Asahi Kasei Corporation · TSE:3407
Asahi Kasei — Investor Day (September 2016)
39 slides from Asahi Kasei's investor day presentation, Sep 8, 2016
Slide 1: Material Sector Business Briefing
Material Sector Business Briefing September 8, 2016 Asahi Kasei Corporation
Slide 2: Contents
Contents 1. Asahi Kasei Group Overview 2. Strength of Asahi Kasei 3. Basic policy and strategic focus of Material business sector 4. Investment for growth 2
Slide 3: Asahi Kasei Group configuration from Apr. 2016
Asahi Kasei Group configuration from Apr. 2016 Three business sectors and operating holding company configuration from April 2016 Asahi Kasei Corp. (change from holding company to operating holding company) Promotion of greater integration and collaboration Asahi Kasei Microdevices Operating functio
Slide 4: Financial performance by segment (1)
Financial performance by segment (1) FY 2015 Asahi Kasei Group financial results Net sales Operating income Health Health Care Care 15% 19% Material ¥1,940.9 Material ¥165.2 43% Homes billion 52% billion 33% Homes 38% Note: Percentages calculated excluding the Others category and corporate expenses.
Slide 5: Financial performance by segment (2)
Financial performance by segment (2) (¥ billion) FY2015 FY2016 forecast Operating Operating Operating Operating Net sales Net sales income1 margin income1 margin Fibers 132.1 13.9 10.5% 130.0 13.5 10.4% Chemicals 750.7 60.8 8.1% 713.0 59.0 8.3% Electronics2 121.6 4.4 3.6% 137.0 (2.5) ‐1.8% Material
Slide 6: Contents
Contents 1. Asahi Kasei Group Overview 2. Strength of Asahi Kasei 3. Basic policy and strategic focus of Material business sector 4. Investment for growth 6
Slide 7: History of portfolio transformation
History of portfolio transformation Boldly taking challenges with new businesses to achieve growth under changing operating climates Net sales Operating (¥ billion) Early diversification Advanced diversification Selection & focus New challenges income 2,000 (¥ billion) 200 売上高 Net sales Oil shock Co
Slide 8: Connecting technology, business, and human resources
Connecting technology, business, and human resources Material Net sales (domestic and overseas) (¥ billion) Asahi Kasei Corp. (operating holding 1,986.4 company) 2,000 1,897.8 1,940.9 Asahi Kasei Microdevices 1,666.6 1,573.2 1,500 Asahi Kasei Group Homes Each product and each Asahi Kasei Homes busin
Slide 9: Contents
Contents 1. Asahi Kasei Group Overview 2. Strength of Asahi Kasei 3. Basic policy and strategic focus of Material business sector 4. Investment for growth 9
Slide 10: Organization of Material business sector
Organization of Material business sector Vice‐Presidential Executive Officer Material Yuji Kobayashi Primary Executive Officer Fibers & Textiles SBU Toshio Takanashi Senior Executive Officer Petrochemicals SBU Tsuneo Takemoto Lead Executive Officer Performance Polymers SBU Hiroshi Yoshida Senior Exe
Slide 11: Main products of Material sector (1)
Main products of Material sector (1) SBU Division/affiliate Main products Bemberg Bemberg Roica Roica Fibers & Textiles Non‐woven Fabrics Eltas, Bemliese, Lamous Leona Filament Leona (airbags, tire cord) Basic Chemicals Caustic soda, nitric acid, styrene, adipic acid, cyclohexanol Asahi Kasei Mitsub
Slide 12: Main products of Material sector (2)
Main products of Material sector (2) SBU Division/affiliate Main products Performance Coating Materials Duranate, Duranol (PCD), aluminum paste Functional Additives Ceolus, acetonitrile, MAN Explosives Metal clads, explosives Microza & Water Processing Microza UF/MF Performance Materials Ion Exchang
Slide 13: Basic policy and strategic focus
Basic policy and strategic focus Basic policy • Work to enhance profitability of established businesses and expand key businesses • Develop and implement business strategies to achieve synergies among the businesses within the Material sector • Develop and implement strategic investments toward the
Slide 14: FY 2018 target and FY 2025 outlook
