Asahi Kasei Corporation · TSE:3407
Asahi Kasei — Investor Day (April 2017)
38 slides from Asahi Kasei's investor day presentation, Apr 12, 2017
Slide 1: Asahi Kasei Group Strategy for New Business Creation
Asahi Kasei Group Strategy for New Business Creation Heightening and deepening internal connections April 12, 2017 Asahi Kasei Corporation
Slide 2: Outline
Outline 1. “Cs for Tomorrow 2018” and vision for 2025 2. Asahi Kasei’s history of growth and new business creation 3. Framework for new business creation 4. Strategy for new business creation • Changing environment surrounding R&D and challenges for new business creation • Analysis of accumulated st
Slide 3: 1. “Cs for Tomorrow 2018” and vision for 2025
1. “Cs for Tomorrow 2018” and vision for 2025
Slide 4: Group’s vision for FY 2025
Group’s vision for FY 2025 Vision in 2025 Building a portfolio of high value-added businesses with high profitability Net sales ¥3 trillion (億円) Operating income ¥280 billion 3 Net Operating Net sales ¥2.2 trillion 300 売上高 sales 営業利益 income Operating income ¥180 billion Operating income (¥ billion)
Slide 5: Vision for FY 2025 by segment
Vision for FY 2025 by segment Net sales1 Health Care ¥1.94 trillion ¥3 trillion （Health Care / Acute Critical Care） Health Care 15% Material 18% Homes (Fibers/ Material (Homes/ Chemicals/ Homes 51% Construction Electronics Materials) 31% 52% 33% Operating income2 ¥280 billion ¥165.2 billion Health C
Slide 6: 2. Asahi Kasei’s history of growth and new business creation
2. Asahi Kasei’s history of growth and new business creation
Slide 7: Consolidated net sales of Asahi Kasei
Asahi Kasei’s sales compared to Japan’s GDP (¥ trillion) (¥ trillion) Consolidated net sales of Asahi Kasei 2 800 Others Real Japanese GDP Electronics 1.5 600 Health Care Homes/Const. Mat. Chemicals 1 400 Fibers Japan Real GDP 0.5 Japanese economic growth 200 0
Slide 8: Features of new business creation from the past cases of Asahi Kasei
Features of new business creation from the past cases of Asahi Kasei Committing strategic resources Newly developed materials take to new businesses that time to become profitable transform the business portfolio → Need to find applications that match the • Entry into petrochemicals, homes, electron
Slide 9: Past example of new business creation: Hipore flat-film polyolefin membrane
Past example of new business creation: Hipore flat-film polyolefin membrane Hipore succeeded in an application different than originally intended Invention of lithium-ion secondary battery More than 600 applications were Initially developed researched and as ion-exchange studied Lithium Lithium-ion
Slide 10: Past example of new business creation: Magnetic sensor
Past example of new business creation: Magnetic sensor Product-oriented development → change in needs/environment → expansion into various applications IT/mobile devices/smartphones Spread of smartphones PC/energy-efficient appliances/ in-vehicle electronics Electronic compass Precise motor control/
Slide 11: 3. Framework for new business creation
3. Framework for new business creation
Slide 12: R&D Organization
R&D Organization Asahi Kasei Corporation Corporate Research & Development Corporate Production Technology • Technology Policy Center • Synergistic Solution Initiative • Maintenance Technology Center • CVC Office • Yamashita Laboratory • Engineering Center • Corporate IP • Chemistry & Chemical Proces
Slide 13: Main R&D bases around the world
Main R&D bases around the world R&D sites overseas North America: Acquiring new technology (CVC); Healthcare-related R&D; new business creation Asia, ASEAN: Technical Center located in close Waltham, Dormagen, Germany proximity to market demand Chelmsford, Massachusetts Engineering Plastics Asahi Ka
Slide 14: Asahi Kasei Group’s R&D expenses
Asahi Kasei Group’s R&D expenses (¥ billion) Annual R&D expenses Others 90 900 0.1% Corporate expenses 10.0% 81.1 80 800 75.5 Breakdown of Chemicals/ R&D expenses 71.1 71.1 Fibers Health Care 700 70 39.8% ¥81.1 billion 23.9% 66.3 (FY 2015) 62.3 600 60 Homes/ Electronics Construction 21.9% Materials
Slide 15: 4. Strategy for new business creation
4. Strategy for new business creation
Slide 16: Changing environment surrounding R&D
Changing environment surrounding R&D Rapid growth in emerging countries IT/connected society Intense competition in Anyone can obtain cutting-edge technology in equivalent information anywhere both developed countries and emerging countries R&D and new business creation by companies Artificial intel
Slide 17: Measures to cope with environmental changes related to new business development
Measures to cope with environmental changes related to new business development Transformation of business portfolio by business expansion and new business creation Acquiring missing Outside alliances parts (by CVC etc.) Which business to create? (by joint R&D etc.) (which mountain to climb?) “abili
Slide 18: New business creation under the medium-term management initiative “Cs for Tomorrow 2018”
New business creation under the medium-term management initiative “Cs for Tomorrow 2018” Leveraging Asahi Kasei’s diversity to create value through combinations among various technologies and businesses Various Diverse business technologies operations • Fibers • Materials, devices • Production techn
Slide 19: Example of competitive analysis of patents
Example of competitive analysis of patents (Membrane for electrolysis) Vertical axis indicates the comprehensive Large companies strength of a company’s patent portfolio Asahi Kasei Assignee Score Size of circles is proportional to the number of valid patents Company A Company B C Smaller companies
Slide 20: Core technologies that support Asahi Kasei Products
Core technologies that support Asahi Kasei Products Catalyst/process Compound semiconductor/LSI Application- Electronic Homes/construction materials Cyclohexanol specific IC compass Hebel Haus unit homes IR sensor/ Magnetic AN/MMA gas sensor sensor Hebel Maison apartment buildings Creolex metallocen
