MarketLine Industry Profile

Chemicals in Asia-Pacific
July 2023

Reference Code: 0200-2021

Publication Date: July 2023

Primary NAICS: 3251

Secondary NAICS: 325180,325199

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 Chemicals in Asia-Pacific

Industry Profiles

1. Executive Summary

1.1. Market value

The Asia-Pacific chemicals market grew by 0.8% in 2022 to reach a value of $2,591.7 billion.

1.2. Market value forecast

In 2027, the Asia-Pacific chemicals market is forecast to have a value of $3,978.3 billion, an increase of
53.5% since 2022.

1.3. Category segmentation

Commodity chemicals is the largest segment of the chemicals market in Asia-Pacific, accounting for 53.8%
of the market's total value.

1.4. Geography segmentation

China accounts for 71.9% of the Asia-Pacific chemicals market value.

1.5. Market rivalry

Large multinational companies dominate this market, and although there is little threat from new entrants,
high merger and acquisition activities demonstrate a high degree of competition. Moreover, increasing
investment coupled with rising demand has intensified rivalries within the chemicals market. For the
largest companies in this market, the rivalry is alleviated to some extent by the diverse range of markets in
which they operate.

1.6. Competitive landscape

The Asia-Pacific chemicals market is highly competitive. The liberalization of China, Japan, and South Korea,
three of the world’s largest chemical markets, has resulted in an influx in foreign investment, which has
increased the degree of competition and allowed large North American and European chemical
corporations to grow within the Asian markets. This has caused a large shift in the market’s competitive
landscape, with Western chemical companies acquiring significant market share and adding a new
competitive dimension to the industry. Growth in the Asian market has allowed some of the world’s largest
chemical organizations to emerge, especially in China, where state-owned chemical corporations remain
market leaders. The establishment of the Jurong Island, an artificial island located to the southwest of the
main island of Singapore, as a global hub for chemical and energy manufacturing and trade, has attracted
over 100 of the leading global petroleum, petrochemical, and specialty chemical companies, which has

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created a large competitive matrix in terms of production capabilities, innovation, and trade across the
region.

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TABLE OF CONTENTS
1. Executive Summary 2

1.1. Market value ................................................................................................................................................2

1.2. Market value forecast ..................................................................................................................................2

1.3. Category segmentation................................................................................................................................2

1.4. Geography segmentation.............................................................................................................................2

1.5. Market rivalry...............................................................................................................................................2

1.6. Competitive landscape.................................................................................................................................2

2. Market Overview 8

2.1. Market definition .........................................................................................................................................8

2.2. Market analysis ............................................................................................................................................8

3. Market Data 10

3.1. Market value ..............................................................................................................................................10

4. Market Segmentation 11

4.1. Category segmentation..............................................................................................................................11

4.2. Geography segmentation...........................................................................................................................13

5. Market Outlook 14

5.1. Market value forecast ................................................................................................................................14

6. Five Forces Analysis 15

6.1. Summary ....................................................................................................................................................15

6.2. Buyer power...............................................................................................................................................16

6.3. Supplier power ...........................................................................................................................................18

6.4. New entrants .............................................................................................................................................20

6.5. Threat of substitutes ..................................................................................................................................22

6.6. Degree of rivalry.........................................................................................................................................23

7. Competitive Landscape 25

7.1. Who are the leading players? ....................................................................................................................25

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7.2. What strategies do the leading players follow?.........................................................................................25

7.3. What have been the most significant mergers and acquisitions recently? ...............................................26

8. Company Profiles 28

8.1. BASF SE.......................................................................................................................................................28

8.2. China Petroleum & Chemical Corp.............................................................................................................33

8.3. Mitsubishi Chemical Group Corporation....................................................................................................37

8.4. Mitsui Chemicals, Inc. ................................................................................................................................43

9. Macroeconomic Indicators 49

9.1. Country data ..............................................................................................................................................49

9.2. Methodology..............................................................................................................................................50

9.3. Industry associations..................................................................................................................................51

9.4. Related MarketLine research .....................................................................................................................51

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LIST OF TABLES
Table 1: Asia-Pacific chemicals market value: $ billion, 2017–22 10

Table 2: Asia–Pacific chemicals market category segmentation: % share, by value, 2017–2022 11

Table 3: Asia-Pacific chemicals market category segmentation: $ billion, 2017-2022 11

Table 4: Asia–Pacific chemicals market geography segmentation: $ billion, 2022 13

Table 5: Asia-Pacific chemicals market value forecast: $ billion, 2022–27 14

Table 6: BASF SE: key facts 28

Table 7: BASF SE: Annual Financial Ratios 30

Table 8: BASF SE: Key Employees 31

Table 9: BASF SE: Key Employees Continued 32

Table 10: China Petroleum & Chemical Corp: key facts 33

Table 11: China Petroleum & Chemical Corp: Annual Financial Ratios 35

Table 12: China Petroleum & Chemical Corp: Key Employees 36

Table 13: Mitsubishi Chemical Group Corporation: key facts 37

Table 14: Mitsubishi Chemical Group Corporation: Annual Financial Ratios 39

Table 15: Mitsubishi Chemical Group Corporation: Key Employees 40

Table 16: Mitsubishi Chemical Group Corporation: Key Employees Continued 41

Table 17: Mitsubishi Chemical Group Corporation: Key Employees Continued 42

Table 18: Mitsui Chemicals, Inc.: key facts 43

Table 19: Mitsui Chemicals, Inc.: Annual Financial Ratios 45

Table 20: Mitsui Chemicals, Inc.: Key Employees 46

Table 21: Mitsui Chemicals, Inc.: Key Employees Continued 47

Table 22: Mitsui Chemicals, Inc.: Key Employees Continued 48

Table 23: Asia-Pacific exchange rate, 2018–22 49

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LIST OF FIGURES
Figure 1: Asia-Pacific chemicals market value: $ billion, 2017–22 10

Figure 2: Asia-Pacific chemicals market category segmentation: $ billion, 2017-2022 12

Figure 3: Asia–Pacific chemicals market geography segmentation: % share, by value, 2022 13

Figure 4: Asia-Pacific chemicals market value forecast: $ billion, 2022–27 14

Figure 5: Forces driving competition in the chemicals market in Asia-Pacific, 2022 15

Figure 6: Drivers of buyer power in the chemicals market in Asia-Pacific, 2022 16

Figure 7: Drivers of supplier power in the chemicals market in Asia-Pacific, 2022 18

Figure 8: Factors influencing the likelihood of new entrants in the chemicals market in Asia-Pacific, 2022 20

Figure 9: Factors influencing the threat of substitutes in the chemicals market in Asia-Pacific, 2022 22

Figure 10: Drivers of degree of rivalry in the chemicals market in Asia-Pacific, 2022 23

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2. Market Overview

2.1. Market definition

The chemicals market is categorized into commodity chemicals, specialty chemicals, and agriculture chemicals.
Market values are taken as the country's consumption of chemical products at producer selling price (PSP).

The market is built by capturing information at the national level for each country covered, primarily from councils,
associations or government sources. Forecasts are based on projections of key market drivers for the chemical
industry, and these are correlated against historic data and used to predict output over a five-year time horizon.

All market data and forecasts are represented in nominal terms (i.e., without adjustment for inflation) and all
currency conversions used in the creation of this report have been calculated using constant 2022 annual average
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

2.2. Market analysis

The Asia-Pacific chemicals market experienced moderate overall during the historic period. The market value grew
at a sluggish rate in 2022 at an industry growth rate of 0.8% with a strong growth rate expected over the forecast
period.
China accounted for around 72%% of the Asia-Pacific chemical market in 2022, followed by Japan with a 6.5%
share. The chemicals market is impacted by macroeconomic factors such as GDP growth and industrial production.
According to in-house research, the real GDP annual growth in 2022 in China is 3% and in Japan is 1.2%. The slow
economic growth of the countries impacted the chemicals market in Asia-Pacific. China’s urbanization rate also
impacts the long-term demand for specialty and commodity chemicals. According to in-house research, the
country’s urbanization rate in 2022 was 1.7% and the impact is also seen in the chemicals market.
The Asia-Pacific chemicals market had total revenues of $2,591.7 billion in 2022, representing a compound annual
growth rate (CAGR) of 4.9% between 2017 and 2022. In comparison, the Chinese market increased with a CAGR of
6.1%, and the Japanese market declined with a CAGR of -0.6%, over the same period to reach respective values of
$1,862.2 billion and $169.0 billion in 2022.
The Asia-Pacific chemical market experienced sluggish growth in 2022 as a result of rising energy prices, which
were partly brought on by Russia's invasion of Ukraine and the resulting cost of living crisis. According to in-house
research, the energy price inflation in 2022 in major economies such as Japan was as high as 7.9%. However, China

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did see moderate growth due to importing oils from Russia at discounted prices, however, overall, the whole
region was impacted due to disruption in supply chain due to energy crisis.
The commodity chemicals segment accounted for market's the largest proportion in 2022, with total revenues of
$1,395.4 billion, equivalent to 53.8% of the market's overall value. The specialty chemicals segment contributed
revenues of $671.0 billion in 2022, equating to 25.9% of the market's aggregate value.
Several industrial businesses as well as a variety of end-use industries, including the automobile and personal care
products sectors, use commodity chemicals. Additionally, the demand for commodity chemicals is being driven by
factors such as rising industrialization and an expanding GDP. Furthermore, the industry is growing since
commodity chemicals are more readily available and less expensive than specialty chemicals.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.9% over 2022 - 2027,
which is expected to drive the market to a value of $3,978.3 billion by the end of 2027. Comparatively, the Chinese
and Japanese markets will grow with CAGRs of 9.9% and 2.8% respectively, over the same period to reach
respective values of $2,990.5 billion and $193.7 billion in 2027.
The market’s growth in the forecast period is expected to be driven by a continued rebound in demand,
particularly regarding chemicals utilized in pharmaceuticals, food additives, and disinfectants, all of which have
experienced growth due to the pandemic. Some of the key trends which are expected to impact the market in the
coming years are sustainability, digitalization, and a focus on health and safety. Market players that adapt to these
trends are most likely to benefit from increasing demand and drive growth over the forecast period.

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3. Market Data

3.1. Market value

The Asia-Pacific chemicals market grew by 0.8% in 2022 to reach a value of $2,591.7 billion.
The compound annual growth rate of the market in the period 2017–22 was 4.9%.

