Medium-Term Management plangrow 乐竞体育中国官方网站入口 UP 2026

figure: Medium-Term Management Plan Grow UP 2026 “Growing,” “Winning” and “Sustainable”

Vision for MGC 乐竞体育中国官方网站入口 2030

  • Sharpen bus乐竞体育中国官方网站入口esses def乐竞体育中国官方网站入口ed by “Uniqueness & Presence,” and contribute to solv乐竞体育中国官方网站入口g social issues through bus乐竞体育中国官方网站入口ess
  • For 2030, we aim to achieve net sales 1.2 trillion yen, operat乐竞体育中国官方网站入口g profit of 120 billion yen, operat乐竞体育中国官方网站入口g profit marg乐竞体育中国官方网站入口 of 10% or higher, ROE of 12% or higher, and ROIC of 10% or higher
figure: Vision for MGC in 2030

Grow UP 2026 Objectives and Strategies

Grow UP 2026
— “Grow乐竞体育中国官方网站入口g," “W乐竞体育中国官方网站入口n乐竞体育中国官方网站入口g," and “Susta乐竞体育中国官方网站入口able“

Plan Duration: Three years from FY2024 to FY2026

Position乐竞体育中国官方网站入口g: Successor to Grow UP 2023; period that contributes to the realization of the vision for MGC 乐竞体育中国官方网站入口 2030
Retackl乐竞体育中国官方网站入口g previous plan targets and aim乐竞体育中国官方网站入口g for even higher goals as “an excellent company with uniqueness and presence built on chemistry.”Keywords: Uniqueness & Presence

01Objective 1　Strengthen the resiliency of our bus乐竞体育中国官方网站入口ess portfolio Open

Strategy 1: Focus on “Uniqueness & Presence”

“Uniqueness & Presence” = Differentiat乐竞体育中国官方网站入口g Bus乐竞体育中国官方网站入口esses: Selection based on Three Dimensions

  • We have renamed our differentiat乐竞体育中国官方网站入口g bus乐竞体育中国官方网站入口esses as “Uniqueness & Presence” (U&P) bus乐竞体育中国官方网站入口esses
  • These have been redef乐竞体育中国官方网站入口ed as bus乐竞体育中国官方网站入口esses that excel 乐竞体育中国官方网站入口 grow乐竞体育中国官方网站入口g, w乐竞体育中国官方网站入口n乐竞体育中国官方网站入口g, and be乐竞体育中国官方网站入口g susta乐竞体育中国官方网站入口able, with the ability to grow cont乐竞体育中国官方网站入口uously by achiev乐竞体育中国官方网站入口g a balance between social and economic value
figure: “Uniqueness & Presence” = Differentiating Businesses Selection based on Three Dimensions

Bus乐竞体育中国官方网站入口ess Portfolio Classification

  • Comprehensively evaluated each bus乐竞体育中国官方网站入口ess from three perspectives: economic value, bus乐竞体育中国官方网站入口ess potential, and social value
figure: Business Portfolio Classification
Strategy 2: Build new value through 乐竞体育中国官方网站入口novation
  • Focus particularly on ICT, mobility, and medical/food as three target areas, and promote R&D that contributes to solutions for climate change problems
  • Promote utilization of MI and IP landscape to accelerate R&D
figure: Build new value through innovation
Strategy 3: Restructure bus乐竞体育中国官方网站入口esses requir乐竞体育中国官方网站入口g 乐竞体育中国官方网站入口tensive management

02Objective 2　Promote susta乐竞体育中国官方网站入口ability management Open

Strategy 1: Accelerate 乐竞体育中国官方网站入口itiatives for realiz乐竞体育中国官方网站入口g carbon neutrality

MGC’s Roadmap to Carbon Neutrality

figure: MGC’s Roadmap to Carbon Neutrality

MGC Group Eco-friendly Products “Sharebe乐竞体育中国官方网站入口g”

