Mitsubishi Chemical Group (4188) Investor presentation summary

FY25 review and structural reforms

• FY25 saw challenging results in Chemicals due to impairment losses and weak MMA monomer markets, but Industrial Gases performed steadily, keeping overall performance in line with the previous year.

• Specialty Materials recognized a ¥30 billion impairment loss in the UK but remained close to forecasts, with growth expected in FY26 through key initiatives and structural reforms.

• Major structural reforms included the decision to spin off the petrochemicals business, exit coke and carbon materials, and restructure MMA/PMMA operations to enhance competitiveness and decarbonization.

• Organizational restructuring aims to enable more agile, market-focused decision-making, with business groups reorganized by market and business model.

• Innovation organizations are now centrally managed under the CTO to accelerate product development and shorten time to market.

Growth investments and business strategy for FY26

• Large-scale investments of approximately ¥280 billion were made in FY24/25, with new projects in films, composites, information electronics, water, and basic materials scheduled to begin operations from FY25 onward.

• FY26 marks a shift from defense to offense, focusing on full-scale operation and harvesting results from growth investments, with new investments and market development to accelerate growth.

• Key growth areas include GaN semiconductors, EUV resist, carbon fiber composites, chemical recycling, and high-performance films.

• The company is leveraging advanced processing technology and materials to expand in automotive, aerospace, and data center markets, including robotaxi and premium car OEMs.

• Strategic partnerships and new product launches target green chemicals, data centers, and next-generation communications.

Segment strategies and operational excellence

• Composites & Shapes achieved a business turnaround in FY25 and expects further COI growth in FY26, driven by new mobility and semiconductor markets.

• Engineering Shapes and Carbon Fibers & Composite Engineering are key contributors, with investments in high-end applications and global operational upgrades.

• Information Electronics focuses on high-growth semiconductor and display markets, with robust next-generation pipelines and collaborations with industry leaders.

• Polymer Compounds maintain industry leadership in automotive safety and electronics, leveraging proprietary technologies and a global supply network.

• Water & Infrastructure capitalizes on proprietary materials and engineering expertise, targeting semiconductor, data center, and national resilience markets with high-performance solutions.