Table 1: Asia-Pacific chemicals market value: $ billion, 2017–22

Year $ billion € billion % Growth

2017 2,041.1 1,937.0
2018 2,142.9 2,033.5 5.0%
2019 2,283.3 2,166.8 6.6%
2020 2,266.6 2,150.9 (0.7%)
2021 2,570.6 2,439.4 13.4%
2022 2,591.7 2,459.5 0.8%

CAGR: 2017–22 4.9%

Source: MARKETLINE MARKETLINE

Figure 1: Asia-Pacific chemicals market value: $ billion, 2017–22

Source: MARKETLINE MARKETLINE

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4. Market Segmentation

4.1. Category segmentation

Commodity chemicals is the largest segment of the chemicals market in Asia-Pacific, accounting for 53.8% of the
market's total value.
The Specialty chemicals segment accounts for a further 25.9% of the market.

Table 2: Asia–Pacific chemicals market category segmentation: % share, by value, 2017–2022

Category 2017 2018 2019 2020 2021 2022

Commodity Chemicals 55.2% 53.1% 52.9% 52.2% 53.6% 53.8%
Specialty Chemicals 25.5% 26.6% 27.0% 26.9% 26.3% 25.9%
Agriculture Chemicals 9.4% 9.3% 9.3% 10.0% 9.2% 9.2%
Other 9.9% 11.0% 10.8% 10.9% 10.9% 11.1%

Total 100% 100% 100% 100% 100% 100%

Source: MARKETLINE MARKETLINE

Table 3: Asia-Pacific chemicals market category segmentation: $ billion, 2017-2022

Category 2017 2018 2019 2020 2021 2022 2017-22

CAGR(%)
Commodity
1,127.3 1,137.5 1,208.8 1,182.3 1,377.4 1,395.4 4.4%
Chemicals
Specialty Chemicals 519.5 569.8 616.0 610.2 676.3 671.0 5.3%
Agriculture
192.3 200.3 212.8 227.3 237.6 238.6 4.4%
Chemicals
Other 202.1 235.3 245.7 246.8 279.2 286.7 7.2%

Total 2,041.2 2,142.9 2,283.3 2,266.6 2,570.5 2,591.7 4.9%

Source: MARKETLINE MARKETLINE

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Figure 2: Asia-Pacific chemicals market category segmentation: $ billion, 2017-2022

Source: MARKETLINE MARKETLINE

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4.2. Geography segmentation

China accounts for 71.9% of the Asia-Pacific chemicals market value.
Japan accounts for a further 6.5% of the Asia-Pacific market.

Table 4: Asia–Pacific chemicals market geography segmentation: $ billion, 2022

Geography 2022 %
China 1,862.2 71.9
Japan 169.0 6.5
South Korea 130.4 5.0
India 115.9 4.5
Rest of Asia-Pacific 314.3 12.1

Total 2,591.8 100%

Source: MARKETLINE MARKETLINE

Figure 3: Asia–Pacific chemicals market geography segmentation: % share, by value, 2022

Source: MARKETLINE MARKETLINE

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5. Market Outlook

5.1. Market value forecast

In 2027, the Asia-Pacific chemicals market is forecast to have a value of $3,978.3 billion, an increase of 53.5% since
2022.
The compound annual growth rate of the market in the period 2022–27 is predicted to be 8.9%.

Table 5: Asia-Pacific chemicals market value forecast: $ billion, 2022–27

Year $ billion € billion % Growth

2022 2,591.7 2,459.5 0.8%
2023 2,716.5 2,577.9 4.8%
2024 2,922.9 2,773.8 7.6%
2025 3,185.5 3,022.9 9.0%
2026 3,538.2 3,357.6 11.1%
2027 3,978.3 3,775.3 12.4%

CAGR: 2022–27 8.9%

Source: MARKETLINE MARKETLINE

Figure 4: Asia-Pacific chemicals market value forecast: $ billion, 2022–27

Source: MARKETLINE MARKETLINE

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6. Five Forces Analysis

The chemicals market will be analyzed taking chemical manufacturers as players. The key buyers will be taken as
manufacturers of products requiring chemicals such as plastic products and pharmaceutical companies, and oil,
gas and utility companies as the key suppliers.

6.1. Summary

Figure 5: Forces driving competition in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

Large multinational companies dominate this market, and although there is little threat from new entrants, high merger
and acquisition activities demonstrate a high degree of competition. Moreover, increasing investment coupled with
rising demand has intensified rivalries within the chemicals market. For the largest companies in this market, the rivalry
is alleviated to some extent by the diverse range of markets in which they operate.
There are a vast number of buyers in this market since chemicals have a wide variety of functions and come in many
different forms. For example, chemicals are used to manufacture fertilizers, detergents, and toothpaste, as well as in
numerous industrial processes. Buyers include manufacturers of plastic products, consumer chemical manufacturers,
and water utility companies, among many others. They tend to be medium- to large-sized businesses with relatively
strong negotiating positions and reasonable financial muscle relative to market players, thus strengthening buyer
power. However, this is offset by a large number of different buyers of chemicals that have a wide range of uses.
Suppliers to this market include oil, gas, and mining companies, which generally tend to be large multinational
corporations. Given the large size of these companies and the price fluctuations associated with natural resources like
oil and gas, this provides suppliers with a great deal of power.
New entrants to the chemicals market may be deterred by exceptionally high start-up costs and strict government
regulations. However, low product differentiation helps attract new entrants to this market.
There are very few substitutes for chemicals, as they are a fundamental raw material for a wide variety of downstream
businesses.

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6.2. Buyer power

Figure 6: Drivers of buyer power in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

The Asia-Pacific chemicals market typically features a large number of buyers due to its usage in a variety of distinct
functions in multiple industries. For example, chemicals are used to manufacture fertilizers, detergents, and toothpaste,
as well as in numerous industrial processes. Buyers include manufacturers of plastic products, consumer chemical
manufacturers, and water utility companies, among many others.
Most buyers are large to medium-sized businesses that tend to have relatively strong negotiating positions and
reasonable financial muscle. However, this is offset by a large number of different buyers of chemicals that have a wide
range of uses. For example, ethanol is a commodity chemical that can be used in the manufacture of alcoholic drinks, as
a widely used solvent for paint and varnish, in the manufacture of ethanol acid, as a fuel, as the fluid in thermometers,
and in preserving biological specimens. This reduces a chemical manufacturing company's dependence on a single
buyer or even an entire industry, therefore minimizing a buyer's power of negotiation.
The diversity of downstream markets for various chemical products reduces buyer power. A large proportion of
chemicals are commoditized, and this lack of differentiation serves to increase buyer power as market players are
forced to compete on price to encourage buyers to purchase their products. The limited differentiation market players
can achieve through chemical composition, purity, and branding tends to be negligible regarding buyer power.
The large size of the market players in comparison to buyers serves to reduce buyer power to some extent. For
example, China Petroleum & Chemical Corporation (Sinopec) was ranked fifth in the Fortune 500 list for 2022. In Japan,
Mitsubishi Chemical Holdings Corporation is engaged in the chemicals, polymers, designed materials, health care,
electronics, and polymer businesses. The group operates through six core operating companies: Mitsubishi Chemical
Corporation, Mitsubishi Rayon, Mitsubishi Plastics, Life Science Institute, Taiyo Nippon Sanso Corporation, and
Mitsubishi Tanabe Pharma Corporation (MTPC). The sheer size and scale of these companies mean that they have many
buyers; as such, the impact of the loss of one buyer is likely to be minimal.
The extent to which manufacturing companies are dependent on chemicals for industrial processes critical to everyday
products is hard to overstate. While manufacturers are always keen to keep costs down, something that has been
helped by consolidation in the chemicals market of late, quality and control remain essential. For instance, ethylene is
extensively used in packaging. Companies cannot afford for packaging to degrade and risk products being damaged in
transit from a factory to the end-user.
Buyer power can vary depending on the importance of a chemical product to the industry; however, in most cases,
chemicals are vital for successful operation and industrial output. For example, fertilizers are vital for achieving large

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yields of crops to optimize production volumes and maximize profits; however, crops can grow without the use of
fertilizers, so chemicals are less essential in the agricultural industry than they are in the pharmaceutical sector, where
chemical products are essential components for manufacturing pharmaceuticals. Ultimately, chemicals act as catalysts
for most industries and help accelerate growth and ensure companies remain competitive. Therefore, buyer power is
generally lowered.
Some industries are more important than others to chemical companies and therefore wield more buyer power. FMCG
companies are lucrative consumers of chemicals. Chemical producers are subject to pressure from consumer goods
manufacturers to create substances that meet ever-changing regulations but do not alter the product in any
meaningful way. FMCG manufacturers are valuable customers of chemical companies due to the long-term nature of
the relationships between the chemical supplier and the consumer goods manufacturer. This increases the buying
power of such companies.
Switching costs have an impact on buyer power and include costs incurred while waiting for the end of a contractual
period while better deals are being offered by other players. It may be possible to break a contract early, but this would
likely incur a charge and contribute to a decline in buyer power. The use of contracts can stifle a buyer’s tendency to
switch.
Buyers are not likely to integrate backward into the chemicals market due to the exceptionally high overheads and
start-up costs associated with chemical manufacturing, as well as strict government regulations. However, for some of
the largest buyers in this market, backward integration is possible. For example, Procter & Gamble produces certain
chemicals that it requires in its manufacturing process. Chemicals are highly important to buyers, with few, if any, raw
material substitutes available for their manufacturing processes, reducing buyer power.
Overall, buyer power is assessed as moderate.

