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Earnings presentation4183Mitsui Chemicals,Inc.Materials and Chemicals

Overview of the Financial Results for Fiscal 2025 and the Earnings Forecast for Fiscal 2026

Core operating income is expected to increase from ¥100.0 billion in FY2025 to ¥105.0 billion in FY2026, driven by business expansion in growth areas, structural improvements in B&GM and the elimination of one-off losses, as well as price increases and cost reductions. The forecast also incorporates a loss of approximately ¥15.0 billion due to the situation in the Middle East and higher fixed costs associated with capacity expansion.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
50
¥100 million (year-on-year increase in core operating income)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Earnings presentationFY2025 results and FY2026 earnings forecast11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,688 hundred million-8.0%
Operating profit¥738 hundred million-6.0%
Ordinary income¥686 100 million -4.0%profit before tax, IFRS
Net income¥344 100 million +7.0%profit for the year attributable to owners of the parent
Full-year earnings forecast
Revenue
¥19,000 hundred million
Core operating profit
¥1,050 hundred million
Operating profit
¥830 hundred million
Pretax profit
¥740 hundred million
Profit for the period attributable to owners of the parent
¥450 hundred million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Volume variance¥57 hundred million
  • Terms of trade¥-85 hundred million
  • Fixed costs and other factors¥18 hundred million
  • Growth Areas¥62 hundred million
  • B&GM¥-70 hundred million
  • FY2026 volume variance¥195 hundred million
  • FY2026 terms of trade¥100 hundred million
  • FY2026 fixed costs and other factors¥-245 hundred million
  • Middle East situation-150 Approximately ¥100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate
    FY2025 Results151
    FY2026 Forecast155
  • Domestic naphtha
    FY2025 Results65,300
    FY2026 Forecast95,000
New initiatives
  • Capacity expansion in growth areas, including a new Tafmer plant, new high-performance PP facilities, and production facilities for CNT pellicles for next-generation EUV lithography
  • Investment to strengthen materials development for the semiconductor packaging market
  • Establishment of the second CVC fund, 321Catalyst™
  • Improvements to B&GM's business structure, integration of the domestic polyolefin businesses, consolidation of ethylene facilities, and other production optimization measures
Key KPIsA metric the company considers important as a management benchmark.
  • Core operating margin in Growth Areas11.6 %
    Year on year against the same period last yearUp 0.9 percentage points from 10.7% in FY2024
  • Naphtha cracker utilization rate70 Approximately %
  • Impact of U.S. tariff policy-30 Approximately ¥100 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Volume variance in revenue¥-826 hundred million
    Year on year against the same period last yearYear-on-year variance factor
  • Price variance in revenue¥-578 hundred million
    Year on year against the same period last yearYear-on-year variance factor
Segment results
  • Life & Healthcare Solutions
    Revenue¥2,591 hundred million (YoY +3.0%)
    Core operating profit¥342 hundred million (YoY 0.0%)
  • Mobility Solutions
    Revenue¥5,154 hundred million (YoY -7.0%)
    Core operating profit¥510 hundred million (YoY -7.0%)
  • ICT Solutions
    Revenue¥2,795 hundred million (YoY +1.0%)
    Core operating profit¥369 hundred million (YoY +38.0%)
  • Growth Areas
    Revenue¥10,540 hundred million (YoY -3.0%)
    Core operating profit¥1,221 hundred million (YoY +5.0%)
  • Basic & Green Materials
    Revenue¥5,999 hundred million (YoY -15.0%)
    Core operating profit¥-184 hundred million
  • Other
    Revenue¥149 hundred million (YoY +1.0%)
    Core operating profit¥-37 hundred million
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
-150 Approximately ¥100 million
DetailsProduction cuts due to the situation in the Middle East, lower sales volumes, and deterioration in yields and energy efficiency
Annual Dividend
Annual¥75 per share
Interim¥37.5 per share
End of period¥37.5 per share
Payout ratio
Not disclosed (the company states a policy of targeting a total payout ratio of at least 40% and DOE of at least 3.0%)
Acquisition of treasury shares
Not disclosed (the company describes a policy of flexible, timely share repurchases, but does not disclose a repurchase limit for this period)
Three months of the current quarter
Q4 FY2025
Revenue¥4,501 hundred million
Core operating profit¥320 hundred million
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY2025 results and FY2026 earnings forecast
