2018
  • ● Launch of high-barrier performance deep-formed microwavable containers
  • DIAMION production site is under construction in Thailand (Slated to start operation in 2020)

Fundamental Industrial Materials

Measures for reinforcing business foundation

  • ● Expanding presence in market
  • ● Reinforcing profitability of overseas businesses
  • ● Realizing higher productivity and corporate strength

Progress

  • 【Chemicals】
  • ● Started commercial operations at SAMAC
  • ● Thailand : Capacity increase in MAA and BMA
  • ● U.S. : Continuing study of MMA project
  • ● Europe : PMMA sheet business transfer
  • ● Reinforcing coke furnace to maintain conditions Unification of ethylene production facilities in Mizushima
  • ● Utility alliances at the petrochemical complex
  • ● Developing high-performance and high-functional polyolefin
  • 【Industrial gases】
  • ● Capital investment, large-scale investment and loans
  • ● Constructing an electronic material gas plant in East Asia
  • ● Started operation of a large-scale ASU in Kurashiki City

Intensifying Marketing and Access to the Global Market

  • ● Established RHQs to support businesses growth and profit_improvement in four regions of the world
  • ● Establishing a technical center led by the RHQ in each region
  • ● Targeting a 50% ratio of overseas consolidated sales revenue (Projection for FY2018 : 43%)

Related Information