June 14, 2024
VISION 2030
Business Strategy Presentation
Life & Healthcare Solutions | Business Sector President |
TANAKA Hisayoshi | |
Mobility Solutions | Business Sector President |
KOMORIYA Atsushi | |
ICT Solutions | Business Sector President |
HIRAHARA Akio | |
Basic & Green Materials | Business Sector President |
YOSHIZUMI Fumio | |
VISION 2030
Business Strategy Presentation
Life & Healthcare Solutions
TANAKA Hisayoshi
田中 久義
Managing Executive Officer,
Business Sector President, Life & Healthcare Solutions Business Sector
June 14, 2024
1 | Pursuing Business Portfolio Transformation | |
Life & Healthcare Solutions | June 14, 2024 |
Providing solutions that contribute to life, health and comfortable lifestyles
as our first pillar of earnings
(JPY bn)
CAGR
FY19-2420%
Current state of businesses toward achieving VISION 2030 goals | Underlined: | ||||
Explained in CEO presentation | |||||
Vision care | Agrochemical products | ||||
Blue: Covered today | |||||
90.0 | Stable business growth; increased MRTM | Expanded pipeline via the acquisition | |||
capacity; expanded portfolio via the | of Meiji Seika Pharma's agrochemicals business | ||||
acquisition of Coburn | Expanding overseas business for growth drivers | ||||
Oral care | Nonwovens | ||||
Delayed business growth | Established Mitsui Chemicals Asahi Life Materials |
23.124.9
14.8
29.2 30.0
36.0
Environmental | Overall: Stable market growth due to population growth and aging, greater |
changes | health consciousness and demand for a stable food supply |
Nonwovens: Worsening competitive environment for hygiene materials and sluggish | |
ICT-related demand | |
Key priorities/direction |
FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY30 | |||
Outlook | Target | ||||||||
Life care | Wellness | Medical | |||||||
ROIC 9% 8% 7% 6% 7% | 13% |
Rose ValueTM
FY24 76%➡FY30 85%
Speeding up growth by investing further resources in growth businesses and turning around low- profitability businesses
Vision care: Accelerating business growth in key markets and pursuing next phase of capacity increase / Expanding the coating materials and equipment business
Agrochemical products: Expanding business by registering growth driver products in more countries and leveraging our active ingredients
Oral care: Drastically strengthening Kulzer's profitability
Growing sales of new products in key markets (Europe, Japan, U.S.) through further collaboration among Group companies
Nonwovens: Pursuing synergies from integration by bolstering and expanding industrial materials, as well as by optimizing production setups
Personal care: Bolstering the biochemicals business
Medical business: Promoting collaboration and strengthening partnerships with our investee and partner companies in the orthopedic surgery, examination and diagnosis sectors
2 Medical: Oral Care
June 14, 2024
Focusing on a strategy to strengthen Kulzer's profitability
based on the current business environment
Continuing to introduce | Introducing new | Gaining sales capabilities/ |
new products leveraging | products through | networks through |
the Kulzer brand | Group tie-ups | new tie-ups/M&A |
Kulzer's internal environment:
- Achieved continued growth until FY22, but growth was at a standstill in FY23
- Insolvency of a major OEM product customer based in the U.S.
External environment:
- Worsening macroeconomic environment and a decline in dental care spending due to inflation, in Europe and the U.S.
Negatively effect on Kulzer's business in FY23 | ||
Focusing on a | Continuing to | Continuing to |
strategy to | introduce new | explore tie-ups/M&A |
strengthen Kulzer's | products through | opportunities |
profitability | Group tie-ups | |
3 Medical: Oral Care
June 14, 2024
While our affiliates have been steadily increasing
operating income before special items, growth is currently at a standstill
Enhanced business and capital | FY23: Kulzer's growth | |||||||||
Advanced activities to | alliance with Shofu | |||||||||
hits a standstill | ||||||||||
strengthen/improve Kulzer's | (20.01%) | × | ||||||||
profitability | (Insolvency of a major OEM product customer | |||||||||
("Kulzer+" activities) | Advanced three-partytie-up | based in the U.S.) | ||||||||
Reviewed Kulzer's growth | ||||||||||
between Shofu, Sun Medical and | ||||||||||
strategy in line with | ||||||||||
MCI | ||||||||||
environmental changes | Continuous launch | |||||||||
(Restoration composites, | ||||||||||
of new products | ||||||||||
dental cement, denture materials, | ||||||||||
(Restoration composites, | ||||||||||
3D printer & printable materials ) | ||||||||||
dental cement, denture materials, | Back on track | |||||||||
3D printer & printable materials ) | ||||||||||
Established Sun Medical | for growth | |||||||||
Business and capital alliance | ||||||||||
with Shofu | ||||||||||
Acquired Kulzer | FY18→22 CAGR | |||||||||
>20% | ||||||||||
2013 | ||||||||||
2009 | ||||||||||
1981 | ||||||||||
Trend in affiliates' | ||||||||||
operating income | ||||||||||
before special items | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | |||
4 Medical: Oral Care
June 14, 2024
Dental material manufacturers across the board faced a growth standstill
as a result of the external business environment in FY23
YoY revenue growth rate of major Western
dental material manufacturers (2023)
100%
Kulzer Company | Company | Company | Company |
D* | E* | C | S* |
Dental care spending down
in Europe and the U.S.