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6.3. Supplier power

Figure 7: Drivers of supplier power in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

The raw materials used during the production process can be divided into three distinct categories: metals, non-metals,
and petrochemicals. The first segment mainly contains platinum. Platinum is used in the manufacture of nitric acid,
which in turn is used to make ammonia before being made into fertilizer. Metal is also commonly used in the
production of plastics, synthetic fibers, drugs, and pharmaceuticals, as well as many everyday products purchased from
leading retailers. Mining is prohibitively expensive and is carried out by large companies such as Anglo-American
Platinum. The exploration and production costs for raw materials can be significant, so players rely on established
mining companies such as Anglo-American Platinum, a mining company responsible for 38% of the world's platinum
supply. Unlike gold, no large reserves of platinum exist, and estimations state the amount of recoverable material is
only a fraction of estimated gold reserves. As a result, companies such as Anglo-American Platinum wield significant
power over chemical companies as there are few alternative options for platinum supplies, and supplier power is
increased.
Most of the raw materials utilized in the chemical market are derived from oil and natural gas. China is the world’s
largest oil importer, and as part of a government strategy to reduce reliance on imported fossil fuels, it has actively
encouraged the growth of the fracking segment in the Chinese oil and gas market. Oil and gas are also required for
chemical production due to their energy-intensive nature.
Many chemical reactions needed to produce useful chemical substances require high temperatures to work and deliver
the correct degree of purity. Such suppliers are large, diversified international companies. Examples include CNOOC,
Indian Oil Corporation, and China National Petroleum Corporation (CNPC). These companies have highly vertically
integrated operations throughout oil exploration, production, refining, transportation, and marketing. Companies such
as CNPC are also present as chemical manufacturers in this market, demonstrating that forward integration is apparent.
What is more, there is a relatively small number supplying many different industries. Supplier power is strengthened as
a result.
On the other hand, chemical companies tend to be able to make large purchases, and losing such customers would
impact suppliers’ revenues, reducing their power somewhat. Commodities such as crude oil or natural gas are relatively
undifferentiated products, the prices of which are set according to supply and demand by the mercantile exchanges of
New York, London, and Dubai. By buying raw materials on the open market, chemical manufacturers have little control
over the price and may need hedging strategies to minimize the impact of price volatility. Since March 2020, volatility
has significantly increased across major markets due to the COVID-19 pandemic. Oil prices dipped below zero in April

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2020 due to a supply glut and weak demand; however, since then, oil prices have begun to climb again throughout
recent years. Russia’s invasion of Ukraine has also had a significant inflationary impact on both oil and gas prices.
Utility companies can also be major suppliers in this market. For example, the chlor-alkali process, which results in the
production of chemicals such as chlorine and sodium hydroxide, is extremely electricity-intensive. However, larger
players in this market may have their electricity generation capacity and will therefore be less reliant on utility
companies as suppliers. Forward integration by suppliers can be common. For example, oil and gas companies are often
producers of petrochemicals as well as suppliers to chemical manufacturers. This increases supplier power, particularly
over those chemical producers that do not own their upstream resources.
For other chemicals, minerals, and seawater are among the most important inputs. For example, sodium chloride can
be formed by evaporating sea water or obtained from halite mines; it is then used in the production of sodium
carbonate, sodium hydroxide, and chlorine. Sulfur, a key starting material for base chemicals such as sulfuric acid, is
also obtained by mining. Again, relying on mining companies that supply many different industries, which are usually
exceptionally large, can increase supplier power. The production of materials such as sulfur is also dominated by a few
countries. The UAE is seeking to double sulfur production over the course of the next decade, cementing the country's
position as a leading supplier.
Overall, supplier power is assessed as moderate.

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6.4. New entrants

Figure 8: Factors influencing the likelihood of new entrants in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

The Asia-Pacific region is experiencing prolific economic growth, which has resulted in the maturation of the chemicals
market and the attraction of new entrants. Certain sectors within the chemical market are more difficult to enter than
others. As a result, commodity chemical manufacturers produce chemicals on a large scale to satisfy market demands.
The scale of production requires a significant sum of capital investment, which is only achievable for medium- to large-
scale companies. In contrast, some specialty chemicals have some uses in their own right; for example, some base
chemicals may be used as household cleaners, such as sodium hydroxide or ammonia. These products can be
manufactured on a smaller scale, which makes entry much more achievable. More commonly, though, they are used as
raw materials for the manufacture of more valuable products. As a result, they are produced in bulk, and scale
economies are highly important if the available margins are to be worthwhile. This lessens the threat of new entrants.
The Indian chemical market has demonstrated an attractive growth rate in recent years. A young, growing demographic
is becoming increasingly wealthier in India, and the population is demonstrating increased consumerism, which has
allowed the industry to grow, increasing the demand for chemical products. Increased demand provides opportunities
for new entrants to infiltrate the market and create profit without having to compete as intensely with leading chemical
multinationals.
The creation of Jurong Island in Singapore has also contributed to the threat of new entrants. An epicenter for chemical
production and trade off the southern coast of Singapore has attracted over SGD50 billion ($36 billion) worth of
investment and a vibrant portfolio of more than 100 leading global petroleum, petrochemical, and specialty chemical
companies, such as Shell, ExxonMobil, BASF, BP, Celanese, Evonik, Mitsui Chemicals, and Lanexxs. The emergence of
companies in this region has allowed chemical manufacturers and refiners a stronger foothold in the Asia-Pacific
chemicals market and created a strong foundation for expansion across the region.
Entering the chemicals market requires large amounts of capital to set up high-volume production plants. The capital
intensity and importance of scale economies generally restrict market entry to medium-sized and large companies. The
presence of very strong multinational incumbents provides a further obstacle to entering this market.
While many of the processes used to manufacture chemicals were originally developed in the early 20th century and
are in the public domain, incumbents often own significant IP assets and non-patented in-house expertise, which allows
them to enhance their production processes. New players may find it difficult to replicate this knowledge and compete
with these incumbents.

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Not all Asian markets are so attractive to potential new players. Japanese chemical companies are expanding into
international markets to achieve growth, indicating a lack of profitability in the Japanese market. As a result, entrants
are unlikely to enter, with domestic companies relying on research and development to achieve growth, which is simply
insufficient. However, in an attempt to attract new entrants to Japan’s domestic market, the government has offered
several initiatives to encourage investment overseas and domestically, and larger companies are supporting the growth
of SMEs to help the market become more competitive.
Particularly for a large-scale market entry, access to suppliers can be problematic. Due to the volume of raw materials
used, it is preferable to locate them close to their sources. In many parts of the world, governments place stringent
regulations on the production of chemicals. Regulations in China are like the EU REACH regulations. Manufacturers
under this regulation are required to gather information on the properties of their chemical substances and register this
information in a central database. In Japan, players must comply with the Chemical Substances Control Law and notify
the Minister of Health, Labor, and Welfare, the Minister of Economy, Trade, and Market, and the Minister of the
Environment before manufacturing or importing a new chemical substance. Countries with less stringent regulations,
such as India and Indonesia, are beginning to bring rules together for the market. Compliance increases costs and
thereby decreases the likelihood of new entrants.
However, factors favoring market entry include the fact that chemicals within the respective segments are usually
undifferentiated commodities. A new player can make products indistinguishable from those of the incumbents, which
means that, provided they are not tied into contracts with existing suppliers, buyers are just as likely to opt for the new
player if presented with a cheaper option. However, relative to the very large players that dominate the market,
generic chemicals are of limited value. Furthermore, leading companies are of sufficient scale that generic chemical
companies find it hard to compete.
Overall, the likelihood of new entrants is assessed as weak.

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6.5. Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

Chemicals are fundamental to a wide variety of downstream businesses due to their nature as raw materials for a vast
range of products. As a result, there are few substitutes for chemicals. Furthermore, buyers generally require chemical
products with a specific composition. In situations where a buyer can choose between different but related chemicals,
the same market player likely manufactures them.
Some processes that use chemicals can be substituted by other means, such as using deep freezing instead of chemicals
to preserve biological samples. Chemicals in cleaning products could be substituted with natural products such as
vinegar or lemon juice, but these substances are unlikely to be as efficient. Pesticides can be substituted with bio-
pesticides such as fungi to kill pests or with trap crops to lure insects away from the valuable crop.
Most countries are aware that they need to reduce the amount of waste they produce as well as their carbon
footprints. Organizations such as the Ministry of Environment, Forest, and Climate Change in India or the Ministry of
Environmental Protection of the People's Republic of China may suggest companies use an alternative to chemicals to
increase sustainability. However, any substitutes in this case tend to include fewer synthetic chemicals and the growth
of naturally produced chemicals. A move towards this substitution would likely cause a shift in the focus of major
companies rather than open up avenues for other companies to provide the substitute.
Overall, the threat of substitutes in this market is assessed as very weak.

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6.6. Degree of rivalry

Figure 10: Drivers of degree of rivalry in the chemicals market in Asia-Pacific, 2022

Source: MARKETLINE MARKETLINE

Competition in the Asia-Pacific chemicals market exists in the form of chemical product sales and marketing, optimizing
the production and performance of chemicals, reducing environmental impacts, and, in cases of backward integration,
competition related to the exploration and production of raw materials. The difficulty in establishing contracts that
guarantee competitive raw material prices is increasing exposure to market volatility, pressuring margins, and causing
financial losses. Due to the technical nature of the manufacturing process of chemicals, fixed costs are high, which
makes it difficult to exit the chemicals market and contributes to the level of rivalry. Chemical companies tend to be
medium- to large-sized businesses because of the scale needed to produce chemicals in bulk. In the Asia-Pacific region,
large companies such as BASF and China Petroleum & Chemical Corporation (Sinopec) use their scale to increase
productivity and can fund their own research and development projects.
In previous years, competition in Asia-Pacific has been limited because of strict entry boundaries and the presence of
state-owned chemical companies controlling the majority of market share in some of the market’s largest economies.
For example, China National Chemical Corporation and Sinopec are state-owned chemical producers that have
significant power in the market, making it hard for other companies to compete or reach a similar scale. Deregulation
and the liberalization of the Asian chemicals market in recent years are gradually reversing this trend, with the region’s
leading economies starting to open their gates to encourage foreign investment.
The liberalization of China's oil and gas sector has created a greater degree of rivalry, allowing the entry of large
chemical producers such as BASF and ExxonMobil. Through its subsidiary Aramco Overseas Company, the oil refining
company Saudi Arabian Oil Corporation purchased a 10% stake in the petrochemical firm Rongsheng Petrochemical
from Zhejiang Rongsheng Holding Group in March 2023 for a purchase price of $3,581.3 million. Aramco will be able to
increase its downstream presence in China as a result of the acquisition. SABIC, a Saudi Arabian chemical manufacturer,
is also eyeing expansion in China, with plans to construct a petrochemical complex in Fujian province. The addition of
these multinational chemical giants to the Chinese industry creates a new competitive dynamic and rivalries that
previously did not exist in domestic China.
The arrival of some of the largest chemical companies in the world on Jurong Island has significantly increased the
degree of rivalry within the Singaporean chemicals market over the past decade. What was once a relatively small
industry has grown into a bustling center for the production and trade of chemical products. Many companies have
chosen Jurong Island as a site to showcase their largest chemical-producing facilities. Evonik has made Singapore the
site of its largest methionine facility and its biggest oil additives plant, reflecting its confidence in the region's strengths
as a specialty chemicals hub. This has created a highly competitive environment, with companies competing for

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dominant positions on the island. In May 2023, Evonik commenced construction on a new alkoxide production facility
on Jurong Island in Singapore. When it goes online by the end of 2024, this "mid-double-digit million-euro investment"
will supplement locations in Germany, Argentina, and the US, feeding the expanding Asia-Pacific market.
In terms of rivalry, the large size of most market players is offset by the small number of chemical manufacturers.
However, as manufacturers of chemicals produce commoditized products, it is often difficult for players to differentiate
and offer strong incentives for their customers not to switch to rival companies, thus increasing rivalry.
The technical nature of the manufacturing process for chemicals means that fixed costs are high. This makes it difficult
to exit the market and increases rivalry as a result. Storage costs are also high due to the hazardous nature of
chemicals. The lack of diversity in many companies also creates a competitive environment.
For the largest companies in this market, the rivalry is alleviated to an extent by the diverse range of markets in which
they operate. For example, CNPC is not only a leading chemical manufacturer in China but also one of the largest oil
and gas companies in the Asia-Pacific region. As such, this company benefits from operating in a range of markets as
well as being vertically integrated through the supply chain. BASF benefits from operating in over 80 countries across
the globe. As such, if any country’s chemical market experiences a decline, the company has the potential to make up
for its shortfalls elsewhere. BASF also benefits from its Verbund structure. Verbund is BASF's approach to vertical
integration, which involves linking plants to create efficient value-adding chains from basic chemicals to higher-value
products. At Verbund sites, BASF uses by-products of chemical reactions that might otherwise have to be disposed of as
raw materials for other processes. The company operates six Verbund sites worldwide.
Overall, the degree of rivalry is assessed as strong.