Slide 21: Accumulated business platforms
Accumulated business platforms Material Fibers Chemicals Electronics Products related to living (apparel material, consumables, etc.) Healthcare-related material Automotive-related products (structural material, interior material, tire material, LSIs, sensors) Environment/energy-related material (ba
Slide 22: New business creation through collaboration among three business sectors
New business creation through collaboration among three business sectors Connecting the strengths of each business sector to create unique new businesses Working to apply products in the Material sector to housing Material applications, mainly by the Residential Synergy Initiative Health Care Counci
Slide 23: Aims and approach for new business creation
Aims and approach for new business creation Our main areas of focus to address social issues Society of clean Society of healthy/comfortable environmental energy longevity with peace of mind Fostering and acquiring Acquiring technology seeds core technology Applying technology laterally CVC Strength
Slide 24: Approach for new business creation viewed by market axis and technology axis
Approach for new business creation viewed by market axis and technology axis Established Established Potential future New markets mature markets growth markets markets until FY2018 until FY2025 improvements/ Maximizing value of established A • Marketing C technologies/ combinations businesses • Full
Slide 25: Example of new business creation in Category C: Alkaline water electrolysis system
Example of new business creation in Category C: Alkaline water electrolysis system System to convert renewable energy into hydrogen as energy storage medium Renewable energy • Fuel-cell vehicles CO2-free • Hydrogen power generation hydrogen • Clean energy (methane, ethanol) Large-scale adoption but
Slide 26: Example of new business creation in Category D: High-performance composite materials
Example of new business creation in Category D: High-performance composite materials Combinations of fiber, resin, and processing technology 1) Material to replace metal for weight reduction in automotive structural parts Comingling Weaving Polyamide (PA) 66 fiber Comingled yarn Base material for mo
Slide 27: Targets for high-performance composite materials
Targets for high-performance composite materials Primary structural CF RTP* components (issue: high cost) Secondary structural components Primary structural GF RTP* components Strength-to-weight ratio (issue: manufacturing Passenger compartment technology) frame, body pillars CNF RTP* (issue: formin
Slide 28: Example of new business creation in Category E: UVC LED
Example of new business creation in Category E: UVC LED ◆Compound semiconductor as core technology for business expansion Hall elements (world-leading share)→ IR sensor, CO2 sensor, etc.→ UVC LED using aluminum nitride (AlN) Mass production of UVC LEDs using the world’s only 2-inch single-crystal Al
Slide 29: CVC Function: Bringing in sprouts in Categories C and E
CVC* Function: Bringing in sprouts in Categories C and E Utilizing venture companies in highly innovative fields to reduce risks and accelerate commercialization Technology axis New developments Low Utilizing/acquiring external resources Area of CVC activity Existing High technology Utilizing intern
Slide 30: CVC Office: Bringing in sprouts in Categories C and E
CVC Office: Bringing in sprouts in Categories C and E Building information networks through venture capital (VC) Identifying venture businesses that are compatible with Asahi Kasei Acquiring technology and proposing/advancing new business development through partnership with/acquisition of venture b
Slide 31: 5. Solution business using IT
5. Solution business using IT Creating added value from new perspectives (Category B)
Slide 32: ZOLL products in the “Chain of Survival”
ZOLL products in the “Chain of Survival” Chain of Survival ZOLL’s products strongly support every phase of the Chain of Survival ZOLL products LifeVest RescueNet AutoPulse AED Plus Thermogard wearable data non-invasive automated temperature defibrillator management cardiac support external X Series
Slide 33: LifeVest solution business
LifeVest solution business Needs (marketing) • Enabling patients at high risk of sudden cardiac arrest to stay outside the hospital • If ventricular fibrillation or other life-threatening arrhythmia occurs → life-saving shock without delay Emergency measures when an event occurs; using ICT to suppor
Slide 34: Examples of solutions business being advanced and developed
Examples of solutions business being advanced and developed Plant maintenance services • Web-based remote automatic vibration diagnostic system – Stable operation of plant and equipment (rotating machinery, industrial robots, etc.) • Electric power system analysis service Stable supply solution for
Slide 35: Enhancing business activity utilizing IoT, AI, Big Data
Enhancing business activity utilizing IoT, AI, Big Data Coordinated utilization of advanced IT Organized by Corporate Production Technology Corporate Corporate Research Manufacturing Corporate IT & Development, Technology Production Asahi Kasei Center Management Technology Microdevices Manufacturing
Slide 36: 6. Essence of new business creation
6. Essence of new business creation
Slide 37: Essence of new business creation under “Cs for Tomorrow 2018”
Essence of new business creation under “Cs for Tomorrow 2018“ 1. Creating and developing new markets ourselves • Creating business producing hydrogen by water electrolysis • Strengthening CO2 chemistry business (environmental compatibility) • Creating diverse markets for disinfection by UVC LED • Ne
Slide 38: 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