FY 2018 target and FY 2025 outlook Operating Net sales income (¥ billion) FY 2025 (¥ billion) 2,000 outlook 200 Net Sales Operating income FY 2018 1,650 Membranes, coating target materials, 1,500 140 150 electronic materials, 1,250 electronic devices, Performance etc. 1,004.4 980.0 products 1,000 10
Slide 15: Strategic focus: automotive-related businesses (1)
Strategic focus: automotive‐related businesses (1) FY 2025 sales target: ¥300 billion → Enhance value for customers through comprehensive proposals of our products and technologies in the Material sector Key strategy 1 Creating new products and solutions by integrating various businesses/products/te
Slide 16: Strategic focus: automotive-related businesses (2)
Strategic focus: automotive‐related businesses (2) To enhance sector‐wide comprehensive approach to customers, Automotive Marketing Department was established in April 2016 Automotive Marketing Dept. for greater internal coordination Speech recognition system Artificial suede for upholstery Resin fo
Slide 17: Strategic focus: global strategy by region (1)
Strategic focus: global strategy by region (1) Overseas net sales of Asahi Kasei Group (FY 2015) Europe East Asia (China) The Americas ¥80 billion ¥310 billion (¥180 billion) ¥180 billion 4% 16% (10%) 9% Southeast Asia ¥80 billion 4% Net sales Material sector % of total % of total (¥ billion) sales
Slide 18: Strategic focus: global strategy by region (2)
Strategic focus: global strategy by region (2) Advancing integration of business strategies and functions in each region Europe United States Asahi Kasei Europe functions as a Coordinate business strategies central base for all operations in and administrative functions Europe, and develops mainly f
Slide 19: Strategic focus: global strategy by region (3)
Strategic focus: global strategy by region (3) Asahi Kasei Europe GmbH—operation began April 2016 Enhancing Asahi Kasei’s presence in Europe and promoting comprehensive marketing within the Material sector mainly for the automotive industry. → Aiming to triple current net sales of €700 million in Eu
Slide 20: Strategic focus: growth in healthcare applications
Strategic focus: growth in healthcare applications Health Care sector of Asahi Kasei (pharmaceuticals/medical devices/critical care) Sales: ¥ billion FY 2015 FY 2018 (target) FY 2025 (outlook) → → Health Care sector 285.4 370 600 Expansion of materials for healthcare‐related applications through syn
Slide 21: Basic strategy by business unit
Basic strategy by business unit Business unit Basic strategy Stable expansion of all four main businesses while studying Fibers & Textiles SBU expansion of production facilities Enhance earning base by completing structural realignment of Petrochemicals SBU operations while transforming to a higher
Slide 22: Contents
Contents 1. Asahi Kasei Group Overview 2. Strength of Asahi Kasei 3. Basic policy and strategic focus of Material business sector 4. Investment for growth 22
Slide 23: Investments under "For Tomorrow 2015"
Investments under “For Tomorrow 2015” Non‐linear growth Existing businesses ¥460 billion ¥540 billion • Acquisition of Crystal IS • Construction of initial production plant for FY 2011 UVC LEDs, etc. • Capacity increase for S‐SBR in Singapore • Capacity increase for acetonitrile in Korea Total ¥20
Slide 24: Investment for growth in the Material sector
Investment for growth in the Material sector SBU Products Location Items Period Germany Establishment of Asahi Kasei Europe GmbH 2016 — Japan Consolidation and enhancement of R&D facilities 2017/18 S‐SBR Singapore Construction of second plant (50kt/y) 2015 Capacity expansion of hydrogenated styrenic
Slide 25: Financial and capital strategy
Financial and capital strategy Total investment (3‐year total): ¥700 billion Proactively advance M&A and other new investment in addition to investment to maintain and expand established businesses Strategic investment in the Material sector Proactively invest for expansion mainly in battery
Slide 26: Creating for Tomorrow
Creating for Tomorrow The commitment of the Asahi Kasei Group: To do all that we can in every era to help the people of the world make the most of life and attain fulfillment in living. Since our founding, we have always been deeply committed to contributing to the development of society, boldly ant
