Mitsui Chemicals : VISION 2030 Business Strategy Presentation in June 2024

June 14, 2024

VISION 2030

Business Strategy Presentation

Life & Healthcare Solutions	Business Sector President
TANAKA Hisayoshi
Mobility Solutions	Business Sector President
KOMORIYA Atsushi
ICT Solutions	Business Sector President
HIRAHARA Akio
Basic & Green Materials	Business Sector President
YOSHIZUMI Fumio

VISION 2030

Business Strategy Presentation

Life & Healthcare Solutions

TANAKA Hisayoshi

田中 久義

Managing Executive Officer,

Business Sector President, Life & Healthcare Solutions Business Sector

June 14, 2024

1	Pursuing Business Portfolio Transformation
Life & Healthcare Solutions	June 14, 2024

Providing solutions that contribute to life, health and comfortable lifestyles

as our first pillar of earnings

(JPY bn)

CAGR

FY19-2420%

			Current state of businesses toward achieving VISION 2030 goals	Underlined：
			Explained in CEO presentation
			Vision care	Agrochemical products
			Blue: Covered today
90.0	Stable business growth; increased MRTM	Expanded pipeline via the acquisition
capacity; expanded portfolio via the	of Meiji Seika Pharma's agrochemicals business
			acquisition of Coburn	Expanding overseas business for growth drivers
			Oral care	Nonwovens
			Delayed business growth	Established Mitsui Chemicals Asahi Life Materials

23.124.9

14.8

29.2 30.0

36.0

Environmental	Overall: Stable market growth due to population growth and aging, greater
changes	health consciousness and demand for a stable food supply
	Nonwovens: Worsening competitive environment for hygiene materials and sluggish
	ICT-related demand
	Key priorities/direction

FY19	FY20	FY21	FY22	FY23	FY24		FY30
							Outlook		Target
		Life care			Wellness		Medical
ROIC 9% 8% 7% 6% 7%	13%

Rose ValueTM

FY24 76％➡FY30 85％

Speeding up growth by investing further resources in growth businesses and turning around low- profitability businesses

Vision care: Accelerating business growth in key markets and pursuing next phase of capacity increase / Expanding the coating materials and equipment business

Agrochemical products: Expanding business by registering growth driver products in more countries and leveraging our active ingredients

Oral care: Drastically strengthening Kulzer's profitability

Growing sales of new products in key markets (Europe, Japan, U.S.) through further collaboration among Group companies

Nonwovens: Pursuing synergies from integration by bolstering and expanding industrial materials, as well as by optimizing production setups

Personal care: Bolstering the biochemicals business

Medical business: Promoting collaboration and strengthening partnerships with our investee and partner companies in the orthopedic surgery, examination and diagnosis sectors

2 Medical: Oral Care

June 14, 2024

Focusing on a strategy to strengthen Kulzer's profitability

based on the current business environment

Continuing to introduce	Introducing new	Gaining sales capabilities/
new products leveraging	products through	networks through
the Kulzer brand	Group tie-ups	new tie-ups/M&A

Kulzer's internal environment:

• Achieved continued growth until FY22, but growth was at a standstill in FY23
• Insolvency of a major OEM product customer based in the U.S.

External environment:

• Worsening macroeconomic environment and a decline in dental care spending due to inflation, in Europe and the U.S.

	Negatively effect on Kulzer's business in FY23
Focusing on a	Continuing to	Continuing to
strategy to	introduce new	explore tie-ups/M&A
strengthen Kulzer's	products through	opportunities
profitability	Group tie-ups

3 Medical: Oral Care

June 14, 2024

While our affiliates have been steadily increasing

operating income before special items, growth is currently at a standstill

	Enhanced business and capital		FY23: Kulzer's growth
Advanced activities to	alliance with Shofu
		hits a standstill
strengthen/improve Kulzer's	（20.01%）	×
profitability					(Insolvency of a major OEM product customer
("Kulzer+" activities)	Advanced three-partytie-up		based in the U.S.)
Reviewed Kulzer's growth
between Shofu, Sun Medical and
strategy in line with
MCI
environmental changes			Continuous launch
(Restoration composites,
				of new products
dental cement, denture materials,
				(Restoration composites,
3D printer & printable materials ）
					dental cement, denture materials,	Back on track
					3D printer & printable materials ）
Established Sun Medical									for growth
Business and capital alliance
with Shofu
Acquired Kulzer		FY18→22 CAGR
			>20%
2013
2009
1981
Trend in affiliates'
operating income
before special items	FY18	FY19	FY20	FY21	FY22	FY23	FY24

