UBE (4208) Investor presentation summary

Key messages and management initiatives

• Focus on expanding specialty businesses and restructuring commodity products to improve profitability and reduce market volatility.

• Targeting a 50% reduction in GHG emissions by 2030, with progress ahead of schedule due to business exits.

• Emphasizing sustainability, diversity, and digital transformation to drive innovation and operational efficiency.

• Strengthening human resource development and workplace diversity to support specialty business growth.

• Enhancing management quality for sustainable medium- to long-term growth.

Medium-term management plan and business strategy

• Specialty businesses like polyimide, separation membranes, urethane systems, and C1 chemicals are key profit drivers toward FY2030.

• Major restructuring includes discontinuing ammonia, caprolactam, and nylon polymer production in Japan and Thailand, with continued focus on environmentally friendly products in Spain.

• EBITDA target of ¥100 billion+, ROS of 10%+, ROE of 8%+, and ROIC of 6%+ by FY2030.

• Machinery and cement-related businesses are planned for public listing to focus on specialty chemicals.

• Aggressive global expansion and M&A to accelerate specialty business growth.

Financial performance and capital policy

• FY2024 net sales were ¥486.8 billion with operating profit of ¥18.0 billion.

• Specialty businesses are expected to account for 70% of operating profit by FY2030.

• Planned investments of ¥460 billion and R&D expenditure of ¥85 billion over FY2025-2030, with 75% allocated to specialty businesses.

• Maintaining a stable dividend policy with DOE of 2.5% or higher and aiming for progressive dividends.

• Financial discipline to be preserved despite temporary stress from restructuring and investments.