due to the impact of inflation
Limited new investments in
dental clinics in Europe and the U.S. due to worsened macroeconomic conditions
Companies' revenue impacted by
cybersecurity issue at major global
distributor of dental materials
*Revenue growth rate of division handling dental preservation products
5 Medical: Oral Care
June 14, 2024
Drastically strengthening profitability by growing sales in focus sectors and optimizing costs
Sales revenue
Growth Image by Kulzer product
category (FY23→FY26)
Bubble size: operating income before special items
Focus sectors | |
(in non-precious | |
metal categories) | |
Other sectors | |
(in non-precious | |
metal categories) | |
Precious | |
metals | Return on sales |
Kulzer operating income
before special items
Cost | ||
optimization | ||
Sales | ||
FY23 | growth in | FY26 |
focus | ||
Result | sectors | outlook |
Strategy to strengthen Kulzer's profitability
Sales growth in focus sectors
- Launching new products with high return on sales
- Concentrating investment of R&D resources & further collaboration among Group companies to speed up launch new products onto the market
Product launches in FY23
- Restoration composites launched in European & U.S. markets
- Dental cement & bonding launched in Japanese market
- Increased sales of 3D printers & printable materials through business partnership with Japan's leading comprehensive dental care trading company
Cost optimization through structural improvement
- Reducing costs via e.g. manufacturing process rationalization
- Further rationalization by reducing number of products
- Focus sectors :
Restoration composites, dental cement, denture materials, 3D printer & printable materials
6 Medical: Oral Care
June 14, 2024
Some of our new product launches in focus sectors (for 2023)
Europe/U.S.
Venus Pearl PURE
(restoration composites)
Enables color matching with a patient's teeth using only a limited number of colors to make for more convenient treatment
20202022
Continuous development and European/U.S. market launches of new products leveraging the Kulzer brand
Japan
ZEN Universal Cement & Bond
(dental cement)
A user-friendly product that meets the needs of dentists by providing improved adhesive strength and a reduction in the number of tasks required during procedures
Group-wide product
development making use
of MCI's monomer design and
development technology, Sun
Medical's product development capabilities and Kulzer's brand
Accuprint 3D 4.0 Pro/
3D materials
(3D printer & printable materials)
A specialized intelligent printer designed for the swift, easy creation of dental products
Increased sales of 3D printers & printable materials through business partnership with Japan's leading comprehensive dental care trading company
7 | Life Care, | : Personal Care |
Wellness, Medical |
June 14, 2024
Using our biotechnology base to accelerate the growth of our biochemicals business
Oligonucleotide CDMO | Biochemicals business sales revenue | ||||||
Further | |||||||
advances | CAGR | 19% | |||||
Biochemicals | Raw materials for oligonucleotides | FY23-30 | |||||
Under | |||||||
business | |||||||
Accelerating | development | Previous Latest | |||||
expansion for | Biotechnology | ||||||
bio-based | |||||||
base | |||||||
products, | Under | ||||||
biocatalysts & | development | ||||||
process licenses | Nutrition | ||||||
Biocatalyst design, | |||||||
genetic modification and | materials | ||||||
culture technologies | FY23 | FY24 | FY25 | FY26 | FY30 | ||
Basic strategy
- Strengthening and expanding a biochemicals business primarily focusing on acrylamide
- Advancing into nutrition materials and raw materials for oligonucleotides
- Globally expanding licensing and biocatalyst sales for acrylamide, with a particular focus on growing oil & gas applications
- Expanding bio-based production sites (securing a site in India)
- Accelerating sales expansion via new biocatalyst development
VISION 2030
Business Strategy Presentation
Mobility Solutions
KOMORIYA Atsushi
小守谷 敦
Managing Executive Officer
Business Sector President, Mobility Solutions Business Sector
June 14, 2024
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Mitsui Chemicals Inc. published this content on 14 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 June 2024 00:38:07 UTC.