Net Sales¥16,688 hundred million (YoY -8.0%)
Operating profit¥738 hundred million (YoY -6.0%)
Ordinary income¥686 100 million (profit before tax, IFRS) (YoY -4.0%)
Net income¥344 100 million (profit for the year attributable to owners of the parent) (YoY +7.0%)
Three months of the current quarterQ4 FY2025 Revenue ¥4,501 hundred million / Core operating profit ¥320 hundred million
Full-year earnings forecastRevenue ¥19,000 hundred million / Core operating profit ¥1,050 hundred million / Operating profit ¥830 hundred million / Pretax profit ¥740 hundred million / Profit for the period attributable to owners of the parent ¥450 hundred million
Segment resultsSegment Life & Healthcare Solutions / Revenue ¥2,591 hundred million (YoY +3.0%) / Core operating profit ¥342 hundred million (YoY 0.0%), Segment Mobility Solutions / Revenue ¥5,154 hundred million (YoY -7.0%) / Core operating profit ¥510 hundred million (YoY -7.0%), Segment ICT Solutions / Revenue ¥2,795 hundred million (YoY +1.0%) / Core operating profit ¥369 hundred million (YoY +38.0%), Segment Growth Areas / Revenue ¥10,540 hundred million (YoY -3.0%) / Core operating profit ¥1,221 hundred million (YoY +5.0%), Segment Basic & Green Materials / Revenue ¥5,999 hundred million (YoY -15.0%) / Core operating profit ¥-184 hundred million, Segment Other / Revenue ¥149 hundred million (YoY +1.0%) / Core operating profit ¥-37 hundred million
Breakdown of Factors Affecting the ChangeItem Volume variance / Amount ¥57 hundred million, Item Terms of trade / Amount ¥-85 hundred million, Item Fixed costs and other factors / Amount ¥18 hundred million, Item Growth Areas / Amount ¥62 hundred million, Item B&GM / Amount ¥-70 hundred million, Item FY2026 volume variance / Amount ¥195 hundred million, Item FY2026 terms of trade / Amount ¥100 hundred million, Item FY2026 fixed costs and other factors / Amount ¥-245 hundred million, Item Middle East situation / Amount -150 Approximately ¥100 million
Key KPIsIndicator name Core operating margin in Growth Areas / Value 11.6 % / Year on year against the same period last year Up 0.9 percentage points from 10.7% in FY2024, Indicator name Naphtha cracker utilization rate / Value 70 Approximately % / Year on year against the same period last year Not disclosed, Indicator name Impact of U.S. tariff policy / Value -30 Approximately ¥100 million / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Volume variance in revenue / Value ¥-826 hundred million / Year on year against the same period last year Year-on-year variance factor, Indicator name Price variance in revenue / Value ¥-578 hundred million / Year on year against the same period last year Year-on-year variance factor
Assumptions Underlying the Business OutlookItem Exchange rate / FY2025 Results ¥151 /US$ / FY2026 Forecast ¥155 /US$, Item Domestic naphtha / FY2025 Results ¥65,300 /KL / FY2026 Forecast ¥95,000 /KL
Risk amount incorporated into the outlookAmount -150 Approximately ¥100 million / Details Production cuts due to the situation in the Middle East, lower sales volumes, and deterioration in yields and energy efficiency
Annual DividendAnnual ¥75 per share / Interim ¥37.5 per share / End of period ¥37.5 per share
Payout ratioNot disclosed (the company states a policy of targeting a total payout ratio of at least 40% and DOE of at least 3.0%)
Acquisition of treasury sharesNot disclosed (the company describes a policy of flexible, timely share repurchases, but does not disclose a repurchase limit for this period)
New initiativesCapacity expansion in growth areas, including a new Tafmer plant, new high-performance PP facilities, and production facilities for CNT pellicles for next-generation EUV lithography, Investment to strengthen materials development for the semiconductor packaging market, Establishment of the second CVC fund, 321Catalyst™, Improvements to B&GM's business structure, integration of the domestic polyolefin businesses, consolidation of ethylene facilities, and other production optimization measures
Items this document does not state (13)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company expects business expansion in growth areas, improvements to B&GM's business structure and the elimination of one-off factors, price increases and cost reductions, and improved equity-method investment gains and losses. Factors expected to reduce profit include production cuts due to the situation in the Middle East, lower sales volumes, deterioration in yields and energy efficiency, and higher fixed costs, including depreciation, associated with capacity expansion.

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Overview of the Financial Results for Fiscal 2025 and the Earnings Forecast for Fiscal 2026 | Mitsui Chemicals,Inc. (4183) timely disclosure | Komori