4 Medical: Oral Care

June 14, 2024

Dental material manufacturers across the board faced a growth standstill

as a result of the external business environment in FY23

YoY revenue growth rate of major Western

dental material manufacturers (2023)

100％

Kulzer Company	Company	Company	Company
D*	E*	C	S*

Dental care spending down

in Europe and the U.S.

due to the impact of inflation

Limited new investments in

dental clinics in Europe and the U.S. due to worsened macroeconomic conditions

Companies' revenue impacted by

cybersecurity issue at major global

distributor of dental materials

*Revenue growth rate of division handling dental preservation products

5 Medical: Oral Care

June 14, 2024

Drastically strengthening profitability by growing sales in focus sectors and optimizing costs

Sales revenue

Growth Image by Kulzer product

category (FY23→FY26)

Bubble size： operating income before special items

	Focus sectors
	(in non-precious
	metal categories)
	Other sectors
	(in non-precious
	metal categories)
Precious
metals	Return on sales

Kulzer operating income

before special items

		Cost
		optimization
	Sales
FY23	growth in	FY26
focus
Result	sectors	outlook

Strategy to strengthen Kulzer's profitability

Sales growth in focus sectors

• Launching new products with high return on sales

• Concentrating investment of R&D resources & further collaboration among Group companies to speed up launch new products onto the market

Product launches in FY23

• Restoration composites launched in European & U.S. markets
• Dental cement & bonding launched in Japanese market
• Increased sales of 3D printers & printable materials through business partnership with Japan's leading comprehensive dental care trading company

Cost optimization through structural improvement

• • Reducing costs via e.g. manufacturing process rationalization
  • Further rationalization by reducing number of products
• Focus sectors :

Restoration composites, dental cement, denture materials, 3D printer & printable materials

6 Medical: Oral Care

June 14, 2024

Some of our new product launches in focus sectors (for 2023)

Europe/U.S.

Venus Pearl PURE

(restoration composites)

Enables color matching with a patient's teeth using only a limited number of colors to make for more convenient treatment

20202022

Continuous development and European/U.S. market launches of new products leveraging the Kulzer brand

Japan

ZEN Universal Cement & Bond

(dental cement)

A user-friendly product that meets the needs of dentists by providing improved adhesive strength and a reduction in the number of tasks required during procedures

Group-wide product

development making use

of MCI's monomer design and

development technology, Sun

Medical's product development capabilities and Kulzer's brand

Accuprint 3D 4.0 Pro/

3D materials

（3D printer & printable materials)

A specialized intelligent printer designed for the swift, easy creation of dental products

Increased sales of 3D printers & printable materials through business partnership with Japan's leading comprehensive dental care trading company

7	Life Care,	: Personal Care
Wellness, Medical

June 14, 2024

Using our biotechnology base to accelerate the growth of our biochemicals business

	Oligonucleotide CDMO		Biochemicals business sales revenue
		Further
		advances			CAGR	19%
Biochemicals	Raw materials for oligonucleotides			FY23-30
	Under
business
Accelerating	development	Previous Latest
expansion for	Biotechnology
bio-based
base
products,	Under
biocatalysts &	development
process licenses		Nutrition
	Biocatalyst design,
	genetic modification and	materials
	culture technologies		FY23	FY24	FY25	FY26	FY30

Basic strategy

• Strengthening and expanding a biochemicals business primarily focusing on acrylamide
• Advancing into nutrition materials and raw materials for oligonucleotides

• Globally expanding licensing and biocatalyst sales for acrylamide, with a particular focus on growing oil & gas applications
• Expanding bio-based production sites (securing a site in India)
• Accelerating sales expansion via new biocatalyst development

VISION 2030

Business Strategy Presentation

Mobility Solutions

KOMORIYA Atsushi

小守谷 敦

Managing Executive Officer

Business Sector President, Mobility Solutions Business Sector

June 14, 2024