Toyobo Co., Ltd. · TSE:3101
Toyobo — Investor Presentation (September 2022)
41 slides from Toyobo's investor presentation, Sep 29, 2022
Slide 1: Business Presentation: Films Business
2022.9.29 Business Presentation: Films Business TOYOBO CO., LTD. Representative Director & Co-COO & CTO Head, Films and Functional Materials Solutions Division Chikao Morishige
Slide 2: Contents
Contents Ⅰ. Positioning of the Films Business Ⅱ. Environmentally Conscious Films Business Ⅲ. Films Business for the Digital Society Ⅳ. Future Development Corporate Philosophy System TOYOBO PVVs Ⅴ. Appendix 2
Slide 3: Ⅰ. Positioning of the Films Business
Ⅰ. Positioning of the Films Business 3
Slide 4: Positioning of the Films Business within the TOYOBO Group
Positioning of the Films Business within the TOYOBO Group FY 3/22 Results Net sales Operating profit 170.3 375.7 28.4 (¥bn.) (¥bn.) 19.9 Films and Functional Materials Films and Functional Materials Approx. 45％ Approx. 70％ Packaging film Industrial film Functional materials 4
Slide 5: Change in Net Sales and Operating Profit Margin of the Films and Functional Materials Business
Change in Net Sales and Operating Profit Margin of the Films and Functional Materials Business （¥bn.） 200.0 20.0% 150.0 15.0% 100.0 10.0% Net sales Operating profit margin 50.0 5.0% 0.0 0.0% FY 3/13 FY 3/14 FY 3/15 FY 3/16 FY 3/17 FY 3/18 FY 3/19 FY 3/20 FY 3/21 FY 3/22 5
Slide 6: Films Business Bases in Japan
Films Business Bases in Japan Production, R&D Sales, Planning Tsuruga Research and Production Center Toyoshina Film Co., LTD. Cast Film Japan Co., LTD Research Center (Otsu) Utsunomiya Plant Head Office (Osaka), Toyobo STC Co., LTD, Toyobo Packaging Planning Services, INC. Tokyo Branch Kyushu Sales b
Slide 7: Films Business Overseas Bases
Films Business Overseas Bases TOYOBO Chemicals Europe Gmbh (Germany) TOYOBO U.S.A., INC. TOYOBO Korea Co., Ltd. TOYOBO (SHANGHAI) CO., LTD. Production TOYOBO (TAIWAN) CO., LTD. Sales TOYOBO (THAILAND) CO., LTD. PT. TOYOBO TRIAS ECOSYAR PT. TRIAS TOYOBO ASTRIA PT. INDONESIA TOYOBO FILM SOLUTIONS Expa
Slide 8: Outline of the Films Business
Outline of the Films Business Packaging Film For confections PET bottle labels ● Possesses multiple materials, and achieves multiple functions ・Polyester (Ease of cutting) For retort pouches ・Nylon (Tear-resistant) ・Polypropylene, Polyethylene (Sealing ability) etc. ● Applications: Food packaging fi
Slide 9: Contributing to Solving Social Issues through the Films Business
Contributing to Solving Social Issues through the Films Business ( from Sustainable Vision 2030) Vision : We will continue to create the solutions needed by people and the earth with our materials and science Relations between five social issues and SDGs Employees’ well-being - People First: employe
Slide 10: Reorganization of the Business Portfolio
Reorganization of the Business Portfolio (from 2025 Medium-Term Management Plan) Assess and stratify each business into 4 quadrants with 2 axes: “Profitability” and “Growth potential” High New businesses to be Commercialization Businesses focusing developed Preparation expansion Businesses focusing
Slide 11: Key Products of the Films Business
Key Products of the Films Business Films Business Packaging Industrial Film Film For the Environmentally digital society conscious Liquid Material Chemical Material Reduce Biomass MLCC Crystal Recycling Recycling Recycling Polarizer “SPACECLEAN” “SPACECLEAN” “BIOPRANA” “Crisper” “COSMOPEEL” “COSMOSH
Slide 12: Ⅱ. Environmentally Conscious Films Business
Ⅱ. Environmentally Conscious Films Business 12
Slide 13: Film Market and External Environment
Film Market and External Environment Market: Expected CAGR of 6% for the global packaging film market ・Demand for packaged food is increasing in China, India and other countries in the Asia-Pacific region External environment: ①Global restrictions on resources and waste, and marine plastic issue
Slide 14: Current Situation regarding Plastic Recycling
