Mitsubishi Chemical Group (4188) Investor Day 2025 summary

Progress on Medium-Term Management Plan

• Specialty materials segment is outperforming expectations, with profitability and core operating income projected to reach 1,440 Oku yen by FY29, up from 239 Oku yen in FY24, and increased investment planned in this area.

• Basic chemicals and MMA segments are underperforming due to market volatility and increased Chinese production, leading to losses and accelerated structural reforms, with plans to optimize capacity, reduce costs, and return to profitability by FY26.

• Achieved 42% of the JPY 140 billion profit target in 1.5 years; plan to exceed the remaining 58% in the next four years, with the "Three disciplined approaches" contributing 590 Oku yen by 1H FY25 and a target of 1,400 Oku yen by FY29.

• Over 90% of the planned 4,000 Oku yen in business restructuring and divestitures has been executed, laying the foundation for future growth.

• Industrial Gases is progressing on track, while the materials business is being restructured to achieve the FY29 target of 4,600 Oku yen in core operating income.

Business Portfolio Clarification and Growth Strategy

• Management resources are concentrated on next-generation and growth driver quadrants, with clear criteria for business selection based on vision alignment, competitive advantage, and growth potential.

• Large-scale growth investments include over JPY 200 billion (approx. 2,000 Oku yen for next-generation, 800 Oku yen for growth driver) and JPY 80 billion in next-generation businesses, focusing on semiconductors, carbon fiber composites, and high-performance films.

• Expansion in semiconductor-related products, including synthetic quartz and GaN substrates, with R&D and new projects underway.

• Carbon fiber and composites segment is turning profitable after plant optimization and rationalization.

• Exploring new projects in India and optimizing MMA production to mitigate Chinese market impact.

Green Transformation and Sustainability

• Green transformation initiatives include chemical recycling, biomass, and CCU projects, with commercialization of green chemicals targeted around 2030 and commercial operations expected to start soon.

• Collaboration with partners to scale recycling capacity from 20,000 to 200,000 tons.

• Abu Dhabi project progressing, with investment decisions expected next fiscal year.

• Ongoing discussions with METI to advance green transformation in Japan.