The 2008 Mid-term Business Plan. Jan. 18, 2008 Mitsui Chemicals, Inc. 1

Transcription

1 The 2008 Mid-term Business Plan Jan. 18, 2008 Mitsui Chemicals, Inc. 1

2 Chemistry, Innovation, Dreams ~The Mitsui Chemicals Group is constantly pursuing innovation and materializing dreams with the wonder of chemistry~ January 18, 2008 President & CEO Kenji Fujiyoshi 2

3 Operating Incomes During the 04MTP(FY04-FY07) (Accumulated Operating Income) 04MTP (Plan) 320 billion Results (Estimate) billion Met the target of the 04MTP (\ bill.) Stretched Goal FY04 年度 05 FY05 年度 FY06 年度 FY07 年度 (Estimated) 3

4 1 st st H of FY07 Targets and Results Sales and Operating Income (Y bill.) 1H of FY07 Budget Result Incr. (Decr.) Net Sales (8.4) Operating Income Overseas Sales Record High 42% 40% 38% 36% 34% 32% 39% 36% 36% 35% 35% 39% 40% 1H/FY04 2H/FY04 1H/FY05 2H/FY05 1H/FY06 2H/FY06 1H/FY07 4

5 Business Topics [Performance Materials and Advanced Chemicals] Completion of multipurpose semi-commercial plant <Iwakuni-Ohtake/Jan. 2007> Completion of high-functional film center <Nagoya/Mar > Multipurpose semi-commercial plant Decision to increase production capacity of MDI <Kumho Mitsui Chemicals (Korea)/Apr. 2007> (To be completed in June 2009) Sankyo Agro joined the MCI Group High-functional Film Center <Apr. 2007> (Oct. : Mitsui Chemicals Crop Life was integrated) Acquisition of toner resin business <Apr. 2007> from Sekisui Sankyo Agro Co. Ltd. 5

6 Business Topics [Performance Materials and Advanced Chemicals2] Dissolution of JV with GE and Nagase & Co. <Aug. 2007> (GE Plastics Japan Ltd. and GEM PC Ltd.) Increase of production capacity of NF3 Start of commercial production <Shimonoseki/Aug. 2007> (+400t/yr 1,300t/yr 1,700t/yr) Completion of 3EPT plant <Ichihara/Oct. 2007> (+75kt/yr 45kt/yr 120kt/yr) 3EPT Plant (Ichihara Works) Increase of production capacity of nonwoven fabrics Start of commercial operation <MHM (Thailand)/Dec. 2007> (+16kt/yr 14kt/yr 30kt/yr) Mitsui Hygiene Materials (Thailand) 6

7 Business Topics [Basic Chemicals] Increase of production capacity of PP compounds Start of commercial operation <May 2007> (ACP, GSC, MCZ +63kt/yr 237kt/yr 300kt/yr) Advanced Composites (the U.S.A) Grand Siam Composites (Thailand) Mitsui Advanced Composites (Zhongshan) Co., Ltd. (China) Increase of production capacity of phenol Start of commercial operation <MPS (Singapore)/Aug. 2007> (+50kt/yr 250kt/yr 300kt/yr) Establishment of Mitsui Prime Advanced Composites India PVT Ltd. <Sep > Mitsui Phenols Singapore (Singapore) 7

8 Core Businesses of Performance Materials Elastomers Production Capacity TAFMER TM :NO.2 in the world, No.1 in Asia ADMER TM :No.1 in the world Expansion of 3EPT Plant <Ichihara/Oct. 2007> (+75kt/r) MELS (Singapore) Urethane Production Capacity No.2 in Asia (492kt/yr) Increase of production capacity of MDI to be completed. Steering Wheel Instrument Panel <Kumho Mitsui Chemicals (Korea)/Jun. 2009> (+65kt/yr) Seat cushions Ceiling Material Headrest Seat back Urethane materials used (Automobile) 8

