Financial Summary
Results for FY2023 & Outlook for FY2024
Mitsui Chemicals, Inc.
<Remarks>
FY2023 indicates the period from April 1, 2023 to March 31, 2024.
This summary contains forward-looking statements about the future plans, strategies, belief and performance of the Mitsui Chemicals Group as a whole and its individual consolidated companies. These forward-looking statements are not historical facts. They are expectations, estimates, forecasts and projections based on information currently available to the Mitsui Chemicals Group and are subject to a number of risks, uncertainties and assumptions, which, without limitation, include economic trends, fluctuations in foreign currency exchange rates, fluctuations in the price of raw materials, competition in markets where the Company is active, personal consumption, market demand, the tax system and other legislation. As such, actual results may differ materially from those projected and the Mitsui Chemicals Group cannot guarantee that these forward-looking statements are accurate or will be achieved.
May 15, 2024
Copyright © 2024 Mitsui Chemicals, Inc.
Contents | 1. Results for FY2023 (April 1, 2023 - March 31, 2024) |
- Trends of Key Market Indicators
- Major Investment Projects, etc.
- Consolidated Financial Highlights
- Sales Revenue and Operating Income before Special Items by Business Segment
(compared with corresponding period of FY2022 results)
- Operating Income before Special Items and Business Overview by Business Segment
- Non-recurringItems
- Consolidated Statement of Financial Position
- Consolidated Statement of Cash Flow
2. Outlook for FY2024 (April 1, 2024 - March 31, 2025)
- Highlights of Consolidated Financial Outlook
- Sales Revenue and Operating Income before Special Items of Outlook
by Business Segment (compared with FY2023)
- Operating Income before Special Items and Business Overview by Business Segment
- Operating Income before Special Items by Business Segment
(2H vs. 1H of FY2024)
- Allocation of Resources
- Shareholder Returns
- Consolidated Statement of Cash Flow
- Performance Trends by Business Segment
3. Appendix
- 1
- 2
- 3-4
- 5
- 6-9
- 10
- 11
- 12
- 13-14
- 15
- 16-19
- 20
- 21
- 22
- 23
- 24
- 25-32
Please note that this document has been translated from the original Japanese into English for the convenience of our stakeholders. The information was originally provided in Japanese. If there is any discrepancy, the Japanese language version is the official document and is available on our Japanese language website.
Copyright © 2024 Mitsui Chemicals, Inc.
1. Results for FY2023
(April 1, 2023 - March 31, 2024)
Copyright © 2024 Mitsui Chemicals, Inc.
1) Trends of Key Market Indicators
FY2022 | FY2023 | ||||
FY2023 | → | FY2024 | → | ||
FY2023 | FY2024 | ||||
Ophthalmic lens materials market | Firm demand; inventory level adjustments | Firm demand to continue | |||
Life & | seen at some customers | ||||
Healthcare | |||||
Solutions | Agrochemicals market | Firm demand; inventory level adjustments | Firm demand to continue | ||
seen in some regions | (Inventory level adjustments expected to end) | ||||
Automotive production (Global) * | ➡ | ||||
Japan | ➡ | ||||
Mobility | North America | Expected to remain on par | ➡ | ||
Solutions | China | Recovered globally | ➡ | ||
with year-ago level | |||||
➡ | |||||
ASEAN | ➡ | ||||
Europe | ➡ | ||||
Semiconductor market | Weaker demand, | Demand expected to recover | |||
ICT | but showing signs of bottoming out | ||||
Solutions | Weaker demand, | Demand expected to remain weak, | |||
Smartphone market | |||||
but showing signs of bottoming out | but on a recovery trend | ||||
Market conditions | |||||
Basic & | TDI | Low level | ➡ | Low level | ➡ |
Green | MDI | ➡ | ➡ | ||
Materials | Market conditions remained stable | Market conditions expected to be stable | |||
Cracker operating rates | Low | Low, but expected to recover |
* Estimated from data by external information services
1. Results for FY2023 | 1 | Copyright © 2024 Mitsui Chemicals, Inc. |
2) Major Investment Projects, etc.