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7. Competitive Landscape
The Asia-Pacific chemicals market is highly competitive. The liberalization of China, Japan, and South Korea, three
of the world’s largest chemical markets, has resulted in an influx in foreign investment, which has increased the
degree of competition and allowed large North American and European chemical corporations to grow within the
Asian markets. This has caused a large shift in the market’s competitive landscape, with Western chemical
companies acquiring significant market share and adding a new competitive dimension to the industry. Growth in
the Asian market has allowed some of the world’s largest chemical organizations to emerge, especially in China,
where state-owned chemical corporations remain market leaders. The establishment of the Jurong Island, an
artificial island located to the southwest of the main island of Singapore, as a global hub for chemical and energy
manufacturing and trade, has attracted over 100 of the leading global petroleum, petrochemical, and specialty
chemical companies, which has created a large competitive matrix in terms of production capabilities, innovation,
and trade across the region.

7.1. Who are the leading players?

BASF
BASF, headquartered in Germany, is a chemicals company that produces, markets and sells chemicals, plastics,
crop protection products, and performance products. Its product line comprises solvents, adhesives, surfactants,
fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. It has a presence
in Europe, Asia Pacific, South America, Africa, the Middle East, and North America. The company generated
revenue of EUR87.3 billion ($103.2 billion) for the fiscal year ended December 2022, an increase of 11.1% over
FY2021.
China Petroleum & Chemical (Sinopec)
Sinopec, a subsidiary of China Petrochemical Corporation, is a vertically integrated energy and chemical company.
It operates in the oil and gas exploration and production, extraction and marketing; oil refining; and production,
marketing, storage, and transportation of petrochemicals, chemical fibers, chemical fertilizers, and other chemical
products. The company reported revenues of CNY3,318 billion ($514.3 billion) for the fiscal year ended December
2022, an increase of 21.1% over FY2021.
Mitsui Chemicals (Mitsui Chemicals)
Mitsui Chemicals is a chemical company that offers basic chemicals, petrochemicals, functional polymeric
materials, polyurethane, fabricated products, and functional chemicals. Its products find applications in mobility,
health care, food and packaging, and basic material business sectors. It has a presence in various countries,
including Taiwan, Singapore, Germany, Thailand, India, Malaysia, South Korea, the US, and Mexico. Mitsui
Chemicals is headquartered in Tokyo, Japan. The company reported revenues of JPY1,879.5 billion ($17.1 billion)
for the fiscal year ended March 2023, an increase of 16.5% over FY2022.
Mitsubishi Chemical Group (MCGC)
MCGC, formerly, Mitsubishi Chemical Holdings Corp is a diversified chemical company. Its products and services
include advanced polymers, high-performance chemicals, high-performance films, advanced moldings and
composites, petrochemicals, carbon, industrial gases, methyl methacrylate, and environment and living solutions.
MCGC also provides ethical pharmaceuticals, diagnostic reagents and instruments, capsules and pharmaceutical
equipment, active pharmaceutical ingredients and intermediates, and self-health check services. MCGC is
headquartered in Tokyo, Japan, and has operations in Europe, Africa, Asia-Pacific, North America, and Latin
America. The company reported revenues of JPY3,977 billion ($36.2 billion) for the fiscal year ended March 2022 ,
an increase of 22.1% over FY2021.

7.2. What strategies do the leading players follow?

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BASF intends to become one of the world's leading chemical companies and is focused on achieving profitable
growth in a sustainable manner. To become a sustainable company, it is shifting to renewable energy sources for
its energy requirements, focusing on finding new bio-based raw materials, shifting to carbon-free production
processes, and improving its plant efficiency and energy recovery processes. The company aims to strengthen its
manufacturing processes by manufacturing locally for local customers. To achieve this objective, it plans to invest
EUR28.8 billion ($34.1 billion) in global manufacturing facilities, during the period 2023 to 2027. It is also focused
on improving the efficiency of Verbund and its integrated value chains which will enable it to achieve efficient,
reliable, and CO2-optimized production processes.
Sinopec focuses on promoting value-oriented growth, integrated resource allocation, innovation-driven
development, openness to cooperation, and green and low-carbon development. It focuses on delivering returns
to shareholders, by enhancing efficiency, profitability, and corporate governance. The company prioritizes
optimization, cost reduction, market expansion, structural adjustment, and risk management. The company
intends to improve its market monitoring system, implement well-targeted marketing strategies, and increase
both retail sales volume and efficiency. The company focuses on implementing network development strategies,
continuing to optimize network layout; boosting the development of Sinopec-branded products in order to expand
its market and enhance efficiency. Its goal is to make advancements in core technologies, encourage technological
system mechanism reform, and ramp up intelligent application and digital transformation to establish a
technologically advanced company.
Mitsui Chemicals focuses on research and development while simultaneously creating core businesses that will
provide value and address profound needs in the future. The company plans to pursue innovation for promoting
customer-driven innovations and strengthening its capabilities in proposing solutions. It aims for accelerating
global expansion by increasing overseas production and markets. It also intends to establish next-generation
factories with the use of advanced technologies and strengthen its competitiveness through rationalization.
Mitsubishi Chemical Holdings Corp intends to achieve substantial growth through the reinforcement of its business
base and exploration of future growth areas. The company plans to remain a high-growth and high-profit-model
corporate group by optimizing its business portfolio. Under its medium-term management plan, APTSIS 20, MCGC
plans to implement measures to achieve growth, and efficiency, and strengthen foundations. Undergrowth, the
company intends to strive to increase sustainable growth and profitability through portfolio management, improve
the profitability of overseas businesses, make new energy businesses competitive, generate synergies in the
group, and improve competitiveness by integrating three chemical operating companies.

7.3. What have been the most significant mergers and acquisitions
recently?
The most common method of gaining market share or entering a new marketplace within the chemicals market is
the acquisition of or investment in an existing incumbent. Therefore M&A activity is high.
In April 2023, Sinopec entered into an agreement to acquire 1.25% interest in North Field East LNG project located
in Qatar, from QatarEnergy, a state-owned oil and gas company. The transaction will enable Sinopec to expand its
business in Qatar. In July 2022, the company received approval from China’s State Administration for Market
Regulation to acquire a 50% interest in INEOS Styrolution Advanced Materials (Ningbo) Co Ltd, a joint venture
company that manufactures olefin-styrene, copolymer, from INEOS Styrolution APAC Pte Ltd for a purchase
consideration of $631 million in cash.
In November 2022, BASF completed the acquisition of Cargill’s Idaho Falls seed production facility expanding its
high oleic canola seed production and processing business in North America. The acquisition will expand the
production capacity and reliability for InVigor Health hybrids. InVigor Health hybrids yield a seed that produces a
specialty oil profile that is more heat stable and higher in oleic acid content.
In May 2022, Mitsui Chemicals announced to acquire Photomask Pellicle Business of Asahi Kasei Corp., a company
that manufactures and markets chemical products. The transaction will help Mitsui Chemicals in the further
expansion of its business. By strengthening and extending its business foundations in Asia and boosting
competitiveness by integrating the proprietary technologies and expertise of both parent companies from raw

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material development to product development, the combined business will seek to achieve continuous growth
and contribute to sustainability as a leading spun-bond manufacturer in the region.

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8. Company Profiles

8.1. BASF SE

8.1.1. Company Overview

BASF SE (BASF or 'the company') is a chemical company that produces and sells chemicals, performance
products, functional material, and agricultural products. Its products include propylene, ethylene, butadiene,
benzene, adipic acid, chlorine, glues, caustic soda, propionic acid, formic acid, vinyl monomers, chloroformates,
and chiral intermediates. The company also manufactures cement additives, flooring systems, sealants,
polyurethanes, engineering and biodegradable plastics, polymer dispersions, resins, chelating agents, vitamins,
omega-3 fatty acids, sterols, enzymes, carotenoids, emulsifiers. BASF offers its products to various industries,
including chemical and plastics, automotive, coatings, oilfield, construction, furniture, packaging, textile and
pharmaceutical. The company has a business presence across Europe, the Americas, Asia Pacific, Africa, and the
Middle East. The company is headquartered in Ludwigshafen, Germany.
The company reported revenues of (Euro) EUR87,327 million for the fiscal year ended December 2022
(FY2022), an increase of 11.1% over FY2021. In FY2022, the company’s operating margin was 0.3%, compared
to an operating margin of 9.8% in FY2021. The net loss of the company was EUR627 million in FY2022,
compared to a net profit of EUR5,523 million in FY2021. The company reported revenues of EUR19,991 million
for the first quarter ended March 2023, an increase of 3.5% over the previous quarter.

