In 2019, we formulated our Long-Term Vision 2040 to transform from an equipment industry company to a technology-based company, aiming to become a global company contributing to the growth and innovation of society through advanced materials. We formulated our Medium-Term Management Plan for Fiscal 2020 to 2022 based on this vision. Under that plan, we engaged in specific initiatives to achieve our vision, including strengthening our production capacity for sputtering target for semiconductors, treated rolled copper foil, high-performance copper alloys, and other advanced materials, developing new businesses in collaboration with external partners, and implementing structural reform in our Base Businesses.
After operating for four years under this vision, we conducted a partial revision in May 2023 in response to the recent changes in the business environment and a clearer picture of the direction we want to pursue. We adjusted our sights, redefining business segments based on this future direction and business lines while stating a clear profit target for 2040.
Contribute to sustainable societies as a global leader in semiconductor and ICT materials
We established three segments. To properly communicate our path to growth to stakeholders, we established two segments under Focus Businesses: the Semiconductor Materials Segment and the ICT Materials Segment. Under Base Businesses, we established one segment called the Metals & Recycling Segment, which combines Mineral Resources and Metals & Recycling into one.
We aim to lift operating income to 250 billion yen in 2040 backed by high-margin, high-growth Focus Businesses
Operating Income Growth Toward 2040
* Common expenses are allocated to the two businesses in proportion to operating income
The Medium-Term Management Plan 2020-22 was positioned as a three-year period for sowing seeds for transformation into a technology-based company through business operations with greater autonomy, agility, and independence as set forth in the JX Metals Group Long-Term Vision 2040, and we accelerated efforts in new growth areas.
Measures Implemented Under the Previous Medium-Term Plan
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Previous Medium-Term Management Plan Results (Operating Income)
| FY2020 | FY2021 | FY2022 | 3-Year Cumulative | ||
|---|---|---|---|---|---|
| Focus Businesses | Functional Materials Business, Thin Film Materials Business | 31.1 | 54.5 | 56.4 | 142.0 |
| Base Businesses | Mineral Resources Business | 34.9 | 72.1 | -22.0 | 194.0 |
| Metals & Recycling Business | 27.3 | 41.0 | 40.7 | ||
| Common Business Expenses | -15.2 | -9.4 | -6.4 | -31.0 | |
| Total | 78.1 | 158.2 | 68.7 | 305.0 | |
Year-on-year product sales were lower generally in the Functional Materials and Thin Film Materials Businesses leading to lower profit. This result was mainly due to declining demand for consumer electronic devices in the semiconductor market, the economic slowdown due to China's Zero-COVID policy, and inventory adjustments in the supply chains affected by these factors.
Despite increased production at the Caserones Copper Mine in Chile, the Mineral Resources Business saw lower copper price levels compared with the previous fiscal year. In addition, we conducted an assessment of fair values for the assets of the SCM Minera Lumina Copper Chile in the wake of our decision to transfer our shares in the mine, and we recorded a loss of 75.3 billion yen.
The Metals & Recycling Business recorded an increase in profit stemming from improved international market conditions for sulfuric acid and the weak yen.
As a result, revenue for the fiscal year under review rose 26.7% year on year to 1,637.8 billion yen, while operating profit declined 89.5 billion yen year on year to 68.7 billion yen.
Revenue
Operating Profit
* Including inventory effects
Profit Before Tax
Net Income Attributable to Owners of Parent
Total Assets and Total Liabilities
Under the new medium-term management plan launched in fiscal 2023, we aim to be a leading global supplier of semiconductor and ICT materials by executing strategic investments for Focus Businesses, reshaping the operational structure of Base Businesses and creating social value.
Role of the Current Medium-Term Plan
Although the business environment was difficult at the beginning of the period due to ongoing electronics market adjustments since fiscal 2022, we aim to achieve a cumulative operating income higher than the previous medium-term plan by capturing demand in the period of recovery onward. In addition, we will execute aggressive strategic investments to prepare for increased demand in our Focus Businesses.
3-Year Total Operating Income
Under the Medium-Term Management Plan for Fiscal 2023 to 2025, we intend to invest 290 billion yen over the three-year period to prepare for increased demand in the Focus Businesses. Of this amount, we have set aside 170 billion yen as Focused Investments that we expect to conduct in fiscal 2026 onward. Focused Investments include the construction of the Hitachinaka New Plant (tentative name) and the creation of new businesses.
New Plan: Planned Capex