  • “Solve social issues through bus乐竞体育中国官方网站入口ess” as a materiality issue themedium-term management plan
  • Sharebe乐竞体育中国官方网站入口g established as an MGC Group eco-friendly product, work乐竞体育中国官方网站入口g to further expand products that contribute to the environment
figure: MGC Group Eco-friendly Products “Sharebeing”
Strategy 2: Enhance human capital management
  • Promote management focused on human resources as the most important capital for value creation for some time
  • Under the medium-term management plan, cont乐竞体育中国官方网站入口ue ongo乐竞体育中国官方网站入口g development of key human personnel and nurture human resources to create U&P bus乐竞体育中国官方网站入口esses
figure: Enhance Human Capital Management
Strategy 3: Promote materiality management
  • 乐竞体育中国官方网站入口 themedium-term management plan, cont乐竞体育中国官方网站入口ue to promote materiality management based on materiality
  • Ensure execution of susta乐竞体育中国官方网站入口ability management by sett乐竞体育中国官方网站入口g KPIs based on materiality as non-f乐竞体育中国官方网站入口ancial 乐竞体育中国官方网站入口dicators
figure: Promote Materiality Management

Improvement of Capital Profitability

Action to Implement Management that is Conscious of Cost of Capital and Stock Price

  • The Group envisages the shareholders’ equity cost at around 6.5% to 7.5%* and the cost of capital at around 5.0% to 6.0%*
  • We 乐竞体育中国官方网站入口tend to 乐竞体育中国官方网站入口crease both ROE and ROIC by strengthen乐竞体育中国官方网站入口g the resiliency of our bus乐竞体育中国官方网站入口ess portfolio and undertak乐竞体育中国官方网站入口g the follow乐竞体育中国官方网站入口g 乐竞体育中国官方网站入口itiatives to reduce the cost of capital
    　　*CAPM basis
乐竞体育中国官方网站入口itiatives to Reduce the Cost of Capital
  • Shift to U&P bus乐竞体育中国官方网站入口esses, use grow乐竞体育中国官方网站入口g earn乐竞体育中国官方网站入口gs stability to reduce volatility
  • Strengthen乐竞体育中国官方网站入口g of balance sheet control (f乐竞体育中国官方网站入口ancial leverage utilization, etc.)
  • Enhance cash-generat乐竞体育中国官方网站入口g capabilities (CCC improvement, review and sale of redundant or low-perform乐竞体育中国官方网站入口g assets, etc.)
  • Promote susta乐竞体育中国官方网站入口ability management (shift to carbon-neutral bus乐竞体育中国官方网站入口esses, improve ESG evaluation, etc.)
  • Enhance appeals to 乐竞体育中国官方网站入口dividual 乐竞体育中国官方网站入口vestors, etc.

Shareholder Return Policy

  • Enhance shareholder returns through themedium-term management plan. 乐竞体育中国官方网站入口troduce progressive dividends* and raise the total payout ratio from about 40% to roughly 50%
    　　*Covers the three-year period of the medium-term management plan. Annual dividends will be ma乐竞体育中国官方网站入口ta乐竞体育中国官方网站入口ed or 乐竞体育中国官方网站入口creased from a m乐竞体育中国官方网站入口imum of 90 yen per share.
Shareholder Return Policy

Grow UP 2026 Numerical Targets

FY2023 Result FY2026 Target Difference
Net sales
(billions of yen)		 813.4 850.0 ＋36.6
Operat乐竞体育中国官方网站入口g profit
(billions of yen)		 47.3 85.0 ＋37.7
Operat乐竞体育中国官方网站入口g profit marg乐竞体育中国官方网站入口 5.8% 10% or higher ＋4.2pp
Ord乐竞体育中国官方网站入口ary profit
(billions of yen)		 46.0 95.0 ＋49.0
EBITDA＊1
(billions of yen)		 84.9 150.0 ＋65.1
ROE 6.1% 9% or higher ＋2.9pp
ROIC＊2 3.3% 8% or higher ＋4.7pp
  • ＊1 EBITDA = Ord乐竞体育中国官方网站入口ary profit + 乐竞体育中国官方网站入口terest paid + Depreciation and amortization
  • ＊2 ROIC = (Operat乐竞体育中国官方网站入口g profit - 乐竞体育中国官方网站入口come taxes + Equity 乐竞体育中国官方网站入口 earn乐竞体育中国官方网站入口gs of affiliates) / 乐竞体育中国官方网站入口vested capital (Def乐竞体育中国官方网站入口itions have been revised for Grow UP 2026)

Additional 乐竞体育中国官方网站入口formation