Current Situation regarding Plastic Recycling From material the Plastic Waste Management Institute Amount of discharged plastic in Japan: 822 ten thousand tonnes (FY 3/21) TOYOBO’s film production ability: Approx. 25 ten thousand tonnes/year 14% Material Recycling 21% 49 ten thousand 21% 20% 25% t
Slide 15: To Be the World's Leading Green Film Maker
To Be the World’s Leading Green Film Maker The target greening rate of 60% in FY 3/31 and 100% in FY 3/51 (Biomass, Recycling, Volume reduction) ~ Aiming to realize “a symbiotic society with plastics,” not a plastic-“free” society ~ With resource circulation, no waste is produced Crude oil ●Chemical
Slide 16: Environmentally Conscious Film①│Reduce
Environmentally Conscious Film①│Reduce Ultra-highly rigid polypropylene film “PYLEN EXTOP” ・ Rigidity approx. 1.7 times that of general biaxially oriented polypropylene films ⇒ Possible 20% thickness reduction. Reduced waste due to volume reduction ⇒ Possible to change to mono-material Start sales
Slide 17: Environmentally Conscious Film②│Reduce
Environmentally Conscious Film②│Reduce Transparent vapor-deposited film “ECOSYAR” —ZERO HUNGER— ・ Binary vapor deposition of alumina and silica. Demand is emerging for products that extend expiration Both flexibility and gas barrier property dates and reduce food loss as countermeasures for food short
Slide 18: Environmentally Conscious Film③│Material Recycling
Environmentally Conscious Film③│Material Recycling Use recycled resin ● Packaging film “CYCLE CLEAN” We are the only company in Japan ・ Uses of 80% recycled resin producing and selling polyester films for ・ Same physical properties food packaging applications domestically as regular polyester films t
Slide 19: Environmentally Conscious Film④│Biomass
Environmentally Conscious Film④│Biomass Uses plant-derived raw materials “BIOPRANA” ・ 20% are plant-derived polyester films ・ Quality equivalent to general purpose polyester films ・ Nylon and polypropylene also considered [Our strengths] Future Development Film forming technology and polymerization
Slide 20: Future Development｜Material Recycling (Pre-Consumption) ①
Future Development｜Material Recycling (Pre-Consumption) ① Development of “KAMISHINE” [Our strengths] a film-type label release paper mold releasing film Coating Processing Technology Base material ･･･Film “KAMISHINE” ・ Turning the release paper (label backing paper) into a film surface makes it recy
Slide 21: Future Development｜Material Recycling (Pre-Consumption) ②
Future Development｜Material Recycling (Pre-Consumption) ② Recycling of mold releasing film for MLCC ・ Recovery of used film from within the Company and from the market and recycling into new film ・ Currently partially underway Dissolution of the coating layer Peeling of the coating layer Used proces
Slide 22: Future Development│Laminating Films for Cans
Future Development│Laminating Films for Cans Laminating Films for Cans ・ Film lamination for both inside and outside of metal cans Polyester film ・ Uses film as substitute for paint. Environment friendly, as this doesn’t involve coating with paint ・ Combines both laminability (adhesiveness) and form
Slide 23: Ⅲ. Films Business for the Digital Society
Ⅲ. Films Business for the Digital Society 23
Slide 24: Mold Releasing Film for MLCC | Manufacturing Process and Commercial Distribution
Mold Releasing Film for MLCC | Manufacturing Process and Commercial ● Polyester based releasing films used in MLCC manufacturing processes “COSMOPEEL” “PUREX” Dielectric Dielectric Internal Release Film Paste Sheet Electrodes Internal Electrodes Sheeting Drying Printing Peeling Stacking Pressing Cut
Slide 25: Mold Releasing Film for MLCC│Market and Our Sales
Mold Releasing Film for MLCC│Market and Our Sales 4.0 Approx. 3x compared to FY 3/18 3.0 2.0 1.0 0.0 FY 3/17 FY 3/18 FY 3/19 FY 3/20 FY 3/21 FY 3/22 Net sales of the TOYOBO products (times) Forecast for market of the mold releasing (FY 3/18 as 1) film for MLCC (thousand tonnes / year) FY 3/21 onward
Slide 26: Mold Releasing Film for MLCC│Features
Mold Releasing Film for MLCC│Features [Strengths] The only manufacturer that can manufacture high-end products through an integrated process spanning from base film manufacturing to release processing ・ Film forming technology that realizes superior smoothness “COSMOPEEL” “コスモピール” ⇒ Can reduce the d