9 Core Businesses of Advanced Chemicals Monomers for Optical High-index Plastic Lens Market Share No.1 in the world O H N H N World s highest level refractive index based on highly competitive technology N NO2 Agrochemicals Insecticide STARKLE TM Halogen-free systemic insecticide which has inventive chemical structure 9

10 Phenol Core Businesses of Basic Chemicals Production Capacity No.2 in the world (920kt/yr) Increase of MPS/Phenol Start of commercial operation <Aug. 2007> (+50kt/yr) PP Automotive Materials Phenol Plant (Osaka Works) Production Capacity No.2 in the world (600kt/yr) Increase of production capacity <May 2007> (ACP, GSC, MCZ +63kt/yr) Establishment of a New Company in India, ACI <Sep. 2007> 10

11 Grand Design* and the 08 MTP Chemistry, Innovation, Dreams Corporate Mission Corporate Target Long-term Management Target Long-term Long-term Management Management Target Target (targeting (targeting around around 2015) 2015) Financial Goals [Growth] Operating Operating Income: 150bil. Income: 150bil. ROA: ROA: 10% 10% (Return (Return on on Asset) Asset) Business Portfolio Direction of Reinforcing Business Infrastructure Human Resources System Organization Corporate Culture Mid-term Business Plan Short-term Business Plan (Annual Budget) The Action Guidelines The 2008 Mid-term Business Plan Business plan for the first 4 years until 2015 to realize the Grand Design al Goals [Harmony] Index Index of of GHG GHG Basic Basic Unit: Unit: (1990 (1990 as as 100) 100) Industrial Industrial Wastes Wastes Minimization *1 Minimization *1 Development Development of of to to Utilize Utilize Non-Fossil Non-Fossil Resources Resources *1 Final disposal amount/ *1 Final disposal amount/ The amount of industrial waste produced 1% The amount of industrial waste produced 1% *Grand Design is the basic framework of the MCI Group management which sets goals with an eye on further growth in the next 10 to 15 years. 11

12 Basic Concept of the 08 MTP The Challenge to Create Innovative Values Complete 3 dimensional strategy consisting of economy, environment and society Create innovative new technologies Innovative New 12

13 Performance Base for the 08 MTP The following table shows premises to establish our 2008 Mid-term Business Plan. All the data are based on our forecasts for the next 4 years of the 08MTP. Economic Growth Market Trend Other Relevant Data Asia 5.8% (Japan 1.7%, China 9.4%, India 9.0%) The U.S. 3.0% Europe 2.0% Automotive Flat-panel TV Production: Japan Unchanged, Europe & the U.S. +1.5%, Asia +4.0% Technically polarized: Growth to be seen in low enrivonmental impact and compact light-weight, low priced automobiles. Growth to be sluggish in flat-panel TV. Organic Electro-Luminescence to be grow. Exchange Rate Y115 /$ (Y150/EUR) Crude Oil $65 /BBL Naphtha $595 /T Domestic Naphtha Y50,000 /KL 13

14 Mission and Basic Strategy Innovative New <Mission> Grow & Expand to Achieve Long-term Management Target <Basic Strategy> Proactive management resource investment including M&A -Gear up up growth & expansion to to achieve Long-term Financial Goals -Accelerate realization of of targeted business portfolio -Create new innovative technologies 14

15 Management Target The MCI Group will aggressively invest our management resources to expand operating income, targeting achievement of our Long-term Management Target. Innovative New 15% 10% FY11 Target Operating Income: 130bill. ROA: 7.5% The 12MTP Long-term Management Target (around 2015) Operating Income: 150bill or more ROA: 10% or more ROA 5% 0% FY07 Budget Operating Income: 90.0 ROA: 5.8% The 08MTP FY07 Budget (Stretched) Operating Income: ROA 6.4% Profit target in the first 4 years to achieve the Long-term Management Target , , , , ,800 Operating Income ( bill.) 15

