I would like to take this opportunity to thank all of our shareholders for their continued support and understanding.
（1）Outlook for Fiscal 2016
During the six-month period from April 1, 2016 to September 30, 2016 (the “first half”) of fiscal 2016, the fiscal year ending March 31, 2017, the value of the yen continued to appreciate. In addition to a gradual slowdown in the rates of economic growth across a number of emerging countries, the global economy was increasingly shrouded in uncertainty due to such factors as Britain’s decision to withdraw from the European Union. Under these circumstances, the Mitsui Chemicals Group focused its attention on expanding activities in the three Mobility, Health Care, and Food & Packaging domains identified under its Mid-Term Business Plan while steadily restricting its Basic Materials business.
As a result, the Group’s performance in the first half progressed in excess of initial plans. This followed successful efforts to achieve the major targets of the Mid-Term Business Plan in advance during the previous fiscal year. In specific terms, we operating income for the period under review came to the record high of \45.4 billion.
Taking these factors into account, Mitsui Chemicals declared an interim dividend of \5 per share. This was \1 per share higher than our initial plan.
Turning to our outlook for the full fiscal year, while such factors as the continued strong yen are expected to have an impact in the second half, we anticipate securing profits in each of the three growth domains while witnessing further improvements in the Basic Materials domain thanks largely to firm domestic demand. On this basis, net sales are expected to come in at \1,174.0 billion, down 12.6% year on year. From a profit perspective, operating income is estimated to reach \88.0 billion, up 24.1%.
This level of operating income exceeds the initial target of \60.0 billion set at the time the 2014 Mid-Term Business Plan was first formulated, and is within reach of the target of \100.0 billion set for around 2020.
（2）Toward Further Growth: 2025 Long-Term Business Plan
Next year, Mitsui Chemicals will celebrate the 20th anniversary of its establishment in 1997.
In an environment that is changing faster than ever, we have been discussing what must be continued and what must be changed for the Mitsui Chemicals Group to promptly adapt to the rapid changes.
This year we have incorporate which activities we should engage in and what kind of contributions we should make starting now in the 2025 Long-Term Business Plan, in order to achieve our corporate mission: “To contribute broadly to society by providing high-quality products and services to customers through innovation and the creation of materials, while keeping harmony with the global environment.” We will share this plan throughout the Group and bring into three-year business plan annually and implement it.
Through this plan, I hope that you will understand and identify with our vision for a future society and how we will contribute to it as a company and continue to support us in creating a better society.
Taking the lead, I will work to steer the collective efforts of the Mitsui Chemicals Group toward completing its 2014 Mid-Term Business Plan. Moving forward, we will work diligently to further expand our corporate value.
As we endeavor to achieve our goals, I ask for you’re the continued support and understanding of all shareholders and investors.
Joined Mitsui Toatsu Chemicals in 1976. After having participated in construction of a chemical complex in Algeria, Tannowa went on to marketing and sales of basic chemicals. He was then asked to overhaul the company’s human resources where he set his sights on modifying the company’s codes and regulations. These efforts became a key part of the company’s “New” Mitsui Chemicals transformation.
Appointed as managing executive officer in 2010, Tannowa was responsible for overseeing all major business operations from 2012. In 2013, as senior managing executive officer, he became one of the moving forces in restructuring the company’s business operations and the compilation of the company’s 2014 Mid-Term Business Plan. Tannowa was appointed President and CEO of Mitsui Chemicals, Inc. as of April 1st 2014,