Mitsui Chemicals : FY2023 Earnings Presentation Slides (with FY2024 Outlook)

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)

1. Trends of Key Market Indicators
2. Major Investment Projects, etc.
3. Consolidated Financial Highlights
4. Sales Revenue and Operating Income before Special Items by Business Segment

(compared with corresponding period of FY2022 results)

1. Operating Income before Special Items and Business Overview by Business Segment
2. Non-recurringItems
3. Consolidated Statement of Financial Position
4. Consolidated Statement of Cash Flow

2. Outlook for FY2024 (April 1, 2024 - March 31, 2025)

1. Highlights of Consolidated Financial Outlook
2. Sales Revenue and Operating Income before Special Items of Outlook

by Business Segment (compared with FY2023)

1. Operating Income before Special Items and Business Overview by Business Segment
2. Operating Income before Special Items by Business Segment

(2H vs. 1H of FY2024)

1. Allocation of Resources
2. Shareholder Returns
3. Consolidated Statement of Cash Flow
4. 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

1. 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

1. 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.