16 16 Mission & Basic Strategy of Business Sectors Innovative New Performance Materials Advanced Chemicals Basic Chemicals Mission Establish highprofitability as a growth driver. Pursue business scale to establish the third pillar. Strengthen profitability. Basic Strategy Expand functional polymers and restructure business portfolio. Expand business scale by focusing on M&A. Strengthen competitiveness against threat by capacity expansion in the Middle East. Approaches Aggressively invest management resources in functional polymers. Expand agrochemicals, vision care and catalysis businesses. Introduce competitive technologies to manufacture high-valueadded products. Win in growing Asian market.

17 Targets for GHG Basic Unit, Land-filled Disposal 1. GHG (greenhouse gas) Basic Unit <Management Target (2011) GHG GHG Basic Basic Unit Unit or or less less (1990 (1990 as as 100) 100) (Index (Index of of Energy Basic Basic Unit Unit or or less) less) <Basic Strategy>(1) Invest Invest in in energy-saving measures (2)Develop innovative process contributing to to significant reduction of of GHG GHG 2. Land-filled Industrial Wastes Minimization Innovative New <Management Target (2011)> Japan: 1% or or less at at every site (minimization) Overseas: 5% or or less on on average 17

18 Development of of Utilizing Non-fossil Resources Innovative New <Basic <Basic Strategy> Strategy> (1) (1) Development Development of of transformational transformational technology technology (2) (2) Utilization Utilization of of inedible inedible resources resources Low al impact by products and intermediates Current level al-friendly 環境対応 technologies 技術 省エネ Development 環境に配慮した of energysaving, 製品やプロセスの開発 environmentally friendly products and process 既存技術 (Products) ( 製品 ) GHロGセ削ス& 減由来の原油非使用 Process-derived GHG reduction Current Usage of non-oil resources & constrain of increase in GHG GHG 増加の抑制 Alternatives of crude oil 原油代替 活用技術プ to 非化石原料 use non-fossil resources 原料多様化 to diversify resources 技術 Crude oil Main Materials Non-crude oil 18

19 Occupational Safety & Compliance Innovative New Achieve world-top class safety level (2011) Frequency Rate of of Occupational Injury (lost-time) or or less less Ditto (lost-time+non-lost time+light wound) or or less less Eradicate violation against laws and regulations (1) (1) Promote motivation group-widely (2) (2) Establish best-suit framework to to realize optimal labor safety 19

20 Management Resource Investment Plan Investment By Organization ( bill.) 04 MTP times greater 08 MTP Performance Materials Advanced Chemicals Basic Chemicals Corporate Administration Divisions, etc

21 Management Resource Investment Plan Investment by Objectives & Scale Objectives Investment Scale ( bill.) Infrastructure development, etc Total Construction and expansion of production capacity M&A Small-scale investments Large-scale investments (Overseas) Total Corporate-level strategic investments Large-scale investments (Japan) 21

22 22 Management Resource Investment Plan Human Resources 07 FY07 年度末 10,800 2,400 13,200 20% of Generation Turnover in Japan +2, FY11 年度末 11,000 2,800 1,400 15,200 Japan Overseas M&A 0 5,000 10,000 15,000 20,000 連結人員 ( 名 ) # of the MCI Group Employees

23 Management Resource Investment Plan R&D 200 The MCI Group will focus on investment in Strategic R&D Project to accelerate our growth and expansion and create innovative new technologies. ( bill.) Up 25% 180 Performance Materials (42%) Corporate Research Advanced Chemicals (20%) Basic Chemicals R&D (10%) (12%) (16%) 100 The 04 MTP The 08 MTP 23

24 Management Resource Investment Plan Focus on Corporate Research Breakdown of Investment in Corporate Research (2011) Performance Materials (42%) Advanced Chemicals (20%) Basic Chemicals (16%) Corporate Research (12%) Strategic R&D project (10%) Expand functional polymers (45%) to utilize non-fossil resources (20%) to reduce GHG (10%) Innovative process (5%) Foundational technologies (20%) Focused Fields = 80% Accelerate development of innovative new technologies by focusing 80% investment in main four fields. 24