Major Investment projects | Date | Capacity | FY21 | FY22 | FY23 | FY24 | FY25~ | ||||||||||
Orthopedic surgery sector: Japan MDM Business and Capital Alliance | January.'22 | - | |||||||||||||||
Life & | Acquisition of agrochemicals business | January.'22 | - | ||||||||||||||
Healthcare | Acquisition of ophthalmic lens processing equipment maker | November.'22 | - | ||||||||||||||
Solutions | |||||||||||||||||
Establishment of JV for nonwovens businesses @Japan | October.'23 | ||||||||||||||||
Capacity expansion of MR™ High Refractive Index Ophthalmic Lens Material@Japan | January.'24 | - | |||||||||||||||
Mobility | Establishment of new TAFMER™ plant@Singapore | FY24 | 120KT | ||||||||||||||
Solutions | |||||||||||||||||
Establishment of new production facility for EUV pellicle@ Japan | April.'21 | - | |||||||||||||||
Capacity expansion of cyclic olefin copolymers APEL™ @ Japan | June.'22 | +50% | |||||||||||||||
Acquisition of pellicle business | July.'23 | - | |||||||||||||||
ICT | Capacity expansion of ICROS™ Tape@Taiwan | June.'24 | 3.8MM㎡ | ||||||||||||||
Solutions | Splitting of Mitsui Chemicals Tohcello and transfer of a portion of its shares | April.'24 | |||||||||||||||
Capacity expansion of Polyurethane Dispersions (PUD) @Japan | June.'25 | +100% | |||||||||||||||
Capacity expansion of special isocyanate XDI @Japan | September.'25 | +20% | |||||||||||||||
Investment to strengthen materials development in semiconductor & assembly solutions | FY24 | ||||||||||||||||
Honshu Chemical Industry Co.: consolidated subsidiary | From Oct.'21 | - | |||||||||||||||
Basic & | Capacity expansion of MDI, Kumho Mitsui Chemicals @Korea | July.'24 | 200Kt | ||||||||||||||
Green | New plant for high-performance PP@Japan | FY24 | 200Kt | ||||||||||||||
Materials | |||||||||||||||||
Investment in Apeiron Bioenergy to increase procurement of biomass raw materials | June.'22 | ||||||||||||||||
Establishment of limited liability partnership (LLP) for PPG production | May.'23 | ||||||||||||||||
New business | Establishment of CVC fund | July.'22 | - | ||||||||||||||
/New products | |||||||||||||||||
Shutdown of PTA Production @Japan | August.'23 | 400Kt | Shutdown | ||||||||||||||
Shutdown of PET Production @Japan | October.'24 | 145Kt | Shutdown | ||||||||||||||
Restructuring | Shutdown of Phenol Plant at Ichihara Works @Japan | FY26 | 190Kt | Shutdown | |||||||||||||
Joint deliberations on consolidation of Chiba ethylene complexes to optimize production | FY27 | Optimization | |||||||||||||||
Share transfer of phenols subsidiary@Singapore | March.'23 | Share transfer | |||||||||||||||
Optimization of TDI production capacity @Japan | July.'25 | 120Kt→50Kt | Optimization | ||||||||||||||
Commercial operation launched in FY23 | Investment decision made in FY23 | ||||||||||||||||
1. Results for FY2023 | 2 | Copyright © 2024 Mitsui Chemicals, Inc. |
3-1) Consolidated Financial Highlights
(Billions of Yen) | () Denotes a minus | ||||
Items | FY2022 | FY2023 | Increase | % | |
(Decrease) | |||||
Sales revenue | 1,879.5 | 1,749.7 | (129.8) | (7%) | ||
Operating income before special | 113.9 | 96.2 | (17.7) | (16%) | ||
items | ||||||
(inc. Equity in earnings) | 22.2 | 13.0 | (9.2) | (41%) | ||
Non-recurring items | 15.1 | (22.1) | (37.2) | - | ||
