Mitsubishi Corporation

Skip to Main



This page is Home>Operations>Chemicals Group.


Chemicals Group - Group CEO Message

Takahisa Miyauchi - Executive Vice President, Group CEO, Chemicals Group

The Chemicals Group constantly seeks to strengthen existing businesses and create new businesses, with an eye on expected changes in the business environment. At the same time, we are leveraging the fact that the chemical products industry intersects with clothing, food and housing fields to achieve further growth.

Midterm Corporate Strategy 2012 Targets and Progress

This group's target under Midterm Corporate Strategy 2012 is to generate net income of ¥32.0 billion. To achieve this goal, we aim to create a strong group with sustainable earnings power grounded on its functions. In the year ended March 2011, we focused on strengthening existing core business models, expanding businesses through participation in business investments in resource countries, and bolstering businesses in the life science field. We took concrete steps and sowed the seeds for future growth.

In the year ended March 2011, we posted net income of ¥29.1 billion, down ¥3.2 billion year on year. The absence of gains on the reversal of deferred tax liabilities of SPDC Ltd. recorded in the previous fiscal year was a big factor for this decline. Excluding that, we achieved a large earnings increase while maintaining high capital efficiency due to the results of the initiatives I mentioned earlier, higher earnings on transactions, lower share write-downs and higher dividend income. All in all, we are making solid progress toward achieving our Midterm Corporate Strategy 2012 target.

Business Environment and Outlook for Year Ending March 2012

In the year ending March 2012, we envisage potential opportunities for the group to leverage MC's capabilities to take advantage of structural changes caused by the emergence of shale gas as a feedstock. We see this driving the rehabilitation of the petrochemical industry within North America. Moreover, ever-increasing interest in health, safety, comfort and the environment caused by environmental problems and trends such as aging societies and falling birthrates is expected to continue underpinning growing demand in the life science and environmental and new energy fields. In developing countries, meanwhile, we expect growth in demand to remain relatively firm but to slacken in pace a little. A range of factors imply lingering uncertainty, including price volatility for crude oil and other commodities, the situation in the Middle East, and the impact of the Great East Japan Earthquake. Under these conditions, we forecast a year-on- year decline in net income of ¥1.1 billion to ¥28.0 billion.

To achieve our Midterm Corporate Strategy 2012 goals, we will continue to undertake business investments that reinforce our trading capabilities. We plan to increase our investments in income-generating businesses, notably in the fields of life science and resource-site development business. In April 2011, we created the Life Sciences Division to target growth from new sectors such as fermentation products and generic pharmaceuticals. We also aim to deepen our global business development efforts by forging stronger connections inside countries such as China to tap into growth in the developing world.