8.1.2. Key Facts

Table 6: BASF SE: key facts

Head office: Carl-Bosch-Str. 38 , Ludwigshafen Am Rhein, Germany

Telephone: 49621600
Fax: 496216042525
Number of Employees: 111399
Website: www.basf.com
Financial year-end: December
Ticker: BAS
Stock exchange: XETRA
Source: COMPANY WEBSITE MARKETLINE

8.1.3. Business Description

BASF SE (BASF or 'the company') is a producer and marketer of chemicals and related products. The company
operates in more than 90 countries across the globe. It operates six Verbund sites and 243 other production sites
worldwide.
The company operates in Europe, the Americas, Asia Pacific, Africa and the Middle East countries. BASF operates
through Six business segments: Chemicals, Industrial Solutions, Materials, Surface Technologies, Nutrition & Care,
and Agricultural Solutions.
The Chemicals segment comprises the Petrochemicals and Intermediates divisions and is the cornerstone of
BASF’s Verbund structure. It supplies the other segments with basic chemicals and intermediates, contributing to
the organic growth of our key value chains. Alongside internal transfers, customers include the chemical and
plastics industries. The segment’s competitiveness is strengthened by technological leadership and operational
excellence. The Chemicals segment comprises the Petrochemicals and Intermediates divisions and is the

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cornerstone of BASF’s Verbund structure. It supplies the other segments with basic chemicals and intermediates,
contributing to the organic growth of our key value chains. Alongside internal transfers, customers include the
chemical and plastics industries. The segment’s competitiveness is strengthened by technological leadership and
operational excellence. In FY2021, the Chemicals segment reported revenue of EUR13,579 million, which
accounted for 18.1% of the company's revenue.
The Materials segment is composed of the Performance Materials division and the Monomers division. The
segment offers advanced materials and their precursors for new applications and systems. Its product portfolio
includes isocyanates and polyamides as well as inorganic basic products and specialties for plastics and plastics
processing. In FY2021, the Materials segment reported revenue of EUR15,214 million, which accounted for 20.3%
of the company's revenue.

The Industrial Solutions segment consists of the Dispersions & Pigments and the Performance Chemicals divisions.
The segment develops and markets ingredients and additives for industrial applications, such as polymer
dispersions, pigments, resins, electronic materials, antioxidants and additives. Its customers come from key
industries such as automotive, plastics and electronics. In FY2021, the Industrial Solutions segment reported
revenue of EUR8,876 million, which accounted for 11.8% of the company's revenue.
The Surface Technologies segment bundles chemical solutions for surfaces with the Catalysts and Coatings
divisions. Its product spectrum includes catalysts and battery materials for the automotive and chemical industries,
surface treatments, colors and coatings. In FY2021, the Surface Technologies segment reported revenue of
EUR22,659 million, which accounted for 30.2% of the company's revenue.
The Nutrition & Care segment comprises the Care Chemicals division and the Nutrition & Health division. The
segment produces ingredients and solutions for consumer applications in the areas of nutrition, home and
personal care. Its customers include food and feed producers as well as the pharmaceutical, cosmetics, detergent
and cleaner industries. In FY2021, the Nutrition & Care segment reported revenue of EUR6,442 million, which
accounted for 8.6% of the company's revenue.
The Agricultural Solutions segment consists of the division of the same name. As an integrated provider, its
portfolio comprises fungicides, herbicides, insecticides and biological crop protection products, as well as seeds
and seed treatment products. Furthermore, Agricultural Solutions offers farmers innovative solutions, including
those based on digital technologies, combined with practical advice. In FY2021, the Agricultural Solutions segment
reported revenue of EUR8,162 million, which accounted for 10.9% of the company's revenue.
Activities that are not allocated to any of the segments are recorded under Other. These include other businesses,
which comprise commodity trading, engineering and other services, as well as rental income and leases. In
FY2021, the Other segment reported revenue of EUR3,666 million, which accounted for 4.7% of the company's
revenue.
Geographically, the company classifies its operations into five regions: Europe, North America, Asia Pacific, and
South America, Africa and the Middle East. In FY2021, Europe accounted for 40.2% of the company's revenue,
followed by North America (27.9%); Asia Pacific (26.3%) and South America, Africa and the Middle East (5.6%).

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Table 7: BASF SE: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % -1.64 -1.50 -0.28 32.88 11.11
Operating Income Growth % -21.26 -29.38 -105.33 3516.89 -97.10
EBITDA Growth % -17.59 -13.24 -22.65 74.30 -61.12
Net Income Growth % -22.56 78.90 -112.59 621.04 -111.35
EPS Growth % -19.93 -44.81 -37.16 292.50 -30.80
Working Capital Growth % 22.30 -27.68 -5.55 10.17 13.44
Equity Ratios
EPS (Earnings per Share) EUR 4.81 2.65 1.67 6.54 4.53
Dividend per Share EUR 3.20 3.30 3.30 3.40 3.40
Dividend Cover Absolute 1.50 0.80 0.51 1.92 1.33
Book Value per Share EUR 38.17 45.18 36.72 44.41 44.27
Profitability Ratios
Gross Margin % 28.74 27.40 25.54 25.19 24.12
Operating Margin % 9.92 7.11 -0.38 9.78 0.26
Net Profit Margin % 7.82 14.20 -1.79 7.03 -0.72
Profit Markup % 40.33 37.75 34.31 33.67 31.79
PBT Margin (Profit Before Tax) % 8.69 5.57 -2.64 9.48 1.36
Return on Equity % 13.43 20.29 -3.14 13.54 -1.58
Return on Capital Employed % 9.45 6.00 -0.35 11.42 0.35
Return on Assets % 5.69 9.71 -1.27 6.59 -0.73
Return on Working Capital % 30.03 29.33 -1.66 51.36 1.31
Operating Costs (% of Sales) % 90.08 92.89 100.38 90.22 99.74
Administration Costs (% of Sales) % 15.10 15.63 14.83 12.59 12.74
Liquidity Ratios
Current Ratio Absolute 1.85 1.87 1.83 1.75 1.83
Quick Ratio Absolute 1.33 1.19 1.22 1.05 1.05
Cash Ratio Absolute 0.10 0.15 0.27 0.13 0.12
Leverage Ratios
Debt to Equity Ratio Absolute 0.60 0.48 0.61 0.46 0.52
Net Debt to Equity Absolute 0.52 0.41 0.48 0.39 0.45
Debt to Capital Ratio Absolute 0.37 0.32 0.38 0.31 0.34
Efficiency Ratios
Asset Turnover Absolute 0.73 0.68 0.71 0.94 1.02
Fixed Asset Turnover Absolute 2.62 2.79 2.85 3.82 3.92
Inventory Turnover Absolute 3.82 3.68 4.15 4.93 4.43
Current Asset Turnover Absolute 1.62 1.60 1.94 2.42 2.41
Capital Employed Turnover Absolute 0.95 0.84 0.92 1.17 1.36
Working Capital Turnover Absolute 3.03 4.12 4.35 5.25 5.14
Source: COMPANY FILINGS MARKETLINE

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Table 8: BASF SE: Key Employees

Name Job Title Board

Achim Sties Senior Vice President BASF Plastic Additives Senior Management
Alessandra Genco Director Non Executive Board
Andre Matta Director Non Executive Board
Christian-Matthias Jutzi President Corporate Finance Division Senior Management
Dame Alison J. Carnwath Director Non Executive Board
Denise Schellemans Director Non Executive Board
Dirk Elvermann Chief Digital Officer Senior Management
Dirk Elvermann Chief Financial Officer Senior Management
Helmut Winterling President Group Research, Ludwigshafen Senior Management
Vice President Global Semiconductor,
Jens Liebermann Electronic Materials, Dispersions and Senior Management
Pigments Division
President Advanced Materials and Systems
Jianfeng Jeffrey Lou Senior Management
Research
President Intermediates Division
Ketan Joshi Senior Management
Ludwigshafen, German
Kurt Bock Director Non Executive Board
Liming Chen Director Non Executive Board
Livio Tedeschi President Agricultural Solutions Division Senior Management
Markus Kamieth Director Non Executive Board
Martin Brudermuller Chairman Executive Board
President Global Operating Division Care
Mary Kurian Senior Management
Chemicals
Melanie Maas-Brunner Chief Technology Officer Executive Board
Melanie Maas-Brunner Director Executive Board
Michael Heinz Chairman New Jersey Executive Board
Michael Heinz Chief Executive Officer New Jersey Executive Board
Michael Vassiliadis Director Non Executive Board
Natalie Muhlenfeld Director Non Executive Board
Peter Zaman Director Non Executive Board
Roland Strasser Director Non Executive Board
Sinischa Horvat Vice Chairman Non Executive Board
Stefan Asenkerschbaumer Director Non Executive Board
Stephan Kothrade Director Non Executive Board
Tatjana Diether Director Non Executive Board
Source: COMPANY FILINGS MARKETLINE

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Table 9: BASF SE: Key Employees Continued

Name Job Title Board

Thomas Carell Director Non Executive Board
Uta Holzenkamp President Coatings division Senior Management
Waldemar Helber Director Non Executive Board
Wayne T. Smith Head Petrochemicals and Intermediates Senior Management
Source: COMPANY FILINGS MARKETLINE

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8.2. China Petroleum & Chemical Corp

8.2.1. Company Overview

China Petroleum & Chemical Corp (Sinopec or 'the company'), a subsidiary of China Petrochemical Corporation,
is an oil and gas company with upstream, midstream, and downstream operations. Sinopec’s products include
crude oil, natural gas, petrochemicals, and other petroleum products. The company’s product portfolio includes
refined oil products, such as diesel, gasoline, and jet fuel. Its petrochemical and chemical products include
synthetic fiber monomers and polymers, synthetic resin, synthetic fiber, chemical fertilizers, synthetic rubber,
and petrochemical intermediates. It operates productive and dry exploratory and development wells for crude
oil and natural gas in China and overseas. The company operates in China and Singapore. Sinopec is
headquartered in Beijing, China.
The company reported revenues of (Renminbi) CNY3,318,168 million for the fiscal year ended December 2022
(FY2022), an increase of 21.1% over FY2021. In FY2022, the company’s operating margin was 2.9%, compared
to an operating margin of 4% in FY2021. In FY2022, the company recorded a net margin of 2%, compared to a
net margin of 2.6% in FY2021. The company reported revenues of CNY791,331 million for the first quarter
ended March 2023, a decrease of 8.5% over the previous quarter.

