Mitsui Chemicals (4183) Corporate presentation summary

Portfolio transformation

• Acquisition of JSR is positioned as a portfolio shift toward global specialty materials, not only an expansion of semiconductor materials; further M&A and alliances are part of the strategy.

• FY30 target: core operating profit of at least ¥300bn, exceeding the prior ¥250bn goal; EPS growth is intended to lift enterprise value.

• The two-axis portfolio centers on L&HC and ICT for growth, and B&GM and Mobility for polymer-chain scale; B&GM separation is planned for FY27.

• Growth-area core operating profit growth slowed from 13% in FY19–FY23 to 5% in FY23–FY25; B&GM recorded core operating losses for three consecutive years.

JSR acquisition and ICT positioning

• JSR FY25 revenue was ¥440.7bn and operating profit ¥62.3bn; its Digital Solutions business generated ¥252.1bn revenue, ¥63.2bn core operating profit and 25.1% ROS.

• JSR brings semiconductor and optical materials, including photoresists, CMP slurries and ALD/CVD materials; its photoresist portfolio ranked No. 2 globally, with CAR and MOR solutions for EUV.

• The semiconductor market is forecast to grow at a CAGR of 10% or more from 2025, supporting demand for a broader materials portfolio.

• Purchase price is ¥1,392.1bn for 100% of shares; assumed closing debt and other liabilities are ¥447.9bn, and EV/EBITDA is 16x on the FY26 outlook basis.

• Closing is expected in H2 FY27, subject to regulatory approvals; DBJ will invest ¥200bn in non-voting preferred shares.

Value creation and synergy targets

• Combining customer bases, products and technologies is intended to accelerate development, cross-selling and new product creation across semiconductor and optical materials.

• Target incremental synergy by FY35 is ¥40bn: ¥20bn from sales growth and ¥20bn from cost optimization; cost actions include optimizing headquarters, R&D and overseas sites.

• FY30 ICT core operating profit target is at least ¥190bn; the FY35 estimate is at least ¥190bn after integration and PPA amortization, with synergy effects included.

• The combined portfolio is intended to establish a presence among core semiconductor-market players and make ICT the leading profit pillar of the transformed portfolio.