• Japanese

ANNUAL REPORT 2015

  • Message from the President. Corporate Vision.
  • Special Feature
  • Dialogue 1
  • Dialogue 2
  • Dialogue 3
  • Dialogue 4
  • Dialogue 5

Dialogue 2 Message from the CFO

Interview with the President download PDF

We will maintain optimal balance between the needs to strengthen our profitability, secure our financial health, and provide adequate returns to our shareholders as a part of efforts to increase our corporate value on a continuous and sustainable basis. Masaharu Kubo Senior Managing Executive Officer

Under its 2011 Mid-Term Business Plan, the Mitsui Chemicals Group undertook growth investments totaling ¥140 billion to strengthen profitability with the aim of transforming its business portfolio into one more resilient to changing economic conditions.

Turning to our 2014 Mid-Term Business Plan, it is absolutely imperative that we recoup the growth investments made under the previous plan, strengthen the profitability of existing businesses, and rebuild the bulk and commodity product businesses. In this context, we are working diligently to increase our ability to generate cash flows.

Looking at investment activities over the period of the plan, we will selectively narrow down the amount of growth investments undertaken from ¥140 billion of the 2011 Mid-Term Business Plan to ¥50 billion while directing ¥90 billion toward the platform and maintenance investment necessary to secure safety in a bid to ensure a quick recovery in our financial health.

While expanding activities in targeted business domains that are expected to drive growth, we are rebuilding our business in the Basic Materials domain. Together with efforts to expedite an improvement in our performance, we generated positive consolidated cash flows in fiscal 2014. On this basis, the improvement of cash flows will be continued. From the perspective of our net D/E ratio, a key indicator of financial health, we anticipate achieving our target of 1.20 set for the end of fiscal 2016 ahead of schedule.

Taking the aforementioned factors into consideration, we have decided to increase the level of growth investment ¥15 billion to ¥65 billion to further accelerate the pace of implementation of our growth strategies.

In endeavoring to ensure the adequate return of profits to shareholders, we plan to pay an annual dividend of ¥5 per share for fiscal 2014 and ¥6 per share, an increase of ¥1 per share, for fiscal 2015. Looking ahead, we will continue to focus on the stable payment of dividends and have set the dividend payout ratio and dividend on equity (DOE) targets at 25% or more and 2% or more, respectively, on a consolidated basis.

Accelerating Growth Strategies. Improving Financial Structure. Stable Return to Shareholders.
Interview with the President