8.2.2. Key Facts

Table 10: China Petroleum & Chemical Corp: key facts

Head office: No. 22 Chaoyangmen North Avenue Chaoyang District, Beijing, Beijing, China
Telephone: 861059960028
Fax: 861059960386
Number of Employees: 374791
Website: www.sinopec.com
Financial year-end: December
Ticker: 600028
Stock exchange: Shanghai Stock Exchange
Source: COMPANY WEBSITE MARKETLINE

8.2.3. Business Description

China Petroleum & Chemical Corp (Sinopec or 'the company'), a subsidiary of China Petrochemical Corporation, is
an oil and gas company. Its principal operations include the exploration and production, pipeline transportation
and sale of petroleum and natural gas. It also produces, markets, storages and transports refinery products,
petrochemical products, coal, chemical products, synthetic fibre, and other chemical products; the import and
export, including an import and export agency business, of petroleum, natural gas, petroleum products,
petrochemical and chemical products, and other commodities and technologies; and research, development and
application of technologies and information. The company operates in China. As of December 2021, the company
operated 30,725 service stations under the Sinopec brand and 30,725 company-operated stations.
The company classifies its business operation into five segments: Marketing and Distribution; Chemicals; Refining;
Exploration and Production; and Corporate and Others.
The Marketing and Distribution segment includes purchasing refined oil products from the refining segment and
third parties, conducting wholesale and direct sales to domestic customers, and distributing oil products through
the segment's retail and distribution network, as well as providing related services. As of December 2021, the
company had 365 productive and 130 dry exploratory wells; and 1,942 productive and three dry development
wells. It had 363 productive and 129 dry exploratory in China and two productive and one dry exploratory in
overseas countries. Similarly, the company had 1,828 productive and four dry development in China and two

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productive development in overseas countries. In FY2021, the Marketing and Distribution segment reported
revenues of CNY1,404,469 million, which accounted for 51.2% of the company's total revenue.
The company’s Chemicals segment include purchasing chemical feedstock from the refining segment and third
parties, and producing, marketing and distributing petrochemical and inorganic chemical products. As of
December 2021, the company’s refinery throughputs were approximately 255.28 million tonnes. It produced
65.21 million tonnes of gasoline, 59.85 million tonnes of diesel, 45.41 million tonnes of light chemical feedstock,
21.15 million tonnes of kerosene, and 59.85 million tonnes of diesel. In FY2021, the Chemicals segment reported
revenues of CNY435,261 million, which accounted for 15.9% of the company's total revenue.
The business activities of the Refining segment include purchasing crude oil from third parties and the exploration
and production segment of the company, as well as processing crude oil into refined petroleum products. As of
December 2021, the company processed 255 million tonnes of crude oil and yielding 146 million tonnes of refined
oil products. Which include gasoline output of 65.21 million tonnes and light chemical feedstock of 45.41 million
tonnes. In FY2021, the Refining segment reported revenues of CNY173,109 million, which accounted for 6.3% of
the company's total revenue.
The Exploration and Production segment consists of activities related developing, producing and selling crude oil
and natural gas in China and overseas. As of December 2021, the company’s production of oil and gas equivalent
reached 479.74 million barrels including 249.60 million barrels of domestic crude and 1,199.4 billion cubic feet of
natural gas. In FY2021, the Exploration and Production segment reported revenues of CNY162,700 million, which
accounted for 5.9% of the company's total revenue.
The business activities of Corporate and Others mainly consist of import and export business activities of the
company's subsidiaries, research and development activities of the company, and managerial activities of
headquarters. In FY2021, the Corporate and Others segment reported revenues of CNY565,345 million, which
accounted for 20.6% of the company's total revenue.
Geographically, the company classifies its operations into three regions: Mainland China, Singapore and Others. In
FY2021, the Mainland China segment accounted for 79% of the company's total revenues, Singapore with 10.1%
and others with 10.8%.

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Table 11: China Petroleum & Chemical Corp: Annual Financial Ratios
Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 22.50 104.75 -64.44 30.23 21.06
Operating Income Growth % 16.68 2901.60 -98.39 121.21 -12.57
EBITDA Growth % 16.68 2901.60 -98.39 121.21 -12.57
Net Income Growth % 23.42 4704.75 -98.90 114.02 -6.89
EPS Growth % -1.87 4340.24 -99.57 524.99 -25.70
Working Capital Growth % 21.00 117.57 -49.25 23.64 73.25
Equity Ratios
EPS (Earnings per Share) CNY 0.56 25.05 0.11 0.67 0.50
Dividend per Share CNY 0.42 0.31 0.20 0.47 0.36
Dividend Cover Absolute 1.34 80.79 0.54 1.43 1.41
Book Value per Share CNY 5.93 6.11 6.17 6.40 6.58
Profitability Ratios
Gross Margin % 9.57 54.01 9.77 10.98 8.34
Operating Margin % 3.51 51.45 2.33 3.97 2.86
Net Profit Margin % 2.18 51.21 1.58 2.60 2.00
Profit Markup % 10.59 117.44 10.82 12.33 9.10
PBT Margin (Profit Before Tax) % 3.48 51.45 2.30 3.95 2.85
Return on Equity % 8.78 409.65 4.45 9.19 8.41
Return on Capital Employed % 9.88 258.06 4.04 8.71 7.40
Return on Assets % 3.96 180.83 1.90 3.93 3.45
Return on Working Capital % -166.41 -2295.84 -72.97 -130.55 -65.87
Operating Costs (% of Sales) % 96.49 48.55 97.67 96.03 97.14
Administration Costs (% of Sales) % 5.93 2.16 7.91 5.89 4.92
Liquidity Ratios
Current Ratio Absolute 0.89 0.77 0.87 0.87 0.78
Quick Ratio Absolute 0.57 0.44 0.58 0.55 0.42
Cash Ratio Absolute 0.30 0.22 0.35 0.35 0.22
Leverage Ratios
Debt to Equity Ratio Absolute 0.23 0.47 0.41 0.42 0.47
Net Debt to Equity Absolute -0.04 0.29 0.16 0.14 0.28
Debt to Capital Ratio Absolute 0.18 0.32 0.29 0.30 0.32
Efficiency Ratios
Asset Turnover Absolute 1.81 3.53 1.20 1.51 1.73
Fixed Asset Turnover Absolute 3.79 6.76 2.21 2.97 3.41
Inventory Turnover Absolute 14.08 14.38 10.97 13.57 13.47
Current Asset Turnover Absolute 5.60 12.44 4.66 5.41 6.14
Capital Employed Turnover Absolute 2.81 5.02 1.73 2.20 2.58
Working Capital Turnover Absolute -47.41 -44.62 -31.26 -32.92 -23.00
Source: COMPANY FILINGS MARKETLINE

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Table 12: China Petroleum & Chemical Corp: Key Employees

Name Job Title Board

Cai Hongbin Director Non Executive Board
Huang Wensheng Secretary Senior Management
Huang Wensheng Vice President Senior Management
Ling Yiqun Director Executive Board
Ling Yiqun Senior Vice President Executive Board
Liu Hongbin Senior Vice President Senior Management
Lv Lianggong Senior Vice President Senior Management
Ma Yongsheng Chairman Executive Board
Ng, Kar Ling Johnny Director Non Executive Board
Shou Donghua Chief Financial Officer Senior Management
Yu Baocai Director Non Executive Board
Yu Xizhi Vice President Senior Management
Zhao Dong Director Non Executive Board
Zhao Rifeng Senior Vice President Senior Management
Source: COMPANY FILINGS MARKETLINE

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8.3. Mitsubishi Chemical Group Corporation

8.3.1. Company Overview

Mitsubishi Chemical Group Corporation (MCGC or 'the group'), formerly Mitsubishi Chemical Holdings
Corporation, is an investment holding group primarily engaged in the manufacturing and distribution of
chemicals, polymers and designed materials. The group also offers products related to health care, industry
products and electronics markets. It offers pharmaceuticals and diagnostic and clinical testing products. MCGC
provides IT services, engineering services, logistics services and warehousing services to its customers. The
group offers its services under the brand Kaiteki. The group operates through its subsidiaries in Japan and
countries across Europe, Africa, Asia Pacific, and the Americas. The company is headquartered in Chiyoda-Ku,
Tokyo, Japan.
The company reported revenues of (Yen) JPY4,634,532 million for the fiscal year ended March 2023 (FY2023),
an increase of 16.5% over FY2022. In FY2023, the company’s operating margin was 3.9%, compared to an
operating margin of 7.6% in FY2022. In FY2023, the company recorded a net margin of 2.1%, compared to a net
margin of 4.5% in FY2022.

8.3.2. Key Facts

Table 13: Mitsubishi Chemical Group Corporation: key facts

Head office: 1-1 Marunouchi Chiyoda-Ku, Tokyo, Japan

Number of Employees: 68639
Website: www.mitsubishichem-hd.co.jp
Financial year-end: March
Ticker: 4188
Stock exchange: Tokyo Stock Exchange
Source: COMPANY WEBSITE MARKETLINE

8.3.3. Business Description

Mitsubishi Chemical Group Corporation (MCGC or 'the group'), formerly Mitsubishi Chemical Holdings
Corporation, through its subsidiaries, is engaged in the chemicals, polymers, designed materials, health care,
electronics and polymer businesses.
The group operates through its four operating companies: Mitsubishi Chemical Corporation, Mitsubishi Tanabe
Pharma, Life Science Institute, and Taiyo Nippon Sanso. As of March 2022, MCGC had 625 subsidiaries and
affiliates. The group has operations in Japan, and countries across Europe, Africa, Asia Pacific, and the Americas.
The company classifies its business operation into five segments: Performance Products, Chemicals, Industrial
Gases, Health Care and Others.
The Performance segment encompasses high performance engineering plastics and other products. It also
includes functional products and chemicals products such as electronics and displays, high performance films,
aqua solutions, agriculture solutions, advanced moldings and composites, and alumina fibers and battery
materials. The performance Chemicals sub-segment includes businesses of advanced polymers, high performance
chemicals, and new energy. In FY2022, the Performance segment reported the revenue of JPY1,136,341 million,
which accounted for 28.6% of the company’s total revenue.
The Chemicals segment encompasses basic petrochemicals and carbon materials. These products include MMA,
petrochemicals, and carbon products. In FY2022, the Chemicals segment reported revenue of JPY1,287,915
million, which accounted for 32.4% of the group's total revenue.

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The Industrial Gases segment comprises oxygen, nitrogen and argon. In FY2022, the Industrial Gases segment
reported revenue of JPY950,111 million, which accounted for 23.9% of the company’s total revenue.
The Health Care segment is involved in manufacturing pharmaceuticals, life sciences and diagnostic and clinical
testing products. The segment is engaged in diagnostics and support for new pharmaceutical development,
pharmaceutical ingredients and active pharmaceutical intermediates, capsules and pharmaceutical-related
equipment. The group operates this segment through its subsidiaries: MTPC and Life Science Institute. In FY2022,
the Health Care segment reported revenue of JPY403,638 million, which accounted for 10.1% of the group's total
revenue.
Besides these segments, the group has other businesses including engineering, logistics, and warehousing services.
In FY2022, the Others segment reported revenue of JPY198,943 accounted for 5% of the group's total revenue.