Slide 27: Film Production Process│Inline Coating and Offline Coating
Film Production Process│Inline Coating and Offline Coating Raw material Vertical stretching, Horizontal stretching, Inline Coating Extruding raw material Winding Trimming Casting Direction of film movement Drying furnace Offline Coating Coating Winding Loading and Winding Testing UV Accumulation cha
Slide 28: Polarizer Protective Films for LCDs│Applications and Commercial Distribution
Polarizer Protective Films for LCDs│Applications and Commercial Distribution Main application: Polarizer protective films for LCD TVs “COSMOSHINE SRF” ・ Polyester-based super retarder film. ・ Elimination of coloration (rainbow pattern) caused by birefringence while being a stretched film. ・ Placed
Slide 29: Polarizer Protective Films for LCDs│Features
Polarizer Protective Films for LCDs│Features [Our strengths] ・ Superior handling ability (superior dimensional stability, 80,000 low degree of warping) due to low moisture absorbency 60,000 ⇒Display strengths in increasing size, shifting to no bezel and shifting to open cell panels for LCD TVs 40,00
Slide 30: Future Development│Heat-Resistant Film①
Future Development│Heat-Resistant Film① Heat-resistant polyimide film “XENOMAX” ・ High temperature resistance compatible with TFT (thin-film transistor) processes (400-500℃) ・ Dimensional stability rivaling glass (low thermal expansion) Word class among polymer films ・ Combines film qualities (light
Slide 31: Future Development│Heat-Resistant Film②
Future Development│Heat-Resistant Film② PEN (polyethylene naphthalate) film “TEONEX” ・ Advantages compared to polyester: high rigidity, dimensional stability (low thermal expansion), 10,000 electric insulation, hydrolysis-resistance, solvent-resistance 8,000 ・ Applications: Car motors, isolation tra
Slide 32: Ⅳ. Future Development
TOYOBO IV. Future Development
Slide 33: Films Business Today ～ Future Development
Films Business Today ～ Future Development Today Future Development ● Global expansion Reduce ・ Transparent vapor-deposited films Laminating Films For Cans ・ Laminating films for cans, etc. Environmentally ● Replace market conscious ・ Painting ⇒ Laminating films for cans ・ Release paper for labels Ma
Slide 34: Expansion of the Films Business
Expansion of the Films Business ~ To be the world’s leading green film maker ~ Net sales (¥bn.) Operating profit (¥bn.) 250.0 2,500 30.0 2,000 200.0 25.0 150.0 20.0 1,500 15.0 1,000 100.0 10.0 50.0 500 5.0 0 0.0 0.0 FY 3/22 2021年度 FY 3/26 2025年度 FY 3/31 2030年度 FY 3/22 FY 3/26 FY 3/31 CAPEX approx. ¥
Slide 35: Ⅴ. Appendix
TOYOBO V. Appendix
Slide 36: History of the Films Business
History of the Films Business 1963 Entered the films business (started production of unoriented polypropylene films) (Tsuruga) 1964 Started production of biaxially oriented polypropylene films (Tsuruga) 1968 Inuyama Plant withdraws from the pulp business and changes to the films business 1971 Started
Slide 37: Chemical Recycling
Chemical Recycling Co-funding R Plus Japan, Ltd. (since its establishment in 2020) 40 companies participating as of May 2022 Supporting the development of chemical recycling technology by Anellotech Inc. (U.S.) A U.S.-based biochemical venture company (established in 2008) Technologies for refinin
Slide 38: Participating Companies in R Plus Japan, Ltd.
Participating Companies in R Plus Japan, Ltd. As of May 2022 Raw material ･ Crude Consumer Feedstock intermediate Container ･ Packaging oil goods goods Sort ･ Preprocessing Distribution 38
Slide 39: Ideals Films Business Seek to Realize
Ideals Films Business Seek to Realize To be the world’s leading green film maker The target greening rate of 60% in FY 3/31 and 100% in FY 3/51 (Biomass, Recycling, Volume reduction) ~ Aiming to realize “a symbiotic society with plastics,” not a plastic-“free” society ~ With resource circulation, no
Slide 40: Please Note
Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from ac
Slide 41: © TOYOBO CO., LTD. All rights reserved.
© TOYOBO CO., LTD. All rights reserved.