Operating income | 129.0 | 74.1 | (54.9) | (43%) | ||
Financial incomes/expenses | (11.7) | (0.8) | 10.9 | - | ||
Income before taxes | 117.3 | 73.3 | (44.0) | (38%) | ||
Net income attributable to owners of | 82.9 | 50.0 | (32.9) | (40%) | ||
the parent | ||||||
Exchange rate (Yen/US$) | 135 | 145 | 10 | |||
Domestic standard naphtha price (Yen/KL) | 76,600 | 69,100 | (7,500) | |||
1. Results for FY2023 | 3 | Copyright © 2024 Mitsui Chemicals, Inc. |
3-2) Consolidated Financial Highlights (Operating Income before Special Items)
Factors | Comments | Profit/loss |
trigger | ||
・Vision care materials decreased in 1H due to movements to adjust inventory levels in some markets. | [-] | |
Volume | ・Automotive applications increased driven by recovery in automotive production. | [+] |
・Semiconductor applications decreased due to slow recovery in semiconductor and smartphone markets. | [-] | |
・Polyolefins, phenols and other products decreased due to weaker demand. | [-] | |
Terms of | ・Improvement in terms of trade driven by sales price revision and foreign exchange impact. | [+] |
・Removal of impact of inventory valuation gains (including time-lag effects of sales price formula) due to rise in raw material | ||
trade | [-] | |
prices in FY22 1H. | ||
・Increase in costs driven by higher maintenance and repair expenses due to rise in construction-related material costs, and | [-] | |
by investment of resources in new business and new product development and other initiatives. | ||
Costs, etc. | [-] | |
・Decrease in equity in earnings. | ||
[+] | ||
・Improvement in profitability from business restructuring. | ||
・Vision care [-] | ・Equity in earnings [-] | |||||||
・Automotive applications [+] | ||||||||
・New business & new product development, | ||||||||
・Semiconductor & smartphone applications [-] | ||||||||
() Denotes a minus | Maintenance & repair, etc. [-] | |||||||
113.9 | ・Polyolefins, Phenols, etc. [-] | |||||||
5 | 96.2 | |||||||
Basic & Green | 17.8 | Volume | +13.4 | Costs, etc | (Billions of Yen) | |||
Materials | ||||||||
5 | (12.9) | Terms of trade | (18.2) | [+] denotes profit trigger | ||||
22.4 | ||||||||
ICT | 23.8 | [-] denotes loss trigger | ||||||
Solutions | 5 | ・Sales price revision, | ||||||
Foreign exchange impact [+] | ||||||||
5 | ・Inventory valuation [-] | Growth | ||||||
Mobility | 49.3 | Growth | 57.7 | YoY | ||||
102.4 | Domains | |||||||
Solutions | 5 | Domains | 110.1 | +7.8 | ||||
102.3 | (17.7) | |||||||
5 | ||||||||
Life & Healthcare | 29.2 | 30.0 | ||||||
Solutions | ||||||||
5 | ||||||||
Others | (10.3) | Basic & Green | ||||||
5 | FY2022 | FY2023 | Materials | |||||
1. Results for FY2023 | 4 | |||||||
Copyright © 2024 Mitsui Chemicals, Inc. |
4) Sales Revenue and Operating Income before Special Items by Business Segment
(compared with corresponding period of FY2022 results)
(Billions of Yen) | () Denotes a minus |
Segment
Sales revenue | ||
FY2022 | FY2023 | Incr. |
(Decr.) | ||
Operating income before special | Breakdown | ||||
items | |||||
FY2022 | FY2023 | Incr. | Volume | Terms of | Costs |
(Decr.) | trade | ||||
Life & Healthcare
Solutions
Mobility Solutions
ICT Solutions
Basic & Green Materials
Others
Total
258.2 | 271.7 | 13.5 |
521.6 | 544.0 | 22.4 |
235.7 | 237.5 | 1.8 |