25 Creation of Innovative New Direction Innovative New Strengthening of functional polymers portfolio Development of innovative process for olefin and aroma products Development of technologies to utilize non-fossil resources Plant-derived polyurethane Bio-olefin products to reduce greenhouse gas CO 2 immobilization Innovative New Development of innovative, highly safety process Non-phosgene isocyanate process 25

26 Strengthen Functional Polymers Portfolio Nanocrystalline structured Elastomer Low-resiliance Polyurethane Expand functions and application Ultrahigh molecular weight Ethylene polymer Performance Olefin Polymers Pursue utmost structural excellence Compound structures Introduction of new structures Innovative New Ethylene/Cyclic olefin Copolymeric transparent resin High heat resistance Semiaromatic polyamide Thio urethane polymer to optical high-index plastic lens Urethane Polymers Polyamidepolyimide Ultra heat resistance Thermoplastic Polyimide 26

27 Innovative New Strengthen Competitiveness of of Basic Chemicals Innovative New Target Innovative, Competitive Process Strengthen Competitiveness by improving productivity The Olefins Conversion Technology (OCT) process for increasing propylene production from an ethylene plant. To introduce new catalysts* Others Phenol, BPA, PTA, Olefins, Aromas etc. 30 Relative Catalytic Activity Current 8 *High-active metathesis catalysts 30 ImprovementⅠImprovement Ⅱ (2008) (2009) 27

28 Innovative New Development of to Utilize Non-fossil resources Inedible resources (Cellulose, etc.) Edible resources (Starch, etc.) CO2 Water Monosaccharide Hydrogen Transformation of resources Utilization of inedible resources Lower alcohols Aromas Methanol Lactic acid Olefins Innovative New PLA Polyolefin Current technology New technology Plant oil Fatty Acid Glycerin Propylene glycol Polyol Polyurethane 28

29 Innovative New Bio-based Polyurethane Innovative Innovative Combustion (heat recollection) CO2 H2O Application (Bio-based content: 10-70wt%) 1Low-resiliance pillow 2Automotive seats Plant-derived polyurethane Plant oil Isocyanato Plant-derived polyol Automotive seat 29

30 Innovative New Development of of Bio-Olefins Current technology New technology Innovative New Bio-ethanol Bio-ethylene Inedible Resources Saccharification Monosaccharide Fermentation Bio-buthanol Bio- IPA Dehydration/Purification Dimerization Bio-butene Petro-butene Metathesis Bio-propylene Isopropyl alcohol 30

31 31 Innovative New Concept of of Chemical Immobilization of of CO2 Facility to Realize Industrialization Innovative New CO2 CO2 CO2 Separation and Capture of CO 2 Methanol Synthesis CO2 High-activity catalysts Hydrogen H 2 H2 CH3OH O 2 H 2 O Photocatalysts Under Development Olefins, Aromas

32 Innovative New Development of of Innovative, Highly Safety Process Target Innovative, Highly Safety Process Strengthen Competitiveness by Securing Higher Safety Innovative New Non-phosgene (Innovative Process) Non-phosgene isocyanate process, etc. Higher Safety Phosgene (Current Process) Dehalogenation Difficulty of Development More Difficult 32

33 33 Overview of the 08 MTP The Challenge to Create Innovative Values Innovative New Complete 3 dimensional strategy consisting of economy, environment and society Create innovative new technologies The MCI Group will Challenge to to Create Innovative Values To To Achieve the Goals of of the MTP!!

34 This summary contains forward-looking statements about 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. 34

35 Chemistry, Innovation, Dreams ~The Mitsui Chemicals Group is constantly pursuing innovation and materializing dreams with the wonder of chemistry~ (The End) 35