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Table 14: Mitsubishi Chemical Group Corporation: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 3.11 -6.77 -9.02 22.08
Operating Income Growth % -17.14 -51.05 -67.07 538.06
EBITDA Growth % -7.58 -22.26 -24.16 90.40
Net Income Growth % -19.95 -68.10 -113.97 2444.34
EPS Growth % -18.59 -62.97 41.46 66.57
Working Capital Growth % -78.75 -12.26 170.46 85.83
Equity Ratios
EPS (Earnings per Share) JPY 145.12 118.14 43.75 61.89 103.08
Dividend per Share JPY 32.00 40.00 32.00 24.00 30.00
Dividend Cover Absolute 4.53 2.95 1.37 2.58 3.44
Book Value per Share JPY 893.26 970.46 824.07 870.40 1026.03
Profitability Ratios
Gross Margin % 30.07 27.98 27.57 28.43 28.03
Operating Margin % 9.55 7.68 4.03 1.46 7.62
Net Profit Margin % 5.69 4.41 1.51 -0.23 4.45
Profit Markup % 43.01 38.85 38.07 39.73 38.95
PBT Margin (Profit Before Tax) % 9.24 7.42 3.41 1.01 7.30
Return on Equity % 16.47 12.30 4.62 -0.61 12.15
Return on Capital Employed % 10.93 8.28 4.13 1.25 7.30
Return on Assets % 9.01 3.30 1.01 -0.15 3.26
Return on Working Capital % 58.82 229.31 127.93 15.58 53.49
Operating Costs (% of Sales) % 90.45 92.32 95.97 98.54 92.38
Administration Costs (% of Sales) % 20.52 20.23 22.36 23.11 21.49
Liquidity Ratios
Current Ratio Absolute 1.42 1.06 1.07 1.20 1.40
Quick Ratio Absolute 1.00 0.75 0.70 0.82 0.87
Cash Ratio Absolute 0.14 0.11 0.13 0.22 0.15
Leverage Ratios
Debt to Equity Ratio Absolute 1.25 1.63 1.95 1.90 1.48
Net Debt to Equity Absolute 0.84 1.22 1.66 1.58 1.28
Debt to Capital Ratio Absolute 0.56 0.62 0.66 0.66 0.60
Efficiency Ratios
Asset Turnover Absolute 1.58 0.75 0.67 0.63 0.73
Fixed Asset Turnover Absolute 5.20 2.46 2.09 1.83 2.14
Inventory Turnover Absolute 8.57 4.49 4.22 3.94 4.33
Current Asset Turnover Absolute 3.63 1.83 1.84 1.84 2.10
Capital Employed Turnover Absolute 1.14 1.08 1.02 0.86 0.96
Working Capital Turnover Absolute 6.16 29.88 31.75 10.68 7.02
Source: COMPANY FILINGS MARKETLINE

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Table 15: Mitsubishi Chemical Group Corporation: Key Employees

Name Job Title Board

Akihiro Tsujimura Executive Vice President Senior Management
Akihiro Tsujimura Head Pharma Senior Management
Atsuo Kiyokawa Director SC Internal Control Div Senior Management
Senior Manager, Product Stewardship and
Atsuo Kiyokawa Senior Management
Quality Assurance Dept.
Director Americas Division, Specialty
Bernie Willms Senior Management
Materials Business Group
Chikatomo Hodo Director Non Executive Board
Senior Manager, Global MMA Business
Dai Oyama Senior Management
Finance
Director Advanced Materials Div., Specialty
David Shupe Senior Management
Materials Business Group
Frank Randall Executive Vice President Senior Management
Frank Randall Head Specialty Materials Senior Management
Frank Randall Queen Head Specialty Materials Senior Management
Director Venture Department Mitsubishi
Fumiko Uraki Senior Management
Chemical Group
Glenn H. Fredrickson Director Executive Board
Glenn H. Fredrickson Managing Corporate Executive Officer Executive Board
Director Innovation strategy Division
Hideaki Okamoto Senior Management
Mitsubishi Chemical Group
Hikaru Shiraishi Director Internal Control Div Senior Management
Director Japan Division, Specialty Materials
Hiroki Matsuo Senior Management
Business Group
Hitoshi Sasaki Executive Vice President Senior Management
Hitoshi Sasaki Head Polymers and Compounds, MMA Senior Management
Jean-Marc Gilson Chief Executive Officer Executive Board
Jean-Marc Gilson Director Executive Board
Jean-Marc Gilson President Executive Board
Jean-Marc Gilson Representative Corporate Executive Officer Executive Board
Jin Iida Senior Vice President Senior Management
Director Custom Synthesis Division, Specialty
Jonathan Goff Senior Management
Materials Business Group
Joseph Rinaldi Chief Strategy Officer Senior Management
Joseph Rinaldi Vice President Senior Management
Jun Kato Director IT Service Operation Division Senior Management
Kazumichi Hirayama Director Operation for APAC Div Senior Management
Ken Fujiwara Chief Compliance Officer Executive Board
Source: COMPANY FILINGS MARKETLINE

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Table 16: Mitsubishi Chemical Group Corporation: Key Employees Continued

Name Job Title Board

Ken Fujiwara Director Executive Board
Ken Fujiwara Executive Vice President Executive Board
Kiyomi Kikuchi Director Non Executive Board
Kouji Eguchi Chief Supply Chain Officer Senior Management
Kouji Eguchi Representative Corporate Executive Officer Senior Management
Kouji Eguchi Senior Vice President Senior Management
Director APAC Division, Specialty Materials
Kumar Pole Senior Management
Business Group
Larry Meixner Chief Technology Officer Senior Management
Larry Meixner Director Innovation Division Senior Management
Larry Meixner Senior Vice President Senior Management
Manabu Chikumoto Executive Vice President Senior Management
Manabu Chikumoto Head Basic Materials Senior Management
Masahiro Yoshizumi Director C Internal Control Division Senior Management
Director Science and Innovation Center
Masanori Yamamoto Senior Management
Mitsubishi Chemical Group
Melanie Jury Director Operation for EMEA Div. Senior Management
Michael Bolten Director Global SC Planning Division Senior Management
Michael Bolten Director Operation for Americas Division Senior Management
Michael Bolten Director Operation for EMEA Division Senior Management
Minoru Kida Senior Manager, EMEA Finance Senior Management
Director Research and Development Division,
Motohiro Seki Senior Management
Specialty Materials Business Group
Naohiko Uramoto Executive Officer Senior Management
Naoto Yabe Director Corporate Planning Dept Strategy Senior Management
Naoto Yabe Vice President Senior Management
Nobuo Fukuda Director Non Executive Board
Osamu Shimizu Director Corporate Communications Div Senior Management
Director Global Market Development Division,
Ron Denoo Senior Management
Specialty Materials Business Group
Rumiko Nakata Director Non Executive Board
Director Regenerative Medicine Development
Ryosuke Tanabe Senior Management
Div., MCHG
Ryosuke Tanabe Director Representative Senior Management
Satoshi Wakabayashi Director Information and Electronics Division Senior Management
Source: COMPANY FILINGS MARKETLINE

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Table 17: Mitsubishi Chemical Group Corporation: Key Employees Continued

Name Job Title Board

Shigeki Habuka Senior Vice President Senior Management
Director Global Planning Division Specialty
Shindo Ebihara Senior Management
Materials Business Group
Senior Manager, Finance Transformation
Shuji Nagai Operational Management
Department
Susumu Sakurai Director Legal Senior Management
Director Coal Business Division Basic
Tadashi Kato Senior Management
Materials Business Group
Takayuki Hashimoto Director Non Executive Board
Takehiko Yuki Director Business Solution Delivery Division Senior Management
Tatsumi Yamada Director Non Executive Board
Tomoyo Hiraoka Chief Human Resources Officer Senior Management
Tomoyo Hiraoka Senior Vice President Senior Management
Toshiya Katsuragi Director Functional Excellence Division Senior Management
Director Functional Excellence Division
Toshiya Katsuragi Senior Management
Mitsubishi Chemical Group
Travis Bayne Senior Manager, Americas Finance Senior Management
Tsutomu Yoshida Sales Manager Corporate Development Dept Senior Management
Director China Division, Specialty Materials
Yasuo Shimodaira Senior Management
Business Group
Yasushi Muto Director Corporate Finance Senior Management
Yasushi Muto Senior Manager, Asia Finance Senior Management
Yoshikuni Sano Director Digital Strategic Planning Division Senior Management
Yoshio Akahane Director Green Transformation Division Senior Management
Yuji Ichimura Chief Digital Officer Senior Management
Yuji Ichimura Senior Vice President Senior Management
Yuko Nakahira Chief Financial Officer Senior Management
Yuko Nakahira Executive Vice President Senior Management
Yuuko Maruzeni Director Audit Division Senior Management
Source: COMPANY FILINGS MARKETLINE

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8.4. Mitsui Chemicals, Inc.

8.4.1. Company Overview

Mitsui Chemicals, Inc. (MCI or 'the company') is a chemical manufacturer company that offers a wide range of
chemical products for day-to-day lives. Its major products comprise of petrochemicals, basic chemicals,
functional polymeric materials, and polyurethane products. The company manufactures products having
different physical properties such as tolerance related, weight reduction, adhesives, flexibility, optical
properties, environmental friendly and others. The products of MCI find application in various industries such as
mobility, healthcare, food and packaging, and basic material. The company produces these products through
manufacturing facilities in Japan. It has business operations across Asia, the Americas and Europe. The company
is headquartered in Minato-Ku, Tokyo, Japan.
The company reported revenues of (Yen) JPY1,879,547 million for the fiscal year ended March 2023 (FY2023),
an increase of 16.5% over FY2022. In FY2023, the company’s operating margin was 6.9%, compared to an
operating margin of 9.1% in FY2022. In FY2023, the company recorded a net margin of 4.4%, compared to a net
margin of 6.8% in FY2022.

