Mitsui Chemicals (4183) Investor presentation summary

Business performance and financial outlook

• Specialty chemicals domains drove profit growth in FY25, while Basic & Green Materials (B&GM) remained negative due to low operating rates and inventory losses; steady profit growth is expected in FY26 despite geopolitical risks.

• FY25 sales revenue was ¥1,669bn with operating income before special items at ¥100bn; FY26 outlook projects sales revenue of ¥1,900bn and operating income before special items of ¥105bn.

• Net income attributable to owners is forecast to rise 31% to ¥45bn in FY26.

• Specialty chemicals domains are the main earnings driver, but capital efficiency is challenged by deficits and impairment losses in B&GM.

• ROE and ROIC are targeted to improve to 13% and 9% or more, respectively, by FY30.

Cash flow, capital policy, and shareholder returns

• Operating cash flow is improving through profit growth in specialty chemicals and an asset-light approach, enabling proactive investments and enhanced shareholder returns.

• FY25 saw a ¥30bn share repurchase and plans to cancel 20 million treasury shares by August FY26.

• Dividend policy aims for stable, continuous returns with a target total return ratio of 40% or more and DOE of 3%+, considering enhancement to 4% by FY28.

Business portfolio transformation and sustainability

• Accelerating transformation with a focus on certified products (Blue Value™ and Rose Value™), aiming for 40% sales revenue ratio from these by FY30.

• Expanding social issue-driven product lines and increasing gross profit from certified products.

• Strategic investments and M&A target growth in specialty domains, especially L&HC and ICT, while restructuring underperforming businesses.

• Strengthening green chemicals and recycling initiatives, including bio-based and chemically recycled products, and partnerships for circularity.