Formulation of New 스포츠 베팅 전략 Policy “Forging the future”

＞Briefing Material

Archived Conference

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Mitsubishi Chemical Holdings Corporation (MCHC) has formulated a new 스포츠 베팅 전략 policy “Forging the future”, covering the period up to the end of FY 2025.

In February 2021, MCHC announced its medium-term 스포츠 베팅 전략 plan, “APTSIS 25 Step 1”, which covers the two years from FY 2021. “Forging the future" is a new 스포츠 베팅 전략 policy formulated and on a review of the measures needed to maximize corporate value.

We aim to sustainably increase value for our stakeholders with a clearer strategy to drive operational excellence and unlock the growth potential of our businesses.

Ⅰ．Strategic Priorities

1. Growth, Performance, and Sustainability
2. Business to Exit
3. Strategic Cost Transformation
4. Leaner Structure to Execute Strategy
5. Strategic Capital Allocation

　1. Growth, Performance, and Sustainability

(1) Our Portfolio Assessment Criteria
We will focus on businesses in attractive markets where MCHC is positioned to win.

i. Market Attractiveness
·Market growth
·Potential Risk Factors
・ROS/ROIC/EBITDA Margin

ii. Strength
·No.1/2 Market Position Potential
・Technological Innovation
·Competitive Advantage

iii. Carbon Neutrality
・CO₂Emissions Level
・CO₂Reduction Potential
・Values to Customers/Society

(2) Our Strategic Focus
Based on the above evaluation criteria, Electronics and Health Care & Life Science will be positioned as our strategic focus.

[Our strategic focus] [Electronics]

We will aim to achieve further growth in target domains by using MCHC’s key technologies.
[Health Care & Life Science]

We will lead innovation in targeted areas in the food sector, and in healthcare we will realize the value of late-stage development assets such as a potential coronavirus vaccine.
[Markets where we are strong: Solid performance materials businesses]

We will aim to further increase competitiveness in each of the domains including 스포츠 베팅 전략s, polymers, films, and molding materials
[Markets where we are strong: Industrial gas]

We will take strategic initiatives to capture growth, reduce costs and improve profitability.

(3) Digitalization

By bolstering our digital strategy, we will enable customer experience and end-to-end business process transformations.

(4)  Carbon Neutrality by 2050

We will take a practical path towards carbon neutrality by 2050 while achieving sustainable growth.

2. Business to Exit

We will lead the consolidation of domestic basic chemical industries towards carbon neutrality by 2050 via restructuring, including through the carving out and 스포츠 베팅 전략 exit of our petrochemicals and coal chemicals.
　　

3. Strategic Cost Transformation

We will reduce costs by more than 100 Billion yen per year by fiscal 2025 through the following measures for each item.

4. Leaner Structure to Execute Strategy

From April 1, 2022 onward, we will reform our organizational structure to create a flat organization with a "One Company, One Team" culture. In addition, we will shift from a legal entity-based to a business unit and corporate fun lies. 　　　　　

5. Strategic capital allocation

We will strategically reallocate available capital from operational efficiency and divestures.

Ⅱ．Performance Targets for 2025

Improved operational efficiency and financial strength create solid foundation for accelerated growth.

(1) Group target

	FY2020 Actual	FY2021 Forecast		FY2025 Base Target
Group Revenues	JPY 3,258 Bil	JPY 3,886 Bil		JPY 3,000 Bil
Core Operating Income	JPY 175 Bil	JPY 300 Bil		JPY 350~370 Bil
EBITDA	JPY 406 Bil	JPY 530 Bil		JPY 540~560 Bil
EBITDA margin	12.5%	13.6%		18~20％
EPS	JPY (-5.3)	JPY 108.6		JPY 125-145
Financial Leverage (Net Debt / EBITDA)	5.3x	3.8x		2.0-3.0x
ROE	-0.6%	11.0%		≧10%
ROIC	3.3%	5.4%		7%

(2)  Targets by main segment

	Performance Products	MMA	Healthcare	Industrial Gas (Request-based)
EBITDA	≈ JPY 180 Bil	≈ JPY 70 Bil	≈ JPY 70 Bil	≈ JPY 220 Bil
EBITDA margin	≈ 15%	≈ 26%	≈ 15%	≈ 25%

Ⅲ．로드 맵

We will implement a firm strategy to increase shareholder value in accordance with the following road map.