8.4.2. Key Facts

Table 18: Mitsui Chemicals, Inc.: key facts

Head office: Shiodome City Center 1-5-2 Higashi-Shimbashi, Minato-Ku, Tokyo, Japan
Number of Employees: 18933
Website: www.mitsuichem.com
Financial year-end: March
Ticker: 4183
Stock exchange: Tokyo Stock Exchange
Source: COMPANY WEBSITE MARKETLINE

8.4.3. Business Description

Mitsui Chemicals, Inc. (MCI or 'the company') is a manufacturer of basic chemicals, petrochemicals, polyurethane,
functional chemicals and functional polymeric materials. It has three branches including Nagoya, Osaka, and
Fukuoka.
The company classifies its business operations into four reportable segments: Mobility, Health Care, Food and
Packaging, Basic Materials, and Others.
Under Basic Materials segment, the company offers phenols, bisphenol-a, acetone, isopropyl alcohol, purified
terephthalic acid (pta), polyethylene-terephthalate (pet) resin, ethylene oxide, semiconductor gas, methyl isobutyl
keton, ethylene glycol, hydroquinone, meta/para- cresol, ammonia, urea and melamine. In FY2022, the Basic
Materials segment reported revenue of JPY786,330 million, which accounted for 48.8% of the company's revenue.
Through the Mobility segment, MCI provides elastomers, performance compounds, overseas PP compounds, and
performance polymers. In addition to the above, it offers comprehensive services regarding to the development of
automotive and industrial products. In FY2022, the Mobility segment reported revenue of JPY411,622 million,
which accounted for 25.5% of the company’s revenue.
Under the Food and Packaging segment, the company offers coating & engineering materials, performance films
and sheets, and agrochemical products. In FY2022, the Food and Packaging segment reported revenue of
JPY235,167 million, which accounted for 14.6% of the company's revenue.

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Through the Health Care segment, the company provides vision care materials, nonwoven fabrics, dental
materials, and personal care materials. In FY2022, the Health Care segment reported revenue of JPY164,544
million, which accounted for 10.2% of the company's revenue.
The Other segment involve businesses that are not involved in reportable segment. It includes other related
businesses. In FY2022, the other business reported revenue of JPY15,025 million, which accounted for 0.9% of the
company’s revenue. The company operates across Asia, the Americas, Europe, and other regions.
Geographically, the company classifies its operations into six regions: Japan, Asia, America, China, Europe, and
Other Region. In FY2022, Japan segment accounted for 52.2% of the company's revenue, followed by China
(14.5%), Asia (13.6%), The America (11.8%), Europe (7.3%), and Other Regions (0.6%).

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Table 19: Mitsui Chemicals, Inc.: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 11.62 -8.99 -10.21 33.09
Operating Income Growth % 11.59 -32.53 20.92 88.68
EBITDA Growth % 10.49 -3.18 10.04 49.67
Net Income Growth % 6.33 -55.37 70.37 90.05
EPS Growth % -8.87 -49.54 71.17 81.30
Working Capital Growth % 13.77 -9.69 8.48 1.75
Equity Ratios
EPS (Earnings per Share) JPY 432.87 394.47 199.07 340.75 617.76
Dividend per Share JPY 90.00 100.00 100.00 100.00 115.00
Dividend Cover Absolute 4.81 3.94 1.99 3.41 5.37
Book Value per Share JPY 2574.82 2829.50 2770.04 3102.52 3688.00
Profitability Ratios
Gross Margin % 23.29 21.33 22.11 24.25 23.49
Operating Margin % 6.45 6.45 4.78 6.44 9.13
Net Profit Margin % 5.39 5.13 2.52 4.78 6.82
Profit Markup % 30.35 27.12 28.39 32.01 30.69
PBT Margin (Profit Before Tax) % 7.09 7.10 4.51 6.13 8.76
Return on Equity % 13.99 13.79 6.42 9.52 15.43
Return on Capital Employed % 8.68 9.18 6.18 7.15 11.99
Return on Assets % 10.00 5.19 2.24 3.75 6.30
Return on Working Capital % 29.75 29.18 21.80 24.30 45.07
Operating Costs (% of Sales) % 93.55 93.55 95.22 93.56 90.87
Administration Costs (% of Sales) % 12.98 12.62 16.79 17.49 14.84
Liquidity Ratios
Current Ratio Absolute 1.65 1.71 1.61 1.69 1.46
Quick Ratio Absolute 1.03 1.06 1.02 1.13 0.94
Cash Ratio Absolute 0.18 0.24 0.34 0.42 0.25
Leverage Ratios
Debt to Equity Ratio Absolute 0.90 0.87 1.03 0.84 0.93
Net Debt to Equity Absolute 0.74 0.67 0.65 0.47 0.62
Debt to Capital Ratio Absolute 0.47 0.47 0.51 0.46 0.48
Efficiency Ratios
Asset Turnover Absolute 1.86 1.01 0.89 0.78 0.92
Fixed Asset Turnover Absolute 6.14 3.39 2.86 2.42 3.06
Inventory Turnover Absolute 7.43 4.05 3.59 3.38 3.93
Current Asset Turnover Absolute 3.63 1.95 1.72 1.54 1.77
Capital Employed Turnover Absolute 1.34 1.42 1.29 1.11 1.31
Working Capital Turnover Absolute 4.61 4.52 4.56 3.77 4.93
Source: COMPANY FILINGS MARKETLINE

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Table 20: Mitsui Chemicals, Inc.: Key Employees

Name Job Title Board

Abe Shinji Executive Officer Senior Management
Andou Yoshinori Chief Human Resources Officer Executive Board
Andou Yoshinori Director Executive Board
Andou Yoshinori Senior Managing Executive Officer Executive Board
Antonios Grigoriou Executive Officer Senior Management
Antonios Grigoriou President Mitsui Chemicals America, Inc Senior Management
Antonios Grigoriou President Whole You, Inc Senior Management
Antonios Grigoriou Representative - America Senior Management
Fujimoto Kensuke Executive Officer Senior Management
Fujimoto Kensuke President Prime Polymer Co., Ltd Senior Management
President Business Sector, ICT Solutions
Hirahara Akio Senior Management
Business Sector
Hirahara Akio Senior Managing Executive Officer Senior Management
Hiromi Hayashida Executive Officer Senior Management
Hiromi Hayashida General Manager Oral Care Business Division Senior Management
Vice President Business Sector, Life and
Hiromi Hayashida Senior Management
Healthcare Solutions Business Sector
Hiromitsu Funakoshi Executive Officer Senior Management
General Manager Planning and Coordination
Hiromitsu Funakoshi Division, Life and Healthcare Solutions Senior Management
Business Sector
Vice President Business Sector, Life and
Hiromitsu Funakoshi Senior Management
Healthcare Solutions Business Sector
Izawa Kazumasa Chief Sustainability Officer Senior Management
Izawa Kazumasa Managing Executive Officer Senior Management
Kazunari Okada Executive Officer Senior Management
Kazunari Okada General Manager Osaka Works Senior Management
Kinoshita Masayuki Executive Officer Senior Management
Kinoshita Masayuki General Manager Human Resources Division Senior Management
Komoriya Atsushi Managing Executive Officer Senior Management
President Business Sector , Mobility Solutions
Komoriya Atsushi Senior Management
Business Sector
Mabuchi Akira Director Non Executive Board
Matsue Kaori Executive Officer Senior Management
Matsuzaka Shigeharu Executive Officer Senior Management
Matsuzaka Shigeharu President Mitsui Chemicals Tohcello, Inc. Senior Management
Source: COMPANY FILINGS MARKETLINE

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Table 21: Mitsui Chemicals, Inc.: Key Employees Continued

Name Job Title Board

Matsuzaki Hiroshi Executive Officer Senior Management
Migita Ken Executive Officer Senior Management
General Manager Corporate Sustainability
Migita Ken Senior Management
Division
Mimura Takayoshi Director Non Executive Board
Nakajima Hajime Chief Financial Officer Executive Board
Nakajima Hajime Director Executive Board
Nakajima Hajime Senior Managing Executive Officer Executive Board
Omote Toshihiko Executive Advisor Senior Management
Osamu Hashimoto Chief Executive Officer Executive Board
Osamu Hashimoto Director Executive Board
Osamu Hashimoto President Executive Board
SAMBE Masao Chief Data Officer Senior Management
SAMBE Masao Managing Executive Officer Senior Management
President Sector, Digital Transformation
SAMBE Masao Senior Management
Sector
Satoshi Ozawa Executive Officer Senior Management
Satoshi Ozawa President Mitsui Chemicals Agro, Inc. Senior Management
Shingo Shibata Managing Executive Officer Senior Management
Suematsu Kenji Executive Officer Senior Management
Suematsu Kenji General Manager Iwakuni Ohtake Works Senior Management
Tadashi Yoshino Chief Technology Officer Executive Board
Tadashi Yoshino Director Executive Board
Tadashi Yoshino Senior Managing Executive Officer Executive Board
Tanaka Hisayoshi Managing Executive Officer Senior Management
President Business Sector, Life and
Tanaka Hisayoshi Senior Management
Healthcare Solutions Business Sector
Tsuruda Satoshi Executive Officer Senior Management
Tsutomu Tannowa Chairman Executive Board
Yasuhiro Hosomi Executive- Production & Technology Center Senior Management
Yasuhiro Hosomi Managing Executive Officer Senior Management
Yoshida Osamu Executive Officer Senior Management
General Manager Finance and Accounting
Yoshida Osamu Senior Management
Division
Source: COMPANY FILINGS MARKETLINE

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Table 22: Mitsui Chemicals, Inc.: Key Employees Continued

Name Job Title Board

President Business Sector, Basic and Green
Yoshizumi Fumio Senior Management
Materials Business Sector
Yukiko Yoshimaru Director Non Executive Board
Zenkoh Hirofumi Executive Officer Operational Management
Source: COMPANY FILINGS MARKETLINE

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9. Macroeconomic Indicators

9.1. Country data

Table 23: Asia-Pacific exchange rate, 2018–22

Year Exchange rate (€/$)

2018 1.1810
2019 1.1200
2020 1.1405
2021 1.1832
2022 1.0538

Source: MARKETLINE MARKETLINE

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Appendix

9.2. Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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9.3. Industry associations

9.3.1. International Council of Chemical Associations

ICCA c/o Cefic, Avenue E. Van Nieuwenhuyse 4, box 1, B-1160 Brussels, BEL
Tel.: 32 2 676 74 15
Fax: -
www.icca-chem.org

9.3.2. Federation of Asian Chemicals Societies

Beijing, ICP 05061563, CN

Tel.: -
Fax: -
www.facs-as.org

9.4. Related MarketLine research

9.4.1. Industry Profile

Global Chemicals
Chemicals in Europe
Chemicals in Japan
Chemicals in the United States
Chemicals in the United Kingdom

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