Slide 27: Reference
AsahiKASEI Reference 27
Slide 28: Asahi Kasei's leading products (1)
Asahi Kasei’s leading products (1) Automobile No. 1 share No. 1 share S‐SBR for fuel‐ Duranate coating in the world in the world efficient tires material Hipore Li‐ion Magnetic battery separator sensors Material No. 1 share No. 1 share No. 1 share in the world in the world in the world Cupro regener
Slide 29: Asahi Kasei's leading products (2)
Asahi Kasei’s leading products (2) No. 1 share One of a kind in the world Defibrillators for Wearable defibrillator Health Care Hospital & EMS No. 1 share No. 1 share in the world in the world Planova virus Sepacell leukocyte removal filters reduction filters Domestic Business Hebel Haus Saran Wrap
Slide 30: Fibers (1)
Fibers (1) Bemberg cupro fiber • Only manufacturer in the world • Global development for wide range of applications such as linings, functional innerwear, and ethnic garments • Capacity expansion in Nobeoka; start‐up in June 2014, capacity increase by 10% Roica spandex • Global development of high‐f
Slide 31: Fibers (2)
Fibers (2) Nonwovens Offering distinctive nonwovens made of different materials and by original production technology for wide range of applications Forecast for diaper production in ASEAN and India (billion pcs.) (Asahi Kasei estimate) Eltas spunbond 60 Baby Increased demand in hygienic application
Slide 32: Petrochemicals (1)
Petrochemicals (1) Main petrochemical products Asahi Kasei Capacity Main competitors Main applications Asahi Kasei’s position/strengths (kt/y) Acrylonitrile 960 Ineos Acrylic fiber, ABS; captive use 2nd largest producer in the world (150 kt/y plant in for ABS, adiponitrile Kawasaki closed in Aug. 20
Slide 33: Petrochemicals (2)
Petrochemicals (2) Strengthening petrochemical operations in Japan Strengthening petrochemical operations by establishing the optimum production configuration for stable earnings and enhanced competitiveness to cope with contracting domestic demand and price competition from products made overseas b
Slide 34: Performance polymers (1)
Performance polymers (1) Synthetic rubber (solution‐polymerized SBR) • Top share in Asian market for solution‐polymerized SBR (S‐SBR) for fuel‐efficient tires • Enhancing overall tire performance, with good balance of fuel efficiency and wet grip • Technology for both continuous and batch polymeriza
Slide 35: Performance polymers (2)
Performance polymers (2) Engineering plastics Advancing global growth strategy; reinforcing automotive‐related businesses • Leveraging computer‐aided engineering (CAE) technology with weight‐saving proposals for automotive parts • Development of materials based on sophisticated technologies for poly
Slide 36: Performance materials
Performance materials Main products of performance materials Product Main applications Asahi Kasei’s position Microza UF and MF membranes Water filtration Top‐tier world share: No. 1 share in the US municipal water treatment market Aciplex ion‐exchange membranes Chlor‐alkali electrolysis Membranes:
Slide 37: Consumables
Consumables Division/affiliate Main products Fabricated Products Division Polyolefin and polystyrene films, Asaclean Asahi Kasei Home Products Corp. Saran Wrap, Ziploc, Frosch Asahi Kasei Pax Corp. Beverage containers, food packaging materials Household products Saran Wrap, Ziploc, Cookper Saran W
Slide 38: LIB separator
LIB separator Demand forecast for LIB separator Asahi Kasei production capacity for LIB separator (Million m2) (Asahi Kasei estimate) (planned as of May 2016) 2,500 Demand increase: CAGR approx. 20% 2,000 ⾞載 Automotive Consumer ⺠⽣ electronics 1,500 CAGR approx. 30% 1,000 500 CAGR approx. 3% 0 2016 2
Slide 39: Electronic devices
Electronic devices Product Main applications Asahi Kasei’s position Main competitors Electronic compass Smartphones, tablets, etc. World’s No. 1 Yamaha, Alps Electric Devices for camera Camera modules for smartphones Top tier in the world Rohm Semiconductor, module (magnetic sensors) Renesas Electro