849.0 | 681.8 | (167.2) |
15.0 | 14.7 | (0.3) |
1,879.5 | 1,749.7 | (129.8) |
29.2 | 30.0 | 0.8 | (3.7) | 5.8 | (1.3) |
49.3 | 57.7 | 8.4 | 5.4 | 9.6 | (6.6) |
23.8 | 22.4 | (1.4) | (2.0) | 6.9 | (6.3) |
17.8 | (10.3) | (28.1) | (12.6) | (8.9) | (6.6) |
(6.2) | (3.6) | 2.6 | - | - | 2.6 |
113.9 | 96.2 | (17.7) | (12.9) | 13.4 | (18.2) |
Growth Domains* | 1,015.5 | 1,053.2 | 37.7 | |
*Life & Healthcare, Mobility and ICT 1. Results for FY2023
102.3 | 110.1 | 7.8 |
5 | Copyright © 2024 Mitsui Chemicals, Inc. |
5-1) Life & Healthcare Solutions: Operating Income before Special Items and Business Overview
Business Overview of FY23
Movement of Operating Income before Special Items
Comments
- denotes profit trigger [-] denotes loss trigger
Vision care
Nonwovens
Oral care
Agrochemicals
・Sales volume in 1H was down due to movements to adjust inventory levels in some markets ・Improvement in terms of trade driven by sales price revisions in FY22
・Higher fixed costs due to operation of new plant (MR™)
・Sales volume was down due to weaker demand ➡ ・Sales remained on par with the year-ago level
・Sales remained firm despite movements to adjust inventory levels in some regions ・Improvement in terms of trade driven by foreign exchange impact
・Increase in registration maintenance fees and research expenses such as laboratory costs, driven by sales growth
[-]Sales volume [+]Terms of trade [-]Costs
[-]Sales volume
ー
[+]Sales volume [+]Terms of trade [-]Costs
Costs, etc | (Billions of Yen) | |||||
() Denotes a minus | +5.8 | |||||
Volume | (1.3) | |||||
Terms of trade | ||||||
(3.7) | ||||||
・Vision care [-] | ・Vision care [+] | |||||
・Agrochemicals [+] | ||||||
・Nonwovens [-] | ||||||
29.2 | 30.0 | |||||
・Agrochemicals [+] | ||||||
+0.8 | ||||||
1. Results for FY2023 | FY22 | 6 | FY23 | Copyright © 2024 Mitsui Chemicals, Inc. |
5-2) Mobility Solutions: Operating Income before Special Items and Business Overview
Business Overview of FY23
Movement of Operating Income before Special Items
Comments
- denotes profit trigger [-] denotes loss trigger
Elastomers
Composite materials
(PP compounds,
Performance compounds)
Solutions business
・Sales of solar cell encapsulants remained firm
・Improved terms of trade resulting from sales price revision, foreign exchange impact and shift to high value-added products
・Sales volume of automotive applications was up, driven by recovery in automotive production
・Improvement in terms of trade resulting from sales price revision and foreign exchange impact
・Increase in orders received for prototyping and development projects driven by recovery in automotive markets
[+]Terms of trade [-]Equity in earnings
[+]Sales volume [+]Terms of trade [-]Costs
[+]Sales volume [-]Costs
+9.6 | Costs, etc | (Billions of Yen) | ||||
() Denotes a minus | ||||||
+5.4 | Terms of trade | (6.6) | ||||
Volume | ||||||
・Elastomers [+] | ・Equity in | |||||
・PP compounds [+] | ||||||
・Automotive applications [+] | earnings [-] | |||||
・Solar cell encapsulants [+] | 57.7 | |||||
49.3 | ||||||
+8.4 | ||||||
1. Results for FY2023 | FY22 | 7 | FY23 | Copyright © 2024 Mitsui Chemicals, Inc. |
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Mitsui Chemicals Inc. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:06:45 UTC.