Message from New President Hitoshi Ochi (Summary)

Mitsubishi Chemical Holdings Corporation

My responsibility as President of Mitsubishi Chemical Holdings Corporation (MCHC) is to make the MCHC Group a “truly global THE KAITEKI COMPANY” through implementation of the next medium-term management plan, APTSIS 20. I will devote all my energy to the task, which must be done with a sense of urgency. The three key words for building a truly global THE KAITEKI COMPANY with the high profitability of world-class companies are “growth,” “moving beyond Japan-centric management,” and “differentiation.”

1. Growth
 
The ROE of MCHC has been around 5% in recent years which pales in comparison with that of other world-class chemical companies. In order to gain the sort of return sought by investors, I believe that “growth” that will generate high profitability is vital.
 
For this purpose, it is essential to make the fullest use of our group’s technology, materials, human resources and sales channels by removing barriers among various existing departments and operational companies and implementing a business strategy of working in concert.
 
In this connection, many of our businesses are within our three chemical companies: Mitsubishi Chemical Corporation, Mitsubishi Plastics, Inc., and Mitsubishi Rayon Co., Ltd.; these include films, composites, coatings, plastic additives, and separating agents. By sharing markets and various channels, R&D as well as production technologies, and expanding into new market domains, I am confident that we can further speed up the growth of our activities. 

2. Moving beyond Japan-centric Management
 
For the Group to attain sustainable growth in the years ahead, we must accelerate the global development of our business activities.
 
We should offer products that are suited to the needs of each region. It will be necessary not only to provide products developed in Japan but also to develop and manufacture products, which draw on the locally based technical service and marketing information. Then, we must actively expand sales to locally based companies in various countries overseas and deepen our penetration of the market.
 
Another point is that we still have a tendency to do many things with a focus on Japan. It is important to strengthen our overseas operational structures by creating human resources, implementing internal control, and using other management systems. This will enable us to further the “localization” of our business activities, rotate members of management more flexibly, and form management structures with greater diversity.

3. Differentiation
 
In recent years, we have had a number of difficult experiences along with the extremely fast pace of the development of information networks and information technology, the acceleration of globalization and rise of emerging countries, and changes in the resource and energy situation. In many cases, blue oceans have suddenly become red oceans.
 
Differentiation comes about when we go beyond excellence just in manufacturing products and aim for excellence also in “building business frameworks.” An essential condition for such frameworks as an excellent business entity is to “develop differentiated new materials” and to “differentiate manufacturing processes.”
 
In the pharmaceutical business, emphasis is placed on the pipeline under development, but, in any businesses, it is necessary to always plan to “refresh” our products with a time horizon of three, five, and eight years. I believe that our base for major differentiation that will keep us ahead of our competitors is to continue improving and polishing our production technology.
 
My own background is on the technical side, and I would like to continue to insist on thoroughgoing attention to these aspects of our business activities.

For further information, please contact:
Public Relations and Investor Relations Office
Mitsubishi Chemical Holdings Corporation
TEL: [+81]-(0)3-6748-7140